Transcript somi THE SEVEN FEATURES COMMONLY ASSOCIATED WITH

ECONOMIC
DISASTER BEGINS
WITH A
PHILOSOPHY OF
DOING LESS AND
WANTING MORE.
BUDAPESTI GAZDASÁGI FŐISKOLA
INTERNATIONAL MARKETING
LECTURE- 7
In English
13th April 2012 – FRIDAY
0940hr –1110hr (E.F. 13-15)
Miklós
(Nicholas)
SOÓS
0630 265 9638
[email protected]
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LECTURE DATES - TIMES - LOCATION
RE: Miklós (Nicholas) SOÓS
1. FEB. 17.
0940-1110 [E.F.13-15]
2. FEB. 24.
0940-1110 [E.F.13-15]
3. MARCH 2.
0940-1110 [E.F.13-15]
4. MARCH 9.
0940-1110 [E.F.13-15]
MARCH 16.
VACATION
MARCH 23.
VACATION
5. MARCH 30.
0940-1110 [E.F.13-15] – re. feb.10
6. APR. 6.
0940-1110 [E.F.13-15] (guest lect?)
7. APR. 13.
0940-1110 [E.F.13-15]
8. APR. 20.
0940-1110 [E.F.13-15]
8. APR. 27.
0940-1110 [E.F.13-15]
9. MAY 4.
0940-1110 [E.F.13-15]
10. MAY 11.
0940-1110 [E.F.13-15]
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CLASS ATTENDANCE
ABSENCES
Lectures
No.
%
Lect. 1
16
24
Lect. 2
22
Lect. 3
absence
No.
%
33
0
2
3,0
30
45
1
13
19,4
Lect. 4
30
45
2
8
11,9
Lect. 5
35
52
3
13
19,4
Lect. 6
34
51
4
6
9,0
5
7
10,4
6
18
26,9
67
100,0
Lect. 7
Lect. 8
Lect. 9
Lect. 10
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Please ensure that you
personally sign the
attendance sheet every
time you attend a
lecture.
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The visual contents of lectures
will be available internally on
the following site:
K:\Hallgatok\ANGOL\Soós tanár úr
(available internally only)
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SOURCES, REFERENCES – SUGGESTED READINGS
The course is NOT based on any specific textbook. The following are recommended.
International Marketing, Cateora, P. & Graham, J. (2005) 12th edition, McGraw-Hill
Global Marketing, Hollensen, S. (2004) 3rd edition, Prentice Hall
International Marketing Strategy, Doole, I. & Lowe, R (2004) 4th edition Thomson
International Marketing and Export Management, Albaum G, Prentice Hall London
Principles of Marketing, Kotler P et. Al, 2nd European edition, Prentice Hall E. 2003
Principles of Marketing, Jobber D, McGraw-Hill
Principles of Marketing, Brassington F, Financial Times Prentice Hall, 2000
Marketing on the Internet: Principles of online marketing, Strauss J & Raymond
F, Prentice Hall,1999
Internet sites:
www.pmcinc.org/
www.tradeport.org
www.FAS.USDA.gov
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ASSESSMENT METHOD
End of year written examination
60%
Two (2) ‘mini’ exams of 20 min. duration
during unannounced lectures
40%
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Where we finished
last week.
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MAJOR WAYS IN
WHICH COMPANIES
FIRST
1
Export
ENTER
INTERNATIONAL
MARKETS
2
Licensing
5
joint venture
4
manufacturing
3
Establish
sales offices
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Let us now have a brief
look at the most
important factors that
are common to the
successful global
brands, trademarks.
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THE FEATURES COMMONLY ASSOCIATED WITH THE TOP
GLOBAL BRANDS
Quelch
Strong in home
market
Geographical/balance
in sales
Corporate name
7
Product category
focus
Consumers value the
country-of-origin
Addresses similar
consumer needs
Consistent
positioning
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THE SEVEN FEATURES COMMONLY ASSOCIATED WITH THE TOP
GLOBAL BRANDS (Quelch)
1
Strong in home
market
To be successful on a global scale, firms need to
be strong in their home market.
The top ten global brands are heavily dominated
by US brands e.g. Intel, Disney, and Microsoft.
These brands are equally dominant in their
domestic, as well as global markets.
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THE SEVEN FEATURES COMMONLY ASSOCIATED WITH THE TOP
GLOBAL BRANDS (Quelch)
2
Geographical/balance in sales
By definition, a global brand has at least a
minimum level of awareness, recognition and
sales all over the world.
E.g. there is no global brand that is extremely
strong in Europe, but hardly known in Asia.
Leading global brands such as Toyota have high
levels of awareness on a global scale.
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THE SEVEN FEATURES COMMONLY ASSOCIATED WITH THE TOP
GLOBAL BRANDS (Quelch)
3
Addresses similar consumer needs
The Company’s products are the same (or
almost the same) worldwide and meet the same
widely-held human needs.
In some cases, brands may adapt to local needs,
yet the majority tend to highly standardise their
marketing mix.
The degree of standardisation is one indicator of
a global brand.
THE SEVEN FEATURES COMMONLY ASSOCIATED WITH THE TOP
GLOBAL BRANDS (Quelch)
4
Consistent positioning
Global brands have the same set of values
worldwide.
E.g., Disney promotes the same family values
throughout all of its markets;
Sony is synonymous with innovation all
over the world.
Volvo is known internationally as a safe vehicle
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THE SEVEN FEATURES COMMONLY ASSOCIATED WITH THE TOP
GLOBAL BRANDS (Quelch)
5
Consumers value the country-of-origin
This is typically associated with brand origin and/or
country of manufacture. The country-of-origin (COO) effect includes
country-of-design, country-of-assembly, and country-of-corporate-ownership.
COO affects consumers’ perceptions of brand image and
consumer behaviour.
E.g., consider: watches
from Switzerland
televisions made in Japan
German cars: BMW, Mercedes
THE SEVEN FEATURES COMMONLY ASSOCIATED WITH THE TOP
GLOBAL BRANDS (Quelch)
6
Product category focus
The majority of the world’s leading global
brands focus on one main product category
e.g. Nike – sportswear.
A more diversified range of product
categories is likely to make it more difficult
to become a leading global brand.
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THE SEVEN FEATURES COMMONLY ASSOCIATED WITH THE TOP
GLOBAL BRANDS (Quelch)
7
Corporate name
A strong corporate or brand name is extremely
important. Brand names are important to both
sellers and buyer.
One common branding objective is to choose ‘inherently meaningful’
brand names, so that the name itself conveys relevant product
information e.g Budapest Bank.
The second option is to create an ‘unrelated’ name. This includes
words that have no connection with the product being named (e.g.
Allianz International), or fictitious names e.g. Lenovo
Lets have a detailed
examination of the
factors that need to be
considered when
entering a foreign
market.
FACTORS IN THE FOREIGN MARKET ENTRY MODE DECISION
External Factors
Target
Country
Market
Factors
Target
Country
Environ
mental
Factors
Target
Country
Production
Factors
Home
Country
Factors
Foreign
Market
Entry
Mode
Decision
Company
Resource/
Commitment
Factors
Company
Product
Factors
Internal Factors
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FACTORS IN THE FOREIGN MARKET ENTRY MODE DECISION
External Factors
Target
Country
Market
Factors
Target
Country
Environ
mental
Factors
Target
Country
Production
Factors
Home
Country
Factors
Market, environmental and production factors in both the target and
home countries can seldom be affected by management decisions.
They are external to the company and may be regarded as
parameters of the entry mode decision. Since no single external
factor is likely to have a decisive influence on the entry mode for
companies in general it can only be said that such factors
encourage or discourage a particular entry mode.
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FACTORS IN THE FOREIGN MARKET ENTRY MODE DECISION
External Factors
Target Country Market Factors
Current & Projected
Market Size
Competitive
Structure
Marketing
Infrastructure
Small markets favor
low breakeven volume
entry modes e.g.
exporting, licensing
contractual
Atomistic – x no. dominant
competitors
Oligopolistic – few domint.
competitors
Monopolistic – a single firm
Large markets favor
entry modes with high
breakeven volumes
e.g. equity investment,
local production
Atomistic – usually export
The existence or
otherwise of good
local agents or
distributors who are
not committed to
other foreign
companies.
Others – equity inv.,
licensing, contractual
modes
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FACTORS IN THE FOREIGN MARKET ENTRY MODE DECISION
External Factors
Target
Country
Market
Factors
Target
Country
Environ
mental
Factors
Target
Country
Production
Factors
Home
Country
Factors
Foreign
Market
Entry
Mode
Decision
Company
Resource/
Commitment
Factors
Company
Product
Factors
Internal Factors
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FACTORS IN THE FOREIGN MARKET ENTRY MODE DECISION
External Factors
Target Country Environmental Factors
Government
Policies & Regulations
Restrictive import
policies:
• high tariffs
• tight quotas
• restrictive
foreign
investment policy
On the other hand
gov. may encourage
foreign investment
Geographical
Distance
Transportation
costs can be
prohibitive
Economical
Factors
Dynamics
Market economy Rate of investment
Personal income
Centrally pland.
Employment
Size of economy
GNP/capita
External ec. relation
Balance of payment
Debt service
Exchange rate
Sociocultural
Cultural distance
Social structure
Language
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FACTORS IN THE FOREIGN MARKET ENTRY MODE DECISION
External Factors
Target
Country
Market
Factors
Target
Country
Environ
mental
Factors
Target
Country
Production
Factors
Home
Country
Factors
Foreign
Market
Entry
Mode
Decision
Company
Resource/
Commitment
Factors
Company
Product
Factors
Internal Factors
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FACTORS IN THE FOREIGN MARKET ENTRY MODE DECISION
External Factors
Target Country Production Factors
Productive Agents
Economic Infrastructure
• quality
• transport
• quantity
• communication
• material cost
• port facilities
• labor
• energy
Low production costs in the target country encourage some form
of local production as against exporting.
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BGF. INTERNATIONAL MARKETING
MINI TEST 1 – APRIL 13. 2012
DURATION: 15 MINUTES –
QUESTIONS ARE OF EQUAL VALUE (10% / question) –
ONLY ONE (1) POSSIBLE ANSWER FOR EACH QUESTION –
MARK X THE CORRECT ANSWER –
ONLY MARK (X) ONE BOX FOR EACH QUESTION
OTHERWISE YOUR ANSWER WILL BE IGNORED
PLEASE THINK CAREFULLY – ALTERNATIVE ANSWERS
CAN BE VERY SIMILAR, HOWEVER ONLY ONE CORRECT
ANSWER POSSIBLE FOR EACH QUESTION.
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SUCCESS IS
NOT SO MUCH
WHAT WE HAVE
AS IT IS WHAT
WE ARE.