Week 8 - marketing - Marketing Principles International Marketing

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  • Created by: jf00632
  • Created on: 03-04-19 13:59
Reasons for Internationalisation / Globalisation:
1. Gain access to new customers 2. Capitalize on core ability/ knowledge 3. Help achieve lower costs 4. Obtain access to valuable natural resources 5. Spread business risk across wider market base
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What is global organisation?
• this is when a country Operates in more than one country
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What does it help them gain? (5)
• helps them Gain research and development, production, marketing, and financial advantages that are not available to purely domestic competitors
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What problems can they face? (3)
o Highly unstable governments and currencies o Restrictive government policies and regulations o High trade barriers and corruption
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What are the market entry objectives? (3)
Market seeking, efficiency seeking, resource seeking
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What is market seeking?
This is when Companies that venture into new countries/become international because they are looking for new markets, actively seeking customers worldwide
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What is efficiency seeking?
This is when Firms want to enter countries/markets where they can achieve efficiency in different ways i.e. R&D, local concentration of suppliers to an industry
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What is resource seeking?
This is when Firms try to enter these countries to get access to raw materials or other inputs (eg Labour) for cost reduction/lower operation costs
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Treadgold (1990) has suggested that a retailer’s international development has three stages: what are these?
reluctance, cautious and ambition
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reluctance
In this stage, retailers are essentially domestic operations that are reluctant to develop internationally, and will do so only where there exists in their home market an ‘absence of long term growth opportunities
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cautious
. In this stage, retailers have increased their international exposure and are cautious in their approach to foreign markets. because of this, retailers look for expansion opportunities in geographically close markets that have operating environments
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Ambition
. In this stage, retailers are more ambitious and aggressive in the identification of attractive international markets. in this stage, they start to care less about locating in close geographical or culturally proximate markets but care more about th
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What do these 3 stages suggest?
These three stages suggest that, over time, retailers become more eager to find opportunities in distant markets as they gain confidence in the international arena.
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What are the 5 major decisions in international marketing?
1. looking at the global market 2. deciding whether to go international 3. deciding which markets to enter 4. deciding how to enter the market 5. deciding on the global marketing programme 6. deciding on the global marketing organisation
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Looking at the Global Marketing Environment- internation trde system
as follows
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trade barriers
• Tariffs or duties • Quotas and exchange controls
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nontarrif trade barriers
• Restrictive product standards • Excessive host-country regulations or enforcement
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World trade organisation (WTO)
• Established by the General Agreement on Tariffs and Trade (GATT) in 1995 • Promotes world trade by reducing tariffs and other international trade barriers • Negotiates to reassess trade barriers and establish new rules for international trade
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World trade organisation (WTO) (CONTINUED)
• Imposes international trade sanctions and mediates global trade disputes
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what is Regional free trade zones
Economic community: Group of nations organised to work toward common goals in the regulation of international trade
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What does it involve?
• The European Union represent one of the world’s single largest markets Its current member countries contain more than half a billion consumers and account for 20 percent of the world’s exports. • North American Free Trade Agreement (NAFTA)
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What does regional free trade zoens involve? (continued)
• Central American Free Trade Agreement (CAFTA-DR) • Union of South American Nations (UNASUR
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Economic enviro - Factors reflecting a country’s market attractiveness
as follows
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industrial structure (4)
• support economies • Raw material exporting economies • Emerging economies • Industrial economies
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Income distribution
• Low-, medium-, and high-income households depending on the industrial structure of the natio
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politcal legal enviro
as follows
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Considerations for a company to do business in a country: (4)
1. Country’s attitude toward international buying 2. Government bureaucracy 3. Political stability 4. Monetary regulations
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international trade involves:
1. Cash transactions 2. Bartering
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cultural factors
different countires have different beliefs/ superstitions - refer to document (dont think its improtant)
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What 3 factors influence the dec to go global?
1. Attacks on a company’s home market by global competitors 2. Expanding customer base in international markets 3. Better opportunities for growth
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What should a company consider when deciding what market to enter? (5)
• Define its international marketing objectives and policies • Decide what volume of foreign sales it wants • Choose in how many countries it wants to market • Determine the types of countries to enter • Evaluate each market
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What are the 5 indicators of market potential?
demographic characteristics, sociolculturle factors, geographic characteristics, political/ legal fsctrs, economi factors
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Demographic characteristics
• Education • Population size and growth • Population age composition
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socioculture factors
• Consumer lifestyle, beleifs and values • Business normas and approaches • Cultural and social norms • Languages
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geographic characteristics
• Climate • Country size • Population density-urban,rural • Transportation structure and market accessibility
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political and legal factors
• National priorities • Political stability • Government attitudes toward global trade • Goveremnt burreacurcy • Monetry and trade regulations
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economic factors
• GDP size and growth • Income distribution • Industrial infrastructure • Natural resources • Financial and human resources
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What are the 3 market entry strategies? (also look at poster on notes)
exporting, joint venturing, direct investment
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Exporting
indirect and direct
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Joint venturing
licensing, contract manufacturing, management contracting, joint ownership
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Direct investment
assembly facilities, manufacturing facilities
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What 2 factors are associated with Deciding on the Global Marketing Programme
Standardised global marketing and adapted global marketing
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Standardised global marketing
• Using the same marketing strategy and mix in all of the company’s international markets
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Adapted global marketing
• Adjusting the marketing strategy and mix elements to each international target market • Creates more costs • Produces a larger market share and return
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Five global product and communications strategy
look at poster on notes
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global price considerations
• Set a uniform price globally • Set according to the customers • Use a standard markup of the company’s costs everywhere
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Other cards in this set

Card 2

Front

What is global organisation?

Back

• this is when a country Operates in more than one country

Card 3

Front

What does it help them gain? (5)

Back

Preview of the front of card 3

Card 4

Front

What problems can they face? (3)

Back

Preview of the front of card 4

Card 5

Front

What are the market entry objectives? (3)

Back

Preview of the front of card 5
View more cards

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