International marketing - introduction Alena Klapalová albra@seznam.cz AGENDA nWhat is marketing? nWhat is international marketing? DIFFERENCES? nWhat are reasons for the differences? nDRIVING FORCES FOR INT. MARKETING nDefinition and „synonyms“ for international marketing??? nCourse syllabus n MCj04135940000[1] What is marketing? What are the basic concepts of marketing? MCj04125760000[1] Definition of Marketing n“A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others” n Philip Kotler n“Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives” American Marketing Association nactivities + managerial decisions Basic (core) marketing concepts needs, wants & demands products, services and experiences value, satisfaction, quality exchanges, transactions & relationships markets j0149481 Profitably satisfying consumer demand Consumers have needs, wants and demands Needs are basic (e.g. need for food, transportation) Wants are product level specific (e.g. burgers, cars) Demand = Want + willingness to buy + ability to buy Demand is brand specific (Burger King, Ford) Marketers cannot influence needs, but can influence wants and demand Core Marketing Concept nNeeds qStates of felt deprivation (physical – food, warmth, safety, social – belonging, affection and individual – knowledge, self-expression) nWants qThe form taken by human needs as they are shaped by culture and individual personality OR shaped by one's society and described in terms of objects that will satisfy needs nDemands qHuman wants that are backed with buying power(ability to buy) nDemand = Want + willingness to buy + ability to buy qDemand may be brand specific (Adidas vs Nike vs Puma) qMarketers cannot influence needs, but can influence qwants and demand Find out about Maslow’s Hierarchy of Needs nCustomer Value qis the perceived (not objective) difference between the benefits or gains the customer obtains from owing and using a product and the costs of obtaining it OR it is the customer´s assessment of the product´s overall capacity to satisfy his or her (or business) needs. nCustomer Satisfaction qis the extent to which a product’s perceived performance matches a buyer’s expectation. nExchanges qThe act of obtaining a desired object from someone by offering something in return nTransactions qA trade between 2 parties that involves at least 2 things of value, agreed upon conditions, a time of agreement, and a place of agreement nRelationship Marketing qThe process of creating, maintaining and enhancing strong , value laden relationships with customers and other stakeholders nMarkets qThe set of all actual and potential buyers of a product or service mají se rádi Content of marketing management nlooking for opportunities and threats nknowing customers ndeveloping marketing strategies nconnecting with customers nbuilding brands/goodwill/image n nshaping market offerings ndelivering value ncommunicating value ncreating long-term growth j0301252 What is international marketing? DIFFERENCES? MCj04118540000[1] Marketing concepts and content of MKT management What are reasons for the differences? DRIVING FORCES FOR INT. MARKETING Man on globe Reasons and drivers for international MKT nReact to inquiry from abroad nSeek more sales and profits nRespond to a domestic competitive shock(or just competition nFollow major customers abroad nLeverage economies of scale and scope n„Global Village“ (Mashall Macluhan) nMarket needs mass markets nTechnology nCost - low cost production nQuality nCommunication - ICT nTransport nNongovernmental organizations ngovernments MCj04118580000[1] Diversification, economies of scale, international production, market growth, joint venture, small or saturated domestic markets Why not? nMarket differences - diversity nHistory nManagement myopia as a barrier nOrganisational culture as a barrier nOther barriers nResources n MCj04135880000[1] MCj04126180000[1] MCj04125760000[1] What is international marketing? + „synonyms“ nIMKT - ‘is concerned with the marketing issues arising in the management of the firm’s international operations’ (Jonathan Wilson, 2006) n nPhases of IMKT involvement: n no direct foreign marketing (FM) n infrequent foreign marketing n regular foreign marketing – export (FM = using domestic marketing abroad) n international marketing (still operating from a home base, still there is diferrence between domestic and foreign - „inter“ nations) n global marketing n nExport, pan-regional, transnational, crosscultural, glocal, multidomestic, multinational… n International approach (strategy) nglobal approach treats the world as a single market nmultinational (+ international) approach treats the world as a portfolio of national opportunities nglocal approach standardizes certain core elements and localizes other elements n (Kotler, P., 2007) n n MCj04135920000[1] MCj04134780000[1] What is international marketing? II nThe process by which individuals and organizations: nIdentify needs and wants of customers in different international markets; nProvide products, services and ideas competitively to satisfy needs and wants of different customer groups concerning issues different from domestic market; nCommunicate information about the products and services with the proper adaptation to different customer perception rising from other country effect; and nDeliver the products and services internationally using one or a combination of foreign entry modes. n n Wilson, J., 2006 [Bradley (2002)] n adapted n What is same and what different? üPrinciples üConcepts üMethods üTechniques n oTools oConditions (environment) oCompetition oCustomers oMarketing practices n MCj04125740000[1] Integration and coordination of management/or just activities across countries More sets of uncontrollable variables The international marketing environment firm in the international marketing environment economic forces competition technology customers policy Law (prohibition, Restriction, obligation Cultural, social and demographic geography Differences between International and Domestic Marketing nCulture: behaviour, habits, routine…. n business + customers nData: access, reliability nPolitics: interests, orientation nStakeholders: business + nonbusiness n (primary + secondary) nEconomies: unemployment, inflation, parity, purchasing power, wealth… nControl: possibility to control and co-ordinate and/or cooperate n MCj04261840000[1] IMKT mix differences nProduct Suitability, adaptability, competitors nPlace Distribution channels and methods nPromotion Symbol, identity, familiarity, attitude nPrice Customs duties, Taxes, Agent’s commission, Freight nPhysical Evidence Descriptions of contents, expression style nProcess Payment terms, shipping methods, commissioning, training nPeople Knowledge, skills, willingness nPackaging Suitability, climate conditions, freight damage, fits n MCj04158160000[1] Syllabus n 1. The nature of international (and global) marketing n 2. Theories of international trade and marketing n 3. The international and global environment n 4. Culture and international marketing n 5. International market selection and segmentation n 6. International marketing research n 7. Market entry strategies – introduction n 8. Modes of entry strategies n 9. International product and service marketing management n 10. International Pricing n 11. International Placement n 12. International marketing communication n 13. Organization of international marketing activities n n n nOne seminar work in a group of two and presentation during the lectures. Each presentation should last about 15 minutes. nTopic: anything from international marketing nActivity and presentation of seminar work!!! nFinal exam test contains 20 questions nAssessment: 0-50% of points for seminar work, 0-50% for acitvity during the lectures, 0-50% for final test. TASK Textbooks: nCzinkota, M.R., Ronkainen, I.A. International Marketing. 2004 nGhauri, P., Cateora, P. International marketing. 2006 nALBAUM, G., DUERR, E., STRANDSKOV, J. International Marketing and export management. Harlow: Prentice Hall, 2005. nHOLLENSEN, S. Global marketing. Harlow: Prentice Hall, 2007. nDOOLE, I. LOWE, R. International marketing strategy. Bedford n Row: Thomson Learning, 2004. nCHEE, H, HARRIS, R. Global marketing strategy.London: Pitman Publishing, 1998 nUSUNIER, J.C. Marketing across culture. Harlow: Prentice Hall – all editions available in Faculty library n…. n n