Transcript Slide 1

Welcome to MKT 769
Seminar in International Marketing!
 Introduction to the
course
– Overview of course
issues
– Approach
– Project
MKTG 769
INTRODUCTION
Lars Perner, Instructor 1
Stages in Globalization
 Across country economies
 For the individual firm
– Customers
– Competition
– Suppliers
MKTG 769
INTRODUCTION
Lars Perner, Instructor 2
Internationalization of Marketing
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Global products
Global brands
Leading markets
The Product Life Cycle
MKTG 769
INTRODUCTION
Lars Perner, Instructor 3
Reasons for Entering Global
Markets
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Profitability
Growth
Economies of scale
Risk spread
Access to import
inputs
 Uniqueness of product
or service
MKTG 769
 Marketing
opportunities
associated with the life
cycle
 Spreading R&D costs
INTRODUCTION
Lars Perner, Instructor 4
Some Drivers of International Trade
 Technology
 Governmental
– Increasing speed of
Product Life Cycles
– Internet
– Lower costs of entry
into some markets
– Improved transportation
and communication
MKTG 769
– Trade agreements
INTRODUCTION
 WTO
 NAFTA
 Regional agreements
Lars Perner, Instructor 5
Trade Theories
 Many traditional theories are based on labor
productivity
– Absolute advantage
– Relative advantage
 Factor input makes more sense
– Cost of labor
– Availability of infrastructure
– Regulatory environment
MKTG 769
INTRODUCTION
Lars Perner, Instructor 6
Essential Global Marketing Assets
 Products
– Existing
– New
 Models of existing
product lines
 Extensions
 Advertising/Promotion
 Distribution
MKTG 769
INTRODUCTION
Lars Perner, Instructor 7
Perspectives on International Trade
 Traditional economic
perspective—based
mostly on labor costs
– Absolute advantage
– Relative advantage
MKTG 769
 Country Specific
Advantages
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Labor costs
Labor skill
Infrastructure
Legal and political
stability
– Government policy and
regulations
– Natural resources
INTRODUCTION
Lars Perner, Instructor 8
The International Product Life Cycle
 Product categories will tend
to spread first in developed
countries
 Resale of capital products
 Country of origin effects over
time
MKTG 769
INTRODUCTION
Lars Perner, Instructor 9
Firm Specific Advantages (FSAs)
 Knowledge-Based
 Marketing
– Brand image
– Distribution
– Knowledge of markets
 Transferability of FSAs
 The value chain
MKTG 769
INTRODUCTION
Lars Perner, Instructor 10