Lecture on Foreign Marketing

Introduction

• Topic: Foreign marketing strategies
• Scope: Discusses marketing across national borders
• Objective: Understand strategies and challenges in international markets

What is Foreign Marketing?

• Conducted by companies overseas
• Extends home country marketing techniques
• Includes:
  • Market identification & targeting
  • Entry mode selection
  • Marketing mix adaptations
  • Strategic decision-making for competition

Key Considerations in Foreign Marketing

Market Identification

• Products may target different demographics in different countries
• Importance of understanding cultural and market differences

The Marketing Mix in Foreign Contexts

• Product: Adaptations might be needed (e.g., Coca-Cola's formula variations)
• Place: Distribution decisions vary by country and competition
• Price: Influenced by costs, competition, and market positioning
• Promotion: Requires universal strategies, adapting to local nuances
• People: Utilize local expertise for cultural understanding
• Processes: Adapt strategies to local markets
• Physical Evidence: Legal and trade environments affect operations

Case Study: Exporting a Product from South Africa to the USA

• Initial Success and Challenges:
  • Product: Adjustable grill for Weber
  • Initial export to the USA was delayed, missing peak season
  • Encountered pricing and market acceptance issues
• Marketing Strategies:
  • TV ads increased awareness but did not resolve pricing issues
  • Price adjustments were attempted, but profitability was compromised
• Learnings:
  • Importance of broad market research
  • Need for price point testing in various regions
  • Consideration for adjusting product quality and distribution channels

Advantages of Foreign Marketing

• Market expansion and economies of scale
• Leverage existing brand images (e.g., Coca-Cola)
• Lower marketing costs in certain cases
• Opportunities for smaller businesses

Challenges in Foreign Marketing

• Diverse consumer needs and usage patterns
• Price and brand perception differences
• Legal and institutional variances
• Importance of thorough market research prior to entry

Key Questions for Market Research

• Market size and share potential
• Existing competition and pricing
• Competitor advertising strategies
• Product comparison with competitors

Influencing Factors in Foreign Marketing

• Additional considerations include:
  • Payment methods and currency fluctuations
  • Increased paperwork for exports
  • Cultural differences in business practices
  • Partnerships and protection against increased risks

Conclusion

• The lecture covered essential aspects of foreign marketing and real-world application through case studies
• Emphasis on adapting strategies to align with international market demands

The lecture ended with a discussion on the complexities of international marketing and the need for strategic planning and market research.