International Marketing Strategies. Session 1
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1 International Marketing Strategies Session 1
2 A Businessman Travelled to Orissa While on the business trip he visited some tourist places He purchased some handicraft items
3 Back in US those items got a place in his living room Friends who visited appreciated the craft and asked him to get some pieces for them when he was next visiting India
4 Since he was a Businessman he saw an opportunity there He could make a business plan from a standpoint of a dealer in US who wanted to import and distribute the art goods. What should the plan include? He could make a business plan from a standpoint of the craftsmen who wanted to export their art to US Determination of Potential Demand Marketing Channels to Include Methods of Promotion Export Import Procedures Physical Distribution Economic Feasibility
5 About the Course This course investigates various marketing strategies in a global environment. It is an applied case oriented course with an emphasis on logic, critical analysis and the application of alternative theories The course builds on prior experiences of the professionals in marketing, sociology and economic principles
6 About the Course The course will provide students with an awareness and understanding of a wide range of strategies, and a comprehension of the ways in which these strategies can be used in international marketing Emphasis will be on the use of research methods and case analysis in support of international marketing and management decisions.
7 Text Book Global Marketing with a Special Indian Focus by Svend Hollensen & Madhumita Banerjee, Pearson Education. Reference Material Articles and Research papers from various academic Journals. Will be uploaded on Campus360
8 Evaluation Details : QUIZ (30%) There will be three quiz-of 15 marks each. Best two quiz will be considered for grading. Quiz 1- After Session 4 [Questions will be from Chapter 1, 5,6,7,8 of the text book][2 nd August,2015] Quiz 2- After Session 6 [Questions will be from chapter 9,10,11,,12 of the text book][23 rd August,2015] Quiz 3- After Session 8 [ Questions will be from chapter 14, 15, 16,17 of the text book][30 th August, 2015]
9 Evaluation Details : Assignment(30%) The assignment is a comprehensive exercise to be done in groups. The detail of the assignment is as follows: The class is divided into a number of small teams. Each team has to select either an Indian Company that wants to expand its market. Companies selected should be listed in some exchange, so that one can access data about the Company. The company may or may not have any foreign business right now. Imagine your team has been appointed to advise the company how to go about their global business and help them prepare a marketing plan for this foreign operation. Companies selected should be from across a wide spectrum of industries- preferably only ONE company from each industry group selected. Certain amount of team work and understanding will be required from the participants to sort out the company selection issue.
10 Evaluation Details : Assignment(30%) The first part is written project report to be submitted by each teamlength not more than 25 pages in a word file. With 1.5 spacing. Font size preferably 11 or 12. The marketing plan should cover all the essential aspects of an International marketing plan. The teams can start their project work from day 1 as it is never too early for preparing a world class report!
11 Evaluation Details : End Term(40%) The mode of examination would be open book Application based questions will be asked Small caselets/situations
12 INFORMATION SOURCES All relevant information will be shared on Campus360! Please check portal regularly
13 MARKETING Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. AMA 2004
14 MARKETING SIMPLIFIED
15 INTERNATIONAL MARKETING BASIC STARTING POINT: Int. marketing as part of marketing Taking place across national borders Main difference PLACE UPGRADED DEFINITION: Main difference not in PLACE but the WAY HOW marketing processes are implemented, managed and carried out IT S EVERYWHERE: Purely national/regional companies face several aspects of international marketing, without being actively present abroad!
16 Why is international marketing gaining importance? Increased international interdependence Exports as one engine of growth Innovation and entrepreneurship as engines of economic growth
17 INTERNATIONAL MARKETING FOCUS Understanding & managing diversity!
18 Examples of Pitfalls Apocryphal stories of marketing blunders 18
19 Coke gets it wrong The name Coca-Cola in China was first rendered as Ke-kou-ke-la. Unfortunately, the Coke company did not discover until after thousands of signs had been printed that the phrase means bite the wax tadpole or female horse stuffed with wax depending on the dialect. 19
20 Coke gets it right? Coke then researched 40,000 Chinese characters and found a close phonetic equivalent ko-kou-ko-le, which can be loosely translated as happiness in the mouth. (competition in 1930s) 20
21 Pepsi and KFC In Taiwan, the translation of the Pepsi slogan Come alive with the Pepsi Generation came out as Pepsi will bring your ancestors back from the dead. Also in Chinese, the Kentucky Fried Chicken slogan finger-lickin good came out as eat your fingers off. 21
22 What is different about IM? Examples of linguistic problems How many languages in the world? Country<>language USA - growth of Spanish 1/4 population Hispanic in 20 years language >>>culture translation relatively easy - culture more complex 22
23 BELIEFS INVESTMENT PARTNERSHIPS CULTURE ATTRIBUTIONS EXPECTATIONS BEHAVIOR ENTRY STRATEGY ECONOMICS INTERNATIONAL MARKETING MARKETING MIX POLITICAL/ LEGAL/ HISTORICAL PRODUCT PROMOTION PRICE DISTRIBUTION
24 MAIN DIFFERENCES: DOMESTIC vs. INTERNATIONAL MARKETING Geography Culture Markets- widespread & fragmented Information Politics Governments Law Technology
25 MORE DIFFERENCES Economies- varying levels of development Finance different systems and regulatory bodies Currency Business diverse rules and cultural influences Control increased difficulty controlling and coordinating across markets
26 Driving and Restraining Forces Affecting Global Integration Driving Forces Restraining Forces Technology Culture Market Needs Cost Free Markets Economic Integration Peace Management Vision Strategic Intent Global Strategic Action Culture Market Differences Costs National Controls Nationalism War Management Myopia Organization History Domestic Focus
27 DYNAMIC CHANGES IN WORLD MARKETS & POLITICS The rise of newly emerging markets B.R.I.C countries Ex-Eastern Europe and the former Soviet Union EU Expansion (new members) Regional economic integration EU, NAFTA and others Decreased trade barriers: liberalization & integration
28 MORE CHANGES AND INFLUENCES The Globalization question (pros/cons) The WTO Technology the Internet & communication industry Increased importance of Small and Medium-Sized Enterprises (SMEs) in international business: born globals!
29 ARE ALL FIRMS READY TO GO INTERNATIONAL? The firms readiness for internationalization: how experienced we are? Immature Adolescent Mature Nine Strategic Windows Industry Differences: Local/Global Growing/Decreasing Constantly changing
30 WE NEED PROPER PEOPLE! Business Skills: marketing, management, finance, etc. Language skills Cultural Knowledge Adaptability to new situations, lifestyles and ideas Proper attitude
31 WE NEED PROPER ORGANIZATIONAL CLIMATE Proactive/Reactive Risk taking (BUT SMART) People who like their firm being INTERNATIONAL and take that RISK and RESPONSIBILITY!
32 Internationalization: Orientation Share Your Views...
33 Why should a firm enter international markets?
34 Reasons for Entering International Markets Growth Profitability Achieving Economies of scale Spreading R&D cost Why should a firm enter international markets Risk spread Marketing Opportunities due to life cycle Uniqueness of product or service Access to imported inputs
35
36
37 Vodafone World Foot Print
38 Airtel World Footprint
39 Rank Company Name Subscribers 1 China Mobile 522 Mln 2 Vodafone Group 333 Mln 3 Telefonica 202 Mln 4 AmericaMovil 201 Mln 5 Telenor Group 172 Mln 6 Deutsche Telecom 151 Mln 7 China Unicom 148 Mln 8 TeliaSonera 148 Mln 9 France Telecom 133 Mln 10 Bharti Airtel 125 Mln 11 MTN Group 116 Mln 12 Mobile Telesystems 102 Mln 13 Reliance Communications 100 Mln 14 Orascom Telecom 93 Mln 15 AT&T 85 Mln After the acquisition of Zain s 42 Million subscribers in 15 African countries now coming under Bharti s Umbrella The Total Subscriber base of Bharti Airtel goes to 167 million Subscribers, which puts it firmly in 5th position These figures are based as of end- February 2010.
40 Home Country market factors Factors Explaining Internationalization Firm Factors Small Size Openness Location Domestic Push Company-specific advantages Management Interest International Pull Large Size Niches Openness Host Country market factors Changes driving internationalization Global Factors
41 Globalization Is defined as a process of economic integration of the entire world through the removal of barriers to free trade and capital mobility as well as through the diffusion of knowledge and information.
42 Globalization Index Economic Integration- trade, foreign direct investment, and investment income Personal Integration- telephone, travel, remittances, and personal transfers Technology integration-internet users, Internet hosts, and secure Internet Services Political Integration- international organizations, UN peacekeeping, treaties and government transfers.
43 Globalization of Markets Companies must learn to operate as if the world were one large market-ignoring superficial regional and national differences - Theodore Levitt.
44 International Marketing Process Identify the needs and wants of customers in International Markets. Taking Marketing MIX decisions keeping in mind the diverse environment. Penetrating into international markets using various modes of entry. Taking decisions in view of dynamic international marketing environment.
45 Management Orientation: EPRG Framework Ethnocentric Home country is superior & the needs of the home country are most relevant. Polycentric Polycentric- each country is unique and therefore each country should be targeted in a different way Regiocentric the world consists of regions. The firm tries to standardize its marketing program within regions but not across them. Geocentric the world is getting smaller and smaller. The firm may offer global product concepts with local adaptation (Glocal) or the firm may offer standardized products
46 For Feedback, Questions and Discussions contact:
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