there is no right way to do something wrong. somi
TRANSCRIPT
THERE IS NO RIGHT WAY TO
DO SOMETHING
WRONG.
THERE IS NO RIGHT WAY TO
DO SOMETHING
WRONG.Somi
BUDAPESTI GAZDASÁGI FŐISKOLA
INTERNATIONAL MARKETING
LECTURE- 8In English
20th April 2012 – FRIDAY
0940hr –1110hr (E.F. 13-15)
Miklós (Nicholas) SOÓS0630 265 9638
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LECTURE DATES - TIMES - LOCATION RE: Miklós (Nicholas) SOÓS
1. FEB. 17. 0940-1110 [E.F.13-15]
2. FEB. 24. 0940-1110 [E.F.13-15]
3. MARCH 2. 0940-1110 [E.F.13-15]
4. MARCH 9. 0940-1110 [E.F.13-15]
MARCH 16. VACATION
MARCH 23. VACATION
5. MARCH 30. 0940-1110 [E.F.13-15] – re. feb.10
6. APR. 6. 0940-1110 [E.F.13-15] (guest lect?)
7. APR. 13. 0940-1110 [E.F.13-15]
8. APR. 20. 0940-1110 [E.F.13-15]
9. APR. 27. 0940-1110 [E.F.13-15]
10. MAY 4. 0940-1110 [E.F.13-15]
11. MAY 11. 0940-1110 [E.F.13-15]
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CLASS ATTENDANCE
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Lectures No. %
Lect. 1 16 24
Lect. 2 22 33
Lect. 3 30 45
Lect. 4 30 45
Lect. 5 35 52
Lect. 6 34 51
Lect. 7 34 51
Lect. 8
Lect. 9
Lect. 10
BGF. INTERNATIONAL MARKETING – MINI TEST 1 - ASSESSMENTS
Markscale % No.
<45 4
46-50 1
51-55 0
56-60 7
61-65 0
66-70 6
71-75 0
76-80 8
81-85 0
86-90 7
91-95 0
96-100 1
Total no. of students: 34
Class average : 71%
Lowest score 20%
Highest score: 100%
Class average 2 (67): 39%
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0
1
2
3
4
5
6
7
8
40(-) 41-45
46-50
51-55
56-60
61-65
66-70
71-75
76-80
81-85
MINI TEST 1 - RESULTS
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Please ensure that you personally sign the
attendance sheet every time you attend a
lecture.
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The visual contents of lectures will be available internally on
the following site:
K:\Hallgatok\ANGOL\Soós tanár úr
(available internally only)
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SOURCES, REFERENCES – SUGGESTED READINGS
The course is NOT based on any specific textbook. The following are recommended.
International Marketing, Cateora, P. & Graham, J. (2005) 12th edition, McGraw-HillGlobal Marketing, Hollensen, S. (2004) 3rd edition, Prentice Hall
International Marketing Strategy, Doole, I. & Lowe, R (2004) 4th edition Thomson
International Marketing and Export Management, Albaum G, Prentice Hall London
Principles of Marketing, Kotler P et. Al, 2nd European edition, Prentice Hall E. 2003
Principles of Marketing, Jobber D, McGraw-Hill
Principles of Marketing, Brassington F, Financial Times Prentice Hall, 2000
Marketing on the Internet: Principles of online marketing, Strauss J & Raymond F, Prentice Hall,1999
Internet sites:
www.pmcinc.org/
www.tradeport.org
www.FAS.USDA.gov
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ASSESSMENT METHOD
End of year written examination 60%
Two (2) ‘mini’ exams of 20 min. duration
during unannounced lectures 40%
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Now I would like to introduce you to our guest lecturer
Juste SIAUCIUNAITE from Lithuania who will inform us
about her country much of which will be relevant to to the subject on
International Marketing.
Please welcome Juste.
Lithuania – small but unique!
• The Lithuanian tricolor flag was re-adopted in 1989, after Lithuania regained its independence from the Soviet Union. It was last used in the beginning of the 20th century, from 1918 to 1940. The yellow stripe of the Lithuanian flag represents golden fields of grain, the green represents a lush countryside, and the red represents blood spilled in battle for Lithuania.
• The Lithuanian coat of arms is an ancient symbol that stands for Lithuania's long European history. The modern coat of arms of Lithuania was officially adopted in in the 1990s, but the coat of arms dates back to the middle ages. The white rider (or Vytis) and horse are depicted on a red background with gold and blue accents.
• Gediminas, the grand duke or prince of Lithuania in the 13th-14th centuries, was responsible for founding Lithuania as an empire. Gediminas is remembered for his response to the religio-political issues of the day. Widespread conversion to Christianity clashed with deeply rooted paganism, making Gediminas' rule especially difficult.This statue of Gediminas is found in the main square in Vilnius Lithuania.
• This wooden sculpture of Christ can be found at Lithuania's Hill of Crosses. This pilgrimage site is a place for Lithuanians and international travelers to pray or simply meditate.
• Painted, dyed, and decorated eggs are a part of the Lithuanian Easter tradition, just like elsewhere in Eastern Europe. These Easter eggs are wooden, but Lithuanian decorated eggs can also be blown eggshells dyed with natural plant dyes and patterned using a traditional wax-removal method.
• Lithuania's economy has long depended upon what its farmers could produce. However, Lithuania has often struggled to keep up with technological farming advances. Especially in rural Lithuania, farming may be done much the way it has been done for centuries. This granary is one example of the existing rural Lithuanian agricultural artifacts that are part of Lithuania's rustic charm.
• Fishing along the coast or along other waterways has been an important survival technique for Lithuanians for hundreds of years. Particularly in Neringa, fishing is still a way of life. Visitors to Lithuania may even join fishing tours (both during the warm months, and during the winter for ice fishing trips) or enjoy some smoked fish while they travel along the Baltic coast.
• Lithuania was once apart of the Amber Road, so it's no wonder that amber is used so prelevantly through Lithuania. Lithuania also has amber museums for you to visit.
• Lithuanian traditional costumes feature long skirts, aprons, vests, and hats for the women, and long pants, vests or coats, and boots for the men.
Do’s and dont’s in Lithuania
• DO exchange business cards after introductions.• DON'T sit until invited to sit down.• DO expect a Lithuanian to try to protest if you give
them a gift. Explain that it's just a little something and offer it again until they accept.
• DON'T try to schedule meetings in July and August, which are common vacation months.
• DO bring a gift for your hosts, such as chocolates, liquor, flowers, or fruit.
• DO be aware that you might have to remove your shoes before entering Lithuanian home.
• DON'T put your hands in your pockets or sit with an ankle resting on the other knee. Both are considered poor etiquette.
• DO not be late more then 15 minutes.• DON'T give yellow chrysanthemums, as they
are used for funerals.• DO wait for a woman to extend her hand first.
• DO open your gift upon receipt.• DON'T move to a first name basis until invited to
do so.• DO finish all the food on your plate.• DON'T remain seated while greeting someone.
Stand up!• DO indicate that you are done eating by putting
the fork and knife parallel across the right side of the plate.
• DON'T make jokes about Lithuanian culture. Lithuanians are very proud of their culture, so to make a joke about it would be in poor taste.
• DO compliment the host and finish everything served to you.
• DO tip about 10% of the bill. That is customary, but not obligatory.
• DON'T give a baby gift before a baby is born; it's bad luck.
• DO give flowers in odd numbers, not even. Even numbers of flowers are for funeral.
• DON'T smile unless you mean it. In Lithuania, smiling a lot can be seen as insincere.
• DO dress conservatively for business occasions. A suit is acceptable for men, and women should wear fashionable yet conservative clothes.
• DON'T shake hands or greet someone over a threshold. Go into the room first, and then exchange handshakes.
• DO arrive on time. Lateness might indicate that you don't respect your hosts.
• DO greet people with a handshake, direct eye contact, and a smile.
• DON'T speak too loudly in public.
• DO arrive on time for appointments. Punctuality is important.
• DON'T wear t-shirts, shorts, sneakers, or sweats during business meetings.
• DO accept offers of hospitality and do reciprocate.
• DO open doors for women, if you are male.• DON'T point with your finger. Instead, point with
your entire hand.• DO not pick your nose in public.• DON‘T drop litter.• DO maintain eye contact at business meetings.• DON'T interrupt others while they are speaking.
Wait patiently for them to finish.• DO not ask a lady her age.• DON'T try to bring personal relationships into
business. They are kept separate.• DO remove gum, pencils, cigarettes or anything
else from your mouth while talking on the phone.
Geography
• Climate: With four distinct seasons, the climate is humid continental, with a moderating maritime influence from the Baltic Sea.
• Cities (2011): Capital--Vilnius (pop. 542,932); other cities--Kaunas (336,912); Klaipeda (177,812); Siauliai (120,969).
Geography
• Area: 65,200 sq. Km
• Nationality: Noun and adjective--Lithuanian(s).Population (2011): 3,244,601.
Government
• Type: Parliamentary democracy.Constitution: On October 25, 1992, Lithuanians ratified a new constitution, which was officially signed on November 6 that year.
Economy
• GDP (2010): $36 billion.GDP growth (2010): 1.3%.GDP growth (2011 forecast): 5%.Annual inflation rate (September 2011): 4.5%.Unemployment rate (second quarter of 2011): 15.6%.
• Natural resources: Limestone, clay, sand, gravel, iron ore, and granite
Neighbours
• The largest and most populous of the Baltic states, Lithuania is situated on the eastern shore of the Baltic Sea, in northeastern Europe. It is bordered by Latvia to the north, Belarus to the southeast, Poland to the southwest, and Kaliningrad, a territory of Russia, to the west. It has 60 miles of sandy coastline, of which only 24 miles face the open Baltic Sea.
• The terrain is marked by numerous small lakes and swamps, and a mixed forest zone covers 30% of the country. According to some geographers, Lithuania's capital, Vilnius, lies at the geographical center of Europe.
Language
• The Lithuanian language still retains the original sound system and morphological peculiarities of the prototypal Indo-European tongue and, therefore, is fascinating for linguistic study. Between 400 and 600 AD, the Lithuanian and Latvian languages split from the Eastern Baltic (Prussian) language group, which subsequently became extinct.
Economy
• After joining the EU in 2004, Lithuania saw its economy boom, reaching a record 8.9% GDP growth in 2007.
• Lithuania pegged its national currency--the litas--to the euro on February 2, 2002 at the rate of LTL 3.4528 to EUR 1.
Defense
• Lithuania, a member of the North Atlantic Treaty Organization (NATO) since 2004, fully endorses the concept of collective defense.
Foreign relations
• Lithuania became a member of the United Nations (UN) on September 17, 1991 and is a signatory to a number of UN organizations and other international agreements. Lithuania gained membership in the World Trade Organization on May 31, 2001.
• Thank you for your attention!
Where we finished last week.
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FACTORS IN THE FOREIGN MARKET ENTRY MODE DECISION
External Factors
Internal Factors
Foreign MarketEntryMode
Decision
Target Country Market Factors
Target Country Environmental Factors
Target Country Produc-tion Factors
Home Country Factors
Company Product Factors
Company Resource/ Commitment Factors
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FACTORS IN THE FOREIGN MARKET ENTRY MODE DECISION
External Factors
Target Country Production Factors
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• quality
• quantity
• material cost
• labor
• energy
• transport
• communication
• port facilities
Productive Agents Economic Infrastructure
Low production costs in the target country encourage some form of local production as against exporting.
FACTORS IN THE FOREIGN MARKET ENTRY MODE DECISION
External Factors
Internal Factors
Foreign MarketEntryMode
Decision
Target Country Market Factors
Target Country Environmental Factors
Target Country Produc-tion Factors
Home Country Factors
Company Product Factors
Company Resource/ Commitment Factors
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FACTORS IN THE FOREIGN MARKET ENTRY MODE DECISION
External Factors
Home Country Factors
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Market, Production,
Environmental
Big domestic markets allow companies to grow locally, less likely to seek foreign
markets
Competitive Structure
Oligopolistic (few dominant) situations allow
cos. to grow before entry to
foreign markets- usually invest in
production.
High Production
Cost
Encourages entry mode involving local production e.g. licensing, investment
Government Policies
Tax incentive for export;
restrictive on foreign investment
FACTORS IN THE FOREIGN MARKET ENTRY MODE DECISION
External Factors
Internal Factors
Foreign MarketEntryMode
Decision
Target Country Market Factors
Target Country Environmental Factors
Target Country Produc-tion Factors
Home Country Factors
Company Product Factors
Company Resource/ Commitment Factors
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FACTORS IN THE FOREIGN MARKET ENTRY MODE DECISION
External Factors
Home Country Factors
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Market, Production,
Environmental
Big domestic markets allow companies to grow locally, less likely to seek foreign
markets
Competitive Structure
Oligopolistic (few dominant) situations allow
cos. to grow before entry to
foreign markets- usually invest in
production.
High Production
Cost
Encourages entry mode involving local production e.g. licensing, investment
Government Policies
Tax incentive for export;
restrictive on foreign investment
INFLUENCE OF EXTERNAL FACTORS AN EMPIRICAL VARIFICATION
100 countries studied relating to market entry attractiveness, on the basis of 59 characteristics. Three clusters: -
‘HOT’ ‘MODERATE’ ‘COLD’
Stable Gov. High mrkt oppty. High econ. level Low barriers re: legal, geocultrl. Austria, Australia, Canada, Norway, Sweden, Switzl.,
N.Z., Japan
Opposite to ‘HOT’ countries
Most African c., India, Middle East, Bolivia, Haiti, Peru,
Greece
Somewhere between ‘HOT’ and ‘COLD’
Latin Amer., Finland, Ireland, Israel, Hong K., Kuwait, Spain, Taiwan
As companies move from ‘HOT’ to ‘COLD’ countries they depend increasingly on export entry and decreasingly on investment and local
production. For average ‘HOT’country export = 47.2% of all entry mode. For average ‘COLD’ country export = 82.6% of entry modes.
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FACTORS IN THE FOREIGN MARKET ENTRY MODE DECISION
External Factors
Internal Factors
Foreign MarketEntryMode
Decision
Target Country Market Factors
Target Country Environmental Factors
Target Country Produc-tion Factors
Home Country Factors
Company Product Factors
Company Resource/ Commitment Factors
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FACTORS IN THE FOREIGN MARKET ENTRY MODE DECISION
Internal Factors
Company Product Factors
Company Resource/ Commitment Factors
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How a company responds to external factors in choosing an entry mode depends on internal factors.
FACTORS IN THE FOREIGN MARKET ENTRY MODE DECISION
Internal Factors
Company Product Factors
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How a company responds to external factors in choosing an entry mode depends on internal factors.
Differentiation Degree
Highly differentiated products with distinct advantages = price and other discretion.
Favors export entry.
Low differentiated products favor local production entry.
Pre- and Post- Purchase Service
Product service demand close proximity to customer
Favors subsidiary and local production entry mode
Service
e.g. tourism, engineering, advertising, banking etc.. needs to be done locally
Technology
Technical products more likely licensing
FACTORS IN THE FOREIGN MARKET ENTRY MODE DECISION
External Factors
Internal Factors
Foreign MarketEntryMode
Decision
Target Country Market Factors
Target Country Environmental Factors
Target Country Produc-tion Factors
Home Country Factors
Company Product Factors
Company Resource/ Commitment Factors
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FACTORS IN THE FOREIGN MARKET ENTRY MODE DECISION
Internal Factors
Company Resource/ Commitment Factors
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Management Capital Production Skills Marketing Skills
The more abundant a company’s resources is these factors the more its entry mode options
Willingness to commit
Resources must be joined by the willingness to commit them to foreign market development. A high degree of commitment means that managers will select the entry mode from a wider range of alternatives.
For most companies, international commitment has grown along with international experience over a lengthy period of time.
Product?
Investigate?
Potential?-Prim.res.
Entry mode?
Good Marketing Plan?
Enter now??
Operations
Satisfactory?
Other Market Opportunity?
Potential?-Send.res.
Prim. Re. supportsSend.res.?
Continue locally
Withdraw
Stay with single market
RedesignEntry mode
Redesign Markng
Plan
Delay entry
Redesign Strategy
no
no
no
no
no
no
no
no
yes
no
no
no
yes
yes
yes
yes
yes
yes
yes
yes
yes
Foreign Market Entry Decision Process.
A Logical Flow Model
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DON’T FIND FAULT, FIND A REMEDY
Henry Ford
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