International Marketing

1
International Marketing

• Tim Beal
• Lecture12
• 28 May 2002

2
Today

• Exam
• Recapitulation of the course
• Discussion session for international students

3
Research project

• Due 31 May ..midnight
• Cleared Sat
• late penalties
• Marked by tutors
• Clarification from them
• Referencing
• If from web use frame url

4
Exam

• No surprises
• case study on the marketing of horitcultural and
  agricultural products
• Same structure as last year
• On coursepage and student server
• 2 Hours, open book
• 19 June, 9.30-11.30
• Utilise research project for examples

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Exam structure

• Section A 25 marks
• Compulsory question
• case study on the marketing of horitcultural and
  agricultural products
• Article is accessible to you
• Material in reade/exam sufficient
• demonstration of extra knowledge and more current
  information gtbetter marks

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Section B

• 2 questions out of 5
• 12.5 marks each
• All questions touched on today

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Preparing for exam

• Identify range of potential questions
• lecture notes
• coursepage
• Student server
• Reader
• Additional resources on coursepage

8
Structure of course

• Introduction
• Global Business environment
• Case studies
• Wine, education, ..venison, kiwifruit
• Strategic marketing functions
• Market research, pricing, etc
• Country studies background information only

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Introduction

• What is the difference between marketing and
  International marketing?
• Aspects of complexity
• languagegtgtgtculture
• Law - how does that affect IM?
• Prohibitions, restrictions, obligations
• Globalisation
• marketltgtcountry

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Basic rule of IM

• All aspects of market planning have to be
  reexamined
• What works in one place MAY not work in another

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Global business environment

• diagram

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Global business environment

• Global economy
• Growth and liberalisation
• blocs and organisations eg WTO

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Global economy

• Why is it important?
• IM is an economic activity
• Controllable and uncontrollable variables
• 3 Facets of the business environment

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4 Facets of the business environment

• Economic
• currency
• employment
• Political
• laws and regulations
• Social
• demographic and lifestyle trends
• Technology

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Economic theory

• Ricardos comparative advantage
• Not the same as competitive advantage
• Countries should specialise
• Political reasons why specialisation is limited
• eg US lamb market, Australian apple market
• Trade growing faster than world economy
• IM growing in importance

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Globalisation

• growth of world trade
• liberalisation
• falling transport and communication costs
• mobility of capital, technology and
• products
• global markets
• computerssoft drinks..clothes..foods

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Patterns of globalisation

• Global economy is not uniform
• Nation states
• Blocs and organisations
• Why important?
• Access to markets and rules for operating in
  markets
• Eg GM crops

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Liberalisation

• GATTgtgtgtWTO
• Uruguay Round
• Lowered tariffs
• NTB still prevalent
• eg standards and regulations

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Changing social fabric

• Marketing takes place within society
• Consumer behaviour course discussed interact
  between individual CB and social environment
• families, reference groups, lifestyle changes,
  attitudes
• What happens in a particular society (eg NZ)
  happens globally
• extremely complex manner

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Three examples

• immigration
• aging society
• changing (globalising) tastes and lifestyles
• Move from smoking, red meats, beer
• Move into health foods, organic foods, white
  meats, wine

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GE versus organic Implications for IM and NZ

• Live issue with current debate in NZ about GE
• Should NZ ban GE, move to strengthen organic
• Is clean and green fact or fiction?
• What is impact on country image?
• IM needs to be aware of lifestyle changes
• Eg organic foods a growing but complex
  international market

22
Technology

• Transportation
• Greatly lowered costs make IM possible
• Internet and communications
• Fast, cheap communication with customers,
  company, agents, suppliers, etc
• Access to information

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Types of websites

• Static billboards
• Dynamic billboards
• Database driven
• Storefronts
• 4th type gtgte-commerce

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Impact of Internet

• Internet having impact on all types of business
• Main use b2b
• Supply chain management
• Goods eg wine
• Service eg educational services

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Analysing the environment

• Getting information
• Information is difference between selling and
  marketing
• The more we know and understand the better our
  marketing is likely to be
• Good marketing strategies need foundation of
  quality information

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quality information

• Customers
• Competitors
• Business Environment
• laws and regulations
• technology
• social trends

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Information for marketing purposes

• Looked at market research
• example market screening
• MR Research analysis
• research - getting and structuring information
• analysis -using the information to answer
  specific questions
• what price will consumers pay for my Chardonnay?

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Broad to narrow
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Environmental analysis

• Frameworks
• PEST
• Political, economic, social/cultural,
  technological
• SLEPT
• Social, legal, economic, political, technological
• C factors
• Culture, competitors, currencies

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frameworks are tools

• Components and emphasis of framework relate to
  specific industry/products
• High-tech products may more attention to
  technology, less to culture
• Education? Wine?
• The firm and the international marketing
  environment diagram covers same factors

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General to specific

• Broad picture
• which countries drink/import wine?
• Select promising countries for further research
  (screening)
• Go into more depth
• perhaps exclude further countries (iterative
  process)

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Ending up

• End with specific answers for marketing decision
  making
• Which distributor should we use?
• What should our pricing strategy be?
• What should the package look like?

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What else have we covered?

• Culture
• low and high context cultures
• role of languages
• Countries become more multicultural
• Blurring difference between M and IM
• Cultural impact varies with type of product
• Cultures change
• Culture only part of story class, age,
  education
• Culture is a generalisation
• Cant be applied mechanistically in IM

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Market Studies

• Confucian markets of East Asia
• Taiwan
• China
• Korea
• Similarities and differences
• Sri Lanka
• Latim America

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Market entry

• crucial because mistakes are costly
• continuum from indirect exporting to wholly owned
  subsidiary
• trade off between cost and control
• gtgt Kerris notes

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Globalisation

• Levitt development of global markets for global
  products
• Onkvisit and Shaw on branding

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Levitt

• Technology is globalising the world economy
• Almost everyone, everywhere wants global products
• Prefer low prices to supposed national
  characteristics
• example of refrigerators in Europe

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Strategy

• Companies should move from multi-domestic
  (multinational) to global strategy
• Do not adapt to superficial differences but force
  suitably standardised products globally
• Offering everyone simultaneously high-quality,
  more or less standardised products at optimally
  low prices

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Branding

• types of brands
• worldwide versus local brands
• Move towards global brands
• brand is even more important in IM than in
  domestic markets
• Case study Kiwifruit to Zespri
• What is the Zespri brand? Is it same as NZ?
• Continuity of supply versus kiwifruit growers
  ownership
• Happens with daiury products, etc.

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Pricing

• Importance of strong brand position
• Pricing has to be integrated with other parts of
  marketing strategy
• examples of Japanese motor manufacturers
• Started with penetration pricing but developed
  product, distribution and servicing network
• Moved out of price competition

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Implications for wine, education services

• Global product?
• Global brand?
• Country brand or company brand?
• Pricing strategies?
• Market selection and entry?
• Effect of culture, globalisation

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Whats IM all about?

• Using marketing concepts in more complex global
  environment
• MARK 302 only touches surface
• Sign up next year for Marketing honours
• MARK 403 Advanced International Marketing

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Q A session

• International students and anyone interested