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Marketing Involves: Focusing on the needs and wants of customers Identifying the best method of satisfying those needs and wants Orienting the company towards the process of providing that satisfaction Meeting organisational objectives. ch1_2. WHAT IS MARKETING?.

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what is marketing
Marketing Involves:

Focusing on the needs and wants of customers

Identifying the best method of satisfying those needs and wants

Orienting the company towards the process of providing that satisfaction

Meeting organisational objectives

ch1_2

WHAT IS MARKETING?
what is international marketing
Different Levels of International Marketing

Export marketing

International marketing

Global marketing management

ch1_3

WHAT IS INTERNATIONAL MARKETING?
environmental influences on international marketing

ch1_4

ENVIRONMENTAL INFLUENCES ONINTERNATIONAL MARKETING

Legal

Local domestic laws

International law

Home domestic law

Political

Operational restrictions

Discriminatory restrictions

Physical actions

Socio/Cultural

Language

Religion

Aesthetics

Values and attributes

Social organisation

Material culture

Technological

Satellite Communications

ISDN

Internet

WWW

The Electronic Superhighway

Environmental

Influences on

International

Marketing

Economic

Developed economies

Emerging economies

Less developed economies

Currency movements

the challenges of the international marketing environment 1
Culture

Often diverse and multicultural

Markets

Widespread and sometimes fragmented

Data

Difficult to obtain and sometimes expensive

Politics

Regimes vary in stability, political risk becomes an important variable

ch1_12

THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #1
the challenges of the international marketing environment 2
Governments

Can be a strong influence in regulating importers and foreign business ventures

Competition

Multinationals can distort competitive structure of markets

Economies

Varying levels of development

ch1_13

THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #2
the challenges of the international marketing environment 3
Finance

Many differing finance systems and regulatory bodies

Currency

Varying and unstable, strong likelihood of transaction risk

Business

Diverse rules, culturally influenced

Control

Difficult to control and co-ordinate across markets

ch1_14

THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #3
the international marketing strategy process

ch1_16

THE INTERNATIONALMARKETING STRATEGY PROCESS

Chapter

Part One:

Analysis

1,2,3

Understand the environmental influences

on a firm’s international markets

Segment international markets, identify &

analyse opportunities

4.

Part Two:

Strategy

Development

5,6,7

Develop appropriate international marketing

strategies, planning & processes

Feedback & reassess

continually

8.

Decide marketing entry strategies

Part Three:

Implementation

9,10,11,12

Build added value through effective

marketing mix strategies

comparative advantage
Achieving Comparative Advantage

sustained period of investment

lower labour cost

proximity to raw materials

subsidies to help native industries

building expertise in certain key areas

Building national advantage (Porter, 1990)

factor conditions

demand conditions

related and supporting industries

firm strategy, structure and rivalry

ch2_6

COMPARATIVE ADVANTAGE

Source: Porter (1990) The Competitive Advantage of Nations

tariff and non tariff barriers to trade

ch2_7

Tariff and Non-Tariff Barriers to Trade

Specific country

Purpose

Time length

Import restraints

Tariff rates

Production, distribution and consumption

Tariffs

Market entry barriers

Government participation in trade

Customs and entry procedures

Product requirements

Quotas

Financial control

Other policies and requirements

Non-tariff barriers

Source: Onkvisit and Shaw (1988) Marketing Barriers in International Trade, Business Horizons, June

main types of trade associations

ch2_9

MAIN TYPES OF TRADE ASSOCIATIONS

Type

Economic co-operation

Bi-lateral or multi-lateral trade treaty

Sectoral free trade agreement

Trade preference agreement

Free trade area (or agreement)

Customs union

Common market

Economic union

Political

Common external tariff

No

No

No

No

No

Yes

Yes

Yes

Yes

Free movement of capital and people

No

No

No

No

No

Possibly

Yes

Yes

Yes

Example

Canada - EC framework agreement, APEC

The Peru, Chile accord

The multi-fibre agreement

South African Development Cone (SADC)

ASEAN NAFTA Mercosur

Economic Community of West African States

European Single Market

European Monetary Union

Would resemble federal states (e.g. US, Canada, Germany)

forms of market agreement

ch2_10

No internal tariffs

Common external tariffs

Free flow of factors of production

Common fiscal & monetary policy

Political harmony

FORMS OF MARKET AGREEMENT

Free trade area

Customs union

Common market

Economic union

Political union

developing trade areas
NAFTA: free trade area

US, Canada, Mexico

Mercosur: customs union

Brazil, Paraguay, Uruguay and Argentina

APEC: forum of 23 Asia-Pacific nations

ASEAN: free trade area (beginning 2008)

Thailand, Indonesia, Singapore, Brunei, Malaysia & Philippines

CEA: economic area

China, Hong Kong & Taiwan

ch2_18

DEVELOPING TRADE AREAS
culture defined
The sum total of learned beliefs, values and customsthat serve to direct customer behaviour in a particular country market

ch3_2

CULTURE DEFINED
a cultural framework

ch3_9

A CULTURAL FRAMEWORK

Religion

Values &

Attitudes

Language

Cultures

Education

Aesthetics

Social

Organisations

Law & Politics

Technology &

Material Culture

Adapted from Terpstra & Sarathy (1999)

assumptions to be questioned by international marketing managers

ch3_13

Assumptions to Be Questioned by International Marketing Managers

1. That Maslow’s Hierarchy of Needs is consistent across cultures

2. That the buying process in all countries is an individualistic activity

3. That social institutions and local conventions are similar across

cultures

4. The consumer buying process is consistent across cultures

- consumer involvement

- perceived risk

- cognitive style

5. Self reference criterion

interrelationship between context product diffusion

ch3_18

INTERRELATIONSHIP BETWEEN CONTEXT & PRODUCT DIFFUSION

High Context/Fast Diffusion

High Context/Slow Diffusion

South East Asia

Japan

India

Asia

Low Context/Fast Diffusion

Low Context/Slow Diffusion

Scandinavia

USA, Canada

UK

Eastern Europe

Source: Will, Samli and Jacobs (1991)

linear model of the negotiation process

ch3_19

LINEAR MODEL OF THE NEGOTIATION PROCESS

Non-task sounding

Task-related exchange of information

Persuasion

Concession and agreement

Source: Graham (1986)

3 areas of international market analysis
Scanning international markets to identify and segment markets

Building marketing information systems to monitor environmental trends

Carrying out primary marketing for input into the development of marketing strategies

ch4_2

3 AREAS OF INTERNATIONAL MARKET ANALYSIS
business portfolio matrix

ch4_6

BUSINESS PORTFOLIO MATRIX

Source: Harrell G D and Kiefer R O (1993) Multinational market portfolios in global strategy development,

International Marketing Review, Vol 1- No 1

Country Attractiveness

High

Medium

Low

High

Company’s

Compatibility

With Each

Country

Medium

Low

transnational segmentation methods

ch4_8

TRANSNATIONAL SEGMENTATION & METHODS

Demographic:sex, age, income level, social class and educational achievement

Psychographic:lifestyle factors - activities, interests and opinions

Behavioural:patterns of consumption, loyalty to product category and brand

12c framework

ch4_14

12C FRAMEWORK

Culture/consumer Behaviour

Country

Channels

Concentration

Commitment

12c

Choices

Currency

Communication

Consumption

Contractual Obligations

Capacity to Pay

Caveats

market profile analysis

ch4_15

MARKET PROFILE ANALYSIS

Distribution

Mix

Promotion

Mix

Product

Mix

Pricing

Mix

Market

Entry

Social

Cultural

Legal

Factors

Economic

Factors

Political

Factors

Technological

Factors

Competition

Trading

Practices

Tariff

Barriers

Financial

Source: Majaro (1992)

sources of information
Business libraries

University libraries

International chambers of commerce

International Market Intelligence Centre (DTI)

Business Links

Embassies

Banks

Trade associations

Export councils

Overseas distributors

Overseas sales subsidiaries

Foreign brokerage houses

Foreign trade organisations such as JETRO

(Japanese Export Trade and Research Organisation)

ch4_16

SOURCES OF INFORMATION
usefulness of personally collected data in the asia pacific region

ch4_20

USEFULNESS OF PERSONALLY COLLECTED DATA IN THE ASIA-PACIFIC REGION

0 1 2 3 4

Not at all

A little

Substantial

A lot

Heavily

Customers

Personal contacts

In-house surveys

Businessmen

Governments

Competitors

Trade associations

Newspapers

Political contacts

External surveys

International survey

Magazines

Bankers

Local surveys

Computer databases

Source: Lassere , P (1993)

organising the research study 1
Questions the International Marketing Manager should address:

Should the research be carried out by foreign local subsidiaries or should all marketing research be centralised at headquarters?

Should the fieldwork be carried out in house or by an agency?

ch4_21

ORGANISING THE RESEARCHSTUDY #1
evaluation of survey methods

ch4_24

EVALUATION OF SURVEY METHODS

+ = advantage

- = disadvantage

Malhotra et al (1997)

aspects of the international marketing plan

ch5_7

ASPECTS OF THE INTERNATIONAL MARKETING PLAN

Stakeholder Expectations

Shareholders, customers, host government, employees

in each country, pressure groups

Situation Analysis

Evaluation of the environment & individual markets

Resource & Capabilities

Individual SBU strengths & weaknesses analysis

Capability to deal with threats and opportunities

Corporate Aims & Objectives

Financial, market, area, brand & mix objectives

Marketing Strategies

Growth strategies

Standardisation & adaptation

Implementation of the Plan

Individual SBU & marketing mix plans

Regional, global or multidomestic integration

Control & Feedback

Setting standards, measuring performance, correcting deviations

some typical stakeholders of multinational enterprises

ch5_8

SOME TYPICAL STAKEHOLDERS OF MULTINATIONAL ENTERPRISES

Shareholders

Home country

government

Expatriate staff

Individual politicians and civil servants

Suppliers

Distributors & retailers

Host country

government

The Firm

Local workers and their organisations

Customers

Local competitors

Pressure groups

Competitor MNEs

ansoff growth matrix

ch5_10

ANSOFF GROWTH MATRIX

Products

Old

New

Old

Product development

Penetration

Markets

Market development

Diversification

New

marketing plan checklist 1
The world economy and environmental trends

Historical performance (sales, costs, profitability)

Forecast future performance

An extrapolation of the past

Alternative scenarios

Opportunities and threats

Company strengths, weaknesses and capabilities compared to competition

ch5_12

MARKETING PLAN CHECKLIST #1
marketing plan checklist 2
Long term aims, objectives and strategies

One-year marketing objectives and individual SBU strategies

Country-by-country forecasts and targets

Country-by country marketing plans for all activities

Plan for regional and global integration

ch5_13

MARKETING PLAN CHECKLIST #2
marketing plan checklist 3
Critical factors for success

Likely competitor response

A contingency plan

A control process for feedback, evaluation and corrective action

ch5_14

MARKETING PLAN CHECKLIST #3
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