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Principle Of Marketing- Lec 41

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					        MGT301
Principles of Marketing
       Lecture-41
Summary
    of
Lecture-40
Creating Competitive Advantage




       Competitor Analysis
                              Steps


   Identifying Competitors

   Assessing Competitors

   Selecting Competitors to Attack or Avoid
Competitive Strategies
            Competitive Positions

   Market Leader
   Market Challenger
   Market Follower
   Market Nicher
Global Marketplace
               Today’s Topics

Global Marketing


Reasons for Global Marketing
   Growth
    – Access to new markets
    – Access to resources
   Survival
    – Against competitors with lower costs (due to
      increased access to resources)
   Global competitors attacking the domestic market,


   Foreign markets might offer higher profit opportunities,


   Domestic markets might be shrinking,


   Need an enlarged customer base to achieve
    economies of scale,


   Reduce dependency on any one market,


   Customers might be expanding abroad.
      Getting involved in international
      marketing: A five step process

  DO WE GET                   HOW MUCH
                 IF YES,
 INVOLVED IN                 COMMITMENT
                 WHICH
INTERNATINAL                   IN EACH
                MARKETS?
 MARKETING?                    MARKET?




                 IMPACT ON     HOW SHOULD
                 DOMESTIC-         WE
                   BASED       REORGANIZE
                MARKETING?        OUR
                               OPERATIONS?
Global Marketplace
   Global competition is intensifying and few


   industries are now safe from foreign competition.


   To compete, many companies are continuously
    improving their products, expanding into foreign
    markets and becoming Global Firms.


   Global firms face several major problems:
    – Variable exchange rates,
    – Unstable governments,
    – Protectionist tariffs and trade barriers,
    – Corruption.
Global Vision
   Recognizing and reacting to international
    marketing opportunities;
   Being aware of threats from foreign competitors in
    all markets;
   Effectively using international marketing mix
    opportunities
Decisions in International/Global
           Marketing
Looking at the global marketing environment
   Deciding whether to go international
         Deciding which markets to enter

          Deciding how to enter the market

          Deciding on the global marketing program
              Deciding on the global marketing organization
Looking at the Global Marketing
         Environment
    The International Trade System




The World Trade Organization and GATT




      Regional Free Trade Zones
     The International Trade System
– Tariffs, quotas, embargos, exchange controls,
  nontariff trade barriers
– World Trade Organization and GATT
– Regional free trade zones
    European Union

    North American Free Trade Agreement

    Other free trade areas
Just a reminder….
             Infrastructure



 A nation’s basic conditions in transportation
networks, communication systems, ad energy
                   facilities.
          Exchange Rate



The price of one nation’s currency in terms
      of another country’s currency.
           Tariff



A tax levied on imported goods.
            Import Quota



 An administrative trade restriction that limits
the number of units of a certain good that can
         enter a country for resale.
            Embargo



 An administrative trade restriction that
imposes a complete ban on imports of a
          specified product.
              Dumping



 The controversial trade practice of selling a
 product in a foreign market at a lower price
than it commands in the producer’s domestic
                    market.
General Agreement on Tariffs and
         Trade (GATT)




   An international trade accord that has helped
            to reduce worldwide tariffs.
World Trade Organization (WTO)



   A 125-member organization that succeeds
    GATT in overseeing trade agreements,
    mediating disputes, and reducing trade
     barriers, unlike GATT provisions, WTO
              decisions are binding.
North American Free-Trade Agreement
              (NAFTA)




 An accord to remove trade barriers among Canada,
          Mexico, and the United States.
Looking at the Global Marketing
         Environment
Economic Environmental Factors
               Subsistence
                Economies




 Industrial     Country’s           Raw Material
Economies       Industrial           Exporting
                 Structure           Economies




               Industrializing
                 Economies



              Income Distribution
Political-Legal Environmental Factors
Attitudes Toward   Government
  International    Bureaucracy
      Buying




   Monetary          Political
  Regulations        Stability
  Cultural
Environmental
   Factors           How Customers
                     Think About and
                      Use Products


                Cultural Traditions,
                 Preferences, and
                    Behaviors


            Business
           Norms and
            Behavior
        Deciding Which Markets to Enter


•   Consistent with objectives and culture of firm
•   Demographic Characteristics
•   Economic Factors
•   Sociocultural factors
•   Technological factors
 Define Organization’s Marketing Objectives
                and Policies



  What Volume of Foreign Sales is Desired?


 How Many Countries Should the Firm Go Into?


 What Types of Countries Should be Entered?


 Rank by Market Size & Growth, Cost of Doing
Business, Competitive Advantage, & Risk Level.
Deciding How to Enter the Market
         Amount of Commitment, Risk, Control,
                 and Profit Potential




Lesser
                                                                 Greater




           Exporting
                           Joint Venturing
                                             Direct Investment
•   1st level: Exporting
•   2nd level: Joint Venturing
    – Franchising
    – Licensing
    – Contract manufacturing
    – Joint ownership
•   3rd level: Direct Investment
Deciding on the Global Marketing
            Program
                   Five International Product and
                       Promotion Strategies
                                         Product
                          Don’t Change                     Adapt
                            Product                       Product

              Don’t        Straight                   Product
             Change
Promotion




            Promotion     Extension                  Adaptation


              Adapt
                        Communication                  Dual
            Promotion    Adaptation                  Adaptation


                                    Product Invention
                                    Develop New Product
   Straight product expansion
           Marketing the product with no changes
   Product adaptation
           Altering the product to meet local conditions or
            the wants of the foreign market
   Product invention
           Creating new products or services for foreign
            markets
Global Pricing Strategies
Companies face many problems
      Price escalation
      Pricing to foreign subsidiaries
      Recent economic and technological forces
      The Internet
 Possibilities in setting prices
             include:
– Charge a uniform price all around the world.
– Charge what consumers in each country could
  pay.
– Use a standard markup of its costs
  everywhere.
Whole-Channel Concept for Distribution
         Seller



  Seller’s Headquarters



Channels Between Nations



Channels Within Nations



   Final User or Buyer
Global Promotion Strategies
           Global Promotion Strategies
   Standardized global communication
           Advertising themes are standardized from
           country to country with slight modifications


   Communication adaptation
           Advertising messages are fully adapted to
           local markets
     Managing International Marketing
                Activities

Step 1: Organize export department
Step 2: Create an international division
Step 3: Become a global organization
Think Globally Act Locally
Enough for today   ...
    Summary


Global Marketing
Global Marketplace
Looking at the global marketing
         environment

     Deciding whether to go
          international

      Deciding which markets to
                enter
        Deciding how to enter the
                 market

             Deciding on the global
              marketing program

            Deciding on the global marketing
                      organization
Think Globally Act Locally
         Next….


e-Marketing
        MGT301
Principles of Marketing
       Lecture-41

				
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