Programa de

Negocios
Internacionales
……

International
Marketing
Session 8

Topic:
Determination of the objectives
of the marketing plan and the
modes of entry to international
markets
S8_Result of learning Evidence of learning

Design international marketing Evaluation: Graphic organizer: Design of

strategies according to the retail objectives and entry strategies to
principles of international foreign markets through the simulator.
management and international
trade policy.
 What do you think
about this:

The main destination for Peruvian

agroexports was the United States,
which purchased US$437 million, an
increase of +20.9%. This destination
accounted for 41% of the total.

According to The most important

products were blueberries, cocoa
and cocoa derivatives, and lemons.
La Libertad, Ica and Piura stood out
as the main agro-exporting
regions.In this way, we positioned
ourselves as one of the world's main
suppliers of excellent quality fruit.

News recovered from: https://www.linkedin.com/feed/

 Elements of the Marketing Plan international

Analysis of the
Situation Define strategies Pin up objectives

• Compile the most relevant • From general objectives

historical information • Define the general
to in a coordinated way
regarding products , markets , strategies as well as the and consistently reach
competitorsand the different specific strategic
customers. specific marketing
options for each country. objectives.
• Where we are? Y How
did we get to Current
situation?
The analysis of the situation: External Environment, Competence,
Internal analysis

Retrieved from: Libro El proceso estratégico: Un Enfoque de Gerencia, Fernando D’Alessio Ipinza. Pearson Educación de México, 2008.
From this analysis of the situation you build up the strategies for
your Marketing Plan

A market penetration strategy, called organic growth, consists of trying to increase or

maintain sales of current products in existing markets. Several options are open.

Primary demand development: increasing the size of the total market through
expansion of primary demand, for example:

 Expanding the buyer base by converting non-users into users.

 Increasing the frequency of purchase among current users.
 Increasing the average quantity purchased per usage opportunity.
 Identifying and promoting new uses.
 Note that this strategy can benefit all competitors, since it influences primary
demand rather than selective demand.

Retrieved from: Libro El proceso estratégico: Un Enfoque de Gerencia, Fernando D’Alessio Ipinza. Pearson Educación de México, 2008.
From this analysis of the situation you build up the strategies for
your Marketing Plan

Increase market position: Increase sales by attracting buyers from my

competitors with significant expenditures on marketing mix variables.

For example:

 Improving the product or service offered.

 Brand positioning.
 Accepting substantial price reductions.
 Significant strengthening distribution and service networks.
 Increasing promotional efforts.

Retrieved from: Libro El proceso estratégico: Un Enfoque de Gerencia, Fernando D’Alessio Ipinza. Pearson Educación de México, 2008.
From this analysis of the situation you build up the strategies for
your Marketing Plan

3. Market acquisition:

increasing market share substantially through acquisitions

or by creating joint ventures, for example:

 Acquisition of a competitor to gain market share.

 Creation of a joint venture to control a significant market
share.

Retrieved from: Libro El proceso estratégico: Un Enfoque de Gerencia, Fernando D’Alessio Ipinza. Pearson Educación de México, 2008.
From this analysis of the situation you build up the strategies for
your Marketing Plan

4. Defending a market position: defending the current market position. For example:

 Customer relationships,
 Distributor networks
 Brand image.
 How? By adjusting the marketing mix

For example:

 Minor product or service improvements. Repositioning.

 Defensive pricing strategy.
 Reinforcement of sales and distribution. networks.
 Reinforcement of reorientation of promotional activities.

Retrieved from: Libro El proceso estratégico: Un Enfoque de Gerencia, Fernando D’Alessio Ipinza. Pearson Educación de México, 2008.
 MARKETING OBJECTIVES

• Once the diagnosis of the situation

is completed and before
formulating the marketing strategy,
we must formulate our objectives.
Otherwise, it will be difficult for us
to know if the strategy we are
adopting is the correct one.

• If we do not know where we are

going, we can hardly know if the
path we are following is the right
one.

• Marketing objectives must be

subordinate to corporate
objectives.
 Pin up objectives

DEFINITION OF OBJECTIVES
SMART METHOD
• SPECIFIC

S • It should be as specific as possible. Anyone who reads it will know exactly what it is intended
to do and how. It will answer questions such as: What exactly is it intended to achieve? Who
is involved? What benefits will be obtained if they are achieved?

• Recycle 100,000
• MEASURABLE

M • It must be measurable, so it must be a quantifiable goal. It is necessary to clearly define the containers in the first
measurement method or system, establishing the indicators to be used to evaluate the
degree of achievement of the objective. year of program
• ATTAINABLE implementation, growing
A
• It must be ambitious, but possible. You have to give the option to readjust the objectives if
there are changes in the environment. It will answer questions such as: Do you have the 10% annually.

resources? If I don't have the resources, is it possible for us to obtain them? What is the
action that will be developed to obtain them?, etc.

R • RELEVANT
• It must generate a significant effect within the project.

• TIME-BASED
T • Each objective must be defined in time, since it will help us to mark the different stages that
will allow us to reach the proposed goal.
 Examples of objectives

Objectives Objectives from

from sales Market (%)
Share from Cost of image
effectiveness

• Improve the
• In image of
volume • Participation • Benefits the
from from market company or
sales product in a
US$ certain
market
 How can you build your objectives for a marketing plan?
Watch this video.
https://youtu.be/QZR1usF-gYI?t=34

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  Solve the quiz:

SMART is an acronym for what?

a) Specific, measurable, average, realistic, time, specific

b) Special, measurable, achievabl, realistic, time, specific
c) Specific, measurable, achievable, rate, time, specific
d) Specific, measurable, achievable, realistic, time

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 Solve the quiz:

2. Which of these objectives corresponds to Increasing brand awareness?

a) Managing a new financial producto.

b) Increasing social media in a 20% of impressions among a new target.
c) Managing a new set of products.
d) Launching a new product.

News recovered from: https://www.gob.pe/institucion/apn/noticias/950113-peru-se-ubica-en-el-top-5-del-ranking-de-mayor-conectividad-maritima-en-america-latina-y-el-caribe

 Solve the quiz:

3. Which of these objectives corresponds to Launching a New Product?

a) Define a new segment for Young consumers.

b) Conduct a new market research on the target profile of consumers in
India to develop an appropriate strategy
c) Define a new product by the end of the month.
d) Measure the metrics of the e-commerce channel of premium line.

News recovered from: https://www.gob.pe/institucion/apn/noticias/950113-peru-se-ubica-en-el-top-5-del-ranking-de-mayor-conectividad-maritima-en-america-latina-y-el-caribe

 EXAMPLE OF OBJECTIVE USING
SMART METHOD
• SPECIFIC • Increase sales by 15% (from
S • What exactly is it intended to achieve? Who is involved? What benefits will be obtained if they
are achieved?
$100,000 to $115,000) in the
• Increase sales by 15%
next 6 months by offering our
• MEASURABLE new products to our
M • You have to provide a numerical value, i.e. KPIs.
•from $100,000 to $115,000 recurring customers
•ATTAINABLE

A •If I don't have the resources, is it possible for us to obtain them? What is the action that will
be developed to obtain them?, etc.
•by offering our new products to our recurring customers

R • RELEVANT
• It must generate a significant effect within the project.

T • TIME-BASED
• in the next 6 months
EXERCISE #1: WORK IN TEAMS

• Build the new objectives for the company you

selected in teams (short and long-term).

• Then you have to make an exposition to share your

objectives to your classmates.
• Prepare a presentation in Canva (35 minutes).

Precisely

Briefly Concrete
 INTERNATIONAL ENTRY AND EXPANSION

• Doing business on an international scale provides

opportunities for companies to bring innovations
to the world.
• International expansion can be the key to
prosperity for corporations and employees.
• Firms that export grow faster, are more
productive, and have employees who tend to
earn more.
• Although some companies have international
operations from the beginning, most of them
undertake them gradually.
• New activities in an unknown environment
increase the risk of the company. Therefore,
companies must prepare their activities and
adjust to the needs and opportunities of
international markets in order to become long-
term participants.
 INCENTIVE FOR INTERNATIONALIZATION

• In most business activities, it is rare for a single factor to explain a given measure.

• Usually, a combination of factors causes companies to take steps in a certain

direction.

• This is valid for internationalization; there are numerous stimuli that encourage
companies to take the path of internationalization.

• There are proactive and reactive motivations. The proactive ones represent the
stimuli to try the strategic change. The reactive ones include companies that
respond to changes in the environment that force them to modify their activities
over time: proactive companies internationalize because they want to; the reactive
ones do it because they have to.
 EXAMPLE OF ELISUR ORGANIC

https://youtu.be/jKws0ey7TxY

ELISUR is an
organization of
organically certified
farmers,with whom we
work closely from the
identification of suitable
soils for planting,
integrated agricultural
management of the crop,
pest and disease
management, harvesting
and post-harvesting.
EXAMPLE OF ELISUR ORGANIC
 INTERNATIONALIZATION

• For many companies, internationalization is a gradual process. However, particularly in small markets, it is quite
possible for companies to be born global, founded with the explicit purpose of selling abroad because the
domestic economy is too small to support their activities.
• There are three main methods for entering new markets. These are: export, licensing and franchising , and foreign
investment.

EXPORT LICENSING AND FRANCHISING FOREIGN DIRECT INVESTMENT

In some countries, more than a third of Licensing and franchising are market Foreign investment represents
exporting companies started their expansion alternatives used by all types international investment flows to
export activities less than two years of companies, large or small, because acquire real estate and factories. The
after their foundation. they offer flexibility and reflect the international company makes these
needs of the company and the market. investments to create or expand a long-
Companies with a strong e-commerce term interest in a company with some
orientation quickly gain global exposure Licensing allows a company to use degree of control.
through ease of reach and access. intellectual property in exchange for a
consideration designated as a royalty. Different levels of ownership affect
Companies that decide to export their flexibility, control, and risk exposure. It
products do so in different ways. They In franchising, a parent company grants can be Total Ownership (100%
can do it directly or through another independent company the right ownership), Joint Ventures (joint
intermediaries to do business in a specific way ventures), Strategic Alliances (more
(model). flexible than joint Ventures since they
adapt and dissolve quickly),
Government Consortiums (government
support or subsidy).
 INCENTIVE FOR INTERNATIONALIZATION

• In most business activities, it is rare for a single factor to explain a given measure. Usually, a combination
of factors causes companies to take steps in a certain direction.

• This is valid for internationalization; there are numerous stimuli that encourage companies to take the path
of internationalization.

• There are proactive and reactive motivations. The proactive ones represent the stimuli to try the strategic
change. The reactive ones include companies that respond to changes in the environment that force them
to modify their activities over time: proactive companies internationalize because they want to; the reactive
ones do it because they have to.

Proactive incentive Reactive incentive

• Profit advantage. • Competitive pressure.
• Unique products. • Overproduction.
• Technological advantage. • Decline in domestic sales.
• Exclusive information. • Excess capacity.
• Scale economics. • Saturated domestic markets.
• Size of the market. • Proximity to customers and ports.
 CHANGE'S AGENTS

• Someone or something inside and outside the company must initiate the change and
guide it through to implementation.

• These people or variables that intervene are called agents of change, which can be
internal or external.

Internal External
• Knowledgeable management. • Demand.
• New management. • Competence.
• Significant internal event. • Domestic distributors.
• Service companies.
• Industrial associations.
• Government activities.
• Export intermediaries.
• Export management companies.
• Trading companies.
 INCENTIVE FOR INTERNATIONALIZATION

• Prepare your segmentation strategy using the intelligence market tools:

• Global trade Helpdesk: https://globaltradehelpdesk.org/es

• Euromonitor international: https://www.euromonitor.com/
• U.S. Department Commerce: https://www.commerce.gov/
• International Trade Administration: Indo-Pacific Region: https://www.trade.gov/access-asia