International Marketing MKT 504

Sharon Loane University of Ulster ML010 Extn. 75096

Course details etc

12 x 3 hour lectures 164 hrs independent study 50% Exam, 50% Coursework
Group Presentation (5 x 10%= 50%) On SLEPT factors for particular country (Eastern Europe), class time Written case study A report on these SLEPT factors 20%) B Using information gathered suggest opportunities for Irish firms & recommend appropriate marketing strategies (30%)

Post WWII developments in Trade

Post WWII change in attitudes GATT was born, resulting lowering in tariff barriers for industrial products Uruguay Round (1996), replaced by WTO. WTO tackling issues preventing more liberal world trade system (non tariff barriers, agricultural products, services trade, & investment issues)

More recently

Characterised by emergence of trade groupings (increased interdependence)

ASEAN, EU, NAFTA, APEC

Vary in degree of loss of sovereignty. Sustained world peace and the end of the cold war promoted growth of international economy. Evolution of large emerging markets, Argentina, China, Hungary, Poland etc

Communications and transport

Transport
Globe has shrunk, time to deliver and cost have reduced Containerisation, larger vessels, improved waterside efficiency & rationalisation of shipping services. Jet aircraft, facilitate face-to-face meetings & business travel, speed and cost

Technology

WWW, gather, analyse & disseminate data with ease Facilitates prod around the world Advances allow marketspace B2C / or new business forms Pace of innovation Underpins communications B2B

Other Drivers

Convergence of consumer tastes Emergence of global niche markets

The New Nike Economy

Air Max Penny Basketball Shoes

Designed Oregon & Tennessee Developed jointly by US & Asian technicians, Oregon, Taiwan, S Korea Produced in S Korea (Mens) & Indonesia (Boys) 52 components from 5 different countries (US, Taiwan, S Korea, Indonesia & Japan) Single pair is touched by 120 pairs of hands during production process
Source: Nike, Far Eastern Economic Review, 29th August, 1996

What is International Marketing?

Marketing A Definition: Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. (CIM)

International Marketing - Definition

The definition of International Marketing is different from the general definition of Marketing only in that goods and services are marketed across political boundaries.

(Albaum)

International Marketing is the performance of business activities that direct the flow of a companys goods and services to consumers or users in more than one nation for profit.

(Cateora)

International Marketing Definition (cont.)

When practising international marketing, a company goes beyond exporting and becomes much more involved in the local marketing environment within a given country or market.

(Jeannet/Hennessey)

What is International Marketing

Made up of many facets, that is levels of involvement

Domestic Marketing Export Marketing International Marketing

Multi National Marketing Global Marketing

Domestic Marketing

One One One One

set of Competitors Economy set of market pressures set of Customers

Domestic Market

Manipulate a series of variables

Controllable by business Price Advertising Distribution Product Uncontrollable by business Economic structure Competitors Cultural Legal

Export Marketing

Where the company markets its goods or services across national or political boundaries Usually a reactive situation Emphasis on product modification, if required. Most traditional and least complicated form of international marketing.

International Marketing

Entire marketing strategy will need to be adapted. Understanding of different environments becomes essential. Several markets Differing controllable variables across markets Differing uncontrollable variables across markets

International Marketing

Giving
Differing infrastructures Differing advertising/promotions Differing complexity of market

International Marketing

Multinational marketing
Where similar activities apply to more than one country Some limited control on the market place variables Markets may be independent profit centres Marketing strategy can be tailored to local market, individual strategy per location, can have many and varied strategies

International Marketing Definition (cont.)

Pan-Regional Marketing: Marketing strategies for regions rather than countries. Eg Asia, fastest growing market for Wests top brands. (Dior, Rolex, Cartier, Calvin Klein, Versace, Gucci) Singapore, Jakarta, K Lumpur, Hong Kong, Tokyo French luxury goods sales here are now 35% of output, soon will be market for almost 50%

Global Marketing

The whole organisation exploits one strategy on a worldwide basis No individual country influence, although often some form of local modification necessary. One strategy fits all
Efficiencies of scale Needs significant market segments with similar demand world over Might need marketing mix tweaked per region?

Why is international marketing different

Culture Markets Data Politics Governments Competitiors Economies

Diverse, Multi-cultured

Widespread, Fragmented,different
Difficult to get, expensive Varying stability and attitudes Attitudes towards foreign trade Varying levels Varying levels & Systems

What makes international marketing different

Finance Currencies Businesses Control

Varying systems & regulatory bodies Varying & Fluctuating Cross Cultural Influences

Remote & Difficult

SLEPT Factors
(Framework to analyse macro environment)

S ocial & cultural values L egislation affecting trade E conomic conditions P olitical systems & attitudes T echnological level & infrastructure, & Competition within the market

Problems of international trade

Debt Unstable countries Protection of intellectual rights Tariff regulations Instability in Foreign exchange markets Non tariff barriers, eg specifications

Barriers to International Marketing

Control Language Red tape Cash flow Logistics Lack of trained staff

International Marketing Decisions

Corporate Strategy
Information on Potential Markets Objectives Decision to go international

International Marketing Decisions

Business strategy
Resource Commitments Selections of Target Markets Selection of entry methods

International Marketing decisions

Operational Strategy
Marketing Plan Organisation Allocation of tasks

Next week.

Why do firms wish to go international? Internet searching, techniques 2nd half of class (seminar) labs re gathering data on countries allocated to each group Web link for sources of data on MKT 504 website See you then.