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SHEETAL RAWATROLL NO. 1026
MMS - I
INTERNATIONAL MARKETING
Table of content
IntroductionWTOScanning the international eco environmentInternational marketing researchDecision making processEntering international marketProduct strategyBuilding brandsInternational distributionCommunication decisions
INTRODUCTION
International marketing involves recognizing that people all over the world have different needs.
Companies like Gillette, Coca-Cola and Cadbury Schweppes have brands that are recognized across the globe.
Theories of international marketing1. Absolute advantage theory2. Comparative advantage theory
Evolutionary process of global marketing
Domestic marketingExport marketingInternational marketingMultinational marketingTowards glocal marketing
International Marketing Decisions
Deciding whether to go abroad
Deciding which markets to enter
Deciding how to enter the market
Deciding on the marketing program
Deciding on the marketing organization
WTO
The WTO is the only organization dealing with global rules of trade between nations.
It came into existence on 1 Jan 1955 as a successor of general agreement on tariffs & trade(GATT).
WTO
The major implication of the WTO’s multilateral trade regime are as follows:
Security of access to international markets.Stability of access to international markets.Implications for importers of raw materials &
other inputs.
FROM GATT TO WTO
YEAR ROUND SUBJECT COVERED COUNTRIES
AVERAGE TARIFF CUT(%)
1947 GENEVA TARIFFS 23 35
1949 ANNECY TARIFFS 13 NA
1951 TORQUAY TARIFFS 38 25
1956 GENEVA TARIFFS 26 NA
1960-61 DILLON TARIFFS 26 NA
1964-67 KENNEDY TARIFFS & ANTI DUMPING MEASURES
62 35
1973-79 TOKYO TARIFFS,NON-TARIFF MEASURES,FRAMEWORK AGREEMENTS
102 33
1986-94 URUGUAY CREATION OF WTO 123 36
PRINCIPAL OF MULTILATERAL TRADING SYSTEM UNDER THE WTO
Trade without discrimination. Gradual move towards freer markets
through negotiations. Increased predictability of international
marketing environment. Promoting fair competition in international
markets.
SCANNING THE INTERNATIONAL ECONOMIC ENVIRONMENT
The international marketing decisions are influenced, to a large extent, by environmental factors in the target markets.
It major framework areas are INTERNATIONAL ECONOMIC INSTITUTIONS & TRADE GROUP.
The major international economic institution include the WORLD BANK GROUP (IBRD, IDA, IFC, MIGA, ICSTD), IMF, WIPO,ITC & UNCTAD.
INTERNATIONAL ECONOMIC INTEGRATION
The trade group or the form of economic integration, also known as regional trading agreement (RTAs).
The major RTAs include EU, GCC, ASEAN & NAFTA.
India is involved in economic integrations with RTAs such as ASEAN, GCC, SAARC, SAPTA & EAEC.
INTERNATIONAL ECONOMIC INTEGRATION
bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb(complete political & economic integration)
(((
Common Market
(free trade among members)
Preferential trading agreement
(tariff concessi0ns on import select items)
Free trade Area
(common external trade policy)
(Harmonization of economic policies)
Economic Union
(Complete political & economic integration)
Political Union
IncreasingIntegration
INTERNATIONAL MAKETING RESEARCH
International marketing research can be defined as research that crosses national borders & involves respondents & researchers from different countries & cultures.
The major objective of international marketing research are:i. To carry out country screening &
selection.ii. To evaluate a country’s market potential.iii. To identify aspects of country’s
environmentiv. To evaluate the components of
marketing mixv. To facilitate in developing a strategic
marketing plan.
INTERNATIONAL MAKETING RESEARCH
CROSS-CULTURE MARKETING BEHAVIOUR & RESEARCHi. Religionii. Value systemiii. Normsiv. Aesthetics
INTERNATIONAL MAKETING RESEARCH
Comparison of cross-cultural behavior Power distance
Mal
aysia
Mex
ico
Arab
coun
trie
sIn
dia
Brazil
Thai
land U
.S
Great
Brit
ain
Swed
en
Austria
020406080
100120
Cou
ntry
sco
re
Country
Comparison of cross-cultural behavior
Individualism vs. collectivism
U.S
Great
Brit
ain
Franc
e
Sout
h Afr
ica
Indi
a
Japa
n
Argen
tina
Arab
coun
ties
Mal
aysia
Sing
apor
e
Paki
stan
0102030405060708090
100
Cou
ntry
sco
re
Country
Comparison of cross-cultural behavior
Masculinity vs. femininity
Cultural Context
Culture Homogeneity
GermanSwiss
ScandinavianNorth
AmericaEnglishItalian
SpanishGreekArab
VietnameseJapaneseKoreanChinese
Low Context
High Context
PROCESS OF INTERNATIONAL MARKETING
Problem identificatio
n
Decide Research
methodology
Workout information requirement
Identifying sources of
information
Prepare research design
Collect primary
data
Analyses information
Evaluation &
Interpretation
DECISION MAKING PROCESS
The decision making process consist ofi. Identificationii. Segmentationiii. Selectioniv. Targeting A firm has to overcome various distancesi. Geographicalii. Psychiciii. Economiciv. Political
DECISION MAKING PROCESS
A firm can make use of information & services from
i. export promotion agenciesii. The world bankiii. WTO The international market segmentationi. Geographicii. Demographiciii. Psychographiciv. Segmentation
DECISION MAKING PROCESS
Selection of international marketsi. Preliminary screening of international
marketsii. Accessibility to international marketsiii. Tariff Barriersiv. Profitabilityv. Estimate market potential
ENTERING INTERNATIONAL MARKET
In order to succeed in international markets, the decision to select an appropriate entry mode is crucial & integral part of a firm’s international marketing strategy.
The modes of entry in international market varies from low-commitment to high commitment.
INTERNATIONAL MARKET ENTRY MODES
International market entry modes
Exports
Production in Home country Production in Foreign country
Providing offshoreservices
Investment mode
direct
indirect
Complementary(piggybacking)
Contractual mode
Joint Venture
Mixing
Wholly owned foreign subsidiaries
Greenfield operations
Acquisition
PRODUCT STRATEGY
EPRG Model Ethnocentric: everything is centered on the
domestic market.Polycentric: several important foreign
markets exist.Regiocentric: the market is composed of
several large economic regions.Geocentric: the world is one large global
PRODUCT LIFE CYCLE
INTRODUCTION GROWTH MATURITY DECLINE
BUILDING BRANDS
THE AMERICAN MARKETING ASSOCIATION (AMA) defines a brand -
“as a name, term, sign, symbol or design, or a
combination of these, intended to identify the goods or services of one seller or a group of seller & to differentiate them from those of competitors.
STRATEGIES FOR BUILDING BRANDS
Brand based on tangible product componentBrand based on intangible product componentBalance brand based on tangible-intangible
product componentLIFE CYCLE CONCEPT
EmbryonicGrowthMaturityDecline
INTERNATIONAL DISTRIBUTION
The procurement of inputs & marketing of the products beyond country boundaries is referred to as international.
Distribution channel are:1. Direct channels2. Indirect channels
INTERNATIONAL DISTRIBUTION CHANNELS
International border
FIRM
END USER / CUSTOMER
e-channelAgent Merchant intermediary
Agent Merchant intermediary
Three-tier system
Winery, Supplier
Distributor / Wholesaler
Supermarkets, wine shops, HORECA,
bars, transportation, etc…
Consumers
Winery, Supplier
Control States
State controlled
retail stores
HORECA, clubs,
etc…
Consumers
Open States Control States
Tier I
Tier II
Tier III
COMMUNICATION DECISION
CUSTOMER
ADVERTISING
PUBLIC RELATIONS
DIRECT & INTERACTIVE MARKETING
PERSONAL SELLING
SALES PROMOTIO
N
INTERNATIONAL MARKETING COMMUNICATIONN MIX
PROCESS OF INTERNATIONAL MARKETING COMMUNICATION
HOME COUNTRYCONTEXT
ENCODING
FOREIGN COUNTRYCONTEXT
DECODING
SENDER(FIRM)
MEDIUM
MESSAGERECEIVER(CUSTOMER)
FEEDBACK
NOISE