International Marketing MKT 504

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International MarketingMKT 504

• Sharon Loane
• University of Ulster
• ML010 Extn. 75096

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Course details etc

• 12 x 3 hour lectures
• 164 hrs independent study
• 50 Exam, 50 Coursework
• Group Presentation (5 x 10 50)
• On SLEPT factors for particular country
• (Eastern Europe), class time
• Written case study
• A report on these SLEPT factors 20)
• B Using information gathered suggest
  opportunities for Irish firms recommend
  appropriate marketing strategies (30)

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Post WWII developments in Trade

• Post WWII change in attitudes
• GATT was born, resulting lowering in tariff
  barriers for industrial products
• Uruguay Round (1996), replaced by WTO.
• WTO tackling issues preventing more liberal world
  trade system
• (non tariff barriers, agricultural products,
  services trade, investment issues)

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More recently

• Characterised by emergence of trade groupings
  (increased interdependence)
• ASEAN, EU, NAFTA, APEC
• Vary in degree of loss of sovereignty.
• Sustained world peace and the end of the cold war
  promoted growth of international economy.
• Evolution of large emerging markets, Argentina,
  China, Hungary, Poland etc

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Communications and transport

• Transport
• Globe has shrunk, time to deliver and cost have
  reduced
• Containerisation, larger vessels, improved
  waterside efficiency rationalisation of
  shipping services.
• Jet aircraft, facilitate face-to-face meetings
  business travel, speed and cost

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Technology

• WWW, gather, analyse disseminate data with ease
• Facilitates prod around the world
• Advances allow marketspace B2C / or new
  business forms
• Pace of innovation
• Underpins communications B2B

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Other Drivers

• Convergence of consumer tastes
• Emergence of global niche markets

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The New Nike Economy

• Air Max Penny Basketball Shoes
• Designed Oregon Tennessee
• Developed jointly by US Asian technicians,
  Oregon, Taiwan, S Korea
• Produced in S Korea (Mens) Indonesia (Boys)
• 52 components from 5 different countries (US,
  Taiwan, S Korea, Indonesia Japan)
• Single pair is touched by 120 pairs of hands
  during production process
• Source Nike, Far Eastern Economic Review, 29th
  August, 1996

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What is International Marketing?

• Marketing A Definition
• Marketing is the management process responsible
  for identifying, anticipating and satisfying
  customer requirements profitably. (CIM)

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International Marketing - Definition

• The definition of International Marketing is
  different from the general definition of
  Marketing only in that goods and services are
  marketed across political boundaries.
  (Albaum)
• International Marketing is the performance of
  business activities that direct the flow of a
  companys goods and services to consumers or
  users in more than one nation for profit.
• (Cateora)

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International Marketing Definition (cont.)

• When practising international marketing, a
  company goes beyond exporting and becomes much
  more involved in the local marketing environment
  within a given country or market.
• (Jeannet/Hennessey)

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What is International Marketing

• Made up of many facets, that is levels of
  involvement
• Domestic Marketing
• Export Marketing
• International Marketing
• Multi National Marketing
• Global Marketing

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Domestic Marketing

• One set of Competitors
• One Economy
• One set of market pressures
• One set of Customers

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Domestic Market

• Manipulate a series of variables
• Controllable by business
• Price
• Advertising
• Distribution
• Product
• Uncontrollable by business
• Economic structure
• Competitors
• Cultural
• Legal

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Export Marketing

• Where the company markets its goods or services
  across national or political boundaries
• Usually a reactive situation
• Emphasis on product modification, if required.
• Most traditional and least complicated form of
  international marketing.

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International Marketing

• Entire marketing strategy will need to be
  adapted.
• Understanding of different environments becomes
  essential.
• Several markets
• Differing controllable variables across markets
• Differing uncontrollable variables across markets

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International Marketing

• Giving
• Differing infrastructures
• Differing advertising/promotions
• Differing complexity of market

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International Marketing

• Multinational marketing
• Where similar activities apply to more than one
  country
• Some limited control on the market place
  variables
• Markets may be independent profit centres
• Marketing strategy can be tailored to local
  market, individual strategy per location, can
  have many and varied strategies

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International Marketing Definition (cont.)

• Pan-Regional Marketing
• Marketing strategies for regions rather than
  countries.
• Eg Asia, fastest growing market for Wests top
  brands. (Dior, Rolex, Cartier, Calvin Klein,
  Versace, Gucci)
• Singapore, Jakarta, K Lumpur, Hong Kong, Tokyo
• French luxury goods sales here are now 35 of
  output, soon will be market for almost 50

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Global Marketing

• The whole organisation exploits one strategy on a
  worldwide basis
• No individual country influence, although often
  some form of local modification necessary.
• One strategy fits all
• Efficiencies of scale
• Needs significant market segments with similar
  demand world over
• Might need marketing mix tweaked per region?

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Why is international marketing different

• Culture Diverse, Multi-cultured
• Markets Widespread, Fragmented,different
• Data Difficult to get, expensive
• Politics Varying stability and attitudes
• Governments Attitudes towards foreign trade
• Competitiors Varying levels
• Economies Varying levels Systems

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What makes international marketing different

• Finance Varying systems
• regulatory
  bodies
• Currencies Varying Fluctuating
• Businesses Cross Cultural Influences
• Control Remote Difficult

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SLEPT Factors(Framework to analyse macro
environment)

• S ocial cultural values
• L egislation affecting trade
• E conomic conditions
• P olitical systems attitudes
• T echnological level infrastructure,
• Competition within the market

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Problems of international trade

• Debt
• Unstable countries
• Protection of intellectual rights
• Tariff regulations
• Instability in Foreign exchange markets
• Non tariff barriers, eg specifications

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Barriers to International Marketing

• Control
• Language
• Red tape
• Cash flow
• Logistics
• Lack of trained staff

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International Marketing Decisions

• Corporate Strategy
• Information on Potential Markets
• Objectives
• Decision to go international

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International Marketing Decisions

• Business strategy
• Resource Commitments
• Selections of Target Markets
• Selection of entry methods

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International Marketing decisions

• Operational Strategy
• Marketing Plan
• Organisation
• Allocation of tasks

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Next week.

• Why do firms wish to go international?
• Internet searching, techniques
• 2nd half of class (seminar) labs re gathering
  data on countries allocated to each group
• Web link for sources of data on MKT 504 website
• See you then.