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International Marketing MKT 504

International Marketing MKT 504. Sharon Loane University of Ulster ML010 Extn. 75096. Course details etc…. 12 x 3 hour lectures 164 hrs independent study 50% Exam, 50% Coursework Group Presentation (5 x 10%= 50%) On SLEPT factors for particular country (Eastern Europe), class time

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International Marketing MKT 504

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  1. International MarketingMKT 504 Sharon Loane University of Ulster ML010 Extn. 75096

  2. Course details etc… • 12 x 3 hour lectures • 164 hrs independent study • 50% Exam, 50% Coursework • Group Presentation(5 x 10%= 50%) On SLEPT factors for particular country (Eastern Europe), class time • Written case study • A report on these SLEPT factors 20%) • B Using information gathered suggest opportunities for Irish firms & recommend appropriate marketing strategies (30%)

  3. Post WWII developments in Trade • Post WWII change in attitudes • GATT was born, resulting lowering in tariff barriers for industrial products • Uruguay Round (1996), replaced by WTO. • WTO tackling issues preventing more liberal world trade system • (non tariff barriers, agricultural products, services trade, & investment issues)

  4. More recently… • Characterised by emergence of trade groupings (increased interdependence) • ASEAN, EU, NAFTA, APEC • Vary in degree of loss of sovereignty. • Sustained world peace and the end of the cold war promoted growth of international economy. • Evolution of large emerging markets, Argentina, China, Hungary, Poland etc

  5. Communications and transport • Transport • Globe has shrunk, time to deliver and cost have reduced • Containerisation, larger vessels, improved waterside efficiency & rationalisation of shipping services. • Jet aircraft, facilitate face-to-face meetings & business travel, speed and cost

  6. Technology • WWW, gather, analyse & disseminate data with ease • Facilitates prod around the world • Advances allow “marketspace” B2C / or new business forms • Pace of innovation • Underpins communications B2B

  7. Other Drivers • Convergence of consumer tastes • Emergence of global niche markets

  8. The New Nike Economy • Air Max Penny Basketball Shoes • Designed Oregon & Tennessee • Developed jointly by US & Asian technicians, Oregon, Taiwan, S Korea • Produced in S Korea (Mens) & Indonesia (Boys) • 52 components from 5 different countries (US, Taiwan, S Korea, Indonesia & Japan) • Single pair is touched by 120 pairs of hands during production process Source: Nike, Far Eastern Economic Review, 29th August, 1996

  9. What is International Marketing? Marketing – A Definition: Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. (CIM)

  10. International Marketing - Definition The definition of International Marketing is different from the general definition of Marketing only in that goods and services are marketed across political boundaries. (Albaum) International Marketing is the performance of business activities that direct the flow of a company’s goods and services to consumers or users in more than one nation for profit. (Cateora)

  11. International Marketing – Definition (cont.) When practising international marketing, a company goes beyond exporting and becomes much more involved in the local marketing environment within a given country or market. (Jeannet/Hennessey)

  12. What is International Marketing • Made up of many facets, that is levels of involvement • Domestic Marketing • Export Marketing • International Marketing • Multi National Marketing • Global Marketing

  13. Domestic Marketing • One set of Competitors • One Economy • One set of market pressures • One set of Customers

  14. Domestic Market • Manipulate a series of variables • Controllable by business • Price • Advertising • Distribution • Product • Uncontrollable by business • Economic structure • Competitors • Cultural • Legal

  15. Export Marketing • Where the company markets its goods or services across national or political boundaries • Usually a reactive situation • Emphasis on product modification, if required. • Most traditional and least complicated form of international marketing.

  16. International Marketing • Entire marketing strategy will need to be adapted. • Understanding of different environments becomes essential. • Several markets • Differing controllable variables across markets • Differing uncontrollable variables across markets

  17. International Marketing • Giving • Differing infrastructures • Differing advertising/promotions • Differing complexity of market

  18. International Marketing • Multinational marketing • Where similar activities apply to more than one country • Some limited control on the market place variables • Markets may be independent profit centres • Marketing strategy can be tailored to local market, individual strategy per location, can have many and varied strategies

  19. International Marketing – Definition (cont.) • Pan-Regional Marketing: • Marketing strategies for regions rather than countries. • Eg Asia, fastest growing market for West’s top brands. (Dior, Rolex, Cartier, Calvin Klein, Versace, Gucci) • Singapore, Jakarta, K Lumpur, Hong Kong, Tokyo • French luxury goods sales here are now 35% of output, soon will be market for almost 50%

  20. Global Marketing • The whole organisation exploits one strategy on a worldwide basis • No individual country influence, although often some form of local modification necessary. • One strategy fits all • Efficiencies of scale • Needs significant market segments with similar demand world over • Might need marketing mix tweaked per region?

  21. Why is international marketing different • Culture Diverse, Multi-cultured • Markets Widespread, Fragmented,different • Data Difficult to get, expensive • Politics Varying stability and attitudes • Governments Attitudes towards foreign trade • Competitiors Varying levels • Economies Varying levels & Systems

  22. What makes international marketing different • Finance Varying systems & regulatory bodies • Currencies Varying & Fluctuating • Businesses Cross Cultural Influences • Control Remote & Difficult

  23. SLEPT Factors(Framework to analyse macro environment) • Social & cultural values • Legislation affecting trade • Economic conditions • P olitical systems & attitudes • Technological level & infrastructure, & Competition within the market

  24. Problems of international trade • Debt • Unstable countries • Protection of intellectual rights • Tariff regulations • Instability in Foreign exchange markets • Non tariff barriers, eg specifications

  25. Barriers to International Marketing • Control • Language • Red tape • Cash flow • Logistics • Lack of trained staff

  26. International Marketing Decisions • Corporate Strategy • Information on Potential Markets • Objectives • Decision to go international

  27. International Marketing Decisions • Business strategy • Resource Commitments • Selections of Target Markets • Selection of entry methods

  28. International Marketing decisions • Operational Strategy • Marketing Plan • Organisation • Allocation of tasks

  29. Next week…. • Why do firms wish to go international? • Internet searching, techniques • 2nd half of class (seminar) labs re gathering data on countries allocated to each group • Web link for sources of data on MKT 504 website • See you then…….

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