Transcript U2W09_F10_Lesson_01 - U2W09-2010-Fall

Business English Upper Intermediate
U2W09
John Silberstein
[email protected]
Agenda
•What are we doing this term?
•International Marketing
•Industrial Marketing
•Features and Benefits
•Event Marketing
•Public Relations
•Marketing Ethics
•More Numbers – Graphs
•Presentation – Required
•Presentations
•International Marketing
Presentations
Presentations are required.
Talk about questions first
You need to be PERSONABLE!
Forget the basic format everyone has used.
“This is my company, I will first tell you about the company…”
That is incredibly boring and not engaging. You are all
intelligent and interesting people and you would never know
that from your presentations. This class is a chance to
experiment and do something different!
What do you want to do?
Presentations
Default presentation
International Marketing
Talk about questions first
Pick a product or service that is made/provided by
a German company. The Company should have
an internet presence but should not be a large
global company (i.e.: BMW, SAP, BASF, Etc.). The
company should have a website.
You will give a brief summary about the company
and about the product.
You will then talk indicate which country (nonEuropean country) you intend to export to.
Presentation
Presentation
Your job is to persuade the Marketing Leadership Team that the
Talk
questions
first
product which
youabout
are product
manager for should
be marketed
in a specific foreign market.
Questions you should answer:
Why do you believe your product should be marketed abroad?
What is the competition in that country/region?
What competitive advantage does your product have over the
competition?
What is the current size of the market in the target market?
What are the challenges of entering the target market?
Presentation
Timing
th: Topic
October
Talk 18
about
questions
and or company
first
name should be submitted
December 4 & 6th: Presentations
International Marketing
What is International Marketing?
International Marketing is the exchange
of goods between companies from
different countries of origin.
International Marketing
What is the importance of International Marketing?
International Marketing allows for the
most efficient use of resources.
Example: Bananas
Could Germany produce Bananas?
Would that be an efficient use of
resources?
International Marketing
Is the Global Market Place a truly modern
phenomena?
NO!
Even before the time of the Roman Empire,
cultures were trading throughout the Mediterranean
Sea and south into Africa and West into Asia.
Columbus was looking for a way to China for the
Spanish because the Portuguese controlled the
route around Africa.
International Marketing
The Global Market Place Today
What makes the Global Market Place so different today?
International Marketing
The Global Market Place Today
Transportation
Speed: Goods can move between distant locations
quickly.
Bulk: Large container ships and planes can move large
quantities of goods.
Middle Class: There is a larger demand for goods as
more nations have a larger and larger middle class
populations. Middle class people are the largest
consumers based on the percentage of income they
spend and the amount they have to spend.
International Marketing
The Global Market Place Today
Where are Cars manufactured?
In the United States almost all major
auto manufacturers now have
assembly plants.
MB, BMW, VW, Toyota, Nissan, etc.
International Marketing
The Global Market Place Today
Increasingly rapid technology lifecycles also
increases the competition among countries as to
who can produce the newest in technology. In part
to accommodate these realities, countries in the
last several decades have taken increasing steps
to promote global trade through agreements such
as the General Treaty on Trade and Tariffs, and
trade organizations such as the World Trade
Organization (WTO), North American Free Trade
Agreement (NAFTA), and the European Union
(EU).
International Marketing
The Global Market Place Today
Today’s Global Market place tends to
be a Capitalistic Market with some
socialist activities.
There is not one overall regulatory
body. There are organizations that
attempt to level the playing field and to
inhibit countries from raising barriers to
free trade.
International Marketing
The Global Market Place Today
The Global Market Place is very complicated.
There are two levels to consider.
Nations: would like to enact laws that promote
their products and stop the flow of foreign
products that are imported.
Multi-National Corporations: spend huge
amounts of money to circumvent local
regulations and use their economic power to
obtain special privileges.
International Marketing
The Global Market Place Today
What are the two basic tools that a Nation can
use to influence the import and/or export of
goods?
Tariffs: Fees added to the importation of a
product.
Dumping: When a nation assists local
producers by providing monetary incentives to
over produce and export the product.
International Marketing
The Global Market Place Today
Example: Japan vs. USA: Steel
During WW2, the USA has increased
the production of steel and by the end
of the war had a large over capacity
relative to demand. This spurred the
increase in the production of Cars and
other appliances.
International Marketing
The Global Market Place Today
Example 1: Japan vs. USA: Steel
During WW2, Japan’s industrial infrastructure was destroyed
and the US assisted in rebuilding Japan’s industrial
infrastructure.
The US’s steel production was largely based on 1920/30’s
technology. Japan’s steel production was based on 1950’s
technology and was far more efficient.
During the late 1960’s and 1970’s the Japanese government
paid manufacturers to export to the US.
Many US steel production facilities were forced to close due to
this ‘dumping’ of inexpensive Japanese steel.
International Marketing
The Global Market Place Today
Example 2: USA and Sugar
The US protect sugar manufacturers by charging a high
tariff on imports of sugar.
Sugar is grown in the southern states of Louisiana,
Alabama, Mississippi and Texas.
In the US, a 5 lb. bag of sugar costs $2.99.
Half of the cost of sugar is caused by the tariff.
Countries such as Brazil and many other Caribbean
islands are large producers of sugar and are blocked
from exporting to the US because of this tariff.
International Marketing
Stages in the International Involvement of a Firm
A Purely Domestic firm focuses only on its home
market, has no current ambitions of expanding
abroad, and does not perceive any significant
competitive threat from abroad. Such a firm may
eventually get some orders from abroad, which are
seen either as an irritation (for small orders, there
may be a great deal of effort and cost involved in
obtaining relatively modest revenue) or as "icing on
the cake.“
Some of these customer may order on a regular
basis, this may move the company into an
Intermittent Export stage.
International Marketing
Stages in the International Involvement of a Firm
As the firm begins to export more, it enters the
Export stage, where little effort is made to market
the product abroad, although an increasing number
of foreign orders are filled.
In the International stage, as certain country
markets begin to appear especially attractive with
more foreign orders originating there, the firm may
go into countries on an ad hoc basis—that is, each
country may be entered sequentially, but with
relatively little learning and marketing efforts being
shared across countries.
International Marketing
Stages in the International Involvement of a Firm
In the Multi-National stage, some efficiencies
are pursued by standardizing across a region
(e.g., Central America, West Africa, or
Northern Europe).
Finally, in the Global stage, the focus centers
on the Global Market Place, with decisions
made to optimize the product’s position across
many markets—the home country is no longer
the center of the product. An example of a truly
global company is Coca Cola.
International Marketing
Stages in the International Involvement of a Firm
1. Purely Domestic,
2. Intermittent,
3. Export,
4. International,
5. Multinational,
6. Global.
Current Events
Managing a Global Market Place
1. On page 1, lines 10 & 11, the author
mentions Original Design
Manufacturer, what is does this
mean?
2. On page 1 line 26, the author uses
the acronym NMC’s, what does this
refer to?
Homework
The World Wide Web
Research websites for German companies where
the web site is a .de website but also has an
option for an English translation.
Identify at least 2 errors in grammar.
Cut and paste the text (or graphic) and send the
URL in an email.
DUE DATE: October 20th
We will discuss in class on October 21st.