It should be apparent by now that companies and organizations planning to compete effectively in world markets need a clear and well-focused international marketing plan that is based on a thorough understanding of the markets in which the company is introducing its products. The challenge, then, of international marketing is to ensure that any international strategy has the discipline of thorough research, and an understanding and accurate evaluation of what is required to achieve a competitive advantage.

1. GLOBAL MARKETING PLAN
EXTERNAL & INTERNAL
ANALYSIS
PRESENTATION BY MORIBA TOURAY
SCHILLER INTRNATIONAL UNIVERSITY
INTERNATIONAL MARKETING: BA522

2. PESTEL ANALYSIS
The PESTEL tool can be used to analyze companies,
business segments, industries, particular product markets or
whole economies. Thus, it can be applied to a business or to
a market (product or regional). The acronym PESTLE stands
for 6 factors which affect the business. The factors are:
• Political
• Economic
• Social
• Technological
• Legal
• Environmental

3. PESTEL ANALYSIS MATRIX

4. PESTEL ANALYSIS: POLITICAL FACTORS
Political
•Legislation: current and pending
•Laws relating to the industry
•Tax laws
•Regulation of transfer for capital and labor
•Stability of the political system
•Membership in free trade areas
•Independence and efficiency of courts to enforce
contracts

5. PESTEL ANALYSIS: ECONOMIC FACTORS
Economic
• Development of relevant economic indicators
• Business cycles
• Unemployment, availability of skilled labor
• Availability of relevant resources
• Key industries, industrial clusters
• Industry structures
• tax system

6. PESTEL ANALYSIS: SOCIAL FACTORS
Socio-Cultural
• Population and demographics
• Distribution of income
• Mobility
• Level of education
• Customer behavior
• Savings rates
• Preferences for branded / unbranded products
• Cultural and religious rules influencing business activity

7. PESTEL ANALYSIS: TECHNOLOGICAL
ANALYSIS
Technological Factors
• The economy
• The own industry
• Supplier and customer industries
• State and private R&D expenses
• Lifecycle phases of relevant products
• Pace of technological progress

8. PESTEL ANALYSIS: ENVIRONMENTAL
FACTORS
Micro Environment Factors
• The suppliers
• The buyers
• The competition
Macro Environmental Factors
• Demographic forces
• Economic factors
• Natural/physical forces
• Technological factors

9. PESTEL ANALYSIS: LEGAL FACTORS
• Employment law
• Health and Safety
• Taxation both corporate and consumer
• International trade barriers
• Strength of the rule of law

10. WHAT IS SWOT ANALYSIS?
• SWOT is a business strategic planning technique used to
summarize the key components of your strategic environments.
•SWOT analysis (strengths, weaknesses, opportunities,
and threats analysis) is a framework for identifying and
analyzing the internal and external factors that can have
an impact on the viability of a project, product, place or
person.

11. SWOT ANALYSIS MATRIX

12. SWOT ANALYSIS: INTERNAL VS. EXTERNAL
• Strengths and Weaknesses are considered internal
factors meaning you as the business owner can control
them. How you manage or market the business controls
whether it is a strength or weakness
• Opportunities and Threats are considered external factors
meaning you have little control over them. It is your job as a
business owner to respond appropriately

13. STRENGTHS
• Characteristics of the business or a team that give it an
advantage over others in the industry.
• Positive tangible and intangible attributes, internal to an
organization.
• Beneficial aspects of the organization or the capabilities of
an organization, which includes human competencies,
process capabilities, financial resources, products and
services, customer goodwill and brand loyalty.
• Examples -, Well-known brand name,, Lower costs [raw
materials or processes], Superior management talent,
Better marketing skills, Good distribution skills, Committed
employees.

14. WEAKNESSES
• Characteristics that place the firm at a disadvantage relative
to others.
• Detract the organization from its ability to attain the core
goal and influence its growth.
• Weaknesses are the factors which do not meet the
standards we feel they should meet. However, sometimes
weaknesses are controllable. They must be minimized and
eliminated.
• Examples - Limited financial resources, Limited distribution,
Higher costs, Out-of-date products / technology, Weak
market image, Poor marketing skills, Limited management
skills.

15. OPPORTUNITIES
• Chances to make greater profits in the environment - External
attractive factors that represent the reason for an organization
to exist & develop.
• Arise when an organization can take benefit of conditions in
its environment to plan and execute strategies that enable it
to become more profitable.
• Organization should be careful and recognize the
opportunities and grasp them whenever they arise.
Opportunities may arise from market, competition,
industry/government and technology.
• Examples - Rapid market growth, Changing customer
needs/tastes, New uses for product discovered, Economic
boom, Sales decline for a substitute product .

16. THREATS
• External elements in the environment that could cause
trouble for the business - External factors, beyond an
organization’s control, which could place the
organization’s mission or operation at risk.
• Arise when conditions in external environment
jeopardize the reliability and profitability of the
organization’s business.
• Examples - Entry of foreign competitors, Changing
customer needs/tastes, Rival firms, adopt new
strategies, Increased government regulation, Economic
downturn.

17. HOW TO CONDUCT SWOT ANALYSIS

18. SWOT ANALYSIS: STRENGTHS
• Strengths
• An organization's strengths are its resources that lie in:
• Cost advantages from proprietary know how
• Patents
• Influential brand names
• Access to natural resources
• Accessible distribution network

19. SWOT ANALYSIS: WEAKNESSES
• Weakness
• The weakness can be lack of certain strengths that include:
• Lack of patent protection
• Deprived of access to main distribution channels
• Weak brand name
• Poor customer reputation
• High cost structure
• Inaccessible natural resources

20. SWOT ANALYSIS: OPPORTUNITIES
• The assessment of external environment may bring forth
certain new opportunities which are as follows:
• Technologies innovations
• Elimination of international trade barriers
• An untapped market need

21. SWOT ANALYSIS: THREATS
• Unfavorable changes in external environment may pose
threat to the organization such as:
• Consumers shift to different brand
• Arrival of substitutes
• Strict regulations
• Growing trade barriers

22. GLOBAL MARKETING RESEARCH
• Global marketing research defined.
• Description of its immense scope; offer examples of each
type of research conducted in international marketing
• Description of steps involved in the international marketing
research process while addressing, for each step, the
international constraints involved
• Introduce the concept of decision support systems for
international marketing and describe the sales forecasting
process

23. WHAT IS GLOBAL MARKET RESEARCH
•International marketing research is the
systematic design, collection, recording,
analysis, interpretation, and reporting of
information pertinent to a particular
marketing decision facing a company
operating internationally.

24. Step 1
Problem Definition
Step 6
Report Preparation and
Presentation
Step 2
Developing an approach
Step 3
Research design formulation
Step 4
Field work/data collection
Step 5
Data preparation and analysis
opencourseware.kfupm.edu.sa/.../files%5C2-Presentations_malhotra_mr05_ppt_23.ppt
FRAMEWORK FOR GLOBAL MARKETING
RESEARCH

25. GLOBAL MARKET RESEARCH
• Global marketing managers need to constantly monitor the
different forces affecting their global operations
• Global marketing research is especially complex

26. RESEARCH OF INDUSTRY, MARKET
CHARACTERISTICS, AND TRENDS
• Acquisition analyses
• Diversification analyses
• Market-share analyses
• Export research

27. GLOBAL BUYER BEHAVIOR RESEARCH
• Brand preferences
• Brands awareness studies
• Brand attitudes
• Purchase behavior studies
• Consumer segmentation studies

28. GLOBAL PRODUCT RESEARCH
•Concept development
and testing studies
•Brand name generation
and testing
•Product testing
•Competitive product studies
•Packaging design studies
•Test marketing

29. GLOBAL DISTRIBUTION RESEARCH
• Import/export analyses
• Channel performance and coverage
• Plant/warehouse location studies
• Manufacturer-owned stores • Walt Disney opening 600 new
stores globally: Nike, Levi Strauss, Apple •
• Independent franchise • Independent retailers • Wal-Mart

30. GLOBAL PROMOTION RESEARCH
• Studies of premiums, coupons, and deals
• Advertising effectiveness research
• Local media research
• Studies pertaining to personal selling activities
• Sales Force Compensation
• Quota
• Territory

31. GLOBAL PRICING RESEARCH
• Studies projecting demand
• Currency and counter trade studies
• Studies of inflation rates and pricing
• Studies of negotiation tactics

32. GLOBAL RESEARCH PROCESS
• STEP 1 Define the international research problem and agree on the research
objectives
• Exploratory Research
• Descriptive Research
• Causal Research
• STEP 2 Set specific objectives
• 3 Develop the International Research Plan
• STEP 4 Define Information Sources
• Secondary Data
• Researchers must determine if the information is available, and, if so, how
reliable it is
• Internal data is useful only if company has collected similar info from
relevant respondents in a country with similar environment

33. GLOBAL MARKETING RESEARCH:
SECONDARY & PRIMARY DATA

34. DECISION SUPPORT SYSTEMS
FOR GLOBAL MARKETING
• A coordinated collection of data, systems, tools, and
techniques, complemented by supporting software and
hardware designed for the gathering and interpretation of
business and environmental data
• Sophisticated database management capabilities with
access to internal and external data
• Explore different scenarios by manipulating already
collected data from the past events

35. GLOBAL SALES FORECASTING
• Sales Force Composite Estimates
• Personal observations and expectations of the local sales
force
• Expert Opinion
• Opinions of different experts about future demand
• The Delphi Method
• Experts to estimate market performance; findings are
aggregated, and experts are queried again, in light of
aggregate responses

36. GLOBAL SALES FORECASTING CONTD
Time Series
• Use data of past performance to predict future market demand
Analogy Methods
• Estimation method that relies on developments and findings in markets
- With similar levels of economic development, or
- Where the product is in the same market development stage, or
- In markets which share similar cultural characteristics
Point of Sale Research
• Made with the help of store scanners, in markets where they are
available

37. GLOBAL MARKET ENTRY STRATEGIES
• Trade barriers are falling around the world
• Companies need to have a strategy to enter world markets.
• The need for a solid market entry decision is an integral part of a
global market entry strategy.
• Entry decisions will heavily influence the firm’s other marketing-mix
decisions.
• Mode which may include:
• (1) the target product/market
• (2) the goals of the target markets
• (3) the mode of entry
• (4) The time of entry
• (5) A marketing-mix plan

38. COMPETITOR ANALYSIS
• Strengths and weaknesses
• Brand recognition/reputation
• Distribution channels and relationships
• Knowledge of domestic market
• Government Protection
• Weaknesses from experience of protection
• Signaling

39. CHOOSING THE MODE OF ENTRY
• Mode of Entry Choice: A Transaction Cost Explanation
• Regarding entry modes, companies normally face a tradeoff
between the benefits of increased control and the costs of
resource commitment and risk.
• Transaction Cost Analysis (TCA) perspective
• Transaction-Specific Assets (assets valuable for a very
narrow range of applications

40. EXPORTING
• Indirect Exporting
• Export merchants
• Export agents
• Export management companies (EMC)
• Cooperative Exporting
• Piggyback Exporting
• Direct Exporting
• Firms set up their own exporting departments

41. LICENSING
• Licensor and the licensee
• Benefits:
• Appealing to small companies that lack resources
• Faster access to the market
• Rapid penetration of the global markets
• Caveats:
• Other entry mode choices may be affected
• Licensee may not be committed
• Lack of enthusiasm on the part of a licensee
• Biggest danger is the risk of opportunism

42. JOINT VENTURES
• Benefits:
• Higher rate of return and more control over the operations
• Sharing of resources and access to distribution network
• Caveats:
• Lack of control and trust
• Conflicts arising over matters such as strategies, resource
allocation, transfer pricing, ownership of critical assets like
technologies and brand names

43. WHOLLY OWNED SUBSIDIARIES
• Benefits:
• Greater control and higher profits
• Strong commitment to the local market on the part of companies
• Allows the investor to manage and control marketing, production,
and sourcing decisions
• Caveats:
• Risks of full ownership and risk of nationalization.
• Developing a foreign presence without the support of a third part

44. TIMING OF ENTRY
•International market entry decisions should also cover
the following timing-of-entry issues:
•When should the firm enter a foreign market?
•Other important factors include: level of international
experience, firm size.
•Also, the broader the scope of products and services
•Mode of entry issues, market knowledge, various
economic attractiveness variables.

45. FORECASTING
•Basic—share of overall market
•Build-up—share within segments
•Analogy to comparable country ahead in the product
life cycle
•Subjective methods (e.g., jury, export pooling,
Delphi)
•Time series and regression (require reliable data!)

46. COMPETITORS AND PREDICTED MARKET
SHARE
• Identification
• Foreign vs. domestic
• Existing vs. potential
• Direct vs. indirect
• Likely growth of competitors

47. VALUE PROPOSITION
• Part of a firm’s business model
• An element of strategy
• A reflection of the value a firm offers its customers
• And finally, a carefully crafted marketing message
• Communicates a clear point of differentiation
• Is highly persuasive
• Supports lead generation and sales

48. DEFINITION OF VALUE PROPOSITION
•A value proposition describes why a customer
should buy a product or service
•It targets a well defined customer segment
•It convinces prospective customers that a particular
product or service will add more value or better solve
a problem than competitive products or services

49. IPAD 3 VALUE PROPOSITION
The iPad’s Retina Display is like the jump between DVD and Blu-
ray. Indeed, the new iPad’s value proposition is entirely centered
on a huge resolution bump.
The new Retina Display finally gives the iPad a feature that you
can’t find anywhere else. Few consumer computer monitors reach
near the new iPad’s 2048 by 1536 resolution. The screen is also
far beyond the 1920 by 1080 resolution of HDTVs.
Because of its high resolution, the Retina Display makes
practically everything look better, even merely browsing the web.
www.venturesBeat.com

50. GREAT BRANDS, GREAT VALUE PROPS
• Harley Davidson
• "Harley-Davidson stands for independence,
freedom, individuality, expressing one’s self,
adventure on the open road, and experiencing life to
its fullest. This is what people are buying when they
buy a Harley."
• FedEx
• "When your package absolutely, positively has to
get there overnight"
• Walmart
• Leader in low prices and huge selection

51. MICHAEL PORTER’S MODEL
A value proposition answers three questions:
Which
customers
?
Which
needs?
What
relative
price?
WHAT END USERS
AND CHANNELS?
WHICH PRODUCTS,
SERVICES,
FEATURES?
PREMIUM OR
DISCOUNT?

52. BUSINESS MODEL GENERATION
• A value proposition creates value for a
Customer Segment through a distinct
mix of elements catering to that
segment’s needs
• Values may be quantitative (price, speed
of service) or qualitative (design,
customer experience).”

53. CREATING VALUE FOR CUSTOMERS
• PERFORMANCE
• Improving the performance of products or services
• Examples
• PCs: Increased disk storage and speed
• Digital cameras: increased pixels and resolution, more powerful zoom

54. B2B MARKETS
• Do a “deep dive” into a prospective customer’s business
• What do they value?
• What are their challenges & opportunities?
• What are their unique requirements and preferences?
• Can you help their products compete more favorably with
their competitions’?
• Show how your products/services outperform others on the
criteria that matters the most

55. VALUE PROPOSITION SUMMARY
Value proposition must do the following:
• Be based on what the customer perceives will add value
• The firm’s value chain must be specifically tailored to
deliver the value proposition, i.e. Activities that a firm
performs in order to deliver something of value (product
or service)
• It must be based on truth, not “marketing spin”
• Must address a specific customer segment
• It most cases will address relative price

56. REFERENCES
Miura-Ko. A. (January 16, 2011). Value Proposition. Retrieved from
http://web.stanford.edu/group/e245/cgi-bin/2011/wp
content/uploads/2010/12/Lecture-2-Value-Proposition.pdf
Keegan, W.J. (2014). Global Marketing Management. 8th ed. Prentice Hall,
Saddle River, NJ
Sonkiya, S. (2014). PESTLE Analysis: External Business Environment.
Retrieved from http://www.izenbridge.com/blog/pestle-analysis-external-
business environment

57. THANK YOU!