Transcript WHAT IS INTERNATIONAL MARKETING?

THERE IS NO
SECURITY ON
THIS EARTH,
THERE IS ONLY
OPPORTUNITY
General Douglas Macarthur
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BUDAPESTI GAZDASÁGI FŐISKOLA
INTERNATIONAL MARKETING
LECTURE- 3
In English
2nd March 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]
5. MARCH 16.
VACATION
6. MARCH 23.
VACATION
7. MARCH 30.
0940-1110 [E.F.13-15] – re. feb.10
8. APR. 6.
0940-1110 [E.F.13-15]
9. APR. 13.
0940-1110 [E.F.13-15]
10. APR. 20.
0940-1110 [E.F.13-15]
11. APR. 27.
0940-1110 [E.F.13-15]
12. MAY 4.
0940-1110 [E.F.13-15]
13. MAY 11.
0940-1110 [E.F.13-15]
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CLASS ATTENDANCE
Lectures
No.
%
Lect. 1
16
24
Lect. 2
22
33
Lect. 3
Lect. 4
Lect. 5
Lect. 6
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
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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%
Where we finished
last week.
SUBSETS OF INTERNATIONAL BUSINESS
International
business
International
finance
International
trade
International
marketing
Source: Omar (2009)
International
management
Global
marketing
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WHAT IS INTERNATIONAL MARKETING?
THE PROCESS BY WHICH INDIVIDUALS AND COMPANIES
IDENTIF
Y
PROVID
E
needs and
wants
of
customers
in different
international
markets
products,
services and
ideas
competitively
to satisfy
needs and
wants of
different
customer
groups
COMMUNICATE
information about
the products
and services
DELIVER
products and
services
internationally
using one or a
combination
of foreign
entry modes
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WHY INTERNATIONAL MARKETS?
Decline in
domestic
markets
Saturation
in domestic
markets
Marketing is
growing in
certain
internationa
l markets
Demand
for product
/
service in
certain
markets
Extend
products
lifecycle
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KEY DIFFERENCES BETWEEN DOMESTIC AND
INTERNATIONAL MARKETING
• International Marketing is more
complex – higher risk
• Usually involves a greater number
of stakeholders
• International - Greater competition
• International Marketing involves the
STANDARDISATION V ADAPTATION
dilemma
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INTERNATIONAL MARKETING SUCCESS FACTORS
Conduct
appropriate
market
research
prior
to entry
Understand
the micro
and macro
environment
(particularly
cultural
factors)
Employ
suitably
qualified
personnel
Display long-term
commitment
to the market
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PROCESS MODEL OF INTERNATIONAL MARKETING
International marketing strategy scope
and framework
Company resources
and capabilities
Analysing
international
competitors
Environment
Vision and strategy
for international markets
International marketing
strategy
International market entry strategies
Strategic alignment and performance
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INTERNATIONALIZATION PROCESS THEORY
A number of various theories / MODELS exist that set
out to explain the process of internationalisation
BORN GLOBAL
Aim at
international
markets from
the beginning
of existence.
Usually small
cutting-edge
technological
companies
UPPSALA
Swed.Uni. of
Upp. (Johanson
& Wiedersheim)
the
internationalisation
of firms is a
gradual process
involving
various stages
DUNNING’S
ECLECTIC
combines the effects of
ownership factors (i.e.,
rent-producing firm
skills), location factors
(i.e., environmental
differences), and
internalization factors
(i.e., transaction-related
concerns), to explain the
structural choice of
export, license, or
investment to enter a
foreign host market. somi
INTERNATIONALIZATION PROCESS THEORY
UPPSALA Internationalization model
Companies begin their operation abroad in nearby markets and only
gradually penetrate more far-flung markets.
Also, companies entered new markets through exports.
Wholly owned or majority-owned operations were established only
after several years of export to the same market.
FOUR SUCCESSIVE STAGES OF ENTERING FOREIGN MARKETS
Stage 1.
Stage 2.
Stage 3.
Stage 4.
Sporadic
exports…. No
regular export
activities
Export via
independent
representatives
(export modes)
Establish
foreign sales
subsidiary
Foreign
production /
manufacturing
units
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INTERNATIONALIZATION PROCESS THEORY
DUNNING’S ECLECTIC Internationalization model
This eclectic Ownership-Location-Internalization (OLI) emphasizes the
importance of location variables in foreign investment decisions.
According to Dunning the existence of the following conditions increase
the chance of international production:
OWNERSHIP
ADVANTAGES
Firms which own
foreign production
facilities has bigger
ownership
advantages
compared to firms
of other
nationalities.
‘Advantages’ may
consist of
intangibles.
LOCATIONAL
ADVANTAGES
It must be profitable
for firms to
continue these
assets with factor
endowments
(labour, energy,
materials,
transport,
communication
channels) in the
foreign markets
INTERNALIZATIONAL
ADVANTAGES
It must be more
profitable for the firms
to use its advantages
rather than selling
them, or the right to
use them, to a foreign
firm.
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INTERNATIONAL MARKETING CONCEPT?
So what are the differences
between domestic and
international marketing?
The concepts, the methods are the same
the culture the enviroment are
the differences.
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INTERNATIONAL MARKETING
Why are we concerned with culture?
The marketing significance of culture is that it affects buyer behaviour
So…. What is culture ????
“Ways of living, built up by a group of human beings”
A set of standards and beliefs shared by a group of people,
which helps an individual decide what is ‘right’, what can be
ok, how to feel, what to do and how to go about it…..
“The way we do things around here”
The sum of conscious and unconscious values, ideas, attitudes
and symbols that shape human behaviour and that are
transmitted from one generation to the next….
“The collective programming of the mind that distinguishes the
members of one category of people from those of another”
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DIFFICULTIES
ARE STEPPING
STONES TO
SUCCESS.
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