International Marketing and R&D Strategy

International marketing and R&D strategy
1.What are the market segmentation and the

marketing mix? What factors do you need to
consider when segmenting market and
applying the marketing mix to running an
international business? Use cases and
examples.
The marketing mix are the choices that the

firm/company offers to its customers and it
consists of 4 P’s:
*Product attribute- products sell well when their

attributes match consumer needs. Every product
has its own attributes even the most humble
product like a carrot. For ex. if you’re buying high
heels you may be buying them because of the
brand name ( Jimmie Choo for ex.) or maybe
because of their physical features/design,or if
you’re buying whole wheat bread you may be
buying it because you know that it’s healthier
than regular white bread ( so you’re buying its
quality) because the height of the heel is perfect
for your planned event. ( cultural differences,
level of ec.development, product and
technological standards)
* Pricing strategy ( price discrimination, demand-
income level and level of competitors)
Strategic pricing: predatory pricing, multipoint
pricing and experience curve pricing.
*Promotion ( communication strategy)--------
noise levels, cultural barriers, source and country
of origin effects, push-pull strategy, choice
between strategy depends on product type and
consumer sophistication, channel length and
media availability)
*Place (distribution strategy)
Retail concentration, channel length, channel
exclusivity and channel quality.
Firms always have to choose which elements of
the marketing mix should they standardize across
markets and which elements should they
customize. In order for firms to make this decision
a market segmentation has to be done.
- Under the term market segmentation, is the

firm’s ability to identify the distinct groups of
customers whose purchasing behavior differs
from others in important ways. Firms use
market segments to narrow larger groups into
smaller entities, so basically we can say that
market segment consists of a group of people
who share things they like and things they
don’t like. Four factors which determine how
customers will be segmented are: geography,
demography ( it includes race, income,
education level, age etc), socio-cultural
factors( lifestyle, tradition, norms, religion)
and psychological factors usually include
personality. An important things for firms is to
make a balance or a fit between the
purchasing power of consumers in a certain
segment and the marketing mix in order to
maximize profits in that segment. For ex.
Toyota uses market segmentation to reach
consumers that have dif. income levels, so
those consumers that have lower income can
purchase the Corolla line and wealthier
consumers can purchase Toyota’s Lexus line
which is considered as more luxurious.
Phone manufacturers also use market
segmentation and sell their different types of
mobile phones to different customers
according to their needs and income level.
Companies will reach each group differently
once they understand their needs. For ex. a
target group could be younger Baby Boomers
who need a financial advice to help them save
for retirement ( investopedia.com). Firms also
need to identify those segments that
transcend national borders and also they
need to be able to understand the needs and
differences of customers across countries.
These are two key issues when it comes to
international market segmentation. As we
said before there are four factors which are
crucial for firms to make the right market
segmentation.
Demographic factor as mentioned includes

putting people in groups according to their
income level, education level, age, race,
gender etc.
For ex. if we sell clothing which is designed for
younger people age 19-26, we target this
specific group of young people because they
are most likely the ones who will buy our
product.
Geographic factors may include the place
where people live (urban/rural area, region,
size of the city where they live, size of the
country etc). For ex. a company that produces
trucks would not focus on selling its trucks to
an urban area like San Francisco knowing San
Francisco’s infrastructure and its streets.
Instead they could focus on selling their
products to people who live in the rural area
that surrounds San Fran. or its near San Fran.
for example. The climate of the country is also
a part of the geographic factors. For ex. Levi’s
designs jeans with brighter colors and lighter
denim in countries where the weather is
usually hot ( Spain, Portugal for ex).
Socio-cultural factors include ( religion,
tradition, norms, beliefs etc)
Levi’s is known in the world of the fashion

industry for its 501 jeans. But in order to
increase its sales and reach different
customers from different segments it decided
to go local. For example in Islamic countries
women usually don’t feel comfortable
wearing tight jeans because its not a part of
their tradition, religion and culture, so Levi’s
introduced roomier jeans for women in these
countries. Nestle’s researchers also have
studied that women in India add fresh
vegetables into their instant noodle soup as a
part of their tradition so Nestle created
instant noodles with vegetables. ( Hill IB)
Psychological factors can include personality,
attitude, interests etc.
For ex. a firm may focus on Harvard students
and research more about their lifestyle, their
interests, their income level etc.
Market segmentation is very beneficial for
firms because it helps with new product
development- focused on needs of the
customers in the specific segment. It also
makes the marketing mix effective for ex. by
better targeting of promotion.

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International marketing and R&D strategy

1.What are the market segmentation and the

The marketing mix are the choices that the

*Product attribute- products sell well when their

- Under the term market segmentation, is the

Demographic factor as mentioned includes

Levi’s is known in the world of the fashion

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