DEVELOPING INTERNATIONAL MARKETING STRATEGY FOR CANCER HOSPITAL
Entry into the international market is highly risky with a great deal of uncertainty because of the wider market heterogeneity and complexity. To manage the risk and reduce the uncertainty and gain competitive advantage in an international market a knowledge and understanding of the international market is imperative. The same marketing strategy of the marketing mix” the 4Ps: product (quality, functionality, accessories and service), price (flexibility, discounting, promotion, seasonal pricing), placement (distribution and market coverage among others) and promotion (advertising, sales promotions, public relations) will be used but new parameters and new methodologies will also be considered such as an analysis of the environmental influences, market assessment screening process, and market segmentation.
Environmental Influences
A great consideration on the identification of the environmental influences is important, suggest Doole and Lowe (2008). The environmental influences refer to the social-cultural, economic, legal, political and technological environment that surrounds and impacts on the market. The socio-cultural environment includes language, religion, aesthetics, values, social organization and material culture. The economic environment includes the economic policies of the country, regional trade integration, gross domestic product (GDP) per capita, gross national income (GNI) and purchasing power parity (PPP) which differ depending on the economic development of the country. Developed economies, emerging economies and less developed economies have disparities in their GDP per capita, GNI per capital and PPP. Exchange rates and currency movements are also important. Legal environment refers to tax incentives or non-incentives and regulations and laws of host countries. Closely related to the legal environment is the host country’s government attitude to multinational corporations, so that careful consideration is given on political regimes that are unstable. There are certain political actions of the government that pose as political risk to international businesses, these are operational restrictions (employment and ownership issues and product requirements), discriminatory restrictions and physical actions (forced takeover, expropriation and nationalization). Technological environment refers to the technological development specifically the internet which brings international business closer to its host country. (Doole and Lowe, 2008)
Market Assessment Screening Process
A market assessment screening process may also be conducted. The first screening involves the analysis of market potential and identification of the needs and understanding of the behavior of customers. The second screening considers the economic environmental factors identified above on all markets including those that are perceived as unfavorable. This includes interest rates, fiscal and monetary policy, and inflation. The third screening considers the legal environmental factors to make sure that the host country has laws that will protect the company’s patents and copyrights and other intellectual property rights. The fourth screening identifies the socio-cultural factors. The fifth screening analyzes the competitive environment in the favorable host countries. The cutting edge competitive advantage and the philosophy of the company determine the choice of host country. After the fifth screening a final selection is conducted by sending executives to the host country and the actual location of the plant for practical evaluation. This will determine the type of service to be offered overseas. (Gemini Geek, n.d.)
Market Segmentation
Market segmentation is necessary especially if the target customer is diverse. Market segmentation is used for target marketing and not for mass marketing. Market segmentation is evaluated using four criteria. Market segments must have identifiable and measurable attributes that differentiate the segments. They must be accessible through any means of communication and distribution channels, substantially large enough to justify the cost or market segmentation. They must have unique and varying needs. And they must be relatively durable and stable to minimize the expenses of frequent market segmentation studies. Customers have four major characteristics used in market segmentation. Geographic segmentation differentiated customers by climate and weather patterns, population density, size of population and region. Demographic segmentation categorizes them in terms of age, gender, family size, generation, income, education, occupation, ethnicity, nationality and religion, among others. Psychographic segmentation identifies them according to activities, interests, opinions, attitudes and values. Behavioral segmentation looks at the customers’ brand loyalty, user status, readiness to buy, occasions and benefits sought. A result of a good market segmentation analysis results in an internally homogenous and externally heterogeneous segment members. (Net MBA,n.d.)
REFERENCES:
Doole, I., and Lowe, 2008. International Marketing Strategy: Analysis Development and Implementation. [online] Available at:< http://estore.bized.co.uk/freecontent/300081F9.pdf> [Accessed 21 May 2011].
Gemini Geek, n.d. What is International Marketing Strategy. [online] Available at:< http://www.thegeminigeek.com/what-is-international-marketing-strategy/> [Accessed 21 May 2011].
Net MBA, n.d. Market Segmentation. [online] Available at:< http://www.netmba.com/marketing/market/segmentation/> [Accessed 21 May 2011].
Net MBA, n.d. Marketing Mix. [online] Available at:< http://www.netmba.com/marketing/mix/> [Accessed 21 May 2011]
Ward, S., n.d. 10 Steps to Successful Exporting. [online] Available at:< http://sbinfocanada.about.com/od/canadaexport/a/10exportsteps_3.htm> [Accessed 21 May 2011].
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