principles of marketing l11
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Principles of MarketingTRANSCRIPT
International marketing
Principles of Marketing
Dr. Norman Peng Sr. Lecturer in Marketing
International marketing
International marketing
Last week
• Last week, we discussed service marketing, marketing for non-profit organisation, and the ethical issues…
• Finally, we will discuss international marketing
International marketing
Why market internationally?
• Saturated domestic market • Smaller domestic markets• Low growth domestic markets • Customer drivers• Competitive forces• Cost factors• Portfolio balance
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Mobile phone for example
• Domestic market, customers, competition, cost – UK #of phone/population= 122.95% – UK number of phones= 75,750, 000– China #of phone/population= 55.97% – China number of phones= 747,380,000– India #of phone/population= 44.73% – India number of phones= 525,147,922
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Which international market to explore?
• PEST– Political and legal • copy right, bribery, political structure
– Economic • GDP, saving habit, # of rich and poor people … etc.
– US per capita= $46,443; Japan per capita= $ 39,573; South Korea= $16,450; China= $ 3,566
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Which international market to explore?- Macro
• Social– Family structure• Birth rate (France: 2.36; Hong Kong: 0.97)
– Age structure • Baby-boomer (Japan: 82.6; Russia: 65.5)
• Technology – TV per household, internet access
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Which international market to explore?- Macro
• Culture – Culture, geographic, language • Examples
Individual
culture
Universal
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Cultural dimensions
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Culture
• Shared knowledge, beliefs, art, morals, law, customs…
• Culture can be expressed through: – Symbols- McDonalds, Nike – Hero- Harry Potter, Micky Mouse – Rituals- ways of conduct business and political meetings– Values- good/bad, lucky/unlucky… etc
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Culture dimensions
• High context vs low context• Conflicts situation • Decision making and thinking pattern • Risk taking• Time (Monochronic vs polychronic-time)
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Culture dimensions
• Hofstede’s IBM study – High vs Low power distance – Individualist vs collectivist – Masculinity vs feminity – High vs Low uncertainty avoidance – Long vs short-term oriented
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International Marketing Strategy and Marketing Mix
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Which international market to explore?- Macro
• Market attractiveness – Size, competition, cost of serving this market,
profit potential, market access • Company capability – Skill, resources, products, competitive advantages
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Entry strategy
• Indirect exporting – Agent, merchant, cooperative • Zara and H&M
• Direct exporting – Foreign agent or domestic sales rep.?– Overseas subsidiary – Internet
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Entry strategy
• Licensing – Licensing • TV programmes
– Franchising • McDonalds
– http://www.the-franchise-shop.com/list/524/McDonalds-Franchise.html
• Joint venture/strategic alliance – Two companies create a new company • Sony Ericsson
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Entry strategy
• Direct investment / direct subsidiaries – New facilities – Acquisitions
• Things to consider – Risk of losing proprietary information – Resource required – Level of control
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International setting- Product and Promotion
• Product– Ikea
• Promotion – Globalisation and Localisation
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International setting- Promotion
• Toward a global advertising culture?– TV, international advertising firm, mobility and
education– US count for 75% of the television export
• Basic assumption – Similar needs, emotion and frame of mind in
evaluating information– Different in the product/service to satisfy that need,
how emotions are expressed, ways of evaluating information
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International setting- Promotion
• Advantage for globalised campaign – Cost control, simplified planning– Uniform brand image– Maximise the use of good ideas– Quality control – Knowledge sharing
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International setting- Promotion
• How dog barks in different countries– Woof-woof in Italy and Britain – Wuff-wulff for Austrian– Vov-vov for Norwegian – And Ham-ham for Romanian
• Regulation – Advertising targeting at children (Sweden) – Alcohol advertising (France) – Blue jeans appear in ad (Malaysia)
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International setting- Promotion
• Advantage for localised campaign – Culture, mentality and product usage– Country of origin – Local regulation and competition
• Strategic choice– Global consumer culture positioning – Foreign consumer culture positioning – Domestic consumer culture positioning
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International setting- Promotion
• Think global act local• HQ and local office relationship– Strategic versus tactic
• Type of product is most important – Industrial versus consumer
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International setting- distribution
• Place/distribution– Retail environment – maturity of consumer• Refund policy
– infrastructure • motorway, airport, seaport
– Middlemen
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International setting- pricing
• Pricing – Uniform or price
discriminating strategy
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Ultimately…
• Centralisation or decentralisation?– Level of control required – The cost
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Thank you
Any Questions?