Page 161 - International Marketing

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BRILLIANT'S Overseas Market 163

2. Gross overestimation of the strength of their transnational
brands: These MNCs estimated their brand image very high in
the international markets and the globalization of market was
considered to be a very potent factor for getting a large number of
customers for their products, as happened in African and other
East Asian countries.
3. Gross underestimation by the strength of ethnic Indian
products: As Indian food is traditionally prepared on a small scale,
and mass manufacturing and organized mass marketing of Indian
products was missing, it was wrongly believed that the food
products manufactured by the multinationals would change the
traditional eating habits of the Indian consumers. They failed to
recognize the variety and strength of ethnic Indian foods.
International Product Planning
In international marketing, the five important characteristics that are
relevant to global marketing product decisions are primary functional
purpose, secondary purpose, durability and quality, methods of operation
and maintenance. In framing international marketing objectives and
strategy, the planning of product-mix requires balancing of and integration
with other key determinants, which are exhibited in the following diagram:
International Marketing
Strategy
Goals
Target Markets
Market Entry and
Expansion Strategies
Segmentation and Positioning The International
Pricing Promotion and Operating
Corporate Distribution Policy
Resources Environment
Human Consumers
Financial Competition
Production The International Economics
Other Product Mix Development
Width Marketing
Infrastructure
Length
The Domestic Depth Regulations
Product Mix Consistency Other
Product, Promotion and
Distribution Economics
Production Locations
Economics of Scale
R&D and Marketing Costs
Uniformity and Adaptation
Effects

Fig.: The International product mix