sujay on international marketing
TRANSCRIPT
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A BRIEFINTRODUCTION
ON
MARKET,
MARKETING,
INTERNATIONAL BUSINESS,
INTERNATIONAL MARKETING
(ITS NATURE, SCOPE &
BENEFITS)
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INTERNATIONAL MARKETING
(ITS NATURE, SCOPE & BENEFITS)
Made by:
SUJAY VIKRAM SINGH
M.Sc in HOSPITALITY ADMINISTRATION
(SALES AND MARKETING)
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o Market is place where buyer and seller meets for mutual benefits.
o Marketing is the process of identifying the needs of consumers
and satisfying them by providing good quality of goods or
services along with the achieving organizations goals including
profits.
o International business means carrying on business activities
beyond national boundaries which includes transaction of
economic resources such as : goods, capital, services and
international production.
o International marketing comprises of carrying out marketingactivities to promote your brand internationally, market your
products or services beyond your national territory.
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O Global marketing refers to marketing activities
coordinated and integrated across multiple country
markets.
O It focuses upon leveraging a cos assets, experience
& products globally & upon adapting to what is
truly unique & different in each country.
O It is the performance of business activities that
direct the flow of a cos goods & services to
consumers or users in more than one nation for a
profit.O It is the application of mkting concept & its
approach to international business.
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Scope of International Mkting
O The scope of international mkting identifying
needs and wants of customers in different
markets and cultures, providing products,
services, technologies and ideas to give the
firm a competitive mkting advantage plus
distributing & exchanging products and
services internationally through one or acombination of foreign market entry modes.
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Benefits of I.M
O Enhances the domestic competitiveness
O Takes advantage of international trade
technology
O Increase sales & profits
O Extend sales potential of the existing products
O Maintain cost competitiveness in your
domestic market
O Enhance potential for expansion of your
business
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O Gains a global market share
O Reduce dependence on existing markets
O Stabilize seasonal market fluctuations
O It allows significant economies of scale & learning in
production & research and development through
uniform products for global markets.
IM is the performance of business activities that direct a
flow of goods & services to consumers or users in more
than one nation for achieving organizational goals.
Internationalmultinationalglobal marketing
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Role of mkting in
international businessO Identifying & making recommendation about future
trends & opportunities in the markets where the cois already active.-Atlas
O Identifying & making recommendations about newmkting opportunities.
O Providing estimates of the mkting resources(budget) needed to exploit these opportunities.
O Developing & implementing strategies which areconsistent with the overall strategic direction of theco in global markets.
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Ways in which geographically dispersed mktingactivities can be successfully coordinated to gain
competitive advantage
O Performing mkting activities using similar
methods across countries.
O Transferring mkting know-how & skill fromcountry to country.
O Sequencing of marketing programs across
countries.
O Integrating the efforts of various mktinggroups in diff. countries.
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MARKETING This concept was born out of the awareness that a business
should start with the determination of consumer wants and endwith the satisfaction of those wants.
It puts the consumer at both the beginning and at the end of thebusiness cycle.
The entire business has to be seen from the view of customer notcorporate.
O Marketing is the performance of business activities that direct theflow of goods & services from the producer to the consumer.
O It originates with the recognition of a need on the part of a
consumer & terminates with the satisfaction of that need by thedelivery of a usable product at the right time, at the right place, andat the acceptable price. The consumer is found both at the beginning& at the end of the marketing process.
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SALES MARKETING
It starts with the seller & is
preoccupied all the time with the
need of the seller
It starts with the buyer and
focuses constantly on the needs of
the buyer
Emphasises on saleable surplus
available within the corporation
Emphasises on identification of a
market opportunity
Emphasises on quickly convert
product into cash
Emphasises to convert needs into
products
Views business as a goods
producing process.
Views business as a customer
satisfying process.
The firm makes the product first
and then figures out how to sell it
& make profit.
The firm identified the needs of
the consumer and then makes the
products which must satisfied the
needs of both consumers &
organization.
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SALES MARKETING
Emphasis on staying with the
existing technology & reducing
costs.
Emphasis on innovation in every
sphere; on providing better value to
the customer by adopting better
technology
In firms practising selling,
production is the central function
of the business
In firms practising marketing isthe
central function of the business.
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OBJECTIVES OF MODERN
DAYS MARKETING:1. Retaining the customers by handling their
grievances and feedback
2. Computerized customer case history3. Redesigning the customerservice process
4. Throwing out the rule book
5. Encourage customers to communicate
6. Realizations of all organization goalsincluding profits
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CONCEPTUAL FRAMEWORK FOR INTERNATIONALMKTING : NATIONAL MKT V/S OTHER NATIONS
NATIONAL MARKET DIMESIONS
a) Market characteristics
1. Economic
2. Social/cultural
3. Political/legal environment
4. Stage of development
5. Market size, growth rates
6. Consumers characteristics
b) Marketing institutions
1. Channel & physical distributions
2. Communications
3. Services
c) Industry structure
1. Competitive dimensions
2. Technical development
d) Resources
1. Human
2. Monetary
e) Terms of access/financial environment
1. Tariffs, quotas, counter trade etc.
2. Foreign exchange regulations
FOREIGN MARKET
Unique characteristics
Similar characteristics
PLANNING
Domestic
Ethnocentric
Polycentric
Geocentric
Control focus
Domestic
Home country
Host country
Multinational
STRUCTURE IMPLEMENTATION
Domestic
International
Global
Matrix
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CONCEPTUAL FRAMEWORK FOR INTERNATIONALMKTING IN CONSTRAINT ECONOMIES
Environmental analysis
a) Principle constraint analysis
1. Govt attitudes & policies
2. Economic objectives
3. Social objectives
4. Legal & financial
Economic needs analysis
Gather data on appropriate environmental variables
b) Appropriate environmental variable data
1. market characteristics
2. Market institutions3. Industry conditions
4. Resources
Planning
Structure
Operational planning
Controlling the mkting
program
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Levels of international mktingDomestic Export International Global
1. Least intl
commitment
2. Domestic
focus
1. Limited intl
commitment
2. Involves
direct or
indirect
exports
3. Ethnocentric
approach
1. Substantial
international
commitment
2. Focus on
individual
countries or
regions
3. Polycentric
or
Regiocentricapproach
1. Extensive
international
commitment
2. Focus on
segments,
rather than
countries or
regions
3. Geocentric
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Ethnocentric orientationO Guided by domestic market extension concept
O Domestic strategies, techniques & personnel are
perceived as superior
O International customers are considered as
secondary
O International mkting plans are developed in- house
by the international division
O Evaluating other cultures acc. to preconceptions
originating in the standards & customs of ones own
culture.
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Polycentric orientationO Guided by multidomestic market conceptO Focuses on the importance & uniqueness of each intl.
market.
O
Likely to establish business in each target countryO Fully decentralized, minimal coordination with hq.
O Mkting strategies are specific to each country
O Result : no economies of scale, duplicated functions,
higher final product costs
O Meaning : having many centres, especially centres of
authority or control
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Regiocentric orientationO Guided by the global mkting concept
O World regions that share economic, political, and/orcultural traits are perceived as distinct markets
O Divisions are organized based on location
O Regional offices coordinate mkting activitiesO Meaning : a regional market orientation with world mkt
strategies.
O An approach which manages subsidiaries on a regionalrather than stand alone basis and is a cross between anethnocentric and a polycentric approach
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Geocentric orientationO Guided by the global mkting concept
O The world is perceived as a total market withidentifiable, homogenous segments
O Targeted mkting strategies aimed at marketsegments, rather than geographic locations
O Achieve position as low cost manufacturer &marketer of product line
O Provides standardized products or servicesthroughout the world
O Meaning: using the earthly life as the only basisof evaluation./ having or considering the earthas a centre.
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OBSTACLE TO
INTERNATIONALISATIONO Self-reference criterion:
a. Conscious & unconscious reference to own
national culture while operating in the hostcountry.
b. To counter the impact of the self-reference
criterion, the corporation must select
appropriate personnel for internationalassignment & engage in sensitivity training
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O Government barriers:
a. Restrictions placed on foreign corporations byimposing tariffs, import quotas & other
limitations, such as restrictive import license
awards
O Barriers imposed by international competition:
a. Blocked channels of distribution
b. Exclusive retailer agreements
c. Price reductions at the time of market entry
d. Advertising blitzes
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Institutional frameworkO It refers to a law or other formal provision
that assign primary responsibility as well asthe authority to an agency for the collection,
processing & dissemination of the stats; italso includes arrangements or proceduresto facilitate data sharing & coordination.
O The system of formal laws, regulations &procedures & informal conventions, customs& norms that shape socioeconomic activity& behavior.
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MKTING ENVIRONMENT
MARKETING PROCESS
MKTING MIX
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O Mkting mix is internal to firm while
environment is external and by using themkting mix the firm tackles withenvironment.
O The firm has to know where the environmentis heading, what trends are emergingtherein and what should be its response tothe environment changes. Only by analysingthe environment the firm can cope with thechange and able to sustain in the market or
grow further.
O The one thing which is constant--
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Purpose of environment
analysisO To know where the environment is heading; toobserve the relevant trends in the environment.
O To discern which events & trends are favourable fromfirms viewpoint and which are unfavourable; to figure
out the opportunities & threats hidden in theenvironmental events & trends (swot)
O To help secure the right fit between the environmentand the business unit, which is the main objective ofthe mkting; to help the business unit respond withmatching product-mkt strategies in the right way-in
line with the trends in the environment and theopportunities emerging therein.
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MACRO ENVIRONMENTO Demographic
O Socio cultural
O
EconomicO Political
O Natural-ecology, climate
O Technological (its availability, governapproach towards it & selection oftechnology)
O Legal
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DemographicO Business depends on consumers/people, it is
obvious that demographics is a major elementto be studied in environment analysis. As a
matter of fact, several factors relating topopulation, such as size, growth rate, agedistribution, religious composition & literacylevels, need to be studied. Aspects such ascomposition of workforce, household patterns,regional characteristics, population shifts, etc.,also need to be studied, as they all are part ofthe demographic environment.
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Socio-culturalO It is another important component of the mega
environment. Culture, traditions, beliefs, values &lifestyles of the people in a given society constitute it.
O Culture: it is the combined results of factors like religion,language, education & upbringing. In any society somecultural values are deep rooted; they do not changeeasily and are termed as core cultural values. There arealso values & practices, which constitute sec. culturalvalues; they can be change & can be moulded &manipulated relatively more easily. Meaningfulconsumption habits, lifestyle and buying behaviour ofthe people can be obtained through a survey of thisstudy.
O Social class: any society is composed of different social
classes. It is determined by income, occupation, locationof residence, etc., of its members. Each class has itsown standards with respect to lifestyle, behaviour, etc.
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EconomicO General economic conditionsO Economic conditions of diff segments of the
population; their disposal income, purchasingpower, etc.
O Rate of growth of the economy, rate of growth ofeach sector of the economy. Agriculture,industry, consumer goods, capital goods,services, infrastructure, imports &
exports.(4.7%/ 2013-14, it was averagely over
5% since 1950)O Income, prices & consumption expenditure
O Credit availability & interest rate(6.6 avg with themax of 14.5 %)
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O
Savings rate/capital formation (from thepeak of 38.1% of GDP in 2008, in 2012-13,
the savings rate has fallen to 30.1% of GDP
from 31.3% in 2011-12.
O Inflation rate(6.75%- current, 9.13%-13)
O Behaviour of capital markets
O Foreign exchange reserves
O Exchange rates
O Tax rate (income tax, sales, service tax)O Prices of important/raw materials
O Labour scenes (cost, skill availability, etc.)
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LegalO Corporate affairs
O Consumer protection
O
Employee protectionO Sectoral protection
O Corporate protection (protecting cos fromeach other, preventing unfair competition)
O Protection of the society as a whole
O Regulations on products, prices &distribution
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Environmental factors specific
to the business concernedO MARKET/DEMAND
O THE CONSUMER
O INDUSTRY & COMPETITIONO GOVERNMENT POLICIES
O SUPPLIERS RELATED FACTORS
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CONCLUSION
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THANK YOU