WHAT IS MARKETING?

1. Marketing Involves: Focusing on the needs and wants of customers Identifying the best method of satisfying those needs and wants Orienting the company towards the process of providing that satisfaction Meeting organisational objectives ch1_2 WHAT IS MARKETING?

2. Different Levels of International Marketing Export marketing International marketing Global marketing management ch1_3 WHAT IS INTERNATIONAL MARKETING?

3. ch1_4 ENVIRONMENTAL INFLUENCES ONINTERNATIONAL MARKETING Legal Local domestic laws International law Home domestic law Political Operational restrictions Discriminatory restrictions Physical actions Socio/Cultural Language Religion Aesthetics Values and attributes Social organisation Material culture Technological Satellite Communications ISDN Internet WWW The Electronic Superhighway Environmental Influences on International Marketing Economic Developed economies Emerging economies Less developed economies Currency movements

4. Culture Often diverse and multicultural Markets Widespread and sometimes fragmented Data Difficult to obtain and sometimes expensive Politics Regimes vary in stability, political risk becomes an important variable ch1_12 THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #1

5. Governments Can be a strong influence in regulating importers and foreign business ventures Competition Multinationals can distort competitive structure of markets Economies Varying levels of development ch1_13 THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #2

6. Finance Many differing finance systems and regulatory bodies Currency Varying and unstable, strong likelihood of transaction risk Business Diverse rules, culturally influenced Control Difficult to control and co-ordinate across markets ch1_14 THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #3

7. ch1_16 THE INTERNATIONALMARKETING STRATEGY PROCESS Chapter Part One: Analysis 1,2,3 Understand the environmental influences on a firm’s international markets Segment international markets, identify & analyse opportunities 4. Part Two: Strategy Development 5,6,7 Develop appropriate international marketing strategies, planning & processes Feedback & reassess continually 8. Decide marketing entry strategies Part Three: Implementation 9,10,11,12 Build added value through effective marketing mix strategies

8. Achieving Comparative Advantage sustained period of investment lower labour cost proximity to raw materials subsidies to help native industries building expertise in certain key areas Building national advantage (Porter, 1990) factor conditions demand conditions related and supporting industries firm strategy, structure and rivalry ch2_6 COMPARATIVE ADVANTAGE Source: Porter (1990) The Competitive Advantage of Nations

9. ch2_7 Tariff and Non-Tariff Barriers to Trade Specific country Purpose Time length Import restraints Tariff rates Production, distribution and consumption Tariffs Market entry barriers Government participation in trade Customs and entry procedures Product requirements Quotas Financial control Other policies and requirements Non-tariff barriers Source: Onkvisit and Shaw (1988) Marketing Barriers in International Trade, Business Horizons, June

10. ch2_9 MAIN TYPES OF TRADE ASSOCIATIONS Type Economic co-operation Bi-lateral or multi-lateral trade treaty Sectoral free trade agreement Trade preference agreement Free trade area (or agreement) Customs union Common market Economic union Political Common external tariff No No No No No Yes Yes Yes Yes Free movement of capital and people No No No No No Possibly Yes Yes Yes Example Canada - EC framework agreement, APEC The Peru, Chile accord The multi-fibre agreement South African Development Cone (SADC) ASEAN NAFTA Mercosur Economic Community of West African States European Single Market European Monetary Union Would resemble federal states (e.g. US, Canada, Germany)

11. ch2_10 No internal tariffs Common external tariffs Free flow of factors of production Common fiscal & monetary policy Political harmony FORMS OF MARKET AGREEMENT Free trade area Customs union Common market Economic union Political union

12. ch2_11 REGIONAL TRADING AREAS OF THE WORLD 1998

13. NAFTA: free trade area US, Canada, Mexico Mercosur: customs union Brazil, Paraguay, Uruguay and Argentina APEC: forum of 23 Asia-Pacific nations ASEAN: free trade area (beginning 2008) Thailand, Indonesia, Singapore, Brunei, Malaysia & Philippines CEA: economic area China, Hong Kong & Taiwan ch2_18 DEVELOPING TRADE AREAS

14. The sum total of learned beliefs, values and customsthat serve to direct customer behaviour in a particular country market ch3_2 CULTURE DEFINED

15. ch3_9 A CULTURAL FRAMEWORK Religion Values & Attitudes Language Cultures Education Aesthetics Social Organisations Law & Politics Technology & Material Culture Adapted from Terpstra & Sarathy (1999)

16. ch3_13 Assumptions to Be Questioned by International Marketing Managers 1. That Maslow’s Hierarchy of Needs is consistent across cultures 2. That the buying process in all countries is an individualistic activity 3. That social institutions and local conventions are similar across cultures 4. The consumer buying process is consistent across cultures - consumer involvement - perceived risk - cognitive style 5. Self reference criterion

17. ch3_18 INTERRELATIONSHIP BETWEEN CONTEXT & PRODUCT DIFFUSION High Context/Fast Diffusion High Context/Slow Diffusion South East Asia Japan India Asia Low Context/Fast Diffusion Low Context/Slow Diffusion Scandinavia USA, Canada UK Eastern Europe Source: Will, Samli and Jacobs (1991)

18. ch3_19 LINEAR MODEL OF THE NEGOTIATION PROCESS Non-task sounding Task-related exchange of information Persuasion Concession and agreement Source: Graham (1986)

19. Scanning international markets to identify and segment markets Building marketing information systems to monitor environmental trends Carrying out primary marketing for input into the development of marketing strategies ch4_2 3 AREAS OF INTERNATIONAL MARKET ANALYSIS

20. ch4_5 THE FOUR RISK MATRIX

21. ch4_6 BUSINESS PORTFOLIO MATRIX Source: Harrell G D and Kiefer R O (1993) Multinational market portfolios in global strategy development, International Marketing Review, Vol 1- No 1 Country Attractiveness High Medium Low High Company’s Compatibility With Each Country Medium Low

22. ch4_8 TRANSNATIONAL SEGMENTATION & METHODS Demographic:sex, age, income level, social class and educational achievement Psychographic:lifestyle factors - activities, interests and opinions Behavioural:patterns of consumption, loyalty to product category and brand

23. ch4_14 12C FRAMEWORK Culture/consumer Behaviour Country Channels Concentration Commitment 12c Choices Currency Communication Consumption Contractual Obligations Capacity to Pay Caveats

24. ch4_15 MARKET PROFILE ANALYSIS Distribution Mix Promotion Mix Product Mix Pricing Mix Market Entry Social Cultural Legal Factors Economic Factors Political Factors Technological Factors Competition Trading Practices Tariff Barriers Financial Source: Majaro (1992)

25. Business libraries University libraries International chambers of commerce International Market Intelligence Centre (DTI) Business Links Embassies Banks Trade associations Export councils Overseas distributors Overseas sales subsidiaries Foreign brokerage houses Foreign trade organisations such as JETRO (Japanese Export Trade and Research Organisation) ch4_16 SOURCES OF INFORMATION

26. ch4_20 USEFULNESS OF PERSONALLY COLLECTED DATA IN THE ASIA-PACIFIC REGION 0 1 2 3 4 Not at all A little Substantial A lot Heavily Customers Personal contacts In-house surveys Businessmen Governments Competitors Trade associations Newspapers Political contacts External surveys International survey Magazines Bankers Local surveys Computer databases Source: Lassere , P (1993)

27. Questions the International Marketing Manager should address: Should the research be carried out by foreign local subsidiaries or should all marketing research be centralised at headquarters? Should the fieldwork be carried out in house or by an agency? ch4_21 ORGANISING THE RESEARCHSTUDY #1

28. ch4_24 EVALUATION OF SURVEY METHODS + = advantage - = disadvantage Malhotra et al (1997)

29. ch5_7 ASPECTS OF THE INTERNATIONAL MARKETING PLAN Stakeholder Expectations Shareholders, customers, host government, employees in each country, pressure groups Situation Analysis Evaluation of the environment & individual markets Resource & Capabilities Individual SBU strengths & weaknesses analysis Capability to deal with threats and opportunities Corporate Aims & Objectives Financial, market, area, brand & mix objectives Marketing Strategies Growth strategies Standardisation & adaptation Implementation of the Plan Individual SBU & marketing mix plans Regional, global or multidomestic integration Control & Feedback Setting standards, measuring performance, correcting deviations

30. ch5_8 SOME TYPICAL STAKEHOLDERS OF MULTINATIONAL ENTERPRISES Shareholders Home country government Expatriate staff Individual politicians and civil servants Suppliers Distributors & retailers Host country government The Firm Local workers and their organisations Customers Local competitors Pressure groups Competitor MNEs

31. ch5_10 ANSOFF GROWTH MATRIX Products Old New Old Product development Penetration Markets Market development Diversification New

32. The world economy and environmental trends Historical performance (sales, costs, profitability) Forecast future performance An extrapolation of the past Alternative scenarios Opportunities and threats Company strengths, weaknesses and capabilities compared to competition ch5_12 MARKETING PLAN CHECKLIST #1

33. Long term aims, objectives and strategies One-year marketing objectives and individual SBU strategies Country-by-country forecasts and targets Country-by country marketing plans for all activities Plan for regional and global integration ch5_13 MARKETING PLAN CHECKLIST #2

34. Critical factors for success Likely competitor response A contingency plan A control process for feedback, evaluation and corrective action ch5_14 MARKETING PLAN CHECKLIST #3