good afternoon everyone today we're going to be looking at foreign marketing this is the second last section we'll be doing so what is foreign marketing it is a marketing carried out by companies overseas or across national borders and this strategy uses an extension of a techniques used in our own home countries of the businesses it includes marketing practices such as a market identification and targeting entry mode selection the marketing mix and strategic decisions to compete in an international market so if we just recap on those points thinking of market identification a product you sell in one country might be suited to specific age groups whereas in another country it's a totally different target market that you are looking at and these are things that one needs to consider the next thing we're going to be looking at is the marketing mix as applied to the foreign marketing marketing mix product price place promotion people processes and physical environments are affected when a company moves to foreign marketing a company tried to duplicate the marketing mix as it is applied in the home country could be faced with many challenges when creating a worldwide marketing plan unless a company holds the same position against its competition in all markets it is impossible to launch identical marketing plans worldwide so let's take a look at the product a product offering that is universal and needs only a few changes to the product or the packaging will be able to be marketed successfully in a foreign market for example coca-cola uses two formulas one with sugar and one with corn syrup with all markets the product packaging in every country incorporates the same shaped bottle or can coca-cola uses the country's native language and the same size beverage bottles or cans on offer in the foreign country next let's look at place how the product is distributed is also a country-by-country decision and it's influenced by competition placement decisions must also consider products position in the marketplace for example a high-end product should not be distributed via a cheap outlet in a foreign country which means you need to understand the foreign country very well price will always vary from market to market price is affected by very many variables the cost of the product development the cost of ingredients the cost of delivery transportation tariffs additionally the products position in relation to the competition influences the profit margin whether the product is considered as a high-end expensive choice or an economical low-cost choice or something in between helps determine the price point the physical evidence the environment in the foreign country can range from being reasonably unrestricted to very cumbersome and restricted legal requirements and trade agreements could make it very difficult for international markets looking at promotional after product research development and creation promotion and especially advertising is generally the largest budget item when importing and exporting the successful business wants to reduce costs and maximize speed of implementation this will require Universal promotional strategy which will be most cost effective the process in foreign markets differ from country to country and marketers need to do thorough research before simply implementing strategies which worked in the home country and lastly people an important principle of foreign market eeen is to make sure and make use of the local resources people residing in a specific country will be much better position to understand the culture and operational details of their own country Sanna all of us might sound a little bit foreign excuse a penny but what we going to do now is we're going to look at a video of a product that was manufactured in South Africa and it is currently being exported to the USA we have a gentleman who works with this company who can speak through all the different seven P's to give us an understanding of how this actually works in the about ten years ago one of our shareholders come up with a concept for a heart adjustable girl for a weber and patented it at that time we sort of put it around with the idea for a number of years and we sort of sold them a bit like you know a bit in the local market and about I don't know two or three years ago we thought you know we export a number of other products and we thought well let's try and export this one as well and the logical market first seemed to be the u.s. we exported a lot to the USA and we understood the market quite well we did a whole lot of research we happen to be across a seeing our existing customers we met up with some marketing agencies while we were there and the idea seemed to be very well received and we went ahead we made a few thousand of them we put them into a container and we sent them across to Amazon in the US the collapse unfortunately arrived a few months later than we had hoped so we missed the first part of summer and initially we wanted them there in the spring to try and make the most use out of barbecue season but unfortunately they arrived a bit late and the marketing started a bit late and we very quickly ended up in winter where we sold very few in the first year we then went on and contracted with a company called As Seen on TV and we put a TV ad in place which did and the number of states a couple of hundred times which certainly developed some interest but you know the lot of things that you only learn after the fact once you started marketing a product the biggest mistake that we possibly made was that we didn't do enough market research and a wide enough audience so our sample group was a bit narrow and possibly from the wrong states you know the u.s. is a big place and what people like in new hampshire or new york was very different to our people buying california we looked extensively at pricing and the price at the market to be prepared to pay for such an item and unfortunately there was nothing that we could benchmark against because there are other competing products is no one else it sells anything like it so we had to come up with our own price based on market research and what we were told people would be prepared to pay and this also was another assumption that we got a bit wrong despite all the research and the seventy nine ninety five US dollar price tag was just that much too much for someone to pay for a product despite the quality being really good what we then did was just to test the price point is we saw a couple of hundred of them at 14 on 95 and then later at $45 and there flew off the shelves so it immediately told us at the price that we had got it at additionally was wrong but the problem is at forty five or even fifty dollars there is not enough margin on it to make it worth selling so at that point we decided that we would rather pull it from the market and bring what we had left there back to South Africa and continue to sell it in the local market where people understood crying on a Weber and not just using it for indirect cooking as they do in the States now what we then later found is that only a very small portion of the population in America enjoyed charcoal grilling rather than gas grilling and that most people have to browse one will have a of a gas bra and a charcoal bra the Taco Bell use indirect to do a roast or something like that and then they use the gas bra for what we traditionally know as a bra if we had to do it again and we had a second transit it what would we do differently we would probably make it's not inferior quality but we would make it not as well you know it was constructed from stainless steel we had maybe just make it out of normal steel and chrome plated we would sell it for a lot less we would try and get it into big-box stores you know I think there's many different ways that you can sell products here and the markets are so big and there's just so much choice that it's difficult to know what the right channel is and I think you just need to try a number of different ways to you know for your reach to market we have decided not to concentrate in our core business and I think that was another good lesson for us to learn was it you no you must stick to what you're good at and we could at manufacturing greasing equipment and being innovative and coming up with new ideas in that market which is where we well-established and launching a new product in your established market with existing customers is a lot easier than trying to start something completely different and selling it to a completely different set of customers and a completely different market that enhance art we didn't actually quite understand thank you very much Jonathan for their really detailed explanation and the experiences you entry so some of what you touched on will come up in the next three or four slides if we look at the advantages of viral marketing with market expansion the economies of scale it will be found in production in distribution of our beta if a local market is saturated in expansion into an international market using the same strategies as a home country can be profitable but you could also lose many a company can benefit from one brand image just like coca-cola lower marketing costs as a result of the uniformity of marketing you don't need to rebrand your your name or things like that it's already been done he marketing opens up new avenues for smaller businesses on a much smaller budget moving on to factors that hamper or hinder foreign marketing there could be consumer needs once and product usage patterns as we saw in the example this was a real issue consumer response to the marketing mix elements if people thought the price was too high brand and product development and competitive environment and then obviously the legal environment is totally different and the institutions that are available are foreign to what you are normally used to so it's really important for businesses to evaluate the foreign market before they start plowing loads of money and timely investment into this businesses need to evaluate by doing market research and this will provide information on potential product in and and market share the market research should focus on the following questions so that's why I put five times questions at the table because they need to look at how big is the market for my product how much of a product is already sold in that environment what is the current price of my competitors products what advertising strategies are my competitors using and how do my products compared with those of the competitors lastly we need to look at important factors that influence foreign marketing the basic market formula product price promotion place is just the beginning when it comes to international marketing the following factors will also need to be considered payment how will you receive international transactions and what is the currency doing at the moment paperwork increased documentation especially with exporting products practices different cultures social and business styles as opposed to your home country partnerships protection increased risks relating to payment intellectual property or even travel and that is the end of our forum marketing thank you very much