j.dado-ef umb b.bystrica international marketing & management marketing mix
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J.DADO-EF UMB B.Bystrica
International Marketing & Management
International Marketing & Management
Marketing mixMarketing mix
J.DADO-EF UMB B.Bystrica
Adaptation/standardisation
Price compe-tition
Standar-disation
Home product
Adaptation is
necessary
Low HighNATIONAL/LOCAL SENSIBILITY
GL
OB
AL
ISA
TIO
NL
ow
H
igh
J.DADO-EF UMB B.Bystrica
• Environmental factors:Environmental factors:• Level of technical skills
• Culture• Price of labor force
• Literacy rate• Income level
• Level of benefits/utilityLevel of benefits/utility• Climate
• Isolation• Technical norms
• Used materials• Space
• Law• language
• Influence for change:Influence for change:• Simplification of product• Colors, smelt, taste…• Automatisation/manual.• Simplification/pictograms• Change of price & Q• Change of price & QChange of price & Q• Adaptation of product• Simplification• Recalibration (110 V)• Change of product structure• Change of size• Service• Name of product
What influence adaptation of M mix?
J.DADO-EF UMB B.Bystrica
Factors determining product policy in Int.M
EnvironmentEnvironment Product Product Company Company
Law
Target groups
Customer expectations
Purchase habits
Consumption habits
Purchase power
Competition situation
Climate
Usage of product, purpose
Function & technical parameters
Composition
Quality
Durability
Brand, label, cover, package
Design, Service
Country of origin
Relation to culture
Costs
Technology
Effectivness
Company philosophy
Company strategy
Organization
Resources (material, finance, human...)
J.DADO-EF UMB B.Bystrica
PRODUCTPRODUCT
Quality – certification (EQTC, ISO, VDA6)Guarantee and servicesPhytology inspection, quarantine...Tests of product (forms of tests)Cover and identification of product - requirementsCover and identification of product - requirementsIdentification for EU – name, ingredients, composition, netto, tarra, expiration, storage, producer, distributor, packaging, seller, instruction – manual, EAN code, warning, helping, %, liquidation ...Adaptation of brand (Colgate, Coldent, Chident,Adaptation of brand (Colgate, Coldent, Chident, Gildent...), power, technical parameters...Gildent...), power, technical parameters...Country of originGlobal or local brand?Colors, symbols (red & red – blood, death, life...)
J.DADO-EF UMB B.Bystrica
PRODUKT
Expansion, adaptation (obligatory - voluntary?), innovation
Adaptation of product is determined:-Character & function of product-Satisfied need and condition for application Satisfied need and condition for application of productof product-Legislative of country-Size of company and economic condition fo company -Foreign market, size, purchase powerForeign market, size, purchase power-Costs for adaptation
J.DADO-EF UMB B.Bystrica
PRODUKT
PRODUCT STRATEGIES
Product Condition Purchase Recommended Recommended Relativ.functions for usage power prod.strateg. communic.strat. costs
same same Yes expansion expansion 1
different same Yes expansion adaptation 2
same different Yes adaptation expansition 3
different different Yes adaptation adaptation 4
same xxx No innovation new communication 5
J.DADO-EF UMB B.Bystrica
PLC in Int.M
PLC in foreign market
PLC in home market
Sale of Sale of licencelicence
Export of Export of productproduct
t
Q
J.DADO-EF UMB B.Bystrica
-Extension of preference and brand loyalty -Brand is helping for other products-Building of image by the brand-Respect of brand request for adaptationRespect of brand request for adaptation -Brand make easier entry to foreign market -Brand – guarantee of quality -Risks of pirates on well known brands – T-shirts, watch, glasses, jeans....
PRODUCT & Brand Int. M
J.DADO-EF UMB B.Bystrica
Product
Company level
Level of territory
Brand
National
Product
Architecture of brand building in Int. M
Regional
Global
Product line/brand
Product line
Company
Industry
J.DADO-EF UMB B.Bystrica
small largeAdvantages of local adaptation
Ad
van
tag
es o
f g
lob
alis
atio
nsm
all
l
arg
e
Boeing RolexPepsi
PampersNissan
ChanelSony
Marlboro
AdidasMcDonalds
3SAT
Siemens
VW
R+R
IKEA
PilsnerTuborg
City Bank
Maggy
Nescafé
A
DB
C
Braun
J.DADO-EF UMB B.Bystrica
Adaptation? (NNescafé, CCoca Cola)
M-mixADAPTATIONfull partial
STANDARDISATIONffull partial
Product designBrand
PositioningPackage
Advertising topicPrice
Printed ad.Distribution
Sales promotionServices
Cover
NN
NNNN
CCC C CCCC
NNNNNNNN
NNNN
C/NC/N
CC
CCCCCC
CC
CC
Adaptation of services is more dependent on culture
J.DADO-EF UMB B.Bystrica
DISTRIBUTION
Factors influencing distrib. policy in Int. M:Factors influencing distrib. policy in Int. M:-Purchase and consumption habits of customers-Influence of culture-Product features (Caterpillar, fruits...)-Character of competition and its distribution-Influence of competitors to distrib. channels-Size and character of territory-Character of retail and wholesale -Size and resources of company-Costs (for sale, storage, advertising...)-Special request (service)-Influence and monitoring (to advert., sale...)-Law limitations -Infrastructure of country-Market potential, market capacity-Costs for sale, margin
J.DADO-EF UMB B.Bystrica
International distribution
HOME MARKETHOME MARKETExport:
managementcompany
export agentdirect export
Participants
FOREIGN MARKETFOREIGN MARKETImport:
intermediatorlocal retail/wholesaler
INTERNAT. DISTRIB. INTERNAT. DISTRIB. STRATEGIESSTRATEGIES
What influence selection of DCH, members of DCH,
management of DCH,entry to DCH, logistic...
Processes
J.DADO-EF UMB B.Bystrica
Distrib. Channels in Int. Marketing
ExportExport companycompany
Export Export agentagent
Direct Direct exportexport
MembersMembersOf home Of home DCHDCH
MembersMembersOf host countryOf host countryDCHDCHRegional Regional
agent/W-sel.agent/W-sel.
RetailRetail
CustomerCustomer
ImportImportintermediatorintermediator
Industrial Industrial useruser
PRODUCERPRODUCER
J.DADO-EF UMB B.Bystrica
Selection of commercial partners
1. Decision about distribution strategy2. Criterions for selection of partners in DCH3. Localization of potential distrib. partners 4. Identification of interest of commerc. partners5. Evaluation system and selection of commerc.
partners
PROFIL of commercial partnerPROFIL of commercial partner
J.DADO-EF UMB B.Bystrica
Process of selection of agents
Offering
Data collection
Visit - meeting
Test delivery
Signing of agreement
Delivering and evaluation
contence
timetimecapacitycapacity
cooperationcooperationpriceprice
delivery terms delivery terms storagestorage
transporttransport
J.DADO-EF UMB B.Bystrica
They know to prepareThey know to preparecertification and certification and
technic.technic. normalizationnormalization
They are in contact They are in contact with dep.with dep. stores, they stores, they
have information about have information about market needsmarket needs
Position of agent
He must find good He must find good commercial partner, commercial partner,
he must agree provision he must agree provision from paid deliveryfrom paid delivery
J.DADO-EF UMB B.Bystrica
• To find customers a care about them
• To communicate with market
• To collect information about market
• To make promotion• To make service• To observe competitors
• To sell products• To build network• To training sale
personal• To help with paying• To eliminate risks• To identify threats• …
Roles of agent
J.DADO-EF UMB B.Bystrica
Elimination of risks
Good agreementPrice agreed in EUROSystem of election of agentsIn new market prepaying Agreement for 1 year – the 1st yearMotivation of agents
J.DADO-EF UMB B.Bystrica
DISTRIBUTION
Trends in international distributionTrends in international distribution:-Concentration -Internationalization-Increasing of direct marketing-Incensing of discounts-E-commerce-Selling with distributor brand-New forms of cooperation: = vertical form (production and retails) = horizontal form – COOP Polus – shopping centers...
J.DADO-EF UMB B.Bystrica
PRICEPRICE
Price in Int. M is determinedPrice in Int. M is determined: -Direct influence by government and gov. institutions -Taxes and duties, duties barriers-Different level of local costs - LCCDifferent level of local costs - LCC-Transfer prices – mother - daughter-Different level of consumer demand (basket)-New expanses in foreign trade-Price on variable cost level or total Price on variable cost level or total costs/dumpingcosts/dumping-International competition agreement and structure (cartel)-Other conditions (form of transport, currency, exchange rate, barter-Negotiation about price
J.DADO-EF UMB B.Bystrica
Price strategies in Int. MPrice strategies in Int. M:-Ethnocentric – standardized priceEthnocentric – standardized price – everywhere the same-Plycentristic – differentiated – dual pricePlycentristic – differentiated – dual price – different price in different markets (pricing is delegated, problem price/Q, perception of brand, image) -Geocentristic pricing – price corridor –Geocentristic pricing – price corridor – compromise E & P, unique starting point + different index for market. Company can to control & inspect price & change price.
PRICEPRICE
J.DADO-EF UMB B.Bystrica
Export – Export – payment conditionpayment condition (1) (1)
• Advance Payment
– Importer pay before delivery
– Full safety
• Down Payment
– Importer pay part of price. Rest will pay after delivery. Rest will pay according agreement.
– Safety is limited according level of dawn payment
• Cash on Delivery = COD
– Simultaneously exchange goods and money – without risk (risk of take off)
– Usually when customer is unknown or bonita is uncertain
J.DADO-EF UMB B.Bystrica
Export –Export –payment conditionpayment condition (2) (2)
• Acceptation of Bill, Draft
– Paying by bill, no in cash or by bank
– Certainty according bill law
– Only for good partners
• Clean Payment
– Risk for exporter
– Without guarantee of paying
– Only for good partners
J.DADO-EF UMB B.Bystrica
Cash Cash AAgainst Documentsgainst Documents
ExportExportéérr
BankaBankazákazníkazákazníka
ZákazníkZákazník
ŠpeditéŠpeditérr
1Obchodná zmluva
2
Info
rmác
ie
Do
kum
enty
6
Tovar
Dokumenty
3
Dokumentyšpedície
Dokumentyšpedície
4
5
78
Príkaz na úhradu
6a
Tovar
J.DADO-EF UMB B.Bystrica
Letter of creditLetter of credit
Otv
ori
ťak
red
itív
pen
iaze
?
2a
BankBankaaexportexportéérraa
ExportExportéérr
BankaBankazákazníkazákazníka
ZákazníkZákazník
ŠpeditéŠpeditérr
Do
kum
enty
9
tovar
Do
kum
enty
Dokumenty
Info
:otv
ore
ný
akre
dit
ív
4
5
Dokumentyšpedícia
Dokumentyšpedícia
6
7
8
1011
Príkaz na úhradu
Prí
kaz
na
úh
rad
u
9a
9b
Info:otvorený akreditív
1
3
2
Obchodná zmluva
tovar
J.DADO-EF UMB B.Bystrica
PricePrice
Goods Place and form Quantity Date of quotating quotation date day week last year
Cu elektrodes London/agreement GBP/t 1235,- 1235,- 1236,5 1251,-
Cu catodes NY/spot cent/pound 107,- 107,- 106,- 104,-
Kafé (Brasil,
Arabic) NY/spot cent/pound 51,- 51,25 53,- 50,-
Ag 99,99 NY/spot cent/troy weight 407,- 408,- 408,- 403,-
Corn Chicago/spot cent/bushl 367,- 365,- 351,- 474,-
Kofé (Columbia,
Mid.Arabic) NY/spot cent/pound 65,5 64,5 67,- 64,5
pound = 0,4536 kg, troy weight = 31 g, bushel = 27,7 kg
J.DADO-EF UMB B.Bystrica
• Fin. resources of company
• Intensity of competition (import – mode ad.)
• Product and its features price
• Form of selling• Development of market• Price of ad. & medias• Culture of home market
(different appeals)
• System of distribution• Seasonality• Market share• Demography• Ad infrastructure• Law & other barriers • Ad. agencies• Market profitability
Influence to market.communication in Int. M: