Transcript International Marketing - Xavier Institute of Management

International Marketing
M. Weverbergh
University of Antwerp
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Visiting
Goa Institute of Management
September 2000
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Course Concept
• An introduction to International and Global
Marketing Concepts
• Term paper
• Case discussions
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Sources
• Textbooks
– Jeannet / Henessey: Global Marketing Strategies
– Catheora: International Marketing
– Allbaum, Strandskov, Duerr: International Marketing
and Export Marketing
– Thorelli, Cavusgil: International Marketing Strategy
– Vern and Terpstra
• Internet resources: Basic Guide to Exporting
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Scoring
• Term paper
• Case work
• Final
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– Multiple choice
– essay questions
– case
• Total Score
20
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30
130
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List of Readings/...
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Introduction to global marketing
The gains from trade
Competition in global industries
The international environment
Evaluating international markets
Standardization of marketing strategy
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List of readings.../...
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A market oriented clustering of countries
Entering China: HBR
Making the most of foreign factories: HBR
Global Sourcing strategy
First Mover Advantage
Game Theory: JMR
European Anti-dumping WP
Basic Guide to exporting: Internet
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…/List of readings
• How Japan won a contract (Thorelli)
• How multinationals can counter gray
market imports (Thorelli)
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Course Outline (Jeannet/Hennessey)
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Introduction
The global environment
Global Opportunities
Global Marketing Strategies
Global Marketing Programs
– Product and Services
– Product Development
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Course Outline
• (Global marketing Programs)
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channels
pricing
promotion
advertising
• Managing the global effort
– organizing
– planning and controlling
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Case Planning
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[email protected]
Euro-Disney
Bajaj Auto
Zantac
Fancy Jeans
Astra Sports A
Astra Sports B
Lexus and USTR
Weissberg gmbh
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Organization
• Teams
– case assignments (written reports)
– case presentations
– term paper: subjects ?
• List of teams ALREADY DONE
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Suggested topics
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Assessing Export Readiness
Country of Origin Effects
Country Clustering
The WTO-debate
Risk analysis
Corruption
Intellectual property
Born globals
Sourcing and globalization
The impact E-business
your proposals...but check first
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First case
• Read the two-page ‘the case method’-note
(Dalrymple & Parsons)
• Euro Disney: all teams prepare a report
• Next case: Bajaj Auto
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A step aside
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Introduction
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Domestic Marketing
Export Marketing
International Marketing
Multinational Marketing
Pan-Regional Marketing
Global Marketing
Scope International-Global
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International & Global
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International Business
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Internationalization is
• A step by step process of international
business development whereby a firm
becomes increasingly committed to and
involved in international business
operations through specific products in
selected markets
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Specific factors
1. World trade has been growing faster than the
world GDP.
2. Total global Foreign Direct Investment (FDI) has
been growing faster than trade over the past 20
years.
3. The dependence between rivals in different parts
of the world is increasing
4. The globalization of industries and businesses is
increasing
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Global factors
5. The nature of global competition is changing due
to increased international networking, cooperation
and alliances
6. Capital markets have been deregulated
7. Area integration is increasing, that is,
liberalization of capital, human, product and
service movements.
8. Eastern European (and Asian) nations are moving
towards market economy systems.
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Global factors
9. The development of instantaneous international
communication.
10. The end of the cold war.
11. A greater emphasis on economic affairs than on
political and/or military affairs.
12. A surge in cross-border travelling.
13. International transportation is increasing in speed and
scope.
14. The internationalization of cultural relations, labor
unions etc.
15. Increased international awareness of people, due to
education, research, travelling, media and foreign
contacts.
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Factors explaining
Firm factors
Home country
market factors
Host country
market factors
Smallness
Largeness
Openness
Domestic
Path
Internatio
nal Pull
Openness
Location
Global factors
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Distinctions
• International
• Global
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Companies compete in both
domestic and global industries
Products are in different stages of
the life cycle in each nation
Product adaptation is necessary in
markets characterized by national
differences
Segments reflect differences
Customized products for each
segment
Many customized markets
Acceptance of regional/national
differences
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Globalisation of all industry
Global product life cycle. All
consumers want the most advanced
products
Products are adapted to global
wants and needs. Restrained
concern for product suitability
Segments reflect between group
similarities. Group similar
segments together.
Fewer standardized markets
Expansion of segments into
worldwide proportions
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distinctions
• Domestic/national competitive
relationships
• standardization limited by
requirements to adapt products
to national tastes
• Preferences reflect national
differences
• Products differentiate on the
basis of design, features,
functions, style, image etc
• consumers willing to pay more
for a customized product
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Ability to compete in national
market is affected by a firm’s
global position
Globally standardized production.
Adaptations are handled through
modular designs
Global convergence of consumer
wants and needs
Emphasis on value enhancing
distinctions
Consumers prefer globally
standardized good if it carries a
lower price
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How international are you?
• Foreign sales as a percentage of total sales
• foreign assets as a percentage of total assets
• oversees subsidiaries as a percentage of
total subsidiaries
• psychic dispersion of international
operations
• top managers’ international experience
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How international? Checklist
A.How international is the company
1. What are our export sales by product?
a) in total volume/revenue by product
b) as a proportion of total sales by product
c) as a trend
2. To how many export markets do we sell?
a) the number of countries
b) the number of product markets
3. How concentrated are our export efforts?
a) by market
b) by product
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Checklist
4. What is the real level and cost of our export sales?
a) Personnel: how many man-equivalents are devoted to export
business?
b) Promotion: how much do we spend to create export sales?
c) Contribution to profit: what is the relative contribution to profit and
overheads from export sales (i.e.sales revenue - direct costs =
contribution)?
5. What is the source of export business? In other words, what proportion
of export business is
a) unsolicited orders
b)distributor’s orders (i) from their efforts (ii) from our efforts
c) our own sales efforts?
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checklist
6. How can we summarize our real attitude to exporting?
Where does the firm fall on the following scale?
PASSIVE/REACTIVE
1. Export is just a supplement to home sales, e.g. it is mainly
unsolicited orders
2. Export is major but not as important as home sales
3. Export is equal in importance to home sales
4. Export is more important than the home market
5. Export is the main source of business
ACTIVE
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checklist
B. How international can the company be?
7. What markets are open to us for development?
a) country-market sizes and market shares
b) product-market sizes and market shares
8. What barriers exits to prevent exploiting identified market opportunities e.g.
capacity, competitors, trade agreements, non-tariff barriers?
9. What would be necessary for us to overcome these barriers e.g. investment,
new products, new expertise?
C. How international does the company want to be?
10. What level of exports do we want?
11. What markets do we plan to attack?
12. Can we cope with the consequences of increased export efforts, e.g.
production capacity, after-sales service, slower cash, new expertise?
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checklist
13. How will the real attitude to exporting have to change? (See previous
scale)
14. Gap analysis: what actions and resources would we need to bridge the
gap between A. where we are now, and B. where we want to be?
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