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Master di primo livello:
“Marketing Management
per l’Impresa Internazionale VIII”
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 1
Module 1 - Defining the issue
of International Marketing
Prof. Mauro Cavallone
Index
• What International Marketing is: 3 definitions
• Opportunities and challenges
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 2
• Opportunities and challenges
• The international marketplace
1) International Marketing is the way of
planning and leading transactions between
different nations in order to create exchanges
that satisfy the objective of individuals and
What International Marketing is: definition 1
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 3
organisations.
Keyword: needs
2) International Marketing is interesting
because it combines the way of doing
business with many other disciplines, such as
economics, anthropology, cultural studies,
What International Marketing is: definition 2
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 4
economics, anthropology, cultural studies,
geography, history, languages, jurisprudence,
statistics and demographics.
3) International Marketing is about understanding
domestic and international business: it’s a tool
used to obtain improvement in one’s present
position.
What International Marketing is: definition 3
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 5
Keywords: grow in • numbers• profits• margins• etc.
by customer satisfaction.
Macroenvironmental factors, different constraints
and conflicts resulting from different laws, cultures
and societies are variables that the international
marketer has to face in his activity;
The basic principles of marketing still apply, but their
Opportunities and challenges
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 6
The basic principles of marketing still apply, but their
applications, complexity and intensity can be
substantially different.
Eg. Ireland - Bulgaria
different ways to consider lobbies
Opportunities and challenges
Some of the international environment elements to consider:
• social and ethic responsibility• environment and pollution concerns• working conditions• global competition• global investment
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 7
• global investment• corruption• technology• exchange rates• information diffusion• import/export barriers• etc.
In conclusion, in the field of International
Marketing it’s possible to observe the role
of marketing as a key agent of societal
Opportunities and challenges
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 8
change and as a key instrument for the
development of socially responsive
business strategy.
The international marketer is part of the exchange, he
recognizes the changing nature of transactions
constantly adjusting the target subject to shifts in the
business environment.
Keyword: customization
Opportunities and challenges
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 9
Keyword: customization
Some examples:
• Left drive - UK, NZ, AUS, JAP• Taste - Cherry Coke• Name - Fettuccini Alfredo (in Italian FETTUCCINE)• Pizza with Emmenthal in Switzerland
• How will my idea, good or service fit into the international
market?
• Should I obtain my supplies domestically or from
abroad?
• Do I need to adjust my marketing strategy?
Some questions regarding the issue
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 10
• Do I need to adjust my marketing strategy?
• What threats from global competition should I expect?
• How can I transform present threats into future
opportunities?
• What are my strategic global alternatives?
International activities can be crucial to a firm’s
survival and growth: by transferring knowledge
around countries it’s possible to build and maintain
competitive positioning.
What are companies looking for?
Opportunities and challenges
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 11
What are companies looking for?
• cost reduction
• more sales
• fight competitors
• green-field strategy
Firms that heavily depend on long
production runs can expand their activities
far beyond their domestic markets and
Opportunities and challenges
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 12
far beyond their domestic markets and
benefit from reaching many more
customers.
• Market saturation can be avoided by lengthening or
rejuvenating product life cycles in other countries.
Opportunities and challenges
1680
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 13
1895
Opportunities and challenges
Two Blades
1971
Three Blades
1998
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 14
Four Blades
2003
Five Blades
2007
Opportunities and challenges
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 15
• Plants can be shifted from one country to another finding new suppliers
Opportunities and challenges
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 16
Toyota RAV4 old model DR- 5 - the first italian SUV
Opportunities and challenges
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 17
Wuxi Little SwanXQG70-968EL
IndesitWIDL 126 S
Global Trade from the customer point of view:
Opportunities and challenges
+
• great varieties of products• lower prices• improve lifestyle and comfort
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 18
-
• social gap increases• wages and purchasing power lower• decrease of national production capability
Exploration is the first step of
internationalization: what is needed is an
awareness of global developments, an
Opportunities and challenges
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 19
understanding of their meaning, and a
development of capabilities to adjust to change.
The western baby
• In Switzerland she will live to the age of 82, while he will live
to the age of 75;
• In Netherlands there’s a 1% risk he will not see his fifth
birthday and a 9% risk of not seeing his sixtieth;
• In the U.S. her family’s income will likely exceed $21,541 per
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 20
• In the U.S. her family’s income will likely exceed $21,541 per
annum;
• In Canada he will share 1 square mile with eight other
people;
• In Italy she will be living in a city, as 90% of the population
does.
The baby of the less developed world
• In Sierra Leone she will live to the age of 39, while he will
live to the age of 36;
• In Niger he will run a 9% risk of not seeing his fifth
birthday and a 36% risk of not seeing his fortieth;
• In Uganda her family’s annual income is likely to be
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 21
about $602;
• In China he will share 1 square mile with 327 other
people;
• In India she will be living in the rural area, as 72% of the
population does.
Two differences:
1. To export (to sell abroad)
The focus of our course
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 22
2. To internationalize the company
• Overcapacity
• Search of money
To export (to sell abroad)
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 23
• Search of market opportunities
• Focus on selling
• High marketing-orientation
• Specific of goods and services
• High customisation
To internationalise the company
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 24
• Understanding reasons of success
• Import the knowledge of success in the home
country in order to strengthen internal competition
• Focus on deeply understanding the market
Acknowledgments
• “International Marketing” by Michael R. Czinkota, Ilkka A.
Ronkainen; Thompson South-Western edition 2006.
• “Marketing Management” by Philip Kotler.
• “Marketing Internazionale” by Giorgio Pellicelli.
Mauro Cavallone A. A. 2012/2013 - Defining the Issue of International Marketing 25
• “Competitive Advantage” by Michael Porter, New York, Free
Press 1987.
• “Marketing Globale” by Enrico Valdani 2000.
• “Consumer Behavior” by William Wilke; John Wiley & Sons
Inc. Third edition.