INTERNATIONAL MARKETING (PART-1) DOMESTIC MARKETING V/s INTERNATIONAL MARKETING

Transcription

1 INTERNATIONAL MARKETING (PART-1) DOMESTIC MARKETING V/s INTERNATIONAL MARKETING 1. INTRODUCTION Today we are going to study the concept of domestic marketing V/s international marketing. Now marketing is important because we sell goods on the basis of trust and faith. In words of Arthur I choose Sony classics not just because of their practical experience, not just because of their wisdom and marketing, but because of their integrity. So, marketing is totally a concept which is built on faith, values and the kind of the quality we give according to the products and services into the market. Now when we talk about the domestic markets we have the small scale industries, where it is difficult to take the goods into the market because the funds are less. The competition is genuinely local but they have to race against global competition also because the standardized products enter the local markets also. We have a kind of reduced power of consumers because the consumers in the local segments or in the local markets have less money. So it is very difficult to reach to these consumers through the kind of the awareness building programs. But still we have some kind of marketing impacts where we genuinely convince customers to buy the products of small scale industries also. Now you have to acquire leadership ability, an ability which requires a kind of curiosity, risk taking ability because you cannot position your goods only to few consumers and run after those customers. We genuinely have to understand that a business has to focus on the expressions related to the expansion and ever changing markets.

2 We have a concept related to market oriented businesses where we have to scan market more broadly. We have to work closely with the lead users and we have to combine the traditional research with the modern impacts of building the kind of data base. The pressure is you have to build the kind of the customers satisfaction. Now we basically have a kind of a causal link in the profit chain. How do we get profits? This is the customer loyalty drives profitability in the market and this leads to the growth, this gives you the customer satisfaction. These satisfaction drivers build the customers loyalty. We have the value drivers and these drivers reach again to the kind of customer satisfaction and this gives the kind of employee productivity drivers, which generate value into the market. The profit chain is also associated with the employee loyalty that is generating profitability in the industry, the employee satisfaction driving loyalty, the internal quality driving the employee satisfaction and the top management leadership giving you the underlined chain of the success. Let s see this model where we have three functional imperatives and here, we have the customers who are been focused in A. The marketing imperatives B. The human resource imperatives C. The operations imperative.

3 Now the marketing imperatives relates to the kind of customers where we have to build relationships. It offers solution to their needs and the problems; we have to define a kind of a quality package with the competitive advantage into the market. The operations advantage or the operation imperatives relate to create and deliver specified products and services related to the target customers, we have to adhere to consistent quality standards and achieve high productivity through adaptable cost i.e. optimum cost into the market. The human resource imperatives relates to the kind of recruitment and to the retaining to the best employees in the industry, we have to train and motivate people to work to give valuable solutions to people we have to achieve both productivity as well as satisfaction. 2. INNOVATION TO CREATE BETTER BUSINESS MODELS In the words of Bill Gates, We are always saying to ourselves, we need to innovate, we have got to come up with the break through i.e. The market is changing, so innovation is necessary. According to Steve Jove s, Innovation distinguishes between a leader and a follower. So if you have to be a leader in the market, you genuinely have to create and innovate products which are of modernized or the kind of the technological advancements in terms of offering better solutions. Growth and survival is depended on the kind of the problem-solution strategy of the company. One person has problem but somebody has the solutions, so if the solution meets with the kind of matching up into the market, we are going to manage marketing. We have to understand how we have to create the condition that things happen to the market, we have to give core critical solutions to the kind of the strategies which genuinely shape up with the problems in market. The dynamic capabilities have to build up in order to understand the capability profile of the customers and to give the radical changes in the creative solution into the market.

4 See this model on the x axis and y axis we have the kind of a parameter plotted On y axis- we have the kind of the level of the advancement i.e. at component level you are bringing the changes or at the system level you are bringing the changes then you have the incremental innovations and the radical innovations On the x axis - now when the component has a kind of an incremental innovation or a kind of a change we have the improvement in the part the components of the company. This basically leads with the kind of the new components for the existing systems and when the changes of more radical is the advanced materials in raw materials used to built up the quality product.

5 When it is at the system level, we have the new versions of the motorcar or the kind of the television or luxury product entering into the market or you have the new generations of the mp3 s when you have the kind of the radical chances happening at the advanced stages and then the kind of revolution which happens at the system level and at the radical impact is the kind of the ICT revolution or the biotechnological revolutions impacting in the market in a very big way. So these could be the changes where the generations of the possibilities of innovations exist into the kind of the revolutions which transform market. So these revolution starts from a change at the component level, the component change impact the kind of the sub components aspects and the sub components impact the system and the total system changes impact the society. We have to have kind of options where you have to strategically select and implement innovation approach solutions to the market. The solution has to generate a kind of impact in terms so as to you have to select variables from the various alternatives and then implement these variables into the market. See this model of innovation

6 We have the simplified model for managing innovation. Here you have the kind of the pro-active linkages. The pro-active linkages come from the strategic leadership direction into the market where you have to deploy the resources, and then you have the innovative organizations which generate kind of the options related to the use and the combination of the various raw materials existing into the market and on the basis on the kind of the creation of the variable solutions you try to select the best option and then implement that design so as to offer satisfaction to the customer. The strategic leadership is the ability to create leadership and commitment to use the resources in the best possible combination aspect. You have to build an innovative organization, an organization that structures the climatic conditions in such a way that we will build kind of a loyal relationship with each other where knowledge is shared and where ideas are created. This is a kind of pro-active linkages to relate to the supplier s customer s sources of finances and the skill resources of the people. See this exploring innovations space in this kind of paradigm;

7 We have a model when you have the innovation impacted by the various forces i.e. Of 1. Product 2. Position 3. Process 4. Mental model i.e. The paradigm of mental model. Now when the changes are from the incremental to the radical aspects the kind of the innovation which is generated into the system impacts the market to the largest impacts. You have to do it better or you have to do it differently see this model When you have a product we can perform it in a little better way, but if you will do it in a different way than it is known as creation or it is a innovation.

8 You have a product and a service, when you do it better that s means you improve the product i.e. product improvement and now when you do it differently i.e. you are doing something completely different from something else. Process is getting learn to quest for excellence is to do it better and when you do it differently it is the kind of the radical changes in the process. Position is externally depending the segment i.e. the market is extended, but when you do it differently you try to play in new feels. Paradigm of business concept is when you change the business the model is change when you do it better, but when you do it differently you have to rewrite the rules of the business. So these are the kinds of changes when you have when you have to do differently things into the market then only you can achieve a kind of competitive or a strategic position into the market. 3. CRITERIA FOR SUCCESS The criteria for the success are the advantage in the terms of products, in terms of price, in terms of distribution and in terms of promotion. The product superiorly will be in the eyes of customers who weigh in terms of the money invested; a customer wants the full value for the money invested this is the kind of preparation for the key to success. Your criteria for success is also the market knowledge doing your homework is well important i.e. you have to do market research in such a way that you collect data and try to explore the opportunities where you can match up with the need of the customers, the market knowledge is important so as to understand the customer and the user s needs assessment and understanding the kind of the critical core values is important. The clear product definition in order to give to the customer is important because defining the target markets... So position is the kind of the development in terms of mental abilities of people how they perceive the product related to the particular status or group.

9 The criteria for achievement are kind of the risk assessment of the market. The risk assessment is related to market based in terms of technological advancement and the kind of the change in the designing process. So it must be built in such a way that the business and the feasibility studies have to match up with the respect to the market in the firm s capability. The project organizations have to use a cross functional multi-disciplinary teams in order to build up expertise, so as to way with the responsibility to carry the project successfully. The project resources have to be sufficient, financial and material resources combined with the human skills and human mind to make the options available the firm must possessed the kind of the management and the technological skills to design and develop new products. The proficiency and efficiency is important for the quality innovation design and technological up-gradation detailed market studies under the kind of new products success the top management support is important for the conceptualization of the products to the concept of the kind of the idea in the terms which are viable solution into the market. It must be able to create an atmosphere of coordination and control. The individuals often play a vital role during the top layer innovation process. The search of this energy is important. Let s see this model

10 We have to genuinely ask what we can do. What the customers want? What they want in terms? And what do we want from the company? What do our employees intermediaries and other partners want? The combination of these two aspects in the terms of the customers and in terms of companies when combine together give you the core solutions of the benefit which is the centralized position in terms to offer you the best options where the company matches with the needs of the customers and where both the parties benefit in terms of achieving profit and achieving satisfaction. We have to create a sense of agency to develop the imputes for the change required for the market drivers; we have to put together for the kind of the strong chain to direct the process in term to create appropriate vision to communicate the things in a broader way. The leadership for change is important in terms to empower employees to produce sufficient short term results to create a kind of credible environment where you have to build a momentum to tackle the problems happening into the environment. You have to bring the organization and you genuinely have to impact the kind of businesses related into the domestic market. But this aspect of marketing is a kind of the smaller vision related to local markets and to the kinds of domestic market where leadership in terms of the few players become important. 4. INTERNATIONAL TRADE EQUATIONS But how about we move to the World Trade Organizations when the impacts are larger and the scale of the business is higher, the world trade flow of businesses is in billions of dollars, you have the regions communicating or impact in the total business model in terms were Northern America, the western Europe, the Asia pacific and the rest of the world inter-trade with each other to impact millions of life and to impact lot amount of money in the economy. Putting the pressure in the entire business mean to standardize the products. It is impacting the local markets also because the impact of the international products or the international standards is impacting the profile of the local products.

11 Now the International Trade has the kind of the different equation where the domestic aspects or the domestic rules are much simpler as compare to the International rules which become more complex. The practice of using barter from the olden days has transformed to the modern concept using currency. But the different currencies come together to define the exchange rates and most of the countries combine together in a symbiotic relationship i.e. they come in a kind of a counter-trade policy where we have the bilateral-trade agreements and kind of the multilateral trade agreements impacting the kind of the flow of the business in system happening into the world. Can you imagine it is 20% of the world trade which is involving accounting the trade-balance? The popular is among the most of the Eastern European country impacting the total global equation of the trade, as countries export increase its national output increases and this output increases the income of the people and it impacts the standards of the living of the people. We have the demand for the products from the other countries which enhances the employment opportunity and changes the total economic superiority of the country in relation to the other countries. The trade feedback effecting terms is the argument that if you have to gain a kind of an economic kind of paradigm into the market, you have to resort to the international trade. We have the competitive model which impacts the international trade in terms of support built up for the kind of the impact resulting into market competition. We have the company strategy the factor conditions, the related supporting industries and the demand conditions. Now these are the four forces which are impacting the international trade, we have shown you this models clearly how these forces impact in order where the world trade flows into the kind of the aspects where the information and quality of the product is impacted. Now when you take up the company structure in terms of rivalry built up we have number of companies working in any industry all over the world. It is the intensity of the competition impacting the business profile and the impact of the ownership related to the public or private sector. And then these industries are impacted by the factor conditions in terms of the availability of the national resources. The kind of education and skill levels of the people, the wages and the kind of the labor-incentives given in each economy also the impact the business solutions.

12 Apart from the availability of the resources, the demand is necessary to foster business, the demand condition relate to the size of the market, the sophistication of consumers to use the product and the media exposure of the product i.e. the product promotion. Then you have the relating supporting industries related to the main industries in terms of the existence of the suppliers. So this is the kind of competitive impact where the companies come out into the solution because genuinely we are into open trade policy where the competition impacts the solution and the best possible solution in terms of quality and price will sustain the weaker players will go out of the market or it s a larger companies impacting the local and the smaller players. It is the competition has become so fierce, that we are not in a kind of market where we are crossing the borders the competition is not local, national or global but it is at the click of the mouse. The IT has impacted the world business at a larger impact, where the comparison of products has become in an easy way. We have the bigger companies impacting the total business markets it s like the bigger sharks eating the small fishes; so every company has to be concerned about the kind of the trade equation but still the governments and most of the world bodies are looking to the kind of the policies where we protect the trade also.

13 The protection which is given to the international trade relates to the tariffs, the quotas, the increased price, limited supply and the decreased global trade which basically impacts the world balance in terms to maintain and to retain business into the markets. But still this kind of protection is decreasing because we have the strategic alliances happening into the world where the combination into the major resource players is happening to built up the business parameters to build solution. The strategic alliances are the agreements among two or more independent firms to cooperate for the purpose of achieving common goals such as competitive advantage and for customer value creation. They are becoming common where the firms are meeting with the demand to the global competition. See this model Where the global companies and marketing strategies do meet. We have the type of the global company and the type of the marketing strategy; you have the international firm when you have the multinational firm and you have the transnational firms.

14 The international firm- is the extension of it s a home country marketing strategy to the international market i.e. when is international firm is there whatever the products are made into the domestic market same products are carried into the similar markets in terms of culture, values and perception and little extension is done. The multinational firm -we have the multi domestic marketing strategy i.e. we are covering many markets but then you are combing the local ethics of those domestic market The transnational firms- it is a kind of the global marketing strategy. Now the global marketing strategy resorts to the view that we have the standardized solution for many products and customers all over the world have similar needs to use the products. Transnational firm view the world as one market and the emphasize cultural similarities and universal customer needs and wants and this is they gave better solution in terms of the standardized products, where you have the standardized strategies adopted to meet the global consumers. 5. CULTURAL VARIATIONS IN THE GLOBAL MARKET The global consumers consist of the customers groups living in many countries and regions of the world who have similar a needs or seek similar features in benefits from the products and services, but still we have the cultural variations impacting the world market. The aspects of culture which impact the market in aspects relay to 1. The value 2. The customs 3. The symbols 4. The language. The cultural diversity is related to kind of the value representing to the symbolic and the personality differences of the customers in various markets.

15 Customs and norms are expectations about the way the people do think vary into various countries. We have the kind of the things impacting the world market because the economic considerations also combine with the cultural conditions so as to bring among the solutions. When you bring among the solutions in the market you have to relay to the stage of the economic development of the country, you have to look to the economic infrastructure of the country, and then you have to look to the customer s income and the purchasing power bias in that market; the currency exchange rate also influence to the market but when you move to the international market the kind of the risk and kind of the complexity increases. The amount of firm s financial risk increases with each level of entry into the market. We have shown you this model Where the alternative global marketing strategies are shown and the risk level is increasing.

16 See when the type of the joint ventures or through direct ownership you are entering in to the market we see what kind of complexity impacts. On the x axis- we have the modes of entering into the foreign market On y axis -we have the kind of the commitment in terms of the risk. Now this is the amount of the firm s commitment in terms of risk marketing control and profit potential. This is impacting the business level and at each level it increases at exports it is low, licensing is more, joint venture, it is more and with the direct ownership in firm in a foreign market the complexity of both the financial commitment and the financial risk is high. We have to create a worldwide marketing effort so as to position the products globally. The product position in terms of global markets relates to 1. Product extension 2. Product adoption 3. Product invention. So when the kind of the strategy related to invention is there, we involve lot of amount of money and the kind of the creation. We have shown you over here, the products in the promotion strategies for global marketing. Here we have the products inventions strategy which basically is a strategy when you create new products according to the international needs of the customers and the product extension and the adoption strategy showed this model which is basically the same product carried to the outside markets. The channels of distribution impacting the global market, impact the kind of adoption of the product into the international market. We have the seller who manufactures the product; the sellers international marketing headquarters are there who genuinely create channels between the nations these channels between the nations create the channels within the foreign nations and then you reach the final customer through this value chain created of the global marketing distribution.

17 The pricing strategy also become important because when we are in the international market, the economic factors relate to the cost of the production into the foreign markets, the selling tariff barriers, the taxation plus the transportation cost, storage cost and the global pricing decisions are taking into consideration where the exchange rate fluctuation also impact the pricing decision. Now dumping is kind of a price situation where you try to sell products into the foreign country at a lower price and gray market when you are selling the products into the foreign markets through the unauthorized channels. Now whether you are dumping the products into the foreign market taking the products to the gray market it is important that you are impacted by the risk. The risk is the basic commitment which is related to the financial liabilities of the sellers into the buyers into the market. So when you take the products into the market it is better that you take the proper channels where the cost is standardized because the kind of the rules and the regulations impacting the world market standardize in terms of demanding transparency. Risk is basically the kind of the preferences where most of the changes happening into the customer profile relate to the fashion and the adoptions and technology is impacting the solutions into the market. It is the kind of the risk associated with the kind of the failure to deliver the goods at time and it is to genuinely not understanding the financial regulations where most of the kind of the taxes and hidden cost paid by the buyers. So when you try to manage this kind of risk and you have the advantages in terms of learning these abilities, the firms gain a kind of the edge in terms to sell the products into the international market. Now the advantage of the multinational firms in the foreign market is that you try to overcome the trade and the regulatory objections and the problems of the market. You shift cost from one plan to the another plan i.e. you have markets with the cheap resources, so this costing can be shifted to those markets then you save in terms of the labor cost or also into the other cost when you are trying to over cost a particular product. The global marketing standardization is important.

18 Now what is the definition of global marketing standardization? The world is becoming a common market place in which people no matter where they live desire the same product and life styles. Global companies must forget the differences between the countries and the cultures and instead concentrate on satisfying the universal drives for customer needs. So the global standardization is like customers all over the world are having same kind of the need and the companies do have to produce the standardized products, like you have the companies who are giving you the examples of global standard products in terms of Mac- Donald, Pepsi, Coke etc. which are impacting the world market. This is a quotation taken from This is the most important decision, I made was to globalize, we decided not to tailor the products to any market place, but to treat all market places the same and it worked in most countries. 1.2 billion People used at least one gillet product daily. It captures 91% of the market in Latern American and 65% of market in India. Huge economies of scale by selling few types of razor blades makes business happens and successful. So we have standardization, which works in few products and it works in few markets so if we can resort to it we can genuinely cut into a cost but the standard kind of the marketing strategies and kind of the global market are not so easy because we have a global environments impacting the businesses. Now the environmental factors which impacting the international marketing relate to culture, the economic and the technological factors in development happening into the market at its political structure. The demographics make up of the market and the national resources of the economy. But still we have the legal constraints also to impact the product solutions into the market. The legal structures encourage the limitations, in terms so has to enhance trade. The tariff barriers, the quota barriers, the embargo and the trade agreements have to be overcome before you genuinely enter into the competitive rival very. The global marketing done by individual firm is a concept where you build the concept which is impacted by the risk.

19 Now see this model where we have the risk taken on the y axis and written on the x axis as you move from exports licensing to joint ventures to FDI i.e. the direct investment the kind of the risk is there but the kind of the returns are high. So when you take returns as the kind of the solutions you basically earn so the global marketing is a kind of a strategy which takes many parameters. Domestic markets are simple where strategic leadership plays a major decision forced in terms to gain a kind of standardized position into the local markets but when you take the global market the world trade you have many factors impacting the world business. Thank you Students!