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51 Cards in this Set

  • Front
  • Back
1000 person world:
from where?
Asia and Africa
1000 person world:
language
Mandarin and English
1000 person world:
religion
Christians and Moslems
1000 person world:
how many can read and write?
how many college graduates?
335 people
10 college graduates
Fact: popluation of industrialized countries (???) is leveling off and again
Japan, US, Western Europe
Fact: cola cola derives 37% revenue from:
africa, asia, and latin america
What are the world's current emerging markets?
brazil, china, india
international marketing environment
key international environments are the
1)socio-cultural and 2)poilitcal/legal environments
international marketing environment
1) socio-cultural
-includes?
+
*includes languages, values and attitudes
*marketing managers need to account for these cultural factors when developing marketing strategies
*change agents
international marketing environment
1) socio-cultural

Differences in cultural lifestyle can be accounted for by 4 dimensions of culture
1)degree of individualism
2)level of equality
3)uncertainty avoidance
4)material achievement
change agents
try to impress on a local consumer the need to adopt a new product
FOUR DIMENSIONS OF CULTURE
1)degree of individualism
extent to which individual interests will prevail over group interests
FOUR DIMENSIONS OF CULTURE
2)level of equality
extent to which less powerful members accept that power is distributed equally
FOUR DIMENSIONS OF CULTURE
3)uncertainty avoidance
extent to which people feel threatened by ambiguous situations and have created beliefs and institutions to try to avoid these feelings
FOUR DIMENSIONS OF CULTURE
4)material achievement
extent to which the dominant values in society are success, moeny, and personal possessions
EXAMPLE OF CULTURAL LIFE STYLE:
Northern Europe
1)degree of individualism?
2)level of equality?
3)uncertainty avoidance?
4)material achievement?

implications?
1) high
2) high
3) low
4)low

= low resistance to new products
= strong desire for novelty and variety
=high regard for environmentally friendly products
Internationalization process
PROACTIVE
profit advantage
Unique products
technological advantages
exclusive informtaion
economies of scale
Internationalization process
REACTIVE
competitive pressures
overproduction
declining domestic sales
excess capacity
saturated domestic markets
proximity to customers and ports
Nature of International marketing:
questions to be asked?
1. How will my product fit into the international market?
2. what marketing adjustments are or will be necessary? (4ps)
3.what threat from global competition should I expect?
4.how can these threats be turned into opportunities?
How can culture be used as a marketing tool?
1. embrace local culture
2. build relationships
3.employ locals to gain cultural knowledge
4.help employess understand you
5.adapt products and processes to local markets
6. coordinate by region (or ocuntry)
International Marketing:

Political and Legal factors
*play a critical role in international marketing activities
*World Trade Organization (WTO) = the institution that administers international trade and investment accords
common law
based on tradition and depends less on written statutes and codes than on precedent and custom (US)
code law
based on a comprehensive set of written statutes (england)
Stages of identifying international markets
1)preliminary screening
2)determine total market potential
3)estimate sales potential
4)select optimal segment within target market
Selecting an International Market:

What are 2 strategies?
Concentration strategy
Diversification Strategy
Selecting an International Market:

Concentration Strategy
focuses on a small number of markets
Selecting an International Market:

Diversification Strategy
market development strategy that involves expansion to a relatively large nummber of markets
Tailoring the Marketing mix

what are the three approaches?
Standardized
Multidomestic
Globalization
Tailoring the Marketing mix

standardized approach
*no special provisions are made for the international marketplace
*target market is identified and a product is chosen that can easily be marketed with little or no modification
Tailoring the Marketing mix

Multidomestic approach
marketers who chose the multidomestic approach completely alter the marking mix to fully adapt to local conditions in each and every targe market
Tailoring the Marketing mix

Globalization approach
regional and global strategies are developed that allow for local differences in implementation
Tailoring the Marketing Mix:
4Ps
Product decisions
design
branding
packaging
labeling
Tailoring the Marketing Mix:
4Ps
Promotion decisions
positioning
copy
Tailoring the Marketing Mix:
4Ps
Pricing decisions
*Price escalation: tariffs, product modifications, operating costs, taxes
*foreign exchange rates
Tailoring the Marketing Mix:
4Ps
Distribution decisions
Tactical/market by market: traditional outlets for products may vary

Developing global markets:
products are often phased into new markets starting with a basic product
Alternative Entry Strategies

First Tier (3)
Second Tier (3)
1) indirect export/import
direct export/import
licensing and franchising
2) foreign direct investment
joint ventures
contract manufacturing
Alternative Entry Strategies

INDIRECT EXPORT/IMPORT
*intermediary used to deal with foreign customers or firms
*low management commitment
*often unintended or unaware
Alternative Entry Strategies

DIRECT EXPORT/IMPORT
*control international activities better
*can lead to further growth with trading partners
*most find customers, markets
Alternative Entry Strategies

INTERMEDIARIES
*importers/exporters often use them
-Export Management companies (EMC)
-Trading company
Alternative Entry Strategies
INTERMEDIARIES

Export Management companies (EMC)
specialize in performing international business services as commission representatives or as distributors
Alternative Entry Strategies
INTERMEDIARIES

Trading company
marketing intermediary that undertakes:
*exporting
*importing
*counter trading
*investment
*manufacturing
Alternative Entry Strategies

LICENSING
*use of intellectual property for compensation
*low capital investment and involvement
*capitalize on R&D
*can create competition
Alternative Entry Strategies

FRANCHISING
*grant by parent company to independent entity to do business in a prescribed manner
*sell franchiser's products using name and marketing techniques or business approach
*franchise must offer high uniqueness with high standardization
Alternative Entry Strategies

FOREIGN DIRECT INVESTMENT
*buying property and business in foreign nations
*need substantial capital
*need for wide market access remedied by acquisition
*circumvent barriers to trade
*government incentives
Alternative Entry Strategies

FOREIGN DIRECT INVESTMENT

Why?
*marketing considerations *corporate desire for growth
Alternative Entry Strategies

FOREIGN DIRECT INVESTMENT
3 types?
full ownership
joint venture
strategic alliances
Alternative Entry Strategies

FOREIGN DIRECT INVESTMENT:
What are strategic alliances?
*informal or formal arrangements between 2+ companies with common objective
*flexible to environmental conditions
*pooling of expertise
Alternative Entry Strategies

FOREIGN DIRECT INVESTMENT:
full ownership
often desirable
often impossible
Alternative Entry Strategies

FOREIGN DIRECT INVESTMENT:
joint venture
*collaboration between 2+ organizations
*share assets, risks and profits
*partner brings local expertise, influence
Alternative Entry Strategies

FOREIGN DIRECT INVESTMENT

TYPES OFCONTRACTUAL AGREEMENTS (3)
-cross marketing
-outsourcing
-contract manufacturing
Alternative Entry Strategies

FOREIGN DIRECT INVESTMENT
*perspective*
Goverments and individuals praise foriegn direct investors for bringing capital,
economic activity,
employment
*investors = key transferers of
technology and
managerial skills