International Marketing Process

International Marketing Process

Defining International Marketing:
Under the marketing concept, the firm must find a way to discover unfulfilled customer needs and bring to
market products that satisfy those needs. The process of doing so can be modeled in a sequence of steps: the
situation is analyzed to identify opportunities, the strategy is formulated for a value proposition, tactical
decisions are made, the plan is implemented and the results are monitored.
1. Situation Analysis:
A thorough analysis of the situation in which the firm finds it serves as the basis for identifying opportunities
to satisfy unfulfilled customer needs. In addition to identifying the customer needs, the firm must understand
its own capabilities and the environment in which it is operating.
The situation analysis thus can be viewed in terms an analysis of the external environment and an internal
analysis of the firm itself. The external environment can be described in terms of macro-environmental
factors that broadly affect many firms, and micro-environmental factors closely related to the specific
situation of the firm.
The situation analysis should include past, present, and future aspects. It should include a history outlining
how the situation evolved to its present state and an analysis of trends in order to forecast where it is going.
Good forecasting can reduce the chance of spending a year bringing a product to market only to find that the
need no longer exists.
If the situation analysis reveals gaps between what consumers want and what currently is offered to them,
then there may be opportunities to introduce products to better satisfy those consumers. Hence, the situation
analysis should yield a summary of problems and opportunities. From this summary, the firm can match its
own capabilities with the opportunities in order to satisfy customer needs better than the competition.
There are several frameworks that can be used to add structure to the situation analysis:
5 C Analysis - company, customers, competitors, collaborators, climate. Company represents the internal
situation; the other four cover aspects of the external situation
PEST analysis - for macro-environmental political, economic, societal, and technological factors. A PEST
analysis can be used as the "climate" portion of the 5 C framework.
SWOT analysis - strengths, weaknesses, opportunities, and threats - for the internal and external situation. A
SWOT analysis can be used to condense the situation analysis into a listing of the most relevant problems and
opportunities and to assess how well the firm is equipped to deal with them.
2. Marketing Strategy:
Once the best opportunity to satisfy unfulfilled customer needs is identified, a strategic plan for pursuing the
opportunity can be developed. Market research will provide specific market information that will permit the
firm to select the target market segment and optimally position the offering within that segment. The result is
a value proposition to the target market. The marketing strategy then involves:
• Segmentation
• Targeting (target market selection)
• Positioning the product within the target market
• Value proposition to the target market
3. Marketing Mix Decisions
Detailed tactical decisions then are made for the controllable parameters of the marketing mix. The action
items include:
• Product development - specifying, designing, and producing the first units of the product.
• Pricing decisions
• Distribution contracts
• Promotional campaign development


4. Implementation and Control:
At this point in the process, the marketing plan has been developed and the product has been launched.
Given that few environments are static, the results of the marketing effort should be monitored closely. As
the market changes, the marketing mix can be adjusted to accommodate the changes. Often, small changes in
consumer wants can be addressed by changing the advertising message. As the changes become more
significant, a product redesign or an entirely new product may be needed. The marketing process does not
end with implementation - continual monitoring and adaptation is needed to fulfill customer needs
consistently over the long-term.
The fundamental concepts involved in marketing process are as follows;