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1990s , the concept of marketing was outdated & thefocus was given on borderless trading as well asexternal environment or stakeholders.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