International Marketing Class Ppt

8/8/2019 International Marketing Class Ppt

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Reasons for internationalisation


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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


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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


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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


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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


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Competition

Regional Economic & Political Integration

Technology Improved Transportation &

Telecommunication

Economic Growth


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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


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High Cost of Distance

Trade Restrictions Differences in language


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Survival and Growth

Sales and Profits

Diversification

Employment

Standards of Living


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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.


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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


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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.


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International expansion helps firm:

Keep pace with competition

Reach a larger market Reap higherprofits

Prolong the lifecycle of their products


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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


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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


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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


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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


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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


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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


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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


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Changes in consumer and business buying

habits, in exchange rates, in labor costs, andother factors around the world influence the

decisions marketers make.


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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


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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


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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


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(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


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Market assessment

Product

Price

Place

Promotion


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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


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1. COST

Direct

Opportunity

2. BENEFIT

3. Risk


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SWOT analysis of firm

Multiple site visits

Developed or Developing country


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STANDARDISATION VS ADAPTATION

FACTORS ENCOURAGINGSTANDARDISATION

1. High Cost Of Adaptation

2. Industrial products3. similar taste

4. Country of origin effects


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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 `


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Pricing decisions

Pricing policies

Dumping

counter trade


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Standard Price policy

Market Pricing

Standard Pricing policy

Marketing Pricing policy


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Sporadic

Predatory

Persistent

Reverse


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Barter counter Trade

Counter purchase

Compensation Trade

Switch Trading

Offset

International Marketing Class Ppt

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