Transcript Slide 1
International marketing Introduction Overview of course 1. Competing in International Markets Company – Pros and Cons Industry – Competitive Advantage Market – Consumer behavior How to enter new Markets Overview of course 2. Market Assessment and Development International market research – Differences between domestic and international market research. Market segmentation and product positioning. 3 Overview of course 3. Managing International Marketing Programs International branding and advertising Product Adaptation – 4ps International supply chain 4 Definitions • Global – Most of the world, presence on almost all continents. • International – More than 1 country. • Domestic – Only home country. Definitions • International trade – Importing or exporting goods • International Business – A company has international operations and production and becomes a Multinational Enterprise (MNE) Definition • International marketing - the performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit. Discussion • How is the international marketing task different to domestic marketing? 8 The International Marketing Task Exhibit 1.3 International Marketing Involvement Stages No Direct Infrequent international international Marketing Marketing Global Marketing Regular international International Marketing Marketing No Direct international Marketing – Reactive • Products “indirectly” reach international markets • Trading companies • International customers who contact firm • Domestic distributors • Internet orders Infrequent international Marketing – Reactive • Caused by temporary surpluses so sales to international markets are made as goods become available • Firm does not want to maintain continuous market representation Regular international Marketing – Proactive • Dedicated production capacity for international markets • Strategy: –Firm employs domestic or international intermediaries –Uses its own sales force or sales subsidiaries Regular international Marketing – Proactive • Products are adapted for international markets as domestic demand grows • Firms depend on profits from international markets 14 International Marketing – Proactive • Fully committed and involved in international markets and international activities • Production takes place on international land. • E.g. Fedders - After lower U.S. sales they designed new types of air conditioner units for the Chinese market Global Marketing – Proactive • A global view on all aspects of the marketing mix • Marketing mix - product, price, placement, and promotion (the 4 Ps) • Market segmentation is now defined by income levels, usage patterns, or other factors that span the globe Definitions • Features – How the product looks physically e.g. The chair is black and 1metre high. • Benefits – What the product helps us with. E.g. The chair allows us to sit comfortably. Definitions • Standardized - more or less similar features and benefits of the product or service. • Customized – A product made or adapted specifically for one person, group or country Definitions • Economies of scale - A cost advantage. The more of a good produced, the lower the per-unit fixed cost (e.g. the cost of building a factory) because these costs are shared over a larger number of goods Definitions • Product – Something which a person or company makes which I can touch. E.g. A pencil • Service – Something which a person or company provides which I cannot touch. E.g. A night’s stay in a hotel. Discussion • What kind of standardized products or services can be sold all over the world? • What features and benefits do these products or services have? Discussion • What technologies have helped to share similar ideas across the world? • Do you think consumers tastes are becoming more similar or more different? International Business has grown since WW2 • Growth of the World Trade Organization. • Growth of free trade agreements E.g. NAFTA, the EU, Korea-US FTA. • The free market system has conquered – 3 billion new consumers E.g. China, India • The growing impact of the Internet and TV. Economies of Simplicity • Theodore Levitt – 1983 • Companies should grow by selling standardized products all over the world • “Gone are accustomed differences in national and regional preferences.” • This idea lasted for a decade but consumers had trouble relating to homogeneous products. 25 Deciding on strategy • Depending on the product and market, firms may pursue a global market strategy for one product but a local strategy for another product. E.g. P&G diapersGlobal, detergents - Local. Glocal “Glocal” strategy - A hybrid strategy combining both global and local aspects of business. 27 Video Discussion • What is the advantage of a global strategy? • What is the advantage of a local strategy? • Why does the lady from Pepsi like a Glocal strategy?