Download - International Marketing Class Ppt
-
8/8/2019 International Marketing Class Ppt
1/39
-
8/8/2019 International Marketing Class Ppt
2/39
Reasons for internationalisation
-
8/8/2019 International Marketing Class Ppt
3/39
Domestic
Marketing
Export
Marketing
International
Marketing
Global
Marketing
Leastinternational
commitment
Domestic
focus
Limitedinternational
commitment
Involves direct
or indirect
export Ethnocentric
Substantialinternational
commitment
Focus on
individual
countries orregions
Polycentric or
Regiocentric
Extensiveinternational
commitment
Focus on
segments,
rather thancountries or
regions
Geocentric
-
8/8/2019 International Marketing Class Ppt
4/39
At its simplest level, international marketinginvolves the firm in making one or moremarketing mix decisions across national
boundaries. At its most complex level, itinvolves the firm in establishing manufacturingfacilities overseas and coordinating marketingstrategies across the globe.
International marketing consists in identifying
and satisfying consumer needs abroad; betterthan the national and internationalcompetitors, under the constraints of theinternationalization stage of the firm and theglobal environment. (Nathalie Prime
-
8/8/2019 International Marketing Class Ppt
5/39
Marketing products that have beenmanufactured or assembled in the
target country Establishing a permanents presence in
the foreign country
Licensing and franchising Sourcing components from foreign states
-
8/8/2019 International Marketing Class Ppt
6/39
Economies of scale and scope
Existence of lucrative markets in foreign
countries Saturated markets in the home country
High R&D costs
International opportunities Less competition
New trade agreements
-
8/8/2019 International Marketing Class Ppt
7/39
Competition
Regional Economic & Political Integration
Technology Improved Transportation &
Telecommunication
Economic Growth
-
8/8/2019 International Marketing Class Ppt
8/39
Huge Foreign indebtedness Unstable governments
Foreign-exchange problems
Foreign entry and governmentbureaucracy
Tariffs and other trade barriers
Corruption
Technological pirating High cost of product and
communication adaptations
-
8/8/2019 International Marketing Class Ppt
9/39
High Cost of Distance
Trade Restrictions Differences in language
-
8/8/2019 International Marketing Class Ppt
10/39
Survival and Growth
Sales and Profits
Diversification
Employment
Standards of Living
-
8/8/2019 International Marketing Class Ppt
11/39
Domestic InternationalResearch data is available in a
single language and is usually
easily accessed
Research data is generally in foreign
languages and may be extremely
difficult to obtain and interpret
Business is transacted in a single
currency
Many currencies are involved, with
wide exchange rate fluctuations
Head office employees will
normally possess detailed
knowledge of the home market
Head office employees might only
possess and outline knowledge of the
characteristic foreign markets
Promotional messages need to
consider just a single national
culture
Numerous cultural differences must
be taken into account
Market segmentation occurs
within a single country
Market segments might be defined
across the same type of consumer inmany different countries.
-
8/8/2019 International Marketing Class Ppt
12/39
Domestic InternationalCommunication and control are
immediate and direct
International communication
and control might be difficult
Business laws and regulations areclearly understood
Foreign laws and regulationsmight not be clear
Business is conducted in a single
language
Multilingual communication is
requires
Business risks can usually identified
and assessed
Environments may be so
unstable that it is extremely
difficult to identify and assess
risks
Planning and organizational control
systems can be simple and direct
The complexity of
international trade often
necessitates the adoption of
complex and sophisticatedplanning, organization and
-
8/8/2019 International Marketing Class Ppt
13/39
Domestic InternationalFunctional specialization within a
marketing department is possible
International marketing managers require a
wide range og marketing skills
Distribution and credit control are
straightforward
Distribution and credit control may be
extremely complex
Selling and delivery
documentation is routine and
easy to understand
Documentation is often diverse and
complicated due to meeting different
border regulations
Distribution channels are easy tomonitor and control
Distribution is often carried out byintermediaries, so is much harder to
monitor
Competitors behavior is easily
predicted
Competitors behavior is harder to
observe, therefore less predictable
New product development can be
geared to the needs of the home
New product development must take
account of all the markets the product issold in.
-
8/8/2019 International Marketing Class Ppt
14/39
International expansion helps firm:
Keep pace with competition
Reach a larger market Reap higherprofits
Prolong the lifecycle of their products
-
8/8/2019 International Marketing Class Ppt
15/39
Ethnocentric Orientation domestic market extension concept:
Domestic strategies, techniques, andpersonnel are perceived assuperior
International customers, consideredsecondary
International markets regarded as outlets forsurplus domestic production
International marketing plans developed in-house by international division
-
8/8/2019 International Marketing Class Ppt
16/39
multidomestic market concept:
Focuses on importance and uniqueness ofeach international market
May establish businesses in each target country
Fully decentralized, minimal coordination withheadquarters
Marketing strategies =specific to each country
Result: No economies of scale,
duplicated functions,
higher final product costs
-
8/8/2019 International Marketing Class Ppt
17/39
global marketing concept:
World regions that share economic,political, and/or cultural traits areperceived as distinct markets
Divisions are organized based on
location Regional offices
coordinate marketing activities
-
8/8/2019 International Marketing Class Ppt
18/39
global marketing concept: world is perceivedas a total market with identifiable,homogenous segments
Targeted marketing strategies aimed at market segments,
rather than geographic locations
Achieve position
as low-cost manufacturer & marketer of product line Provides standardized product or service
throughout the world
-
8/8/2019 International Marketing Class Ppt
19/39
-
8/8/2019 International Marketing Class Ppt
20/39
Refers to all economic trends &conditions outside the country
Changes in IEE affect the
1. Level of exports and hence theaggregate demand for the products
produced by business units2. Cost of production of domestic
enterprises as many of the importedcommodities are used as inputs in theprocess of production
-
8/8/2019 International Marketing Class Ppt
21/39
Through imports the inflation abroad getsimported in to the domestic market
The decisions taken on the platform ofbilateral and multilateral organizations
and regional trade agreements affectthe trading relations of the country withthe foreign country
-
8/8/2019 International Marketing Class Ppt
22/39
STAGES IN THE BUSINESS CYCLE
ProsperityConsumer spending is brisk,growth in services sector.
RecessionConsumers focus on basic,
fundamental products
DepressionConsumer spending sinks to its
lowest level.
RecoveryCaution often restrains
willingness to buy
-
8/8/2019 International Marketing Class Ppt
23/39
Changes in consumer and business buying
habits, in exchange rates, in labor costs, andother factors around the world influence the
decisions marketers make.
-
8/8/2019 International Marketing Class Ppt
24/39
Regional Economic Integration : Important mode of economic
development
Level of Economic Integration
Free Trade Area (FTA) : Goods and Services are freely tradedamong member countries, example : NAFTA, AFTA, APEC
Customs Union (CU) : FTA + Common trade policy with respectto nonmembers
CommonMarket (CM) : CU + Free flow of factors of production(Labor,Capitol and Technology) between member countries
Economic Union : CM + Integration of economic policies.Harmonize monetary policies, Taxation and Government spending
Political Union : Economic union + Political Unification
-
8/8/2019 International Marketing Class Ppt
25/39
Economic Union
Free trade area
Free tradeamong members
Common External TradePolicy
CustomsUnion
FactorMobility
Common
Market
Harmonization of EconomicPolicies
EconomicUnion
Regional Economic Trading Blocs
Free Trade Area (FTA)
Customs Union (CU)
CommonMarkets
Economic Union
Political Union
-
8/8/2019 International Marketing Class Ppt
26/39
Major Regional Trading Blocs
NAFTA(North American Free Trade Agreement) : Canada,Mexico, US
EU ( European Union) : Austria, Belgium, Denmark, Finland,France,
Germany, Greece, Ireland, Italy, Luxembourg, Portugal,Spain, Sweden
United Kingdom
EFTA( European Free Trade) : Iceland, Liechtenstein, Norway, S
LAIA(Latin American Integration Association) : Argentina, Bolivi
Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, UruVenezuela
CARICOM (Caribbean Community) : Anguilla, Antigua, BahamaBarbados, Belize, Dominica, Grenada, Guyana, Jamaica, Mon
Jamaica, St. Kitts-Nevis, St. Vincent and the Grenadines, Trinid CACM (Central American Common Market) : Costa Rica, El Salv
Guatemala, Honduras, Nicaragua
MERCOSUR (Southern Common Market) : Argentina, Bolivia,Brazil, Chili, Paraguay, Uruguay
-
8/8/2019 International Marketing Class Ppt
27/39
(Continue) Major Regional Trading Blocs
APEC (Asia Pacific Economic Cooperation) : Austria,Brunei,Canada, Chile, China, Hong Kong, Indonesia, Japan, Malaysia,
Mexico, New Zealand, Papua New Guinea, Philippines,Singapore,South Korea, Taiwan, Thailand, United States SAARC (South Asian Association for Regional Cooperation)
: Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri L
ANCOM (Andean Common Market) : Bolivia, Colombia,Ecuador, Peru, Venezuela
ECOWAS (EconomicCommunity of West African States)
: Benin, Burkina Faso, Cape Verde, Gambia, Ghana, GuineGuinea-Bissau, Ivory Coast, Liberia, Mauritania, Niger, Nigeri
Senegal, Sierra Leone
GCC (Gulf CooperationCouncil) : Bahrain, Kuwait, Oman,Qatar, Saudi Arabia, United Arab Emirates
-
8/8/2019 International Marketing Class Ppt
28/39
Market assessment
Product
Price
Place
Promotion
-
8/8/2019 International Marketing Class Ppt
29/39
A. Assess alternative foreign markets
1. The number, size of and financial
strength of competitors2. Their market share, apparent marketing
strategies
3. Their market coverage
-
8/8/2019 International Marketing Class Ppt
30/39
1. COST
Direct
Opportunity
2. BENEFIT
3. Risk
-
8/8/2019 International Marketing Class Ppt
31/39
SWOT analysis of firm
Multiple site visits
Developed or Developing country
-
8/8/2019 International Marketing Class Ppt
32/39
STANDARDISATION VS ADAPTATION
FACTORS ENCOURAGINGSTANDARDISATION
1. High Cost Of Adaptation
2. Industrial products3. similar taste
4. Country of origin effects
-
8/8/2019 International Marketing Class Ppt
33/39
5. economies of scale
6. Economies in R & D
7. Economies in marketing
FACTORS ENCOURAGING ADAPTATION
1. Differences in technical standards
2. Consumer tastes
3. Differing use conditions
4. Variations in ability to buy
5. Cultural differences
6. Influence of governments `
-
8/8/2019 International Marketing Class Ppt
34/39
-
8/8/2019 International Marketing Class Ppt
35/39
Pricing decisions
Pricing policies
Dumping
counter trade
-
8/8/2019 International Marketing Class Ppt
36/39
-
8/8/2019 International Marketing Class Ppt
37/39
Standard Price policy
Market Pricing
Standard Pricing policy
Marketing Pricing policy
-
8/8/2019 International Marketing Class Ppt
38/39
Sporadic
Predatory
Persistent
Reverse
-
8/8/2019 International Marketing Class Ppt
39/39
Barter counter Trade
Counter purchase
Compensation Trade
Switch Trading
Offset