Concept of Interna-marketing

8/8/2019 Concept of Interna-marketing

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Marketing can be defined as a series of

activities leading to an exchange transaction

between a seller & a buyer at a profit. Marketing activities centre on an

organisations efforts to satisfy customerwants & needs with products & services that

offer competitive value.


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The concept of Marketing has changed dramaticallyduring the past three decades.For example focus from product to better product.

The New concept of Marketing & the four Ps (1960). (Themarketing emphasis was shifted from product toCustomer.

The Strategic concept of Marketing:The Strategic concept of Marketing: By the

1990s , the concept of marketing was outdated & thefocus was given on borderless trading as well asexternal environment or stakeholders.


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Marketing

Customerneeds &

wants

R & DEngineeri

ng

Manfactur

ing

Customervalue


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The 1st identifies the purpose & task of

marketing, the second competitive reality of

marketing & the third the principal means forachieving the first two.

Customer Value & Value Equation

Competitive or differential advantage focus


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The task of marketing is to create customer

value that is greater than the value created by

competitors.


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The second great principle of marketing is

competitive advantage. A competitive

advantage is a total offer, vis--vis relevantcompetition, that is more attractive to

customers.


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The third marketing principle is focus orconcentration of attention. Focus is required tosucceed in the task of creating customer value ata competitive advantage. For example emergingperiod of electronic data processing, IBMcompany was focused on customer needs &wants than any competitors.

The IBM existed from the market in 1990 &competitors took over the market. Dell, Compaqetc.


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Domestic market refers to a market where

goods & services are exchanged within the

boundaries.The economic activities happenwithin a one market boarder.


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Marketing is a process of focusing the

resources & objectives of an organisation on

environmental opportunities & needs.


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Marketing is a process of focusing the resources &objectives of an organisation on environmentalopportunities & needs.

Ina nutshell, it means a successful global marketermust have the ability to to think globally & actlocally For example

Coca cola

IBM Compaq Sony Rebook Adidas


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Global market means the product which is

positioning the product in a global level. The

Best example-Mcdonald, KPC, Adidas,Reebok, Nike, Coca-cola, Louise Philip,

Arrow, Allen soly


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The US today represents roughly 25 percent

of total world market for all products &

services.The slogan of US companies goglobally which means that 75 percent of

world market is outside of their homecountry.


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The world view of a companys personal can

be described as ethnocentric, polycentric,

regiocentric & geocentric.


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PolycentricEach host country

is unique:See differences in

foreign countries

Ethnocentric

Home country issuperior;

see similarities inforeign countries

RegiocentricSees similarities & differences

In a world region;Is ethnocentric or polycentric in

its view of the rest of the world

GeocentricWorld view

Sees similarities& differences in

home & host

countries

Orientation of Management & companiesOrientation of Management & Companies


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Polycentric world view predominates at a

multinational company where the marketing

mix is adapted by the country manageroperating autonomously.


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Driving Forces Restraining Forces

TechnologyCulture

Market needsCostFree marketsEconomic integrationPeaceManagement visionStrategic intentGlobal strategy & action

Culture

Market Differences

CostsNational ControlsNationalismWar

Management MyopiaOrganisation HistoryDomestic Focus


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Political factors

Social factors

Economic aspects Exchange of Service

Market size

Business opportunities Flow of business activities


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Physical Environment

Climate, topography, resources

Economic Environment

Population, industry structure, stage of developmentLack of wholesalers in developing countries


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Political-Legal Environment

Advertising restrictions

Tariffs/non-tariff barriers

Patents/Trademark protection


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Cultural Environment

Language

Attitudes

Time Concepts

Space Concepts

How business is conducted

Friendship


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What influences the decision to enter?

Stability of government

Stability of currency

Tariffs/non-tariff barriers

Crime/corruption

Protection of property rights/technology


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How to enter:

Exporting

Export excess capacitySimplest, most direct

Licensing/joint venture

Firm in foreign market produces, distributes


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How to enter (cont.):

Subsidiaries

Partly own firm in foreign market

Multinational

As foreign investments grow, firm loses home country identity

Key is volume growth


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Which markets?

Current market potential

Future market potential

versus riskRussia

Marketing Plan

Standardize versus adapt for each market


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Marketing Organization

Based on entry strategy

Requirement for in-country participation


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Look at the international marketing environment

Decide whether to enterDecide which markets to enter

Decide how to enterPlan marketing programsPlan marketing organization

.the real issue here is what role national boundaries play in afirms strategic planning process.


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Has an ubiquitous desire for the most

advanced things

best quality best reliability

at the lowest costThis leads to opportunity for companies to

develop standardized products

for world market segments

at relatively low prices


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Firms compete on appropriate value - best combination of price - quality - reliability Delivery of identical products global Terms and standards may very, but High Quality/Low Cost operations are the

hallmark of successful organizations. Examples : Toyota, Nokia, Coca Cola, etc.


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Is the process of planning and executing the conception, pricing, promotion and

distribution of products and services to create exchanges

that satisfy individual and organizational

objectives. Two major tasks: Determining specific Target Markets, and Managing the marketing mix elements


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Due to its impact,international marketingconcepts should beunderstood by all types offirms.

Global marketing allows firmsto seek new markets forexpansion.

Countries trade items in whichthey have a comparativeadvantage.

Domestic marketingencompasses a firms efforts inits home country.

International marketinginvolves marketing goods andservices outside the homecountry.

Global marketing is anadvanced form of international

marketing in which a firmaddresses global customers,markets, and competition.


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It allows each country tomaximize their strengths and

offset its weaknesses. Countries can optimize their

comparative advantages. It can extend the product life

cycle, dispose of discontinueditems, and allow for

innovations.


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Domestic firm: It restricts efforts tohome market.

Exporting firm: It expands sales

beyond its home borders. International firm: It modifies

products for foreign markets orintroduces new items.

Multinational firm: While head-quartered in home nation. 50% of its

sales/profits are from multiple nations. Global firm: Its domestic sales are

relatively low, so it relies more onforeign transactions.


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Comparative

Advantage

a Incentives Stage in theProduct Life

Cycle

Growth ofInternational

Marketing

Competition atHome

Economic andDemographic

rends


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While 70% of U.S. foreign businessrevenues are generated by large firms,hundreds of thousands of small firms are

also involved. Worlds leading export countries include

United States,Germany, Japan,GreatBritain, and France.

Capital goods are leading U.S. exports. T

he Value of U.S. imports exceeds itsexports, creating a trade deficit. The U.S. has a large service trade surplus,

the greatest of any nation.


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Cultural EnvironmentStandards of behavior

LanguageLifestyles Goals

TechnologicalEnvironment Productionand measurementsystems Advances

Economic Environment

Standard of living GDPStage of economicdevelopment

Stability of currency

InternationalMarketingDecisions

olitical an egalEnvironment

ationalism

Government stabilityTrade restrictionsTrade agreements/economic communities


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A culture is a group of people sharing adistinctive heritage.

Inadequate information about foreign culture is acommon cause of marketing errors.

Developing countries often have limited census data

information, poor communication tools, and limitedtechnological access.

Language barriers often inhibit access to traditionsand customs that are key to customer desires.


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A nations economic environment indicatesits present and potential capacity forconsuming goods and services.

A standard of living refers to the averagequality of goods and services that are owned

and consumed in a country. TheGrossDomestic Product (GDP) is the

total value of goods and services produced ina country in a year.

GDP is the most frequently used measure ofa nations wealth because it is regularlypublished and easy to calculate and comparewith other nations.

The United States hasthe highest standard of

living of anyindustrialized country

in the world.


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LessDeveloped CountriesLow literacy

Limited technologyExtremely low per-capitaGDP

Developing CountriesRising education Improvingtechnology Low per-capita

GDP

Industrialized CountriesHigh literacy rate

Modern technology High

per-capitaGDP


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TariffsLegal Analysis

Political AnalysisTrade Quotas

Local Content Laws


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Exporting: A firm reaches international markets byselling products made in its home country directlythrough its own sales force or indirectly via foreignmerchants or agents.

Joint Venture (Strategic Alliance):A firm agrees tocombine aspects of manufacturing or marketingefforts with a company in a foreign country to shareexpertise, costs, or contacts. It is critical to select

appropriate partners. DirectOwnership: A firm has full control and owns

production, marketing, and other facilities in aforeign country without any partners.


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It encompasses the selection anduse of resellers, and the physicalmovement of products.

Distribution in each internationalmarket requires planning.

Government restrictions, costs,transportation, poor roadconditions, and other limitations

may alter distribution modes. Inventory, storage, and reordering

may be affected by warehouseavailability.


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It considers whether prices shouldbe standardized, the level at whichprices are set, the currency in

which prices are quoted, and termsof sale.

Dumping is involved if a firm sells aproduct in a foreign country at aprice lower than that prevailing in

its home market, below the cost ofproduction, or both. Duties may belevied on dumped products.

Concept of Interna-marketing

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