INTERNATIONAL MARKETING

1
INTERNATIONAL MARKETING

• MARK 302
• Lecture 1
• 26 February 2002
• Dr Tim Beal

2
Todays Programme

• Introduction
• What is different about IM?
• The Course

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Introduction

• Why are you here? What do you expect?
• What is International Marketing?
• Building on 200-level Marketing
• Adding International to Marketing
• Marketing in a much more complex environment
• Much more fun

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Examples of Pitfalls

• Apocryphal stories of marketing blunders

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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.

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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)

7
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.

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Sex

• Ford had a problem in Brazil when the Pinto
  flopped. The company found out that Pinto was
  Brazilian slang for tiny male genitals. Ford
  pried all the name plates off and substituted
  Corcel, which means horse.

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Sex, second instalment

• When Parker Pen marketed a ballpoint pen in
  Mexico, its ads were supposed to say It wont
  leak in your pocket and embarrass you. However,
  the company mistakenly thought the Spanish word
  embararzar meant embarrass. Instead the ads
  said that It wont leak in your pocket and make
  you pregnant.

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Sex, yet again

• Chicken-man Frank Perdues slogan, It takes a
  tough man to make a tender chicken, got it
  terribly mangled in another Spanish translation.
  A photo of Perdue with one of his birds appeared
  on billboards all over Mexico with a caption that
  explained It takes a hard man to make a chicken
  aroused.

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Divided by a common language

• In an effort to boost orange juice sales in
  predominantly continental breakfast eating
  England, a campaign was devised to extol the
  drinks eye-opening, pick-me-up qualities. Hence
  the slogan, Orange juice. It gets your pecker
  up.

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What is different about IM?

• Examples of linguistic problems
• How many languages in the world?
• Countrylanguage
• USA - growth of Spanish
• 1/4 population Hispanic in 20 years
• language culture
• translation relatively easy - culture more complex

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Firm and International Marketing Environment
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More than languages

• Law
• first aspect
• How does law affect marketing?
• Prohibition
• alcohol, tobacco, sex, GM foods
• Restrictions
• children
• Obligations

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Obligations

• Packaging
• contents, languages, child-proof
• Environmental standards
• emissions, disposal
• Ownership and access to market
• mandatory joint ventures

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Sanitary Phytosanitary (SPS) regulations

• sanitary (human and animal health) measures and
  phytosanitary (plant health)
• Often used as non-tariff barrier (NTB)
• eg fireblight
• Essential to preserve good reputation of exports
• Eg Listeria in NZ cheese to Holland

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Danger of litigation

• US woman sues NZ Game Board because venison
  caused her to have an abortion (Dominion
  28/2/00)

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Laws not merely national

• many laws are supra-national
• European Union
• International presumes nations
• Nation states becoming less relevant
• Globalisation

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The end of the nation state?

• Market country
• Most countries have a number of cultures
• Most cultures are found in a number of countries
• articles in Chapter 1.1
• Distinction between IM and Marketing becoming
  increasingly blurred
• Growth of global products
• All marketing global marketing?

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What does this mean?

• IM is marketing in a more complex environment
• All aspects of market planning have to be
  reexamined
• What works in one place MAY not work in another
• Course adds knowledge of international business
  environment to your knowledge of marketing

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The Course

• Approach to learning
• MARK 302 coursepage/blackboard
• Course outline
• Reader

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Approach to learning

• Facilitate learning rather than prescribing
• Learn by doing
• Case studies, and projectsexam
• Group work, but do not neglect individual work
• Relevant - real issues rather than text book
  examples
• Contemporary up-to-date
• Utilise technology

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Technology

• Caution - Sods Law in operation!
• use Internet in lectures
• MARK302 homepage - the coursepage

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Mark 302 Homepage

• Whats on it?
• Course outline
• Notices
• Extra readings
• Links to websites (eg Tradenz)
• Lecture notes
• Lets have a look
• MARK 302 coursepage

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Blackboard

• Another route to the same information
• http//blackboard.vuw.ac.nz

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Course Outline

• Why have a course outline?
• Tells you want to expect
• in terms of what the course covers
• in terms of what we attempt to achieve
• what is required
• Fairly long and comprehensive

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General

• Applies 200 level marketing concepts to
  international arena
• Introduction to global economy, structures and
  issues
• Examines NZ issues
• Environmental analysis
• SWOT analysis
• International Marketing Strategy

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Course Information

• Murphy 2 Notice Board
• MARK302 coursepage/blackboard
• Email?

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Aims and Objectives

• Understanding of marketing in the international
  environment
• Analysing and communicating
• Complexity, cultural and location specific
  factors
• Opinions about theories and practices
• Visiting speakers
• Introduction to the Internet
• Awareness of Asia

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Competencies to be Achieved

• Application of marketing concepts
• Utilise information facilities for international
  markets
• Understanding of the Web/ ICT
• Environmental analysis
• SWOT analysis
• Strategic recommendation

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Teaching Times

• Weekly lecture
• Tutorials
• 10 of marks
• wb March 11

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Staff

• Administration Assistant
• Mrs Jessie Johnston, Rutherford House
• Class representative

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Visitors

• Educational services
• David Scott (FCA)
• Tim Fowler (ISO, VUW)
• Kerri Osborne on entry strategies
• Shamika Fernando on Beer and Butter in Sri Lanka

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Textbook

• New reader/Sourcebook specially compiled for this
  course
• Contemporary Global Marketing
• 30
• added to fees
• Extra material on coursepage
• available in Student Notes

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Case Studies

• One will be assessed
• Others discussed in tutorials
• Case study in exam

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Assessment and Due Dates

• Spread out
• 28 March Wine Industry Case Study
• 10 marks
• 31 May Research project
• 30 marks
• Tutorials and exam
• 10 50 marks

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First assessment

• Wine Industry case study
• SWOT analysis
• Practise with venison w/b 18 March
• Update written course outline
• due 28 March
• Feedback w/b 15 April (after break)

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Major Project

• Bringing together
• materials from lectures
• skills and tools from preparatory exercises
• theoretical knowledge from textbook
• market knowledge from country sessions
• Education Services (product area)
• Environmental analysis, SWOT and recommendations
  (strategy)

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Educational Services

• Growth area in long term
• current difficulties
• Political, social, ethical, cultural issues, etc
• Industry you are all familiar with

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Project Structure

• Work in groups (form in tutorials)
• Choose client
• VUW International Students Office
• Commerce Faculty

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Project Outputs

• Environmental analysis
• SWOT analysis
• Strategic Recommendations

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Other Information

• Word limits
• Work Load (10 hours )
• Plagiarism
• Grievances
• Class representative

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Schedule up to Easter

• Information and analysis
• International business environment
• globalisation and global economy
• political framework of globalisation
• changing social fabric
• technology the Internet
• Marketing of education services
• Tim Fowler, David Scott

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Schedule after Easter

• After Easter series of country studies
• visiting speaker- Shamika Fernando
• Video Doing business in Korea
• Issues - culture, bribery
• Functions - 4 Ps
• Readings refer to sections of Reader

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Tutorial schedule

• Start wb 11 March
• End wb 20 May
• Questions for first, third and sixth weeks
• Tutors will give questions re case studies
• Emphasis will be on Environmental analysis, SWOT
  and strategy

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What we did today

• Difference between IM and Marketing
• distinction increasingly blurred
• Globalisation
• Marketing in more complex environment
• Course
• MARK 302 coursepage/blackboard
• Course outline

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Next week

• SWOT analysis
• Getting information for IM
• Globalisation and the global economy