im module-1 international marketing
TRANSCRIPT
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Université Paris-Dauphine
International Marketing
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The Scope and Challenge of International Marketing
Module- 1
McGraw-Hill/Irwin © 2005 The McGraw-Hill C !panies" Inc# $ll ri%hts reserve
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Chapter Learning Objectives
'# The chan%in% (ace ( U#)# *usiness
'# The chan%in% (ace ( U#)# *usiness
2# The sc pe ( the internati nal !ar+etin%tas+
2# The sc pe ( the internati nal !ar+etin%tas+
,# The increasin% i!p rtance ( %l *alawareness
,# The increasin% i!p rtance ( %l *alawareness
# The pr %ressi n ( *ec !in% a %l *al!ar+eter
# The pr %ressi n ( *ec !in% a %l *al!ar+eter
5# The i!p rtance ( the sel(-re(erence criteri n .) C ininternati nal !ar+etin%
5# The i!p rtance ( the sel(-re(erence criteri n .) C ininternati nal !ar+etin%
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Internationali!ation of "#S# usiness
Increasin% %l *ali3ati n(
!ar+ets
Increasin% %l *ali3ati n
( !ar+ets
ir!s (ace c !petiti nn
all (r nts
ir!s (ace c !petiti n
nall (r nts
Man7 U#)# c !paniesare
n w ( rei%n c ntr lle&9Carnati n .)wiss "Dai!ler-Chr7sler .Ger!an
Man7 U#)# c !paniesare
n w ( rei%n c ntr lle&9Carnati n .)wiss "Dai!ler-Chr7sler .Ger!an
U#)# (ir!s see+in%( rei%n
!ar+ets t increasepr (its
U#)# (ir!s see+in%( rei%n
!ar+ets t increasepr (its
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International Marketing$ % &efinition
Internati nal !ar+etin% is &e(ine& as theper( r!ance ( *usiness activities &esi%ne& t plan"price" pr ! te" an& &irect the (l w ( a c !pan7:s% &s an& services t c nsu!ers r users in ! rethan ne nati n ( r a pr (it
Internati nal !ar+etin% is &e(ine& as theper( r!ance ( *usiness activities &esi%ne& t plan"price" pr ! te" an& &irect the (l w ( a c !pan7:s% &s an& services t c nsu!ers r users in ! rethan ne nati n ( r a pr (it
Mar+etin% c ncepts" pr cesses" an& principles areuniversall7 applica*le all ver the w rl&
Mar+etin% c ncepts" pr cesses" an& principles areuniversall7 applica*le all ver the w rl&
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I. The nature of
international marketing« Internati nal !ar+etin% c nsists in i&enti(7in% an&satis(7in% c nsu!er nee&s a*r a&; *etter than thenati nal an& internati nal c !petit rs" un&er thec nstraints ( the internati nali3ati n sta%e ( the(ir! an& the %l *al envir n!ent# » .4athalie Pri!e
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Key elements of the
international marketing mixPr &uct Price Place Pr ! ti n
-Pr &ucta&aptati npac+a%in% an&la*elin%translati n (technicalliterature- int-venturesan& su*si&iaries
-$&vertisin%"pu*lic relati nsan& salespr ! ti n-Direct !ar+etin%-C ntr l (salespe ple-Translati n (
sales literature-6=hi*itin%-Mar+etin%research
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Di erences between domestic and
international marketingD !estic Internati nal
esearch &ata is availa*le in asin%le lan%ua%e an& is usuall7
easil7 accesse&
esearch &ata is %enerall7 in ( rei%nlan%ua%es an& !a7 *e e=tre!el7
&i((icult t *tain an& interpret?usiness is transacte& in a sin%lecurrenc7
Man7 currencies are inv lve&" withwi&e e=chan%e rate (luctuati ns
Hea& ((ice e!pl 7ees willn r!all7 p ssess &etaile&
+n wle&%e ( the h !e !ar+et
Hea& ((ice e!pl 7ees !i%ht nl7p ssess an& utline +n wle&%e ( the
characteristic ( rei%n !ar+etsPr ! ti nal !essa%es nee& tc nsi&er @ust a sin%le nati nalculture
4u!er us cultural &i((erences !ust*e ta+en int acc unt
Mar+et se%!entati n ccurs within
a sin%le c untr7
Mar+et se%!ents !i%ht *e &e(ine&
acr ss the sa!e t7pe ( c nsu!er in!an7 &i((erent c untries#
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Di erences between domestic and
international marketing (continued)D !estic Internati nal
C !!unicati n an& c ntr l arei!!e&iate an& &irect
Internati nal c !!unicati n an&c ntr l !i%ht *e &i((icult
?usiness laws an& re%ulati ns areclearl7 un&erst &
rei%n laws an& re%ulati ns !i%htn t *e clear
?usiness is c n&ucte& in a sin%lelan%ua%e
Multilin%ual c !!unicati n isreAuires
?usiness ris+s can usuall7 i&enti(ie&an& assesse&
6nvir n!ents !a7 *e s unsta*lethat it is e=tre!el7 &i((icult t i&enti(7an& assess ris+s
Plannin% an& r%ani3ati nal c ntr ls7ste!s can *e si!ple an& &irect
The c !ple=it7 ( internati nal tra&e(ten necessitates the a& pti n (
c !ple= an& s phisticate& plannin%"
r%ani3ati n an& c ntr l s7ste!s
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Di erences between domestic and
international marketing (continued)D !estic Internati nal
uncti nal speciali3ati n within a!ar+etin% &epart!ent is p ssi*le
Internati nal !ar+etin% !ana%ers reAuire awi&e ran%e % !ar+etin% s+ills
Distri*uti n an& cre&it c ntr l arestrai%ht( rwar&
Distri*uti n an& cre&it c ntr l !a7 *ee=tre!el7 c !ple=
)ellin% an& &eliver7& cu!entati n is r utine an&eas7 t un&erstan&
D cu!entati n is (ten &iverse an&c !plicate& &ue t !eetin% &i((erent* r&er re%ulati ns
Distri*uti n channels are eas7 t! nit r an& c ntr l Distri*uti n is (ten carrie& ut *7inter!e&iaries" s is !uch har&er t! nit r
C !petit rs ’ *ehavi r is easil7pre&icte&
C !petit rs ’ *ehavi r is har&er t *serve"there( re less pre&icta*le
4ew pr &uct &evel p!ent can *e%eare& t the nee&s ( the h !e
4ew pr &uct &evel p!ent !ust ta+eacc unt ( all the !ar+ets the pr &uct iss l& in#
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'nviron(ental %daptation )eeded
Di((erences are in the unc ntr lla*le envir n!ent (internati nal
!ar+etin%
Di((erences are in the unc ntr lla*le envir n!ent (internati nal
!ar+etin%
ir!s !ust a&apt t unc ntr lla*le envir n!ent (internati nal
!ar+etin% *7 a&@ustin% the !ar+etin% !i= .pr &uct" price"pr ! ti n" an& &istri*uti n
ir!s !ust a&apt t unc ntr lla*le envir n!ent (internati nal
!ar+etin% *7 a&@ustin% the !ar+etin% !i= .pr &uct" price"pr ! ti n" an& &istri*uti n
$&aptati n. ( Mar+etin% Mi= )tan&ar&i3ati n. ( Mar+etin% Mi=
Continuu(
I4 8U64C6D ? B 64 I 4M64T$8 $CT )
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Self-*eference Criterion +S*C,and 'thnocentris($Major
Obstacles
) C is an unc nsci us re(erence t ne:s wn culturalvalues" e=periences" an& +n wle&%e as a *asis ( r&ecisi ns6thn centris! re(ers t the n ti n that ne:s wn culture
r c !pan7 +n ws *est h w t & thin%s? th the ) C an& ethn centris! i!pe&e the a*ilit7 tassess a ( rei%n !ar+et in its true li%ht
eacti ns t !eanin%s" values" s7!* ls" an& *ehavi rrelevant t ur wn culture are &i((erent (r ! th se (( rei%n
el7in% n ne:s ) C c ul& pr &uce an unsuccess(ul!ar+etin% pr %ra!
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%voiding the Self *eference Criterion
T av i& the ) C" the ( ll win% steps are su%%este&9T av i& the ) C" the ( ll win% steps are su%%este&9
'9 De(ine the *usiness pr *le! r % al in h !e-c untr7cultural traits" ha*its" r n r!s
29 De(ine the *usiness pr *le! r % al in ( rei%n-c untr7cultural traits" ha*its" r n r!s# Ma+e n value @u&%!ents
,9 Is late the ) C In(luence in the pr *le! an& e=a!ine itcare(ull7 t see h w it c !plicates the pr *le!
9 e&e(ine the pr *le! with ut the ) C in(luence an&s lve ( r the pti!u! *usiness % al situati nE
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&eveloping a Global % areness
T *e %l *all7 aware is t have9T *e %l *all7 aware is t have9
'# Tolerant ( Cultural Di((erences" an&
.# /no ledgeable (9.a Culture" .* Hist r7" .c 1 rl& Mar+et P tential".& Gl *al 6c n !ic" ) cial an& P litical Tren&s
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Stages of InternationalMarketing
Involve(entIn general, firms go through five different phases in going
international:
In general, firms go through five different phases in going
international:
Infrequent Foreign MarketingInfrequent Foreign Marketing
No Direct Foreign MarketingNo Direct Foreign Marketing
International MarketingInternational Marketing
Regular Foreign MarketingRegular Foreign Marketing
Global MarketingGlobal Marketing
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Strategic Orientation$ '0*G Sche(a
Orientation '0*G Sche(a
D !estic Mar+etin%6=tensi n
Multi-D !esticMar+etin%
Gl *al Mar+etin%
.6thn centric
.P l7centric
. e%i /Ge centric
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Generall7" ( ur &istinctive appr aches & !inate strate%ic thin+in% ininternati nal !ar+etin%9
Strategic Orientation$ '0*G Sche(a
1# 'thnocentric or &o(estic Marketing ' tension Concept$
.# 0ol2centric or Multi-&o(estic Marketing Concept$
pp site ( ethn centris!Mana%e!ent ( these !ultinati nal (ir!s place i!p rtance
n internati nal perati ns as a s urce ( r pr (itsMana%e!ent *elieves that each c untr7 is uniAue an&all ws each t &evel p wn !ar+etin% strate%ies l call7
H !e c untr7 !ar+etin% practices will succee& elsewherewith ut a&aptati n; h wever" internati nal !ar+etin% isviewe& as sec n&ar7 t & !estic perati ns
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Generall7" ( ur &istinctive appr aches & !inate strate%ic thin+in% ininternati nal !ar+etin%9
Strategic Orientation$ '0*G Sche(a
3# *egiocentric$
4# Geocentric$
e%i centric an& Ge centric are s7n n7! us with a Gl *alMar+etin% rientati n where a uni( r!" stan&ar&i3e&!ar+etin% strate%7 is use& ( r several c untries" c untries ina re%i n" r the entire w rl&
)ees the w rl& as ne !ar+et an& &evel ps a stan&ar&i3e&!ar+etin% strate%7 ( r the entire w rl&
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International marketing
and ex ortingInternati nal !ar+etin% is ! re than e=p rtin%"
*ecause it inv lves9
• Mar+etin% pr &ucts that have *een!anu(acture& r asse!*le& in the tar%et c untr7
• 6sta*lishin% a per!anents presence in the( rei%n c untr7
• 8icensin% an& (ranchisin%• ) urcin% c !p nents (r ! ( rei%n states#
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International and
multinational marketingInternati nal !ar+etin% !eans!ar+etin% acr ss nati nal (r ntiers#
Multinati nal !ar+etin% !eans the
inte%rate& c r&inati n ( the (ir! ’ s!ar+etin% activities thr u%h ut thew rl
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!. "easons for marketing
abroad6c n !ies ( scale an& sc pe6=istence ( lucrative !ar+ets in ( rei%n
c untries)aturate& !ar+ets in the h !e c untr7Hi%h FD c stsInternati nal pp rtunities
8ess c !petiti n4ew tra&e a%ree!ents…
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#. $x orting
6=p rtin% !eans the sale in a ( rei%n!ar+et ( an ite! pr &uce&" st re& r
pr cesse& in the suppl7in% (ir! ’ s h !ec untr7#
Tw +in&s ( e=p rtin%9 passive an&
active
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#. $x orting (continued)
Sources of foreign de(and +passive e porting,$• 4 n-availa*ilit7 ( appr priate pr &ucts (r !
& !estic pr &ucers• Price &i((erentials *etween i!p rte& an& l call7
supplie& ite!s;• 6= tic i!a%es attachin% t ( rei%n pr &ucts;•
Ine((icienc7 ( l cal &istri*uti n s7ste!s" p litical&isrupti ns" in&ustrial acti n" r ther (act rs thatprevent l cal (ir!s (r ! suppl7in% % &s#
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$x orting (continued)
eas ns ( r active e=p rtin%9• The pr &uct has reache& the en& ( its
li(e c7cle at h !e• 8ess c !petiti n• 6as7 access t !a@ r cust !ers• 6=p rt increases turn ver#
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$xam le% Manchester
&nitedMU C has ! re (ans a*r a& than at
h !e
Merchan&isin%9 cl thin%" sh es" sp rtseAuip!ent
Manchester Unite& Ma%a3ine"
Manchester Unite& n i&eT Channel - MUT…
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II. 'trategic considerations
in international marketing)trate%7 !eans ch sin% a %eneral &irecti n ( r
the (ir!" t %ether with r%ani3ati nal &esi%ns"
p licies" s7ste!s an& a st7le ( !ana%e!ent*est suite& ( r *eatin% the c !petiti n in the(iel
Tactics c ncern practical !eth &s ( ri!ple!entin% strate%ic &ecisi ns#
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. om etiti*e ad*antage
The ele!ents ( c !petitive a&vanta%e are thecritical ((er" the si%ni(icant peratin% (act rs
an& the (ir!’s strate%ic res urces#
Critical ((er (eatures)trate%ic res urces C !petitive a&vanta%e)i%ni(icant peratin% (act rs
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+orter ’s model of
com etiti*e ad*antage
C st lea&ership Di((erentiati n
)peciali3ati n
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!. The com etiti*e
en*ironmentact rs9
6ase ( entr7 *7 c !petit rs int the !ar+etThe *ar%ainin% p wer ( cust !ersThe *ar%ainin% p wer ( suppliers
$vaila*ilit7 ( su*stitutes8evel ( e=istin% c !petitive pressure
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The +orter ModelThe Porter Model
Availability of substitutes Bargaining power of
Customers and suppliers
Ease of entry Extent of inter-firm
competition
Competitive situation
ProfitabilityMar et power
!ature of competitive advantage
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om etition between
nations
The national diamond "Porter# $%%&'
,uickTime- et und com resseur
sont re/uis our *isionner cette image.
0 i r m 't ra t eg y 1
' t ruc t ure a n d
" i * a l r y
,uickTime- et und com resseur
sont re/uis our *isionner cette image.
De m a n d
c o n d i t i o n s
,uickTime- et und com resseur
sont re/uis our *isionner cette image.
0 ac to r
c o n d i t i o n s
,uickTime- et und com resseur
sont re/uis our *isionner cette image.
"e l a t ed a n d
su o r t i n g
i n dus t r i es
h a n ce
2 o * er n m e n t
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3. The *alue chain
0ri(ar2 activities$In* un& l %istics
perati ns - the c nversi n ( inputsint pr &ucts
ut* un& l %istics - which c ncern
&istri*uti nMar+etin% an& sales)ervice activities
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III. International marketing
strategy1# The five stage (odel)ta%e '9 Decisi n t internati nali3e
)ta%e 29 $nal7sis ( internati nal !ar+etin% envir n!ent
)ta%e ,9 6nterin% internati nal !ar+ets
)ta%e 9 Internati nal !ar+etin% pr %ra!!e
)ta%e 59 I!ple!entin% the internati nal !ar+etin% pr %ra!!e
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!. International marketing
lanning
Plannin% !eans l +in% int the (uturean& &eci&in% t &a7 what t & in the(uture %iven pre&icte& r inten&e&circu!stances#
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‘4hat if ’ analysis
Mana%e!ent as+s the Auesti n ‘ what willwe nee& t & i( it happens ’ an&
!a+es sure that the (ir! is a&eAuatel7prepare& ( r the envir n!ental chan%e#
‘1hat i(
’ anal7sis rec %ni3esc !ple=ities" &isc ntinuities an&
uncertainties ( the real w rl
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3. ontrol and coordination
C ntr l9
6sta*lishin% stan&ar&s an& tar%etsM nit rin% activities an& c !parin%actual with tar%et per( r!anceI!ple!entin% !easures t re!e&7&i((erences
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3. oordination and
control
C r&inati n !eans the uni(icati n (e(( rt" i#e# ensurin% that ever7 ne withinthe enterprise is w r+in% t war&s ac !! n % al# 6((ective c r&inati n
reAuires e((icient c ntr l#
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Mechanistic systems of
control)tan&ar&i3ati n ( a&!inistrativepr ce&ures
ee&*ac+ s7ste!s .rep rtsace-t -(ace !eetin%s
$pp int!ent ( a (ull-ti!e liais n!ana%er
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ultural systems of control
Clear c rp rate visi n an& !issi n;ree-( ll win% c !!unicati n *etween
the w r+( rce an& !ana%e!entG & internal P an& internal!ar+etin%
G & in&ucti n pr ce&ures ( r new sta((t a& pt the c rp rate culture at anearl7 sta%e