INTERNATIONAL MARKETING

1. 1 INTERNATIONAL MARKETING MARK 302 Lecture 1 14July 2005 Dr Tim Beal

2. 2 Today’s Programme Introduction What is different about IM? The Course

3. 3 Introduction Why are you here? What do you expect? What is ‘International Marketing’? Building on 200-level Marketing Adding ‘International’ to ‘Marketing’ Marketing in a much more complex environment Much more fun

4. 4 Examples of Pitfalls Apocryphal stories of marketing blunders

5. 5 Coke gets it wrong The name Coca-Cola in China was first rendered as Ke-kou-ke-la. Unfortunately, the Coke company did not discover until after thousands of signs had been printed that the phrase means “bite the wax tadpole” or “female horse stuffed with wax” depending on the dialect.

6. 6 Coke gets it right? Coke then researched 40,000 Chinese characters and found a close phonetic equivalent “ko-kou-ko-le”, which can be loosely translated as “happiness in the mouth”. (competition in 1930s)

7. 7 Pepsi and KFC In Taiwan, the translation of the Pepsi slogan “Come alive with the Pepsi Generation” came out as “Pepsi will bring your ancestors back from the dead.” Also in Chinese, the Kentucky Fried Chicken slogan “finger-lickin’ good” came out as “eat your fingers off.”

8. 8 Sex Ford had a problem in Brazil when the Pinto flopped. The company found out that Pinto was Brazilian slang for “tiny male genitals”. Ford pried all the name plates off and substituted Corcel, which means horse.

9. 9 Sex, second instalment When Parker Pen marketed a ballpoint pen in Mexico, its ads were supposed to say “It won’t leak in your pocket and embarrass you”. However, the company mistakenly thought the Spanish word “embararzar” meant embarrass. Instead the ads said that “It won’t leak in your pocket and make you pregnant”.

10. 10 Sex, yet again Chicken-man Frank Perdue’s slogan, “It takes a tough man to make a tender chicken”, got it terribly mangled in another Spanish translation. A photo of Perdue with one of his birds appeared on billboards all over Mexico with a caption that explained “It takes a hard man to make a chicken aroused”.

11. 11 Divided by a common language In an effort to boost orange juice sales in predominantly continental breakfast eating England, a campaign was devised to extol the drink’s eye-opening, pick-me-up qualities. Hence the slogan, “Orange juice. It gets your pecker up”.

12. 12 And just on the scene What is this? ??

13. 13 Google in China How Google became a rude word in China Customers take to the web http://www.NoGuge.com/

14. 14 What is different about IM? Examples of linguistic problems How many languages in the world? Country<>language USA - growth of Spanish 1/4 population Hispanic in 20 years language >>>culture translation relatively easy - culture more complex

15. 15 Firm and International Marketing Environment See Fig 1.4 in textbook, International marketing task Diagram

16. 16 More than languages Law first aspect How does law affect marketing? Prohibition alcohol, tobacco, sex, GM foods Restrictions children Obligations

17. 17 Obligations Packaging contents, languages, child-proof Environmental standards emissions, disposal Ownership and access to market mandatory joint ventures

18. 18 Sanitary & Phytosanitary (SPS) regulations sanitary (human and animal health) measures and phytosanitary (plant health) Often used as non-tariff barrier (NTB) eg fireblight – big dispute with Australia Essential to preserve good reputation of exports Eg Listeria in NZ cheese to Holland

19. 19 Danger of litigation US woman sues NZ Game Board because venison ‘caused’ her to have an abortion (Dominion 28/2/00)

20. 20 Laws not merely national many laws are supra-national European Union ‘International’ presumes nations Nation states becoming less relevant Globalisation

21. 21 The end of the nation state? Market <> country<>culture Most countries have a number of cultures Most cultures are found in a number of countries Distinction between IM and Marketing becoming increasingly blurred Growth of global products All marketing global marketing?

22. 22 What does this mean? IM is marketing in a more complex environment All aspects of market planning have to be reexamined What works in one place MAY not work in another Course adds knowledge of international business environment to your knowledge of marketing

23. 23 The Course Approach to learning MARK 302 coursepage/blackboard Course outline

24. 24 Approach to learning Facilitate learning rather than prescribing Learn by doing Case studies, and projects>exam Group work, but do not neglect individual work Relevant - real issues rather than text book examples Contemporary – up-to-date Utilise technology – lots of video material

25. 25 Technology Caution - Sod’s Law in operation! use Internet in lectures MARK302 homepage - the coursepage

26. 26 Mark 302 Homepage What’s on it? Course outline Notices Extra readings Links to websites (eg Tradenz) Lecture notes Let’s have a look MARK 302 coursepage

27. 27 Blackboard Another route to the same information http://blackboard.vuw.ac.nz

28. 28 Course Outline Why have a course outline? Tells you want to expect in terms of what the course covers in terms of what we attempt to achieve what is required Fairly long and comprehensive

29. 29 General Applies 200 level marketing concepts to international arena Introduction to global economy, structures and issues Examines NZ issues Environmental analysis SWOT analysis International Marketing Strategy

30. 30 Course Information Notice Board Rutherford House mezzanine floor MARK302 coursepage/blackboard Email

31. 31 Aims and Objectives Understanding of marketing in the international environment Analysing and communicating Complexity, cultural and location specific factors Opinions about theories and practices Visiting speakers Introduction to the Internet Awareness of Asia

32. 32 Competencies to be Achieved Application of marketing concepts Utilise information facilities for international markets Understanding of the Web/ ICT Environmental analysis SWOT analysis Strategic recommendation

33. 33 Teaching Times Weekly lecture Tutorials 10% of marks wb 24 July

34. 34 Staff Administration Assistant Mrs Jessie Johnston, 11th floor Rutherford House Tutors Yu Ge Anastasia Larionova Class representative Need candidates next Friday

35. 35 Visitors Online databases/Commerce library/Endnote Charlotte Clements Assistant Commerce Librarian Educational services Victoria International Pat English China Market Manager, NZTE Ken Muramatsu, NZ Translation Centre

36. 36 Textbook Richard Fletcher and Linden Brown: International Marketing, an Asia-Pacific Perspective 3rd edition 2005 Australian Extra material on coursepage

37. 37 Case Studies One will be assessed Others discussed in tutorials List on final page There will be a question on one of these industries in exam

38. 38 Assessment and Due Dates Spread out Friday 18 August: Wine Industry Case Study 15 marks Friday 6 October: Research project 35 marks Tutorials 10 marks Exam Registry open book, 2 hours, date tba 40 marks

39. 39 First assessment Wine Industry case study Statistics Information collecting Analysis due 18 August Feedback w/b 4 September (after break) video

40. 40 Major Project Bringing together materials from lectures skills and tools from preparatory exercises theoretical knowledge from textbook market knowledge from country sessions Education Services (product area) Environmental analysis, SWOT and recommendations (strategy)

41. 41 Educational Services Growth area in long term current difficulties Political, social, ethical, cultural issues, etc Industry you are all familiar with

42. 42 Project Structure Work in groups (form in tutorials) Report to ‘client’ VUW Victoria International

43. 43 Project Outputs Environmental analysis SWOT analysis Strategic Recommendations

44. 44 Other Information Word limits Work Load (10 hours +) Plagiarism Grievances Class representative

45. 45 Schedule Schedule on coursepage

46. 46 Tutorial schedule List of topics on final page You should read the case study Get additional information from web Be prepared to discuss the questions One case study will be used in the exam Tutorial information on coursepage

47. 47 What we did today Difference between IM and Marketing distinction increasingly blurred Globalisation Marketing in more complex environment Textbook (F&B) 1 Course MARK 302 coursepage/blackboard Course outline

48. 48 Next week Getting information for IM Charlotte Clements, Assistant Commerce Librarian Globalisation and the global economy Textbook (F&B) 2,11 Beal: the Asian Titans