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MBA Hospitality Management10. International MarketingJon Twomey 2010

Key Themes Focus on Customers

New technologies

Influences (on customers

and companies)

Practical application Financial appreciation

Management style

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International MarketingLearning Outcomes

By the end of this session, students will be able to explain:

What is International Marketing?

Whether to go international?

Where to operate? What to market in an overseas environment?

How should we operate internationally?

Why go international?

The 6 stages of going international

The benefits of international trade

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Porters Diamond

Factorconditions The nations position in factors of production,such as skilled labour or infrastructure, necessary to compete in a givenindustry

Demand conditions. The nature of the home demand for theindustry product or service

Related and supporting industries. The presence or absencein the nation of supplier industries ad related industries that areinternationally competitive

Firm strategy, structure andrivalry. The conditions in the

nation governing how companies are created, organises and managed,and the nature of domestic rivalry.

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Financial Implications of International

marketing

International capital

Start-up capital

Working capital

International financial risk Foreign exchange risk

Political risk

Repatriation of profits

Taxation

Political factors

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The International Environment

Globalisation

The macro forces driving globalisation

The forces inhibiting globalisation

Patterns ofWorld Trade

Facilitators ofWorld Trade

Barriers to World Trade

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International Research

SLEPT factors

Social

Measurements

Political & Legal Framework

Political risk

Legislation Protectionism

Economic Structure

Identifying market size

Nature of the economy

Technology Technological development & impact on the marketing

mix

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The C Factors

Country

Measures of economic development

Stages of development

Regional groups

Types of trading groups

The major regional trade organisations

The Single European Market

European Economic & Monetary Union

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The C Factors

Culture

What is culture

SelfReference Criteria

High/Low context cultures

Cultural Convergence

Hofstede model of national

cultures Buyer behaviour

Consumers

Business

Government

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cultural differencesHofstede model of national corporate cultures

Key dimensions to explain cultural differences

Power-distance:

measures how far superiors exercise power

Uncertainty-avoidance:

clarity and order v novelty i.e. change rules rather than simply obey

Individualistic/collectivism:

individual achievement or collectivist (collectivist influenced by

extended families)

Masculinity/Femininity:

Masculine cultures emphasis on possessions, status in Feminine

quality of life and environment

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Self reference criterion

A persons unconscious reliance on:

cultural values

experience

Knowledge

James A Lee

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The C Factors

Competition

Porters 5 Forces

Structure of industry

The theory of competitive advantage

Stages in competitive development

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International Market Research (IMR)

Information Needs

The information stream

The IMR process

Sources of information

Research Methodology Scanning methods

Segmentation

Problems with interpretation

(Purpose, Population, Process, Publication)

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International Research

Information Management Systems

Problems of International Market Research

Agency selection

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Marketing Audit - FEPSOS adapted from Kotler

Functions

-the 7 Ps

Environment

-Micro & Macro

Productivity

-Profitability & Costeffectiveness

Systems

-information for planning

and control

Organisation

-structure and style

Strategy

-Mission, Aims, Objectivesand Strategy

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Market Entry

Market entry strategies

Level of involvement

Market entry methods

Indirect exporting

Direct exporting

Without direct investment

With direct investment

Overseas production

Exit strategy

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Market Entry Methods

Control

Risk

Indirect Exporting

Piggybacking

Trading companies

Export management companies

Domestic purchasing

Joint ventures

Strategic alliances

Direct Exporting

Distributors

Agents

Direct Marketing

Franchising

Management contracts

Manufacturing

O n subsidiary

Acquisition

Assembly

Source: Philips Doole & Lo e

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Matrix for comparing alternative

methods of market entry

val ation riteria

ndirect

xport

irect

xport

Marketing

s

sidiary

Marketing

s

sidiary

local

assem

lyicensing Join vent

re

Wholly

o

ned

operation

N m er of markets

Market Penetration

3 Market feed ack

4 nternational Marketing earning

ontrol

Marketing osts

Profits

8 nvestment

9 dminstration

Foreign pro lmes

Flexi ility

Risks

ntry methods

ource: Terpstra and arathy

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Product Policy

What is a product?

Standardisation vs.

adaptation

Product/promotions

mix Product

positioning/branding

Packaging/labelling/

maintenance

Portfolio analysis

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Product Policy

New Product Development

International Trade Lifecycle

Product Divestment

Services

Importance of services internationally Characteristics of services

Extended mix for services

Service quality

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Pricing Policy

Role of pricing

Pricing objectives

Approaches to pricing

Factors influencing international pricing decisions

Export Pricing TransferPricing

Foreign Exchange Risk

Countertrade & Barter

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Marketing Communications

International communications mix

Advertising

PR

Personal selling

Negotiation Sourcing the salesforce

Recruitment/training & motivation

International trade fairs/exhibitions

Sales Promotion

Sponsorship

Direct Marketing

Forces for and against DM development

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Marketing Communications

Cultural considerations

Push & pull strategies

Media selection

Availability

New media

Scheduling

Other market considerations

Stage of economic development

Distribution infrastructure

Competition

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Marketing Communications

Planning the international campaign

Factors to consider

Agency selection

Standardisation of message

Media selection Decide on budget

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Distribution and Logistics

Logistics

Transportation

Storage

JIT

Documentation INCOTERMS

Issues in logistics

Key trends in Distribution and Logistics

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People & Process

People

International staff

International

customers

Staff/customerinteraction

Process

Degree of contact

Quality controlstandards

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Evaluation and Control

Short term vs. long term

Financial measures

Non-financial measures

Obtaining performance information

Maintaining and enforcing control

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Evaluation and control

Other methods of evaluation and control

The Balanced Scorecard Approach

Benchmarking

Self-assessment

The Learning Organisation Investment Analysis

Customer analysis and retention

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Influences on

International marketing

Public attitudes to

business ethics

Social responsibilityand sustainability

Green pressures