international International Marketing 国际市场营销 Chapter 1 The nature of

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					International Marketing
Chapter 1. The nature of international
 Students already familiar with the rudiments of
general marketing theory know that marketing is far
more than selling: profitability and added shareholder
value are the ultimate aim of all marketing pursuits.
Marketing is a collection of activities, including
advertising, public relations and sales promotions,
marketing research and new product development,
package design and merchandising, personal
selling and after-sales service, and the
determination of selling prices.
                   Seven ”P”
1:Promotion—including advertising, merchandising,
public relations, and the control and deployment of
sales staff;
2: Product—design and quality of output,
assessment of consumer needs, choice of which
products to offer for sales, after-sales service and
policies for customer care;
3: Price—choice of pricing strategy, prediction of
competitors’ responses;
 4: place—selection of distribution channels,
  transport arrangements.
 5: people—the people who are in regular
  contact with the customers, and whose activities
  represent the company to the outside world.
 6: process—the sequence of events involved in
  delivering the product’s benefits to the
 7:physical evidence—the tangible proof that
  the product has been delivered and consumed.
     Differences between domestic
  marketing and international marketing
Domestic marketing ☆; International marketing★

☆ Researching data is available in a single language and is usually easily
  accessed .
★ Research data is generally in foreign languages and may be extremely
  difficult to obtain and interpret.

☆ Business is transacted in a single currency
★Many currencies are involved, with wide exchange rate fluctuations.

☆Head office employees will normally possess detailed knowledge of home
★Head office employees might only possess an outline knowledge of the
 characteristics of foreign markets.
     Differences between domestic
  marketing and international marketing
Domestic marketing ☆; International marketing★

☆Promotional messages need to consider just a single national
★Numerous cultural differences must be taken into account.

☆Market segmentation occurs within a single country.
★Market segments might be defined across the same type of
 consumer in many different countries.

☆Communication and control are immediate and direct.
★International communication and control may be difficult.
     Differences between domestic
  marketing and international marketing
Domestic marketing ☆; International marketing★

☆Business laws and regulations are clearly understood.
★ Foreign laws and regulations might not be clear.

☆Business is conducted in a single language.
★Multilingual communication is required.

☆Business risks can usually be identified and
★Environments may be so unstable that it is extremely
 difficult to identify and assess risks.
     Differences between domestic
  marketing and international marketing
Domestic marketing ☆; International marketing★

☆Planning and organizational control systems can be simple and direct
★ The complexity of international trade often necessitates the adoption of
  complex and sophisticated planning, organization and control systems.

☆Functional specialization within a marketing department is possible
★International marketing managers require a wide range of marketing skills.

☆Distribution and credit control are straightforward.
★Distribution and credit control may be extremely complex.
Domestic marketing ☆; International marketing★
☆Selling and delivery documentation is routine and easy to
★Documentation is often diverse and complicated due to
  meeting different border regulations.

☆Distribution channels are easy to monitor and control.
★Distribution is often carried out by intermediaries, so is much
 harder monitor.

☆Competitors’ behaviour is easy predicted
★Competitors’ behaviour is harder to observe, therefore less

☆New product development can be geared to the needs of the
 home market.
★New product development must take account of all the
 markets the product will be sold in.
Reasons for Marketing Abroad
1. Economies of scale and scope and
   “experience curve” effects resulting from
   increased outputs;
2. The existence of lucrative markets in
   foreign countries that are not available at
3. Saturated markets in the home country.
4. Response to incoming competitive
5, Today, new product development typically
  requires so much expenditure that in many
  cases firms intending to introduce new
  products must adopt an international
6, The higher turnover derived from
  international sales might enable a firm to
  initiate new product research and
  development that in the long term will give it a
  competitive edge.
7, Corporate plans can be anchored against a
  wider range of international opportunities.
8.  There might be less competition in some foreign
9. A sudden collapse in market demand in one
    country may be offset by expansion in others.
10. Opportunities may be afforded by new trade
    agreements between nations, or by the opening up
    of new markets in countries that were previously
    closed to imports. An example of this is the gradual
    opening up of trade with China.
11. Consumers in some foreign markets might be
    wealthier than consumers in the firm’s own country.
      Internationalization Model
According to the Uppsala model, firms go through
the following stages:

  1. Exporting ,usually indirectly and often
     opportunistically or passively.
  2. Acting exporting.
  3. Directing exporting.
  4. Establishing a sale office in the
     overseas country
  5. Establishing warehouse facilities in the
     overseas country.
6. Assembly or manufacture overseas.
7. Establishing a subsidiary overseas.
8. Full multinational status, with
   autonomous branches in other
9. Global status, sourcing raw materials
   wherever convenient, manufacturing
   where most convenient, and seeking
   out market segments that cross
   national boundaries.
 The environments of international

 All marketing activities occur within legal,
  economic, cultural, political and other
  environments to which strategies and
  policies must relate. Marketers need to
  operate within the constraints of this
  environment, and in the case of
  international marketing there will be more
  than one environment constraining the
  company at any one time.
            Market                   Socio-
            demand                   demographic

                     International    Technology of the
Political            business         distribution system
Coping with environmental change

 Most of the firm’s environments have to be
  taken as they are and cannot be controlled,
  yet they have profound consequences for
  marketing management. Thus procedures are
  needed for the speedy identification of fresh
  market opportunities resulting from
  environmental change. A two-step procedure
  for scanning environments and coping with
  environmental change is necessary.
 ☻First, the firm should predict the external
  changes that might occur and then detail: how
  the organization would be affected by them and
  how it should respond.
 ☻ Second, it should list the business’s major
  functions, followed by an outline of all
  environmental factors likely to affect these
  functions. Unfortunately there is a huge number
  of external variables that might affect a firm
  ‘operations, creating the danger that some
  important variables maybe overlooked.
     1月7日,受到来自西伯利亚和北欧的冷空气影响,

      欧盟国家约四分之一的天然气从俄罗斯进口,其中约
 俄方此前称乌方盗取的天然气占俄全部过
  (俄罗斯总理普京和乌总理季莫申科 )
    双方达成协议,俄供乌天然气售价将以欧洲
    在经过艰苦谈判和相互妥协后,俄罗斯天然
      The Americas:NAFTA
 The North American Free Trade Agreement
  (NAFTA)took effect on January 1994 and will
  eliminate all tariffs and trade obstacles between
  member countries by 2009. Internal tariffs on a
  large number of product categories were
  removed immediately. NAFTA is unique as a
  trading bloc in that it brings together two of the
  world’s most affluent countries (Canada and the
  United States) with Mexico, a poor and
  economically underdeveloped country.
        EUROPE: West European
        The West European market is
    dominated by the European Union and, in
    particular, by a golden triangle’ (roughly
    within the area enclosed by Liverpool,
    Cologne and Paris) that contains 60 per
    cent of the entire EU population, but with a
    land mass smaller than the United Kingdom.
    The Union itself consists of 15 countries,
    which together represent one of the largest
    and most affluent integrated trading groups
    in the developed world.
 欧盟27个成员国的名单
 奥地利、比利时、丹麦、芬兰、法国、德
 2004年5月1日入盟的10个东欧国家:匈牙
 2007年1月1日罗马尼亚和保加利亚加入欧
            ASIA PACIFIC
    The Pacific Ocean touches so many
  countries, including all of Oceania, Southern
  Asia, China, the West Coast of the United
  States and ,of course, Japan.
 ♣ The four dragons: China’s HongKong,
  Singapore, South Korea and China’s Taiwan.
 ♣ Emerging industrial countries: Indonesia,
  Malaysia, Philippines and Thailand ,plus
     What is the Third Would
 The first problem is to define the meaning
  of the term” Third World”. Initially it was
  used to distinguish the rest of the world
  from the “First World” (Europe) and the
  “New World” of North America. Today,
  however, it is generally used to describe
  those underdeveloped economies with the
  severest economic problem. The
  difference between’ underdeveloped and
  developing’ countries is itself important.

     优越的自然环境和低廉的人力成本,是肯尼
    亚的花卉出口也达到1.25亿美元 。
      提高远程交易的成功率:统计数
         Strategic considerations in
          international marketing
 1: The definition of strategy
        The Concise Oxford Dictionary defines”
    strategy” in militaristic terms. Strategy, it
    asserts, is “the imposition upon an enemy of a
    place and time and conditions for fighting
    preferred by oneself ”. Business strategy may
    be similarly described.
 It means choosing a general direction for
  the firm , together with organizational
  designs, polices, systems and a style of
  management best suited for beating the
  competition ”in the field”. Adoption of
  correct strategies causes the firm to offer
  the right products to the right markets at
  the right time with the right quality and at
  the right price.
      Strategy differs from “tactics” in that,
    whereas strategy involves the formulation
    of general and wide-ranging polices,
    tactics concern practical methods for
    implementing strategic decisions.
    Strategy define the major overall goals of
    the organization. Plans state how these
    goals are to be accomplished. Strategy
    concerns ideas, creativity and grand
    conceptions; plans involve instrumental
    measures for the efficient allocation of
    International marketing strategy
derives from the firm’s overall corporate
strategy and concerns such matters as
product positioning, branding strategies,
choice of target countries and methods
for entering them, whether to use
national or international media for
promotional campaigns, and so on.
    The process of formulating and
    implementing strategies begins with a
    statement of the mission of the
    business, ie: its fundamental purpose,
    why it exists and – in the broadest
    terms- what it wishes to do.
     Mission statements cover five
     ● Purpose-- the organization’s reason for
     ● Strategic goals-- what it wishes to achieve;
     ● Values--how it relates to its stakeholders;
     ● Standards-- organizational policies and
    norms of behaviour;
     ● Strategic pathway--the means it will use to
    achieve its goal
                Nokia values
      The values of our company make us different.
    They provide a sense of direction for consistent
    behaviour as employees and citizens of the
    world, and in our quest to be a great internet
    company. Through extensive employee
    engagement, Nokia has now created new
    values that reflect our business and changing
    environment. They act as a foundation for our
    evolving culture and are the basis of our
    operational mode. Living them every day is our
    shared philosophy.
 Engaging You
  For us ‘Engaging you’ incorporates the
  customer satisfaction value and deals with
  engaging all our stakeholders, including
  employees, in what Nokia stands for in the

   Achieving Together
  Achieving together is more than collaboration
  and partnership. As well as trust, it involves
  sharing, the right mind-set and working in formal
  and informal networks.
     Formulation of a competitive strategy
 involves an analysis of the strengths and
 weaknesses of the firm in question and of
 its rivals, identification of key success
 factors in the markets in which the
 business is to operate, and definition of
 consumer attributes, demands, attitudes
 and behaviour.
 Critical success factors are the
 variables that determine whether a
 company can beat its rivals in the market
         Critical success factors

    (1).The product:
   ● Fulfils a clear need
   ● Has many uses
   ● Has unique features
   ● Is psychologically appealing
   ● Can be modified easily
   ● Is the right quality
   ● Performs better than that of competitors
 (2).Demand for the product is:
 ● Growing rapidly
 ● Expected to continue to expand
 ● Concentrated in high-spending
 ● Concentrated in high-involvement
 ● Concentrated in easily-accessible
   (3).Delivery is:
   ● Fast
   ● Reliable
   ● Followed by excellent customer care
   ● Accompanied by attractive warranties
   ● Competitively priced
 (4).Promotion is :
 ● The right mix for the product’ life cycle
  stage within its market, the market
  segment itself, and corporate strategic
 ● Geared to local tastes and preferences
 ● Based on a positive brand image
             2008 National
            Export Strategy
 The Trade Promotion Coordinating Committee
  (TPCC) is an interagency group chaired
 by the U.S. Secretary of Commerce. The Export
  Enhancement Act of 1992 established
 the TPCC to provide a unifying framework to
  coordinate the export promotion and
 financing activities of the U.S. Government, as
  well as to develop a comprehensive
 plan for implementing strategic priorities.
            State of Trade
     Several external factors have contributed to the
  success of U.S. exports in recent years, including the
  growth of foreign markets, changes in the terms of trade
  (i.e., exchange rates),and lower costs of conducting
  international business. Yet the most important factors
  driving U.S. exports are inherent to U.S. industry. An
  open and growing global economy plays to the strengths
  of U.S. industry as the most productive, innovative, and
  competitive in the world.
Broadening and Deepening the Base
           of Exporters

     With slowing economic growth at home
    and continued strong import demand abroad,
    now is the time for U.S. companies to
    expand into foreign markets. Our goal is to
    engage more U.S.companies than ever in the
    global marketplace, by raising awareness of
    export opportunities and assistance.
       The challenge is reaching potential exporters
    throughout the large and diverse U.S. business
    community of 27.2 million firms.The solution is
    strategic partnerships among all stakeholders in
    the United States who share an interest in seeing
    our country continue to prosper through exports.
    The U.S. Government is also taking several
    concrete steps to make its services more
    accessible, especially for small companies and
    new exporters who most need help.
     Foreign Competition and Trade
         Promotion Assistance

      Most every competitor country we have
    reviewed identifies expansion of exporting
    opportunities for small and medium-sized
    enterprises (SMEs) as a national economic
    priority. TheEuropean Union is concerned that
    only 8 percent of its SMEs export. European
    research concludes that the number of exporters
    is the main determinant of their countries’
    exporting base, and encourages governments to
    make broadening the number of exporters a
     France committed to increasing the
    number of SMEs exporting by 50 percent.
    Likewise, Australia committed in 2002 to
    an ultimately successful campaign to
    double its SME exporters. Japan, South
    Korea, and neighboring Association of
    Southeast Asian Nations (ASEAN) have
    similarly identified SME exporting as an
    important public objective.
      Addressing the “SME gap” has also been
    a priority of the United States and a
    perennial priority of the National Export
    Strategy. The governments of our trading
    partners approach the issue from different
    perspectives. Some subsidize financing and
    market entry programs for new exporters.
    Others have created umbrella agencies that
    combine industry, finance, trade policy, and
    trade promotion under one roof.
      None of these approaches is suited to
    the U.S. style of governance, which
    looks to maximize and complement the
    role of public and private partners. It is
    important to know, however, what we are
    up against in the competitive global


      Michael Porter provided a framework
  that models an industry as being
  influenced by five forces. The strategic
  business manager seeking to develop an
  edge over rival firms can use this model to
  better understand the industry context in
 which the firm operates.
       Chapter3,International Marketing
      Many firms do little research before they enter a
    foreign market. Often, decisions concerning entry and
    expansion in overseas markets and selection and
    appointment of distributors are made after a cursory,
    subjective assessment of the situation. The research
    done is often less rigorous, less formal , and less
    quantitative than for domestic activities. Furthermore,
    once a firm had entered a foreign market, it is likely to
    discontinue researching that market.
        A major reason why managers are
    reluctant to engage in international
    research is their lack of sensitivity to
    differences in culture, consumer tastes
    and market demands. Often managers
    assume that their methods are both best
    and acceptable to all others. Fortunately,
    this is not true. What a boring place the
    world would be if it were!
 Despite the reservations firms have,
 research is as important internationally as
 it is domestically. Firms must learn where
 the opportunities are, what customers
 want , why they want it, and how they
 satisfy their needs and wants so that the
 firm can serve them efficiently.
       Firms must obtain information about
    the local infrastructure, labor market, and
    tax rules before making a plant location
    decision. Doing business abroad without
    the benefit of search places firms , their
    assets, and their entire international future
    at risk.
           Types of data
 1, Geographical parameters
 ♣ Total GDP
 ♣ GDP per capita
 ♣ Economic trends
 ♣ Balance of payments position: future
  foreign exchange problem.
 ♣ Tariff and non-tariff barriers.
 ♣ Exchange controls.
 ♣ Structure of imports by value and
  ♣ Rates of growth of imports.
 ♣ Growth rates of market sectors,
  especially those that represent attractive
 ♣ Political stability.
 ♣ Government controls and attitudes
  towards business.
 ♣ Consumer expenditure by volume and
  product category.
 ♣ Rate of investment in fixed capital and
  industrial equipment.
 ♣ Wage rates by gender and occupational
  ♣ Number of doctors per 1,000 population
 ♣ Legal constraint on business, and
  internal restrictions on trade.
 ♣ quality of , and ease of entry to,
  distribution channels.
 ♣ Competitors’ prices.
        2,Total population
 ♫ Proportion of population within each
  age range and income group.
 ♫ Ratio of urban to rural dwellers.
 ♫ Occupational breakdown of working
 ♫ Population growth rate.
 ♫ Lifestyle analysis.
 ♫ Consumer tastes
 ♫ Average family size
 ♫ Average age of dwellings by region
 ♫ Religious groupings
 ♫ Languages
 ♫ Literacy rates
 ♫ Schooling and length of time spent in
 ♫ Health care availability
 ♫ Mortality rates
 ♫ Per capita expenditure on medical
 ♫ Debt collecting facilities
 ♫ Transport infrastructure
 ♫ Advertising costs

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