im module-1 international marketing

8/18/2019 IM Module-1 International Marketing

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Université Paris-Dauphine

International Marketing


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The Scope and Challenge of International Marketing

Module- 1

McGraw-Hill/Irwin © 2005 The McGraw-Hill C !panies" Inc# $ll ri%hts reserve


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Chapter Learning Objectives

'# The chan%in% (ace ( U#)# *usiness

'# The chan%in% (ace ( U#)# *usiness

2# The sc pe ( the internati nal !ar+etin%tas+

2# The sc pe ( the internati nal !ar+etin%tas+

,# The increasin% i!p rtance ( %l *alawareness

,# The increasin% i!p rtance ( %l *alawareness

# The pr %ressi n ( *ec !in% a %l *al!ar+eter

# The pr %ressi n ( *ec !in% a %l *al!ar+eter

5# The i!p rtance ( the sel(-re(erence criteri n .) C ininternati nal !ar+etin%

5# The i!p rtance ( the sel(-re(erence criteri n .) C ininternati nal !ar+etin%


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Internationali!ation of "#S# usiness

Increasin% %l *ali3ati n(

!ar+ets

Increasin% %l *ali3ati n

( !ar+ets

ir!s (ace c !petiti nn

all (r nts

ir!s (ace c !petiti n

nall (r nts

Man7 U#)# c !paniesare

n w ( rei%n c ntr lle&9Carnati n .)wiss "Dai!ler-Chr7sler .Ger!an

Man7 U#)# c !paniesare

n w ( rei%n c ntr lle&9Carnati n .)wiss "Dai!ler-Chr7sler .Ger!an

U#)# (ir!s see+in%( rei%n

!ar+ets t increasepr (its

U#)# (ir!s see+in%( rei%n

!ar+ets t increasepr (its


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International Marketing$ % &efinition

Internati nal !ar+etin% is &e(ine& as theper( r!ance ( *usiness activities &esi%ne& t plan"price" pr ! te" an& &irect the (l w ( a c !pan7:s% &s an& services t c nsu!ers r users in ! rethan ne nati n ( r a pr (it

Internati nal !ar+etin% is &e(ine& as theper( r!ance ( *usiness activities &esi%ne& t plan"price" pr ! te" an& &irect the (l w ( a c !pan7:s% &s an& services t c nsu!ers r users in ! rethan ne nati n ( r a pr (it

Mar+etin% c ncepts" pr cesses" an& principles areuniversall7 applica*le all ver the w rl&

Mar+etin% c ncepts" pr cesses" an& principles areuniversall7 applica*le all ver the w rl&


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I. The nature of

international marketing« Internati nal !ar+etin% c nsists in i&enti(7in% an&satis(7in% c nsu!er nee&s a*r a&; *etter than thenati nal an& internati nal c !petit rs" un&er thec nstraints ( the internati nali3ati n sta%e ( the(ir! an& the %l *al envir n!ent# » .4athalie Pri!e


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Key elements of the

international marketing mixPr &uct Price Place Pr ! ti n

-Pr &ucta&aptati npac+a%in% an&la*elin%translati n (technicalliterature- int-venturesan& su*si&iaries

-$&vertisin%"pu*lic relati nsan& salespr ! ti n-Direct !ar+etin%-C ntr l (salespe ple-Translati n (

sales literature-6=hi*itin%-Mar+etin%research


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Di erences between domestic and

international marketingD !estic Internati nal

esearch &ata is availa*le in asin%le lan%ua%e an& is usuall7

easil7 accesse&

esearch &ata is %enerall7 in ( rei%nlan%ua%es an& !a7 *e e=tre!el7

&i((icult t *tain an& interpret?usiness is transacte& in a sin%lecurrenc7

Man7 currencies are inv lve&" withwi&e e=chan%e rate (luctuati ns

Hea& ((ice e!pl 7ees willn r!all7 p ssess &etaile&

+n wle&%e ( the h !e !ar+et

Hea& ((ice e!pl 7ees !i%ht nl7p ssess an& utline +n wle&%e ( the

characteristic ( rei%n !ar+etsPr ! ti nal !essa%es nee& tc nsi&er @ust a sin%le nati nalculture

4u!er us cultural &i((erences !ust*e ta+en int acc unt

Mar+et se%!entati n ccurs within

a sin%le c untr7

Mar+et se%!ents !i%ht *e &e(ine&

acr ss the sa!e t7pe ( c nsu!er in!an7 &i((erent c untries#


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international marketing (continued)D !estic Internati nal

C !!unicati n an& c ntr l arei!!e&iate an& &irect

Internati nal c !!unicati n an&c ntr l !i%ht *e &i((icult

?usiness laws an& re%ulati ns areclearl7 un&erst &

rei%n laws an& re%ulati ns !i%htn t *e clear

?usiness is c n&ucte& in a sin%lelan%ua%e

Multilin%ual c !!unicati n isreAuires

?usiness ris+s can usuall7 i&enti(ie&an& assesse&

6nvir n!ents !a7 *e s unsta*lethat it is e=tre!el7 &i((icult t i&enti(7an& assess ris+s

Plannin% an& r%ani3ati nal c ntr ls7ste!s can *e si!ple an& &irect

The c !ple=it7 ( internati nal tra&e(ten necessitates the a& pti n (

c !ple= an& s phisticate& plannin%"

r%ani3ati n an& c ntr l s7ste!s


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international marketing (continued)D !estic Internati nal

uncti nal speciali3ati n within a!ar+etin% &epart!ent is p ssi*le

Internati nal !ar+etin% !ana%ers reAuire awi&e ran%e % !ar+etin% s+ills

Distri*uti n an& cre&it c ntr l arestrai%ht( rwar&

Distri*uti n an& cre&it c ntr l !a7 *ee=tre!el7 c !ple=

)ellin% an& &eliver7& cu!entati n is r utine an&eas7 t un&erstan&

D cu!entati n is (ten &iverse an&c !plicate& &ue t !eetin% &i((erent* r&er re%ulati ns

Distri*uti n channels are eas7 t! nit r an& c ntr l Distri*uti n is (ten carrie& ut *7inter!e&iaries" s is !uch har&er t! nit r

C !petit rs ’ *ehavi r is easil7pre&icte&

C !petit rs ’ *ehavi r is har&er t *serve"there( re less pre&icta*le

4ew pr &uct &evel p!ent can *e%eare& t the nee&s ( the h !e

4ew pr &uct &evel p!ent !ust ta+eacc unt ( all the !ar+ets the pr &uct iss l& in#


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'nviron(ental %daptation )eeded

Di((erences are in the unc ntr lla*le envir n!ent (internati nal

!ar+etin%

Di((erences are in the unc ntr lla*le envir n!ent (internati nal

!ar+etin%

ir!s !ust a&apt t unc ntr lla*le envir n!ent (internati nal

!ar+etin% *7 a&@ustin% the !ar+etin% !i= .pr &uct" price"pr ! ti n" an& &istri*uti n

ir!s !ust a&apt t unc ntr lla*le envir n!ent (internati nal

!ar+etin% *7 a&@ustin% the !ar+etin% !i= .pr &uct" price"pr ! ti n" an& &istri*uti n

$&aptati n. ( Mar+etin% Mi= )tan&ar&i3ati n. ( Mar+etin% Mi=

Continuu(

I4 8U64C6D ? B 64 I 4M64T$8 $CT )


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Self-*eference Criterion +S*C,and 'thnocentris($Major

Obstacles

) C is an unc nsci us re(erence t ne:s wn culturalvalues" e=periences" an& +n wle&%e as a *asis ( r&ecisi ns6thn centris! re(ers t the n ti n that ne:s wn culture

r c !pan7 +n ws *est h w t & thin%s? th the ) C an& ethn centris! i!pe&e the a*ilit7 tassess a ( rei%n !ar+et in its true li%ht

eacti ns t !eanin%s" values" s7!* ls" an& *ehavi rrelevant t ur wn culture are &i((erent (r ! th se (( rei%n

el7in% n ne:s ) C c ul& pr &uce an unsuccess(ul!ar+etin% pr %ra!


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%voiding the Self *eference Criterion

T av i& the ) C" the ( ll win% steps are su%%este&9T av i& the ) C" the ( ll win% steps are su%%este&9

'9 De(ine the *usiness pr *le! r % al in h !e-c untr7cultural traits" ha*its" r n r!s

29 De(ine the *usiness pr *le! r % al in ( rei%n-c untr7cultural traits" ha*its" r n r!s# Ma+e n value @u&%!ents

,9 Is late the ) C In(luence in the pr *le! an& e=a!ine itcare(ull7 t see h w it c !plicates the pr *le!

9 e&e(ine the pr *le! with ut the ) C in(luence an&s lve ( r the pti!u! *usiness % al situati nE


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&eveloping a Global % areness

T *e %l *all7 aware is t have9T *e %l *all7 aware is t have9

'# Tolerant ( Cultural Di((erences" an&

.# /no ledgeable (9.a Culture" .* Hist r7" .c 1 rl& Mar+et P tential".& Gl *al 6c n !ic" ) cial an& P litical Tren&s


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Stages of InternationalMarketing

Involve(entIn general, firms go through five different phases in going

international:

In general, firms go through five different phases in going

international:

Infrequent Foreign MarketingInfrequent Foreign Marketing

No Direct Foreign MarketingNo Direct Foreign Marketing

International MarketingInternational Marketing

Regular Foreign MarketingRegular Foreign Marketing

Global MarketingGlobal Marketing


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Strategic Orientation$ '0*G Sche(a

Orientation '0*G Sche(a

D !estic Mar+etin%6=tensi n

Multi-D !esticMar+etin%

Gl *al Mar+etin%

.6thn centric

.P l7centric

. e%i /Ge centric


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Generall7" ( ur &istinctive appr aches & !inate strate%ic thin+in% ininternati nal !ar+etin%9


1# 'thnocentric or &o(estic Marketing ' tension Concept$

.# 0ol2centric or Multi-&o(estic Marketing Concept$

pp site ( ethn centris!Mana%e!ent ( these !ultinati nal (ir!s place i!p rtance

n internati nal perati ns as a s urce ( r pr (itsMana%e!ent *elieves that each c untr7 is uniAue an&all ws each t &evel p wn !ar+etin% strate%ies l call7

H !e c untr7 !ar+etin% practices will succee& elsewherewith ut a&aptati n; h wever" internati nal !ar+etin% isviewe& as sec n&ar7 t & !estic perati ns


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Generall7" ( ur &istinctive appr aches & !inate strate%ic thin+in% ininternati nal !ar+etin%9


3# *egiocentric$

4# Geocentric$

e%i centric an& Ge centric are s7n n7! us with a Gl *alMar+etin% rientati n where a uni( r!" stan&ar&i3e&!ar+etin% strate%7 is use& ( r several c untries" c untries ina re%i n" r the entire w rl&

)ees the w rl& as ne !ar+et an& &evel ps a stan&ar&i3e&!ar+etin% strate%7 ( r the entire w rl&


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International marketing

and ex ortingInternati nal !ar+etin% is ! re than e=p rtin%"

*ecause it inv lves9

• Mar+etin% pr &ucts that have *een!anu(acture& r asse!*le& in the tar%et c untr7

• 6sta*lishin% a per!anents presence in the( rei%n c untr7

• 8icensin% an& (ranchisin%• ) urcin% c !p nents (r ! ( rei%n states#


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International and

multinational marketingInternati nal !ar+etin% !eans!ar+etin% acr ss nati nal (r ntiers#

Multinati nal !ar+etin% !eans the

inte%rate& c r&inati n ( the (ir! ’ s!ar+etin% activities thr u%h ut thew rl


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!. "easons for marketing

abroad6c n !ies ( scale an& sc pe6=istence ( lucrative !ar+ets in ( rei%n

c untries)aturate& !ar+ets in the h !e c untr7Hi%h FD c stsInternati nal pp rtunities

8ess c !petiti n4ew tra&e a%ree!ents…


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#. $x orting

6=p rtin% !eans the sale in a ( rei%n!ar+et ( an ite! pr &uce&" st re& r

pr cesse& in the suppl7in% (ir! ’ s h !ec untr7#

Tw +in&s ( e=p rtin%9 passive an&

active


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#. $x orting (continued)

Sources of foreign de(and +passive e porting,$• 4 n-availa*ilit7 ( appr priate pr &ucts (r !

& !estic pr &ucers• Price &i((erentials *etween i!p rte& an& l call7

supplie& ite!s;• 6= tic i!a%es attachin% t ( rei%n pr &ucts;•

Ine((icienc7 ( l cal &istri*uti n s7ste!s" p litical&isrupti ns" in&ustrial acti n" r ther (act rs thatprevent l cal (ir!s (r ! suppl7in% % &s#


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$x orting (continued)

eas ns ( r active e=p rtin%9• The pr &uct has reache& the en& ( its

li(e c7cle at h !e• 8ess c !petiti n• 6as7 access t !a@ r cust !ers• 6=p rt increases turn ver#


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$xam le% Manchester

&nitedMU C has ! re (ans a*r a& than at

h !e

Merchan&isin%9 cl thin%" sh es" sp rtseAuip!ent

Manchester Unite& Ma%a3ine"

Manchester Unite& n i&eT Channel - MUT…


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II. 'trategic considerations

in international marketing)trate%7 !eans ch sin% a %eneral &irecti n ( r

the (ir!" t %ether with r%ani3ati nal &esi%ns"

p licies" s7ste!s an& a st7le ( !ana%e!ent*est suite& ( r *eatin% the c !petiti n in the(iel

Tactics c ncern practical !eth &s ( ri!ple!entin% strate%ic &ecisi ns#


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. om etiti*e ad*antage

The ele!ents ( c !petitive a&vanta%e are thecritical ((er" the si%ni(icant peratin% (act rs

an& the (ir!’s strate%ic res urces#

Critical ((er (eatures)trate%ic res urces C !petitive a&vanta%e)i%ni(icant peratin% (act rs


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+orter ’s model of

com etiti*e ad*antage

C st lea&ership Di((erentiati n

)peciali3ati n


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!. The com etiti*e

en*ironmentact rs9

6ase ( entr7 *7 c !petit rs int the !ar+etThe *ar%ainin% p wer ( cust !ersThe *ar%ainin% p wer ( suppliers

$vaila*ilit7 ( su*stitutes8evel ( e=istin% c !petitive pressure


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The +orter ModelThe Porter Model

Availability of substitutes Bargaining power of

Customers and suppliers

Ease of entry Extent of inter-firm

competition

Competitive situation

ProfitabilityMar et power

!ature of competitive advantage


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om etition between

nations

The national diamond "Porter# $%%&'

,uickTime- et und com resseur

sont re/uis our *isionner cette image.

0 i r m 't ra t eg y 1

' t ruc t ure a n d

" i * a l r y



De m a n d

c o n d i t i o n s



0 ac to r

c o n d i t i o n s



"e l a t ed a n d

su o r t i n g

i n dus t r i es

h a n ce

2 o * er n m e n t


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3. The *alue chain

0ri(ar2 activities$In* un& l %istics

perati ns - the c nversi n ( inputsint pr &ucts

ut* un& l %istics - which c ncern

&istri*uti nMar+etin% an& sales)ervice activities


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III. International marketing

strategy1# The five stage (odel)ta%e '9 Decisi n t internati nali3e

)ta%e 29 $nal7sis ( internati nal !ar+etin% envir n!ent

)ta%e ,9 6nterin% internati nal !ar+ets

)ta%e 9 Internati nal !ar+etin% pr %ra!!e

)ta%e 59 I!ple!entin% the internati nal !ar+etin% pr %ra!!e


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!. International marketing

lanning

Plannin% !eans l +in% int the (uturean& &eci&in% t &a7 what t & in the(uture %iven pre&icte& r inten&e&circu!stances#


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‘4hat if ’ analysis

Mana%e!ent as+s the Auesti n ‘ what willwe nee& t & i( it happens ’ an&

!a+es sure that the (ir! is a&eAuatel7prepare& ( r the envir n!ental chan%e#

‘1hat i(

’ anal7sis rec %ni3esc !ple=ities" &isc ntinuities an&

uncertainties ( the real w rl


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3. ontrol and coordination

C ntr l9

6sta*lishin% stan&ar&s an& tar%etsM nit rin% activities an& c !parin%actual with tar%et per( r!anceI!ple!entin% !easures t re!e&7&i((erences


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3. oordination and

control

C r&inati n !eans the uni(icati n (e(( rt" i#e# ensurin% that ever7 ne withinthe enterprise is w r+in% t war&s ac !! n % al# 6((ective c r&inati n

reAuires e((icient c ntr l#


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Mechanistic systems of

control)tan&ar&i3ati n ( a&!inistrativepr ce&ures

ee&*ac+ s7ste!s .rep rtsace-t -(ace !eetin%s

$pp int!ent ( a (ull-ti!e liais n!ana%er


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ultural systems of control

Clear c rp rate visi n an& !issi n;ree-( ll win% c !!unicati n *etween

the w r+( rce an& !ana%e!entG & internal P an& internal!ar+etin%

G & in&ucti n pr ce&ures ( r new sta((t a& pt the c rp rate culture at anearl7 sta%e

im module-1 international marketing

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