INTERNATIONAL MARKETING - Quizzes / Final à only look at the key learning points

o Short answers à dot points are fine o Quiz à 6 short answer – 4 on lectures, 2 on case studies (general questions) o Won't get case studies in the exam – more general nature

LECTURE 1 – INTRODUCTION TO INTERNATIONAL MARKETING Why and how is IM different to domestic marketing LECTURE - Same principles à vision, mission, situation analysis, competitive advantage and differentiation, product /

service development, marketing mix, implementation and adaptation - International environment much more complex - Information you need is more difficult to get – data required to build the marketing plan is very different - Grew up in Australia à innate understanding of the culture, language etc. – different to other culture’s norms,

rules and regulations TUTORIAL - Harder to get information internationally as opposed to domestically à can't tell whether its accurate or not, is it

easy to get a hold of? - In a different language - Cultural differences à Asian cultures might want to tell you want they think you want to hear rather than the truth - Different political systems à barrier to access to information - Must be aware of the complexity going into another culture - Level and quality of information is not the same as we’re used to Who IM is important to and the benefits it brings LECTURE - Countries à economic advantage, economic multiplier - Firms à additional growth from new markets, additional profits - People à opportunity, new jobs, job growth, income, security, lifestyle - Trade relations à government to government trade agreements, business to business contracts, trade

agreements - Cultural exchange à further insight into the other country, closer political, commercial and personal relationship,

tourism, sport, education exchanges, help security TUTORIAL - Companies to take on new markets and broaden their horizons

o Reduce competitive impact on the company if expanding overseas - Individual people in the markets we go into

o International business open in a small village à increase jobs and quality of life - Communities

o P&G à hygiene products into a village – improve health and increase quality of life - Culture

o Help develop cultures and spread positive aspects into other cultures o Learn to share the values and cultures

- Countries à development especially emerging economies - Firms à new markets, growth with countries – brings consumption of goods and services - People à spread wealth and opportunity, bringing new options for consumers in those markets - Trade à macro environmental impacts in other countries – help local people, communities and build a balance

of trade and help develop goods and services for export à multiplier effect in the economy - Culture à share our own views and appreciate others

TUTORIAL - Strategic Planning Model

o Start with vision à develop mission à mission results in objectives – strategic (long term), marketing (short term) à business plan à implementation à monitor / review à learn / adapt

- Market Schematic Model o Know the parts and importance of each

Marketing plan implementation, control and management LECTURE - 1% inspiration, 99% perspiration - Learn and adapt

o You'll always make mistakes – learn from them o Experience transfer o Find out what and why o Transfer knowledge to other areas of the firm

TUTORIAL - Process of actually getting to the end à making plans, learning from them LECTURE 2b – RESEARCHING INTERNATIONAL MARKETS The International Market Research Process LECTURE / TUTORIAL 1. Use the market place schematic to consider all the information groups / sub-groups that you require 2. After you’ve done this, consider the ‘types’ of information that you require (secondary / primary) and how to get

it 3. Build a market research plan (what, how, when) à always get professional MR people to do this with you 4. Consider the time needed and budget required for the plan – note the zero-base aspects of preparing this

costing 5. Get the research plan approved à approval gets commitment to the budget and timeline 6. Implement the research plan and manage the project à this is where mistakes will be made 7. Evaluate / analyse the information à you may need to run ‘sensitivity scenarios’ 8. Prepare recommendations à always relate these to the research objectives 9. Use the information to build a detailed business plan

How marketing information system (MIS) is set up and managed within an international firm LECTURE

TUTORIAL - Online, real time, relational database - Garbage in, garbage out à international market research may or may not be good quality

Why the technical environment is important LECTURE - Not just technology à knowledge, machinery and devices - Enables you to set up your firm but also helps do everything in an efficient and competitive way - Technology equipment

o Innovation and diffusion of innovation o Manufacturing base o Production factors o Infrastructure o Population density o Health o Pollution

o Geo / Climate endowment o Consumerism o Environment and conservation o Security o Communication mix and speed o Education o Development of new entrepreneurs

LECTURE 5 – WHICH MARKETS AND INTERNATIONAL MARKET SELECTION THE MARKET EVALUATION PROCESS Get comfortable with how to do this and the intricacies of each of those steps LECTURE 1. Why are you considering export? à proactive / reactive 2. Market needs à same as domestic / adapted product or new? 3. Strategy à big market / small player, small market / big player? Competitive advantage / competitive strategy 4. Psychic distance issues 5. Home government trade agreements à bilateral / multilateral FTAs 6. Any home government assistance? 7. Any overseas government assistance? 8. Any networks you can access? 9. Profitability model à 100 x 1 or 1 x 100? 10. Business model overseas à firm’s policy, best options 11. Any trade missions to help you choose? 12. Any digital / born global issues?

1. WHY ARE YOU CONSIDERING EXPORT? à PROACTIVE / REACTIVE - Proactive à more profitable growth, entrepreneurial ambition, economies of scale eg. McDonald’s, Nike

o Conscious decision to expand - Reactive à become aware of a market need, network opportunity eg. Thai government advertisement for

Australia’s involvement in new infrastructure projects WHICH MARKETS? - A history of big

o China and India previously the biggest economies in the world, Europe then caught up and started to develop

o Now a re-emergence of China and India - Country competitiveness - Social development

o Some countries have higher levels of social development than others o Doesn’t affect fast food as much – more for health care / retirement care o Affects what countries to evaluate

- Productivity à how productive different workers are in different economies eg. manufacture vs. intellectual property creation – choose countries based on productivity

- Solar power à some countries have better development of that than others - Coffee drinking - Alcohol - Meat consumption à different countries consume different quantities and different ranges of meat

o Farmers, abattoir, international meat wholesaler à look at some countries as opposed to others - Ageing population à issues that this in turn creates - Car ownership in China à 147 / 1,000 people

o Australia à 712 / 1,000 people o USA à 797 / 1,000 people

The characteristics that differ between the marketing of services and products LECTURE - Services are

o Intangible à cannot be seen, tasted, felt or smelled before purchasing § Recognise that customers can taste or feel what you're offering, need to give them some insight

into how good you are o Inseparable à production and consumption, and from the provider

§ Tangible à can be independent of point of sale § You can only access intellectual property if you're actually using to the service § Produced when a customer wants them, can't stock a service

o Variable à service quality depends on who produces and under what conditions § About staff à good people = good service, bad people = bad service

o Perishable à cannot be stored, for resale or later use § Can't stock a service eg. can't save empty hotel rooms to sell again – only a different night

- More difficult to decide if they want to purchase the service – how do you know how good the service is? o Doesn’t really matter with products à the end product is still produced

- Eg. international university education - Where services marketing fits in traditional marketing (see image) TUTORIAL - Services are

o Intangible à can't put a brand on it, can't store it, they can't walk with it § Domestic marketing à harder – physicalness of the product is what we rely on § International à even harder – may not even see the service provided, just hear someone talk

• Trying to market an experience o Inseparable

§ Service must be consumed at the same time it is produced o Variable

§ Service quality depends on the service provider – product might be great but the experience we get will influence how we appreciate the service

o Perishable § Can't be stored

- Need to develop strategies to deal with each of these issues as part of the marketing mix - Most products have a service component, not all services have a product component The major ways in which international services are delivered - Four cells à location free, location bound, standardised packages, value added packages LECTURE

How to evaluate which model is best for your marketing plan LECTURE / TUTORIAL - Decide on the factors that are important à size, reputation, financial strength, area covered, experience, sales

depth, facilities, government relations etc. - Weight the above criteria à objective / subjective - Score each intermediary / channel type - Multiply weight / score and add up - Decide How to manage international distribution LECTURE / TUTORIAL - External factors

o End users – who, where, when, how do you need to create a competitive advantage in order to win them § Large or small market? § Mass or niche market? § Online vs. brick and mortar? § Payment methods § Information on products / services

o Business environment – P, L, E, S, C, T o Competition

§ Porter’s 5 forces - Internal factors

o Objectives, financial resources, market coverage needed, control, quality, communication LECTURE 8b – INTERNATIONAL LOGISTICS Learn why logistics is important in international marketing plans LECTURE - Logistics à managing the system that turns raw materials into products / services and gets them to customers - Symbiotic

o Distribution à setting up the channels o Logistics à moving physical product through the channel

TUTORIAL - Logistics à managing the system that turns raw materials into products / services and gets them to customers - Get information, returns, payments etc. back up the distribution line - Intermediaries must also be managed - How do you deliver services to the right person at the right time? Learn how to draw a logistics value chain / risk management map for your group project LECTURE