International MarketingMKT 504 :International MarketingMKT 504 Sharon Loane University of Ulster ML010 Extn. 75096


Course details etc… :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 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… :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 :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 :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 :Other Drivers Convergence of consumer tastes Emergence of global niche markets


The New Nike Economy :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? :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 :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 company’s goods and services to consumers or users in more than one nation for profit. (Cateora)


International Marketing – Definition (cont.) :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 :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 :Domestic Marketing One set of Competitors One Economy One set of market pressures One set of Customers


Domestic Market :Domestic Market Manipulate a series of variables Controllable by business Price Advertising Distribution Product Uncontrollable by business Economic structure Competitors Cultural Legal


Export Marketing :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 :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 :International Marketing Giving Differing infrastructures Differing advertising/promotions Differing complexity of market


International Marketing :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.) :International Marketing – Definition (cont.) Pan-Regional Marketing: Marketing strategies for regions rather than countries. Eg Asia, fastest growing market for West’s 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 :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 :Why is international marketing different Culture Diverse, Multi-cultured Markets Widespread, Fragmented,different Data Difficult to get, expensive Politics Varying stability and attitudes Governments Attitudes towards foreign trade Competitiors Varying levels Economies Varying levels & Systems


What makes international marketing different :What makes international marketing different Finance Varying systems & regulatory bodies Currencies Varying & Fluctuating Businesses Cross Cultural Influences Control Remote & Difficult


SLEPT Factors(Framework to analyse macro environment) :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 :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 :Barriers to International Marketing Control Language Red tape Cash flow Logistics Lack of trained staff


International Marketing Decisions :International Marketing Decisions Corporate Strategy Information on Potential Markets Objectives Decision to go international


International Marketing Decisions :International Marketing Decisions Business strategy Resource Commitments Selections of Target Markets Selection of entry methods


International Marketing decisions :International Marketing decisions Operational Strategy Marketing Plan Organisation Allocation of tasks


Next week…. :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…….