Marketing ACROSS BORDERS

1. Marketing ACROSS BORDERS

2. Professor Dr Demetris Vrontis • Dean, School of Business • President, EuroMed Research Business Institute • Editor, EuroMed Journal of Business • Chartered Marketer and Chartered Business Consultant • Email: vrontis.d@unic.ac.cy • ProfessorDr Ivana First • AssistantProfessor • University of Rijeka • Email: ifirst@efri.hr

3. International Marketing • …when marketing activities take place in more than one country. • The foundation for a successful international marketing program is a sound understanding of the marketing discipline.

4. So, what is marketing? • Marketing = Promotion? • Marketing = Advertising? • Promotion = Advertising? • Marketing = Communications? • Marketing = Selling? • Marketing = ??? what ???

5. What is marketing? • Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. • (The American Marketing Association)

6. Marketing PROCESS

7. More simply: Marketing is all about satisfying needs and wants • Needs- states of felt deprivation including physical needs for food, social needs for belonging and individual needs for self-expression. • Wants- form that a human need takes as shaped by culture and individual personality. • I am thirsty! • I want a Coca-Cola!

8. Do customershavethe same wants? • Do they perceive things the same way? • Isthatculturallydetermined?

9. Whichwoman do youwant to gettoknow? Bjerke and Polegato (2006): different cultures do not interpret beauty and health symbols equally

10. Maslow Mittelstaedt, and Hopkins (2003) discovered that social needs are the strongest motivator, followed by esteem needs, physiological needs (although somewhat modified to the working environment conditions), safety needs and self-actualisation needs.

11. THEREFORE • Althoughmarketing is universal, marketing practice varies from country to country. • Each country is unique/different. This is true for customer needs and wants, competitive structure, channels of distribution, available media, technological advancement, political system, cultural and economical factors.

12. technological advancement Marketing MIX political system economical factors cultural factors channels of distribution competitive structure needs and wants available media Product Good or Service Price Assignment of Value A firm blends a set of controllable tactical marketing tools (marketing mix = 4P+) to produce the response it wants in the target market Place Availability of Product / Distribution Promotion Activities to Inform Consumers

13. PRODUCT

14. Annoyed/irrittated - why do theybother me? I paidenough for theticket. Theycan do itthemselves • 2. No feelings – it is normal • 3. Proud and responsible – I contribute to motherearth PROMOTION

15. PRODUCT • Whycould SMART neverbe a US car? • Haveyoueverheard of visualpolution? • Are windturbinsgood? • Do youthinktheyproduce some kind of polution? • Isit a funny argument for you?

16. PRICE • Price itself – how high is it? – notcultural • Price expression (measurements USD pergallon/perliter) -cultural • Discountexpressions • original price – 10 EUR, discount 10%, • original price – 10 EUR, discount 1 EUR • Space for negotiation

17. PRICE • What is charged? • Aperol – experience or product? • Best business model? • Faxmachine is gifted but youpayprovision on eachcopymade (0,002 EUR/copy) – 500 000 copiesexpectd a year • Faxmachine is gifted but regularmaintainance is charged (1000 EUR/year) – lifeexpectancy 5 years • Fax is sold for money (5000 EUR), maintaining is free of charge for the first 5 years

18. DISTRIBUTION • Where to buyfruit and vegetable? Openmarket or supermarkets? • Whataboutfish? • Do peoplebuybread as a part of weeklyshoppingordaily? • Whatabout reverse distribution?

19. PROMOTION

20. Adaptation, Standardisation or AdaptStandation?

21. Reasons Pulling Towards Adaptation 1. Market development 2. Economic differences 3. Culture 4. Customer perception 5. Competition 6. Technological 7. Sociological 8. Differences in physical conditions 9. Legal / political environment 10. Level of customer similarity 11.Marketing infrastructure Reasons Pulling Towards Standardisation 1. Economies of scale in production, research and development and promotion 2. Global uniformity and image 3. Consistency with the mobile consumer 4. Easier planning and control 5. Stock costs reduction 6. Synergetic and transferable experience Product 1. Product or service variety, design, features 2. Quality 3. Brand name 4. Packaging, styling 5. Size and colour varieties 6. Performance 7. Image 8. Pre-sales service 9. Delivery, installation 10.After-sales service, warranties Price 1. Price levels, list price, price changes 2. Discount allowance, payment period, credit terms Place 1. Distribution channels, distributors value, place of shops, logistics Promotion 1. Advertising 2. Sales promotion 3. Personal selling 4. Direct marketing 5. Public relations People Physical evidence Process management Factors Affecting the Importance of Reasons and Elements 1. Industrial sector 2. Business to business, business to consumer 3. Product/Service category 4. Places and continents 5. Entry method 6. Delegated authority to foreign subsidiaries 7. Relationship with different foreign subsidiaries 8. World-wide turnover 9. World-wide number of employees. Vrontis, 2003

22. Questionnaire survey on marketing directors of 500 companies across all industrial sectors Vrontis, D. (2003), “Integrating Adaptation and Standardisation in International Marketing, The AdaptStand Modelling Process”, Journal of Marketing Management, Vol.19, No. 3-4, pp. 283-305 (ISSN: 0267-257X-Westburn Publishers). RESEARCH METHODOLOGY Tactical Behaviour1 Standardised 4Neutral 7 Adapted

23. Percentage 1 Culture 93 2 Market development 87 3 Competition 84 4 Legal environment 82 5 Economic differences 78 6 Sociological 74 7 Differences in customer perceptions 71 8 Technological 60 9 Political environment 53 10 Level of customer similarity 49 11 Marketing infrastructure 44 12 Differences in physical conditions 39 Adaptationreasons Reasons in order of importance

24. Reasons in order of importance Percentage (%) 1 Global uniformity and image 81 2 Economies of scale in production, R.&D. and promotion 75 3 Synergetic and transferable experience and efficiency 74 4 Consistency with the mobile consumer 52 5 Easier planning and control 48 6 Stock costs reduction 43 STANDARDISATION REASONS

25. AdaptStandation • Neither total adaptation nor complete standardisation represents business responses. • It is suggested that companies make choices which relate to key determinants in each circumstance. Multinational companies’ tactical and strategic behaviour is integrated as a result of several reasons ‘pulling’ it towards the one or the other side of the continuum. • The AdaptStand Process is the process of integrating Adaptation and Standardisation in international marketing tactics.This decision could only be made after an in-depth consideration of reasons pulling and factors affecting marketing behaviour.

26. Thankyou for yourattention!