ch 1_2 WHAT IS MARKETING Marketing Involves

ch 1_2 WHAT IS MARKETING? Marketing Involves: • Focusing on the needs and wants of customers • Identifying the best method of satisfying those needs and wants • Orienting the company towards the process of providing that satisfaction • Meeting organisational objectives Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 1_3 WHAT IS INTERNATIONAL MARKETING? Different Levels of International Marketing • Export marketing • International marketing • Global marketing management Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 1_4 ENVIRONMENTAL INFLUENCES ON INTERNATIONAL MARKETING Socio/Cultural Language Religion Aesthetics Values and attributes Social organisation Material culture Economic Developed economies Emerging economies Less developed economies Currency movements Legal Local domestic laws International law Home domestic law Environmental Influences on International Marketing Political Operational restrictions Discriminatory restrictio Physical actions Technological Satellite Communications ISDN Internet WWW The Electronic Superhighway Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 1_12 THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #1 l Culture n l Markets n l Widespread and sometimes fragmented Data n l Often diverse and multicultural Difficult to obtain and sometimes expensive Politics n Regimes vary in stability, political risk becomes an important variable Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 1_13 THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #2 l Governments n l Competition n l Can be a strong influence in regulating importers and foreign business ventures Multinationals can distort competitive structure of markets Economies n Varying levels of development Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 1_14 THE CHALLENGES OF THE INTERNATIONAL MARKETING ENVIRONMENT #3 l. Finance n. Many differing finance systems and regulatory bodies l. Currency n. Varying and unstable, strong likelihood of transaction risk l. Business n. Diverse rules, culturally influenced l. Control n. Difficult to control and co-ordinate across markets Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 1_16 THE INTERNATIONAL MARKETING STRATEGY PROCESS Chapter Understand the environmental influences One: Part Analysis on a firm’s international markets 1, 2, 3 Segment international markets, identify & analyse opportunities 4. Part Two: Develop appropriate international marketing Strategy Feedback & strategies, planning & processes Development reassess continually 5, 6, 7 Decide marketing entry strategies 8. Build added value through effective Part Three: Implementation marketing mix strategies 9, 10, 11, 12 Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 2_6 COMPARATIVE ADVANTAGE l Achieving Comparative Advantage n n n sustained period of investment lower labour cost proximity to raw materials subsidies to help native industries building expertise in certain key areas l Building national advantage (Porter, 1990) factor conditions n demand conditions n related and supporting industries n firm strategy, structure and rivalry n Source: Porter (1990) The Competitive Advantage of Nations Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 2_7 Tariff and Non-Tariff Barriers to Trade Specific country Purpose Tariffs Time length Import restraints Tariff rates Market entry barriers Production, distribution and consumption Government participation in trade Customs and entry procedures Product requirements Nontariff barriers Quotas Financial control Other policies and requirements Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 2_9 MAIN TYPES OF TRADE ASSOCIATIONS Type Common external tariff Free movement of capital and people Example Economic co-operation No No Canada - EC framework agreement, APEC Bi-lateral or multi-lateral trade treaty No No The Peru, Chile accord Sectoral free trade agreement No No The multi-fibre agreement Trade preference agreement No No South African Development Cone (SADC) Free trade area (or agreement) No No ASEAN NAFTA Mercosur Customs union Yes Possibly Common market Yes European Single Market Economic union Yes European Monetary Union Political Yes Would resemble federal states (e. g. US, Canada, Germany) Economic Community of West African States Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 2_10 Political harmony Common fiscal & monetary policy Free flow of factors of production Common external tariffs No internal tariffs FORMS OF MARKET AGREEMENT Free trade area Customs union Common market Economic union Political union Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 2_11 REGIONAL TRADING AREAS OF THE WORLD 1998 Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 2_18 DEVELOPING TRADE AREAS l NAFTA: free trade area n l Mercosur: customs union n l l Brazil, Paraguay, Uruguay and Argentina APEC: forum of 23 Asia-Pacific nations ASEAN: free trade area (beginning 2008) n l US, Canada, Mexico Thailand, Indonesia, Singapore, Brunei, Malaysia & Philippines CEA: economic area n China, Hong Kong & Taiwan Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 3_2 CULTURE DEFINED The sum total of learned beliefs, values and customs that serve to direct customer behaviour in a particular country market Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 3_9 A CULTURAL FRAMEWORK Religion Values & Attitudes Language Aesthetics Cultures Law & Politics Adapted from Terpstra & Sarathy (1999) Technology & Material Culture Education Social Organisations Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 3_13 Assumptions to Be Questioned by International Marketing Managers 1. That Maslow’s Hierarchy of Needs is consistent across cultures 2. That the buying process in all countries is an individualistic activity 3. That social institutions and local conventions are similar across cultures 4. The consumer buying process is consistent across cultures - consumer involvement - perceived risk - cognitive style 5. Self reference criterion Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 3_18 INTERRELATIONSHIP BETWEEN CONTEXT & PRODUCT DIFFUSION High Context/Fast Diffusionigh Context/Slow Diffusion H South East Asia Japan India Asia Low Context/Fast Diffusion Low Context/Slow Diffusion Scandinavia USA, Canada UK Eastern Europe Source: Will, Samli and Jacobs (1991) Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 3_19 LINEAR MODEL OF THE NEGOTIATION PROCESS Non-task sounding Task-related exchange of information Persuasion Concession and agreement Source: Graham (1986) Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 4_2 3 AREAS OF INTERNATIONAL MARKET ANALYSIS Scanning international markets to identify and segment markets l Building marketing information systems to monitor environmental trends l Carrying out primary marketing for input into the development of marketing strategies l Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 4_5 THE FOUR RISK MATRIX Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 4_6 BUSINESS PORTFOLIO MATRIX Source: Harrell G D and Kiefer R O (1993) Multinational market portfolios in global strategy development, International Marketing Review, Vol 1 - No 1 Country Attractiveness High Medium Low High Company’s Compatibility Medium With Each Country Low Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 4_8 TRANSNATIONAL SEGMENTATION & METHODS Demographic: sex, age, income level, social class and educational achievement Psychographic: lifestyle factors - activities, interests and opinions Behavioural: patterns of consumption, loyalty to product category and brand Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 4_14 12 C FRAMEWORK Culture/consumer Behaviour Country Channels Concentration Choices Commitment 12 c Currency Communication Consumption Contractual Obligations Capacity to Pay Caveats Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 4_15 Pricing Mix Distribution Mix Promotion Mix Product Mix Market Entry MARKET PROFILE ANALYSIS Social Cultural Legal Factors Economic Factors Political Factors Technological Factors Competition Trading Practices Tariff Barriers Financial Source: Majaro (1992) Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 4_16 SOURCES OF INFORMATION l l l l Business libraries University libraries International chambers of commerce International Market Intelligence Centre (DTI) Business Links Embassies Banks Trade associations l l l Export councils Overseas distributors Overseas sales subsidiaries Foreign brokerage houses Foreign trade organisations such as JETRO n (Japanese Export Trade and Research Organisation) Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 4_20 USEFULNESS OF PERSONALLY COLLECTED DATA IN THE ASIA-PACIFIC REGION 0 Not at all 1 2 A little Substantial 3 A lot 4 Heavily Customers Personal contacts In-house surveys Businessmen Governments Competitors Trade associations Newspapers Political contacts External surveys International survey Magazines Bankers Local surveys Source: Lassere , P (1993) Computer databases Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 4_21 ORGANISING THE RESEARCH STUDY #1 l Questions the International Marketing Manager should address: n Should the research be carried out by foreign local subsidiaries or should all marketing research be centralised at headquarters? n Should the fieldwork be carried out in house or by an agency? Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 4_24 EVALUATION OF SURVEY METHODS + = advantage - = disadvantage Malhotra et al (1997) Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ASPECTS OF THE INTERNATIONAL MARKETING PLAN ch 5_7 Stakeholder Expectations Shareholders, customers, host government, employees in each country, pressure groups Situation Analysis Evaluation of the environment & individual markets Resource & Capabilities Individual SBU strengths & weaknesses analysis Capability to deal with threats and opportunities Corporate Aims & Objectives Financial, market, area, brand & mix objectives Marketing Strategies Growth strategies Standardisation & adaptation Implementation of the Plan Individual SBU & marketing mix plans Regional, global or multidomestic integration Control & Feedback Setting standards, measuring performance, correcting deviations Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 5_8 SOME TYPICAL STAKEHOLDERS OF MULTINATIONAL ENTERPRISES Shareholders Expatriate staff Individual politicians and civil servants Suppliers Distributors & retailers Customers Local competitors Home country government The Firm Host country government Local workers and their organisations Pressure groups Competitor MNEs Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 5_10 ANSOFF GROWTH MATRIX Products Old New Old Penetration Product development Market development Diversification Markets New Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 5_12 MARKETING PLAN CHECKLIST #1 l. The world economy and environmental trends l. Historical performance (sales, costs, profitability) l. Forecast future performance n. An extrapolation of the past n. Alternative scenarios l. Opportunities and threats l. Company strengths, weaknesses and capabilities compared to competition Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 5_13 MARKETING PLAN CHECKLIST #2 l. Long term aims, objectives and strategies l. One-year marketing objectives and individual SBU strategies l. Country-by-country forecasts and targets l. Country-by country marketing plans for all activities l. Plan for regional and global integration Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk

ch 5_14 MARKETING PLAN CHECKLIST #3 Critical factors for success l Likely competitor response l A contingency plan l A control process for feedback, evaluation and corrective action l Use with INTERNATIONAL MARKETING STRATEGY- THIRD EDITION ISBN 1 -86152 -772 -1 Published by Thomson Learning © Isobel Doole and Robin Lowe www. thomsonlearning. co. uk