THERE IS NO SECURITY ON THIS EARTH,

THERE IS ONLY OPPORTUNITY

General Douglas Macarthur

Somi

BUDAPESTI GAZDASÁGI FŐISKOLA

INTERNATIONAL MARKETING

LECTURE- 3In English

2nd March 2012 – FRIDAY

0940hr –1110hr (E.F. 13-15)

Miklós (Nicholas) SOÓS0630 265 9638

miklosoos@hotmail.com

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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]

5. MARCH 16. VACATION

6. MARCH 23. VACATION

7. MARCH 30. 0940-1110 [E.F.13-15] – re. feb.10

8. APR. 6. 0940-1110 [E.F.13-15]

9. APR. 13. 0940-1110 [E.F.13-15]

10.APR. 20. 0940-1110 [E.F.13-15]

11.APR. 27. 0940-1110 [E.F.13-15]

12.MAY 4. 0940-1110 [E.F.13-15]

13.MAY 11. 0940-1110 [E.F.13-15]

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Lectures No. %

Lect. 1 16 24

Lect. 2 22 33

Lect. 3    

Lect. 4    

Lect. 5    

Lect. 6    

Lect. 7    

Lect. 8    

Lect. 9    

Lect. 10    

CLASS ATTENDANCE

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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

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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%

Where we finished last week.

SUBSETS OF INTERNATIONAL BUSINESS

International business

Global marketing

Internationalmarketing

Internationalmanagement

International finance

International trade

Source: Omar (2009) somi

11

WHAT IS INTERNATIONAL MARKETING?THE PROCESS BY WHICH INDIVIDUALS AND COMPANIES

IDENTIFY

PROVIDE COMMUNICATE DELIVER

needs and wants

of customers in different

international markets

products, services and

ideas competitively

to satisfy needs and wants of different customer groups

information about the products

and services

products and services

internationally using one or a combination

of foreign entry modes

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WHY INTERNATIONAL MARKETS?

Saturation in domestic

marketsMarketing is growing in

certain internationa

l markets

Decline in

domestic

markets

Demand for product

/

service in

certain

markets

Extend products lifecycle

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KEY DIFFERENCES BETWEEN DOMESTIC AND INTERNATIONAL MARKETING

• International Marketing is more complex – higher risk

• Usually involves a greater number of stakeholders

• International - Greater competition

• International Marketing involves the STANDARDISATION V ADAPTATION dilemma

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INTERNATIONAL MARKETING SUCCESS FACTORS

Conduct appropriate

market research

prior to entry

Understand the micro and macro

environment (particularly

cultural factors)

Employ

suitably

qualified

personnel

Display long-term commitment to the market

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PROCESS MODEL OF INTERNATIONAL MARKETING

International marketing strategy scopeand framework

Company resources and capabilities

EnvironmentAnalysing international competitors

Vision and strategyfor international markets

International marketing strategy

International market entry strategies

Strategic alignment and performancesomi

Vision and strategyfor international markets

Vision and strategyfor international markets

INTERNATIONALIZATION PROCESS THEORY

A number of various theories / MODELS exist that set out to explain the process of internationalisation

BORN GLOBAL UPPSALADUNNING’S ECLECTIC

Aim at international markets from the beginning of existence. Usually small cutting-edge technological

companies

Swed.Uni. of Upp. (Johanson & Wiedersheim)

the internationalisation

of firms is a gradual process

involving various stages

combines the effects of ownership factors (i.e.,

rent-producing firm skills), location factors

(i.e., environmental differences), and

internalization factors (i.e., transaction-related concerns), to explain the

structural choice of export, license, or

investment to enter a foreign host market. somi

UPPSALA Internationalization model

Companies begin their operation abroad in nearby markets and only gradually penetrate more far-flung markets.

Also, companies entered new markets through exports.

Wholly owned or majority-owned operations were established only after several years of export to the same market.

FOUR SUCCESSIVE STAGES OF ENTERING FOREIGN MARKETS

Stage 1. Stage 2. Stage 3. Stage 4.

Sporadic exports…. No regular export

activities

Export via independent

representatives (export modes)

Establish foreign sales

subsidiary

Foreign production /

manufacturing units

INTERNATIONALIZATION PROCESS THEORY

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DUNNING’S ECLECTIC Internationalization model

This eclectic Ownership-Location-Internalization (OLI) emphasizes the importance of location variables in foreign investment decisions. According to Dunning the existence of the following conditions increase the chance of international production:

OWNERSHIP ADVANTAGES

LOCATIONAL ADVANTAGES

INTERNALIZATIONAL ADVANTAGES

Firms which own foreign production facilities has bigger

ownership advantages

compared to firms of other

nationalities. ‘Advantages’ may

consist of intangibles.

It must be profitable for firms to

continue these assets with factor

endowments (labour, energy,

materials, transport, communication channels) in the foreign markets

It must be more profitable for the firms to use its advantages

rather than selling them, or the right to

use them, to a foreign firm.

INTERNATIONALIZATION PROCESS THEORY

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INTERNATIONAL MARKETING CONCEPT?

So what are the differences between domestic and

international marketing?

The concepts, the methods are the same

the culture the enviroment are the differences.

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“Ways of living, built up by a group of human beings”

A set of standards and beliefs shared by a group of people, which helps an individual decide what is ‘right’, what can be ok, how to feel, what to do and how to go about it…..

“The way we do things around here”

The sum of conscious and unconscious values, ideas, attitudes and symbols that shape human behaviour and that are

transmitted from one generation to the next….

“The collective programming of the mind that distinguishes the members of one category of people from those of another”

INTERNATIONAL MARKETINGWhy are we concerned with culture?

The marketing significance of culture is that it affects buyer behaviour

So…. What is culture ????

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DIFFICULTIES ARE STEPPING

STONES TO

SUCCESS.

DIFFICULTIES ARE STEPPING

STONES TO

SUCCESS.Somi