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Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/1
AN INTRODUCTION TO INTERNATIONAL MARKETING
Session 1
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/2
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
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/3
WHAT IS INTERNATIONAL MARKETING?
• Different Levels of International Marketing– Export marketing– International marketing– Global marketing
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/4
ENVIRONMENTAL INFLUENCES ONINTERNATIONAL MARKETING
Socio/CulturalLanguageReligion
AestheticsValues and attributesSocial organisation
Material culture
PoliticalOperational restrictions
Discriminatory restrictionsPhysical actions
EnvironmentalInfluences on InternationalMarketing
LegalLocal domestic laws
International lawHome domestic law
TechnologicalSatellite Communications
ISDNInternetWWW
The Electronic Superhighway
EconomicDeveloped economiesEmerging economies
Less developed economiesCurrency movements
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/5
SOCIAL / CULTURAL INFLUENCES
• Coca-Cola:– 2 Litre bottles too big for Spanish fridges– Pronunciation in China – Kooke Koula
• ‘A thirsty mouthful of candle wax’
• Pepsi-Cola:– “Come Alive with Pepsi” in German translated to:
• “Come alive out of the Grave … “
• McDonald’s:– The white face of ‘Ronald McDonald’
• A white face is seen as a death mask in Japan
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/6
SOCIAL INFLUENCES
• Emergence of a global village in which there “..will be a nationless state marked by the convergence of consumer needs that transcends political and cultural boundaries" Omahe; 2005
– 80% world population currently live in developing countries
– By 2025, 85% population will live in emerging markets– 2 out of every 5 people currently live in China and India – In the next 50 years, the African population will treble
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/7
WORLD’S MEGA CITIES
• By 2010, 50% of people will live in urban areas
• By 2015, the top 5 largest cities will be:• Tokyo - Japan 26.4 million• Mumbai - India 26.1 million• Lagos - Nigeria 23.2 million• Dhaka - Bangladesh 21.1 million• San Paulo - Brazil 20.4 million
Source: United Nations
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/8
ENVIRONMENTAL INFLUENCES ONINTERNATIONAL MARKETING
EnvironmentalInfluences on InternationalMarketing
LegalLocal domestic lawsInternational lawHome domestic law
EconomicDeveloped economiesEmerging economiesLess developed economiesCurrency movements
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/9
THE LEGAL ENVIRONMENT
• 3 dimensions in the legal environment:
– local domestic law:• different in every country
– international law:• issues include piracy, treaties, patents etc
– domestic laws in the home country:• export controls, plus duty to abide by national laws in all
activities
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/10
ECONOMIC ENVIRONMENT
• Developed triad Economies– account for 80% of world trade
• Emerging Economies– huge and growing consumer demand– government directed economic reforms– ‘dual economy’
• Less Developed Countries (LDCs)– low GDP, limited manufacturing base– infrastructure weaknesses– heavy reliance on one product/one trading partner
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/11
WORKING TIME REQUIRED TO BUY A BIG MAC
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/12
ENVIRONMENTAL INFLUENCES ONINTERNATIONAL MARKETING
PoliticalOperational restrictionsDiscriminatory restrictionsPhysical actions
EnvironmentalInfluences on InternationalMarketing
TechnologicalSatellite CommunicationsISDNInternetWWWThe Electronic Superhighway
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/13
POLITICAL ENVIRONMENT
• ‘A risk due to a sudden or gradual change in a local political environment that is disadvantageous or counter productive to foreign firms and markets’
• Government actions which may constitute potential risk for the firm:– Operational restrictions
eg. exchange controls or employment policies
– Discriminatory restrictions eg. special taxes and tariffs
– Physical actions eg nationalisation, riots and war
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/14
TECHNOLOGICAL CONSIDERATIONS
• Impact of technological advances:– Ability to gather data on markets– Management control capabilities– Operational practicalities of electronic
communication• Global access to the World Wide Web
– Est. 1.2 billion users in 2007– 17% of global population
• Importance of English language for web users
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/15
GLOBAL COMMUNICATIONS.....
• Globally e-business;– US $10 trillion (nearly all B2B)
• HOWEVER.....– Some countries have been bypassed by
the global electronic highway– Only 10% have direct access to a pc– Only 7% have direct internet access
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/16
DIVERSITY OF STAKHOLDER INTEREST
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/17
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
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/18
THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #2
• Governments– Can be a strong influence in regulating
importers and foreign business ventures
• Economies– Varying levels of development
• Finance– Many differing finance systems and
regulatory bodies
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/19
THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #3
• Stakeholders– Commercial, home country and host
country
• Business– Diverse rules, culturally influenced
• Control– Difficult to control and co-ordinate across
markets
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/20
INTERNATIONAL MARKETING STRATEGIESSuccess and Failure
• Failure arises from:– inability to find right market niche– unwilling to adapt products– products not perceived as sufficiently unique– vacillating commitment– assigning the wrong people– picking the wrong partners– inability to manage local stakeholders– mutual distrust/lack of respect between HQ &
management– inability to leverage ideas to all countries
Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH edition ISBN 13-978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE
ch1/21
THE INTERNATIONALMARKETING STRATEGY PROCESS