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51 Cards in this Set
- Front
- Back
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1000 person world:
from where? |
Asia and Africa
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1000 person world:
language |
Mandarin and English
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1000 person world:
religion |
Christians and Moslems
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1000 person world:
how many can read and write? how many college graduates? |
335 people
10 college graduates |
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Fact: popluation of industrialized countries (???) is leveling off and again
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Japan, US, Western Europe
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Fact: cola cola derives 37% revenue from:
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africa, asia, and latin america
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What are the world's current emerging markets?
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brazil, china, india
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international marketing environment
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key international environments are the
1)socio-cultural and 2)poilitcal/legal environments |
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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 |
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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 |
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change agents
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try to impress on a local consumer the need to adopt a new product
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FOUR DIMENSIONS OF CULTURE
1)degree of individualism |
extent to which individual interests will prevail over group interests
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FOUR DIMENSIONS OF CULTURE
2)level of equality |
extent to which less powerful members accept that power is distributed equally
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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
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FOUR DIMENSIONS OF CULTURE
4)material achievement |
extent to which the dominant values in society are success, moeny, and personal possessions
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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 |
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Internationalization process
PROACTIVE |
profit advantage
Unique products technological advantages exclusive informtaion economies of scale |
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Internationalization process
REACTIVE |
competitive pressures
overproduction declining domestic sales excess capacity saturated domestic markets proximity to customers and ports |
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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? |
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How can culture be used as a marketing tool?
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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) |
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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 |
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common law
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based on tradition and depends less on written statutes and codes than on precedent and custom (US)
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code law
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based on a comprehensive set of written statutes (england)
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Stages of identifying international markets
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1)preliminary screening
2)determine total market potential 3)estimate sales potential 4)select optimal segment within target market |
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Selecting an International Market:
What are 2 strategies? |
Concentration strategy
Diversification Strategy |
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Selecting an International Market:
Concentration Strategy |
focuses on a small number of markets
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Selecting an International Market:
Diversification Strategy |
market development strategy that involves expansion to a relatively large nummber of markets
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Tailoring the Marketing mix
what are the three approaches? |
Standardized
Multidomestic Globalization |
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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 |
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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
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Tailoring the Marketing mix
Globalization approach |
regional and global strategies are developed that allow for local differences in implementation
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Tailoring the Marketing Mix:
4Ps Product decisions |
design
branding packaging labeling |
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Tailoring the Marketing Mix:
4Ps Promotion decisions |
positioning
copy |
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Tailoring the Marketing Mix:
4Ps Pricing decisions |
*Price escalation: tariffs, product modifications, operating costs, taxes
*foreign exchange rates |
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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 |
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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 |
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Alternative Entry Strategies
INDIRECT EXPORT/IMPORT |
*intermediary used to deal with foreign customers or firms
*low management commitment *often unintended or unaware |
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Alternative Entry Strategies
DIRECT EXPORT/IMPORT |
*control international activities better
*can lead to further growth with trading partners *most find customers, markets |
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Alternative Entry Strategies
INTERMEDIARIES |
*importers/exporters often use them
-Export Management companies (EMC) -Trading company |
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Alternative Entry Strategies
INTERMEDIARIES Export Management companies (EMC) |
specialize in performing international business services as commission representatives or as distributors
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Alternative Entry Strategies
INTERMEDIARIES Trading company |
marketing intermediary that undertakes:
*exporting *importing *counter trading *investment *manufacturing |
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Alternative Entry Strategies
LICENSING |
*use of intellectual property for compensation
*low capital investment and involvement *capitalize on R&D *can create competition |
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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 |
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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 |
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Alternative Entry Strategies
FOREIGN DIRECT INVESTMENT Why? |
*marketing considerations *corporate desire for growth
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Alternative Entry Strategies
FOREIGN DIRECT INVESTMENT 3 types? |
full ownership
joint venture strategic alliances |
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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 |
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Alternative Entry Strategies
FOREIGN DIRECT INVESTMENT: full ownership |
often desirable
often impossible |
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Alternative Entry Strategies
FOREIGN DIRECT INVESTMENT: joint venture |
*collaboration between 2+ organizations
*share assets, risks and profits *partner brings local expertise, influence |
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Alternative Entry Strategies
FOREIGN DIRECT INVESTMENT TYPES OFCONTRACTUAL AGREEMENTS (3) |
-cross marketing
-outsourcing -contract manufacturing |
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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 |
