International Marketing & Operations Definition)

International Marketing & Operations

Further Explanation on the topic of


2

• What is meant by “marketing ”? Is it the same as sales?

• Definition of marketing according to American Marketing Association (AMA, 2004):

• “ Marketing is an organizational function & a set of processes for creating, communicating & delivering value to customers & for managing customer r/ships in ways that benefit the organization & its stakeholders.”

• Thus, marketing is:

– a process & function

• It is also

– a philosophy

– an attitude

– an orientation

International Marketing

3

• It has multi-stakeholder application:

– Customers

– Suppliers

– Distributors

– Internally (Employees)

– Owners / investors

– Local community

– Government

– Unions, etc.

• Actually, there are several definitions of marketing & some of them are:

– Any interpersonal & inter-organizational r/ship involving an exchange is marketing ( William J . Stanton)


4

– The essence of Marketing is a transaction – an exchange – intended to satisfy human needs & wants

– Accordingly, there are three elements in the marketing process:

• Marketers

• What is being marketed

• Target market

– Marketing is a social process by which individuals & groups obtain what they need & want through creating & exchanging products & value with others (Philip Kotler)

– This definition includes the following core concepts:

• Needs, wants & demands

• Products & services

• Value, satisfaction & quality

• Exchange, transaction & r/ships

• Markets & marketers


5

– Marketing can not be considered as a separate function; it is the whole business, seen from the point of view of its final results, that is profit, through customer satisfaction (Peter Drucker)

• A Simple Marketing System


Communication

MarketIndustry

Information/Feedback

6

Factory ExistingProducts

Selling&

Promoting

ProfitsthroughVolume

Market CustomerNeeds

IntegratedMarketing

Profitsthrough

Satisfaction

The Selling ConceptThe Selling Concept

The Marketing ConceptThe Marketing Concept

Starting Point Focus Means Ends

Marketing & Sales Concepts Contrasted

Source: Philip Kotler & Gary Armstrong, Principles of Marketing, 1999

7

Definitions of International Marketing & operations

International marketing

• “ The multinational process of planning & executing the conception, pricing,

promotion & distribution of ideas, goods & services, and to create exchanges that

satisfy individual & organizational objectives.” (Onkvisit & Shaw)

• The performance of business activities designed to plan, price, promote & direct

the flow of a company’s goods & services to customers or users in more than one

nation for a profit (Cateora & Graham, 2002)

• What is the main difference b/n domestic & international marketing?

– Marketing activities take place in more than one country

• This might seem apparently minor difference but accounts for the complexity &

diversity found in international marketing operations

8


• Thus, the answer lies not with different concepts of marketing but with the

environment within which marketing plans must be implemented

• The uniqueness of foreign marketing comes from:

– the range of unfamiliar problems encountered in foreign markets

– the variety of strategies necessary to cope with different levels of uncertainty

– Several uncontrollable elements (legal restraints, unpredictable consumers,

etc.

• All these do affect the profitable outcome of sound marketing plans

• Therefore, the marketer must adapt to those uncontrollable factors in a manner

consistent with a successful outcome

9


• What is interesting is the challenge of moulding the controllable elements

of marketing decisions (product, price, promotion & distribution) within the

framework of the uncontrollable elements of the marketplace (competition,

politics, laws, consumer behaviour, level of technology, etc.) in such a way

that marketing objectives are achieved (Cateora & Graham, 200 2 )

• The challenge of international marketing is to develop strategic plans that

are competitive in the intensifying global markets

• F or growing number of companies, being international is no longer a

luxury but a necessity for economic survival

10


• Of all the trends affecting global business the most dynamic are:

– The rapid growth of the WTO & regional free trade areas

– The trend toward the acceptance of the free market system among

developing countries

– The burgeoning impact of the Internet & other global media on the

dissolution of national boundaries

• These & other issues affecting the world economy, trade, markets &

competition should be the focus

• Successful marketing is difficult & challenging & international marketing

even more so

11


• Complexity theory: Argues that the world is complex and – importantly –

that it is often not possible to understand complex systems by looking at

their individual parts.

• “ The standard approach of breaking things up into individual pieces,

solving those & then summing the solutions of the independent parts

together simply doesn't work for complex systems.

– Are you skeptical or not?

Complexity theory: See for example Dolan et al, Understanding and

managing chaos in organisations, International Journal of Management, Vol.

20, No. 1, March 2003

12


Operations

• Operations is concerned with the design & the operation of systems for

manufacture, transport, supply or service (Thomson, 2002)

• Operations management (OM) is defined as the design, operation, and

improvement of the systems that create & deliver the firm’s primary products &

services

• Specifically, the emphasis of OM is in the transformation process

• A transformation process is defined as a user of resources to transform inputs into

some desired outputs

• Examples of transformations:

– Physical – manufacturing

13


– Locational – transportation

– Exchange – retailing

– Storage – warehousing

– Informational – telecommunications, etc.

• OM must focus on core services that customers want

• Core services are basic things that customers want from products they purchase

• The importance of operations management

– Synergies must exist with other functional areas of the organization

– Operations account for 6 0 - 8 0% of the direct expenses that burden a firms profit

14

Core Services Performance Objectives

Operations

Management Flexibility

Quality

Speed

Price (or cost Reduction)

15

Operations Strategy

ExampleStrategy Process

Customer Needs

Corporate Strategy

Operations Strategy

Decisions on Processes and Infrastructure

More Product

Increase Organization Size

Increase Production Capacity

Build New Factory

16

International Marketing & Operations: Two Key Issues

• Customise or Adapt?

Standardisation “is the central managerial issue in international marketing if marketing itself is defined in terms of formulating & implementing policies regarding the four (or more) Ps of product, price, promotion & place [distribution] ”.

Source: Boddewyn, JJ & Grosse, R , “ American Marketing in the European Union”, European Journal of Marketing, 19 9 5, Vol. 2

17

International Marketing & Operations: Two Key Issues

• Operations as the key factor for success?

“ Successful companies... tend to be those that have recognised that competitive advantage comes from their strategic position and, second, from their operating efficiency. Clearly a combination of the two is better still”.

Source: Christopher, M, “ Reaching the customer: Strategies for marketing and customer service”, Journal of Marketing Management,

Summer , 8 6 , Vol. 2 Issue 1

18

A Question for you to Consider

• A UK * manufacturer of soft drinks (fruit juices, etc) is expanding into international markets

• You are advising the company about the market in your own country

• W hat are the most important factors in the market place and the business environment which the company should consider?

* Or a US company if you live in the UK.


International Marketing & Operations Definition)

Documents

Transcript of International Marketing & Operations Definition)