Transcript Somi

THE MORE YOU
CARE, THE
STRONGER
YOU CAN BE.
BUDAPESTI GAZDASÁGI FŐISKOLA
INTERNATIONAL MARKETING
LECTURE- 11
In English
11th 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
Lect. 1
Lect. 2
Lect. 3
Lect. 4
Lect. 5
Lect. 6
Lect. 7
Lect. 8
Lect. 9
Lect. 10
Average
16
22
30
30
35
34
34
24
19
30
27
24
33
45
45
52
51
51
36
28
45
41
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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 TESTS AVERAGE ASSESSMENTS
Markscale %
No.
<45
39
46-50
5
51-55
3
56-60
2
61-65
6
66-70
5
71-75
2
76-80
2
81-85
1
86-90
1
91-95
1
96-100
0
Total no. of students:
Class average :
65%
Lowest score
0%
Highest score:
95%
67
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MINI TESTS AVERAGE - RESULTS
40
35
30
25
20
15
10
5
0
40(- 41)
45
46- 5150 55
5660
61- 6665 70
71- 7675 80
8185
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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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FINAL 90 MINUTES EXAMINATION TIMES AND LOCATIONS.
1. FRIDAY MAY 18TH. 0940 E.F. 13-15
2. FRIDAY MAY 25TH. 1000 E.F. 7-9
3. FRIDAY JUNE 1ST.
1030 E.ll. 10
Please remember you need to register for the examinations on
NEPTUN.
Where we finished
last week.
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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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FACTORS INFUENCING THE SETTING OF INTERNATIONAL PRICES
Supplier
marketing
strategy
• Portfolio mix
• Prodt positioning
within co. & mrkt
• Communication
support –
advertising &
promotions.
• Product branding
• Consumers’
added value
perceptions
• Sales volume &
market share goal
• Maturity stage of
market –
product life cycle
factors
Distributor’s
Trade buyers’
considerations considerations
• Cost of goods
delivered to
distributor’s
warehouse, duty
paid
• User/consumer
demand
• Supplier credit
• Trade margin
requirements
• Net profit
requirements
• Product suitability
to fit distributor’s
market position &
range policies
• Supplier reliability
& reputation
• Local availability
or delivery lead
time
• Suitability to
satisfy user needs
• Product quality
• Payment terms &
credit
• Price
competitiveness
• Product’s value
v competitor
• Product/brand
loyalty
Competitive
activity
• Competitor
pricing policies
• Competitor
market share &
penetration
• Distribution
• Product
positioning
• Comparable
features & benefits
(points of product
differentiation)
• Supply capacity –
ability to supply
to meet market
demand
Market
environment
• Exchange rate
• Income levels
• Income distribtn
• Employment
• Interest rate
• Inflation
• Local distribution
costs
• Demographics
• Security of
access to market
• Government
policies &
attitudes
• Price control
• Risk factors in
supplying the
market
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PRICING POLICIES
Penetration pricing – if objective is high volume sales and low
production cost. Pricing product at its long-term equilibrium price from
the start even though it may loose at early stages. Rapid expansion
and may deter competitors.
Marginal pricing – product price below full cost but above variable
cost in selected markets. E.g ‘happy hours’ in bars; ‘early birds’ in
disc. Stores.
Market-based pricing – price at a level what someone is willing to
pay.
Loss leading – offering products / services at below cost – attracting
initial customers.
Skimming – charging high price for a short time – relatively unusual,
used where product life-cyle is short e.g. high-technology products
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PRICE ELASTICITY OF DEMAND
(PED)
Price elasticity of demand (PED) describes the
way in which the demand for a product
responds to a change in its price.
Price elastic – if small change in price leads to a large
change in demand the product is said to be price
elastic. (e.g. refrigerators, cars, computers)
•
Price inelastic – if the demand for a product shows
little response to changes in price, the product is said to
be price inelastic. (e.g. bread, medicine)
•
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CALCULATING THE PED
(PRICE ELASTICITY OF DEMAND)
Percentage change in demand
PED
=
Percentage change in price
1. Calculate percentage change in price.
If price changed from 320 to 280 - %-age change = - 12.5%
2. Calculate percentage change in demand.
If original volume sold was 80 units and new sales volume is 100 units
%-age change = 25%
25
3. Calculate PED =
= - 2.0
- 12.5
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ADAPT OR STANDARDISE ?
is the question
Should a firm modify and adapt products when offering
them on a foreign markets OR offer a standardised
product to all markets?
A frequently debated issue in International Marketing.
STANDARDASATION is offering a common product on
a national, regional or on a worldwide basis
ADAPTATION involves making appropriate changes in
a product to match the requirements of customers in a
specific market.
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IMPORTANT FACTORS RELATING TO
STANDARDISATION & ADAPTATION?
•
•
•
•
•
•
•
•
economies of scale
R&D cost reduction
lower stock level
standard technology
consumer mobility
homogeneous markets
global communication channels
higher level of education
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FACTORS THAT ENCOURAGE
STANDARDASATION
• high cost of adaptation
• nature of the product
• economies of scale
(manufactr)
ADAPTATION
• variation in consumer
preferences
• different conditions of use
• variation in ability to afford…
• economies in R & D
• government influence
• economies in marketing
• legal requirements
• economic integration
between countries
• different tastes & behaviour
• competition
• lack of adequate support
system
• physical environment
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THE ESSENTIAL ASPECT TO REMEMBER ABOUT
ADAPTATION-STANDARDASATION
If we are faced with the decision
between being fully standardized or fully
adapted, how do we decide ……?
The Marketing Mix (4Ps+ 3Ps) is the tool
for determining the degree of
standardization possible, according to
the degree of international variation.
22-40
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GREEN MARKETING
Green marketing is the marketing of products
that are presumed to be environmentally safe.
Activities include:
 product modification
 changes to the production process
 packaging changes
 modifying advertising
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GREEN MARKETING 1.
Origin: 1970
To increase
people’s
awareness
about
importance of
environmental
preservation
(ecological
disasters)
Consumers are
becoming
environmentally
conscious as
they buy,
consume
Some
companies are
managing to
develop and
market green
products
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GREEN MARKETING 2.
PURCHASING BEHAVIOUR OF A TYPICAL GREEN CONSUMER
Looks for products packaged in recyclable materials
Does not buy products that are excessively packaged
Is attracted to products perceived as environmentally friendly
Looks for products made from recycled or reusable materials
Chooses products that do not contain toxic materials
Avoids buying anything packaged in foam
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GREEN MARKETING 3.
GREEN SEGMENTS
Green Leaders
Green followers
Middle of the spectrum
Grousers
Non
environmentalists
26-40
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GREEN MARKETING 4.
GREEN COMPANY ATTITUDES
– input, output, design, manufacture,
delivery must be considered
– typology
•
•
•
•
ignore the green
pass as green
genuine green
pro-green
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GREEN MARKETING 5.
4 Rs of long-term corporate commitment
Rethinking
Refusal
Reuse
Recycle
of
consumption
to conserve
natural
resources
to buy
products
that misuse
scarce
resources
products
and
packaging
packaging
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GREEN MARKETING 6.
GREEN MIX
– Position: reprofile to reflect new consumer
values
– Product: design new products
– Packaging: minimal, reuse
– Price: long-term competitive
– Place: proximity to recycling centers
– Promotion: education and information
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Let us now have an
overview of the more
important aspects of
International
Marketing.
30-40
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”
31-40
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Social/cultural
Legal
ECONOMIC
Language, religion,
values, social
organisation, material
culture
Local domestic laws
International law
Home domestic laws
Developed economy
Emerging economy
Less developed econ
Currency movements
S
L
E
Ecology
rainfall,
temperature,
seasons
P
Political
Operational
restrictions
Discriminatory
restrictions Physical
actions
Environmental
influences
on
international
marketing
T
Technological
Satelite communctn
Internet
WWW
The electronic
superhighway
DOOLE & LOWE
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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
33-40
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MARKET ENTRY 1
EXPORTING TO FOREIGN MARKETS
Indirect export:
• domestic based export
merchant sells abroad
Direct export:
• domestic based export department,
• foreign based distributors, or agents
• overseas sales branch or subsidiary
Exporting seems the simplest way of entering a foreign market.
In reality an export order initiates a series of problems not typically faced
before. For example:
• application for export license from government
• payment arrangement – how will sales be paid for
• currency
• banking arrangements
• shipment and associated paper-work
These and other complications might give the sales manager second thought
despite the possible benefits. However the benefit of going international this
way is that risk can be controlled. One person could handle it and would have
little effect on organizational structure.
34-40
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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
35-40
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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
36-40
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International marketing research primary data
collection pitfalls….
Beware of:
•
•
•
•
•
•
•
37-40
Degree of literacy
Quality of mail and phone service
Available travel facilities
Cultural norm
Mailing list (adequacy and reliability)
Internet availability
Sampling frames (availability and reliability)
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EQUIVALENCES
Construct equivalence – concerned with whether both researcher
and the subject of the research view a particular phenomenon or
concept in the same way. E.g. beauty, youth, wealth..
• functional equivalence – e.g. Asian shopping (servants) v europe
• conceptual equivalence – e.g. meaning of ‘reliability’
• temporal equivalence – e.g. gift-giving seasons
• market structure equivalence – e.g. compare Vietnam & Australia
Measurement equivalence – methods used by the researcher to
collect and categorise information. Ensure to measure the same
phenomenon between different overseas markets – it is necessary to
ensure gradation translation and scale equivalence.
Sample equivalence – due to social, cultural, economic and
political differences there are unique problems in international marketing
which are not found in domestic marketing
38-40
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I WISH EACH AND EVERY ONE OF
YOU HAPPINESS AND SUCCESS IN
YOUR PRIVATE AND
PROFESSIONAL LIFE
DON’T FORGET
THERE IS ALWAYS A BETTER
WAY!
FIND IT!
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INDECISION IS
THE THIEF OF
OPPORTUNITY