Transcript somi

ONE OF THE
SECRETS TO
SUCCESS IS
IDEAS MIXED
WITH
INSPIRATION.
BUDAPESTI GAZDASÁGI FŐISKOLA
INTERNATIONAL MARKETING
LECTURE- 10
In English
4th May2012 – FRIDAY
0940hr –1110hr (E.F. 7-9)
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]
9. APR. 27.
0940-1110 [E.F.13-15]
10. MAY 4.
0940-1110 [E.F.13-15]
11. 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
30
45
Lect. 4
30
45
Lect. 5
35
52
Lect. 6
34
51
Lect. 7
34
51
Lect. 8
24
36
Lect. 9
19
28
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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BGF. INTERNATIONAL MARKETING – MINI TEST 1 - ASSESSMENTS
Markscale %
No.
<45
8
46-50
5
51-55
0
56-60
3
61-65
0
66-70
3
71-75
0
76-80
1
81-85
0
86-90
0
91-95
0
96-100
1
Total no. of students:
Class average :
52%
Lowest score
10%
Highest score:
100%
21
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MINI TEST 1 & 2 - RESULTS
8
7
6
5
4
3
2
1
0
40(- 41)
45
46- 5150 55
5660
61- 6665 70
71- 7675 80
8185
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Where we finished
last week.
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THE RESEARCH PROCESS & INTERNATIONAL ISSUES
RESEARCH PROCESS
Problem
identification
Selection of
research design
Information gathering
Data collection
Analysis &
interpretation
Dissemination of
results
INTERNATIONAL ISSUES
Geography & distance
Cultural
Lack of marketing knowledge
Differing perspective
Construct equivalence
Measurement equivalence
Sampling equivalence
Secondary data
- Accuracy
- Comparability
- Reliability
- Source
Primary data
- Respondent bias
- Researcher bias
Comparability of results
Local biases in results
Eliminate self-reference criterion
Avoid culturally offensive
conclusions
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DISTRIBUTION ??
Concerned with transporting goods and
services in the most cost effective and efficient
way, from where they are to where they needed
to be.
The role of delivery (distribution) is to ensure
the safe and timely provision of goods and
services from the suppliers to the organisation
and from the organisation to the final customer
or client – the final journey to Place, from the
four Ps.
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IMPORTANCE OF DISTRIBUTION
Marketing channel decisions are among the most
important decisions that management faces. The
company’s channel decisions are linked with every other
marketing decision.
The company’s pricing depends on whether it uses
mass merchandisers or high quality specialty stores.
The firm’s sales force and advertising decisions
depend on how much persuasion, training and motivation
the dealers or resellers need.
Whether a company develops or acquires certain new
products may depend on how well those products fit the
abilities of its channel members.
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DISTRIBUTION CHANNEL is an organised network of
agencies that combine to LINK PRODUCERS WITH USERS.
Distribution is the physical flow of goods through channels.
A channel makes a product or service available in a convenient
location (place), makes a product or service available when wanted
(time), packages or reprocesses product or service into a usable
form (form), advises about the product or service and its attributes
(information).
In international marketing distribution channels can be a source of
competitive advantage OR a cause of problems.
Channels involve relationships and the management of those
relationships will determine the success of the firm’s international
marketing efforts.
Important to establish the right distribution channel because title is
transferred, control is more difficult to exercise and competitive
environment is fiercer.
International distribution channels can be of varying length.
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DISTRIBUTORSHIP
DISTRIBUTOR
• buys from the supplier on his own account, at own risk,
in his name
• resells to customers on his own account,
• supplier may be subject to warranties
Distribution
contract
Supplier
sales
Distributor
Sale
contract
customers
service
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THE DISTRIBUTOR
• imports the product on his own account,
• resells on his own account, at own risks
• marks up the supply price to cover his profit,
• if necessary undertakes services,
• normally carries a stock,
• likely is involed in local publicity,
• undertakes distribution in the market
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Purchase
inquiry
Purchase
inquiry
THE ORGANISATION
Sales
information
Buys
Supply
information
Negotiation,
agreement
Processes
Supply
Payment
Payment
Information on
performance
Negotiation,
agreement
Sells
CUSTOM ER
Sales
information
information
SUPPLIER–MANUFACTURER
THE SUPPLY PROCESS: - SUMMARISED
Information on
performance
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INTERNATIONAL DISTRIBUTION CHANNELS
Manufacturer
Manufacturer
Exporting
intermediary
Exporting
intermediary
Importing
intermediary
in foreign
country
Wholesaler
in foreign
country
And/or
35/52
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Importing
intermediary
in foreign
country
Wholesaler
in foreign
country
And/or
Wholesaler
in foreign
country
And/or
SHORT CHANNEL
LONG CHANNEL
LONG VERSUS SHORT
Wholesaler
in foreign
country
And/or
Retailer in
foreign
country
Retailer in
foreign
country
Retailer in
foreign
country
Retailer in
foreign
country
Retailer in
foreign
country
Consumer or
industrial
user
Consumer or
industrial
user
Consumer or
industrial
user
Consumer or
industrial
user
Consumer or
industrial
user
Consumer or
industrial
user
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BASIS UPON WHICH APPROPRIATE CHANNEL
INTERMEDIARIES ARE TO BE CHOSEN
THE 11 Cs
1. Customer characteristics
6. Cost
2. Culture
7. Capital required
3. Competition
8. Coverage needed
4. Company objectives
9. Control issues
5. Character of market
10.Continuity provided
11.
Communication effectiveness
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PRICE
is the only marketing variable that produces revenue
Price in international marketing is often used as an
indicator of quality until experience indicate
otherwise.
When price is perceived as being similar for
alternative products , then product quality or value
as communicated through the brand becomes the
deciding factor in the decision to purchase.
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IMPORTANT ASPECTS OF PRICING
Prices must:
1.
2.
3.
4.
provide the customer with value for money
cover the costs of product or service
be competitive
be consistent with corporate objectives
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PRICE & DEMAND
In open markets, the demand for a
product or service is related to the extend
to which people are able and willing to buy
a product or service at different prices.
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THE DETERMINANTS OF DEMAND
The demand for a product or service depends
on 4 elements:
1. The price of the product / service
2. The prices of competing products /
services.
3. The consumer’s income.
4. The consumer’s preferences.
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INTERNATIONAL PRICE STRATEGY FRAMEWORK
Firm-level factors
• Strategic objectives
• M.share, profit,costs
• 4Ps…………
• Inventory level
Product-specific factors
• Life cycle
• Substitutes
• Quality, service, delivery
Market-specific factors
• Consumers
• Government intervention
• Distribution channel
• Barriers to trade
Foreign price setting
• price relation to product line
• redesign & price implication
• transfer price setting
• inflation adjustment
• pricing for multinational clients
• client-specific pricing
Environmental factors
• Competition
• Exchange rate
• Inflation rate
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CIVILAZATION IS
THE INTELLIGENT
MANAGEMENT OF
HUMAN EMOTION.