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					‫بروامه بازاریابی بیه الملل‬
‫‪International Marketing Plan‬‬

                   ‫محمد رضا طبیبی‬
    ‫استادیار گروه مدیریت بازرگاوی داوشگاه مازودران‬
  ‫مدیر گروه بازاریابی موسسه مطالعات و پژوهص های‬
                       ‫بازرگاوی‬
               ‫‪Mreza.tabibi@gmail.com‬‬
                                                     ‫1‬
Course content
   Introduction: scope ,nature and rationales of international

    marketing

   international marketing process

   International marketing environment

   The cultural environment and communication

   Screening, market selection and plan

   Market entry strategies

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                                  ‫محمد رضا طبیبی‬                  2
‫‪Introduction‬‬




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                   ‫محمد رضا طبیبی‬       ‫3‬
Deciding Whether to Go Global


   Reasons to consider going global:
       Foreign attacks on domestic markets
       Foreign markets with higher profit opportunities
       Stagnant or shrinking domestic markets
       Need larger customer base to achieve economies
        of scale
       Reduce dependency on single market
       Follow customers who are expanding

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                             ‫محمد رضا طبیبی‬            4
International Marketing
   Process of planning and executing the
    conception, pricing, promotion, and
    distribution of ideas, goods, and services
    across national boundaries in order to create
    exchanges that satisfy individual and
    organizational objectives




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                         ‫محمد رضا طبیبی‬             5
International Marketing

                IS CHARACTERISED BY:
   unfamiliar business environments
   much less control over the ‗mix‘
   much greater planning complexity

   IT FOLLOWS THAT:
    International marketing staff must be capable of more complex work
    and possess broader knowledge
                                                                    Fred Robins




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                                  ‫محمد رضا طبیبی‬                             6
The International Marketing Task
                                Foreign environment
                                 (uncontrollables)
               Political/legal       1            Economic
                  forces                           forces
                             Domestic environment
                               (uncontrollables)         2                      Environmental
               7                                                                 uncontrollables
                   Political/                           Competitive               country market A
                     legal                               structure
    Cultural        forces            (controllables)
                                                                      Competitive
    forces                                                              Forces           Environmental
                                    Price      Product                                    uncontrollables
                                                                                          country
                                                                         3               market B
                            Promotion Channels of
                                      distribution
          6                                                                                   Environmental
                                                                                             uncontrollables
                                                                                            country
       Geography                                                   Level of                market C
           and                      Economic climate             Technology
      Infrastructure
                                                             4
                                5
                                       Structure of
                                       distribution
                                            ‫مرکس آموزش های کاربردی‬             © The McGraw-Hill Companies, Inc., 1999
                                                ‫محمد رضا طبیبی‬                                                7
In each case, the international
marketing strategy should:
   Support the firm‘s overall business strategy
    (differentiation, cost leadership, focus)
   Be consistent with the firm‘s managerial
    philosophy (ethnocentric, polycentric,
    geocentric)
   Be sensitive to local conditions in the host
    country: economic conditions, income,
    competition, exchange rates, culture, laws

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    International Marketing and
    Managerial Philosophy


   International marketing should be consistent
    with the firm‘s managerial philosophy.




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                         ‫محمد رضا طبیبی‬            9
Standardization vs. Customization

   Use domestic approach world-wide?
    (ethnocentric)
   Customize product to meet needs of local
    market? (polycentric)
   Use a standardized approach world-wide?
    (one sight, one sound, one sell) (geocentric)




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                          ‫محمد رضا طبیبی‬            10
‫‪international marketing process‬‬




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                   ‫محمد رضا طبیبی‬       ‫11‬
Major International Marketing
Decisions




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                   ‫محمد رضا طبیبی‬       12
 Evolution of global marketing
                                                                     International,
                              Global Marketing                  multinational ,world as
                                                                        market
                                                          Many markets, consolidation on
                     Multinational Marketing                     regional basis

                                                Markets in many countries use of
           International Marketing                  multidomestic marketing



       Export Marketing            Indirect vs direct exporting , country choice,
                                         exports, home country customers


Domestic Marketing             Domestic focus, home country
                                        customers

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                                     ‫محمد رضا طبیبی‬                                   13
International marketing environment




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                  ‫محمد رضا طبیبی‬       14
Dimensions
Physical Environment
   Climate, topography, resources
               US has big products…

Economic Environment
   Population, industry structure, stage of development
               Lack of wholesalers in developing countries
Cultural Environment
   Language
   Attitudes
   Time Concepts
   Space Concepts
   How business is conducted
   Friendship

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                                   ‫محمد رضا طبیبی‬            15
Emerging Markets



As economies grow, markets become different,
        larger, and more demanding.




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Economic Development

   Economic Development is generally
    understood to mean an increase in national
    production that results in an increase in the
    average per capita gross domestic product
    (GDP).




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                          ‫محمد رضا طبیبی‬            17
Looking at the Global Marketing Environment


          The International Trade System:
    Restrictions—tariffs, quotas, embargos, exchange
          controls, and non-tariff trade barriers.


     The World Trade Organization and GATT:
   Helps Trade—reduces tariffs and other international
                   trade barriers.


             Regional Free Trade Zones:
  Groups of nations organized to work toward common
     goals in the regulation of international trade.
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Political-Legal Environment


   Attitudes Toward International Buying


         Government Bureaucracy


             Political Stability


           Monetary Regulations
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                        ‫محمد رضا طبیبی‬       19
The cultural environment and
communication




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                  ‫محمد رضا طبیبی‬       20
Culture is, ―everything that
people have, think, and do as
members of their society.‖
        Gary P. Ferraro, The Cultural Dimension of International Business, 3rd ed. (Englewood
    ,Cliffs, NJ: Prentice Hall, 1997), p. 16




                                                                                                21
Three Layers of Culture
Source: Andre Laurent, Human Resource Management, 25(1), 1986, pp.91-102.




                                               BEHAVIOUR
                                        Observable, manifest;
                                           eg. Looking at the watch
                                           eg. Banging on the table
                VALUES, BELIEFS, PREFERENCES
                                             Explict, declared;
                                              eg. Time is money
                                         eg. Authority has to prevail
        BASIC ASSUMPTIONS AND MEANING
                  Invisible, unconscious, taken for granted;
                                               eg. Time is limited
                                              eg. All men are equal           Fred Robins


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                                                         ‫محمد رضا طبیبی‬                     22
Cultural Adaptation

People with cultural skills can:
      Communicate respect and convey verbally and
       nonverbally a positive regard and sincere interest in
       people and their culture.

      Tolerate ambiguity and cope with cultural differences and
       the frustration that frequently develops when things are
       different and circumstances change.

      Display empathy by understanding other people‘s needs
       and differences from their point of view.




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                                ‫محمد رضا طبیبی‬                     23
Cultural Adaptation

People with cultural skills can:
     Be nonjudgmental by not judging the behavior of others by
      their own value standards.

     Recognize their own culture and value standards.

     Laugh things off – a good sense of humor helps when
      frustration levels rise and things do not work as planned.




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                               ‫محمد رضا طبیبی‬                      24
Hofstede‘s Cultural Dimensions

   Individualism (vs. collectivism)              Based on interviews with
   Power distance                                IBM executives throughout
   Masculine vs. feminine                        the World--1980s
   Strong vs. weak uncertainty
    avoidance
   Short vs. long term orientation
    (Confucianist dynamics)
       ―The Foolish Old Man Who Moved
        the Mountain‖




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                                 ‫محمد رضا طبیبی‬                           25
Eastern vs. Western Culture

   Differences in
       Values
       Perceptions of
            Objects
            Reality
                 Stability vs. change
                 Control
       Perceived roles




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                                       ‫محمد رضا طبیبی‬       26
                                Source: Richard E. Nisbett, The Geography of Thought: How Asians and
                                Westeners Think Differently … and Why, New York, 2003, The Free Press

Values
Issue                Western Value                                 Eastern Value
Distinctiveness of   Want to be distinctive                        Not valued; emphasis on
people                                                             tie to group
Perceived control    Significant; values determine                 Modest—societal values
                     choices                                       are already established
Emphasis             Success and achievement;                      Best outcome for relevant
                     relationships may get in the way              group (e.g., family, work
                                                                   group)
Self-esteem          Strive to feel good; assurances               Tied to belonging with
                     wanted                                        group
Relationships        Equality or superior position                 Clearly defined;
                                                                   hierarchical
Rules                Same rules apply to all                       Depend on context and
                                                                   relationship

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                                       ‫محمد رضا طبیبی‬                                                   27
Cultural Lessons
   Diet Coke is named Light Coke in Japan--dieting
    was not well regarded
   Red circle trademark was unpopular in Asia due to
    its resemblance of Japanese flag
   Packaging of products is more important in some
    countries than in U.S.
   Advertisement featuring man and dog failed in
    Africa--dogs were not seem as man‘s best friend




                       ‫مرکس آموزش های کاربردی‬
                           ‫محمد رضا طبیبی‬               28
Screening, market selection and plan




              ‫مرکس آموزش های کاربردی‬
                  ‫محمد رضا طبیبی‬       29
Deciding Which Markets to Enter

   Before going abroad, the company should try to define its
    international marketing objectives and policies.


       What Volume of Foreign Sales is Desired?

            How Many Countries to Market In?

            What Types of Countries to Enter?

     Choose Possible Countries and Rank Based on
      Market Size, Market Growth, Cost of Doing
                               Advantage, and Risk Level
    Business, Competitive ‫مرکس آموزش های‬
                       ‫کاربردی‬
                               ‫محمد رضا طبیبی‬                   30
Choosing Potential Markets

   Trade Statistics
   Industry publications, trade associations
   Market research
   Previous inquiries
   Competition
   Complimentary products



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                          ‫محمد رضا طبیبی‬        31
Assessing Target Markets

   Consumption, local production, international
    competition
   Market growth
   Distribution
   Barriers to entry
   Industry specific indicators
   General country information & risk…



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                         ‫محمد رضا طبیبی‬            32
The elements of the marketing mix
       for international firms




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                ‫محمد رضا طبیبی‬       33
Deciding on the Global Marketing Program


   Standardized Marketing Mix:
       Selling largely the same products and using the
        same marketing approaches worldwide.
   Adapted Marketing Mix:
       Producer adjusts the marketing mix elements to
        each target market, bearing more costs but
        hoping for a larger market share and return.




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                             ‫محمد رضا طبیبی‬               34
Global Product Strategies

   Straight Product Extension:
       Marketing a product in a foreign market without
        any change.
   Product Adaptation:
       Adapting a product to meet local conditions or
        wants in foreign markets.
   Product Invention:
       Creating new products or services for foreign
        markets.
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                             ‫محمد رضا طبیبی‬               35
Standardize or Customize?
Why standardize?                          Why customize?
   Efficiency in R&D                          Reflects varying conditions
   EOS in production                           of product use
   Promotes lower marketing                   Allows for local legal
    costs                                       differences
   Allows centralized control of              Takes account of differences
    the marketing program                       in buyer‘s behavioral
   Reflects the trend to a single              patterns
    world market (eg., Triad,                  Promotes local initiative and
    globalization)                              motivation in implementing a
                                                marketing program
                                               Allows for closer adherence
                                                to the needs of individual
                                                markets
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                                 ‫محمد رضا طبیبی‬                                 36
Global Promotion Strategies

   Can use a standardized theme globally, but
    may have to make adjustments for language
    or cultural differences.
   Communication Adaptation:
       Fully adapting an advertising message for local
        markets.
   Changes may have to be made due to media
    availability.

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                             ‫محمد رضا طبیبی‬               37
Global Pricing Strategies

   Pricing directly impacts on a firm‘s revenues, and
    pricing policies serve as an important strategic
    competitive weapon.
   The task of pricing is complex in international firms
    because the cost of doing business varies from
    country to country, as do transportation costs and
    differences in distribution systems.
   In addition, pricing can be affected by fluctuating
    exchange rates


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                             ‫محمد رضا طبیبی‬                 38
Global Pricing Strategies

   International firms typically use one of the
    three pricing policies:
       standard pricing,
       two-tiered pricing, or
       market pricing.




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                               ‫محمد رضا طبیبی‬       39
Standard Price Policy

   A standard price policy occurs where the
    same price is charged for products
    regardless of where they are sold.
   This policy is usually used by a firm following
    a geocentric approach to marketing.
   Firms following this policy may sell highly
    visible products that permit easy price
    comparisons, or they may sell commodity
    products in competitive markets
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                          ‫محمد رضا طبیبی‬              40
Two-tiered Pricing Policy

   A company following a two-tiered pricing policy sets
    one price for all domestic sales, and a second price
    is set for all international sales.
   This policy is usually adopted by firms following an
    ethnocentric approach to marketing.
   This type of policy is frequently followed by firms
    that are at the start of the internationalisation
    process and may create a situation where the firm is
    vulnerable to dumping charges.


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                            ‫محمد رضا طبیبی‬             41
Market Pricing Policy

   A firm following a market pricing policy
    calculates and then charges the profit
    maximising price in each market it services.
   This is usually used by firms following a
    polycentric approach to marketing.
   For this practice to be successful, the firm
    must face different demand and/or cost
    conditions in each country it serves, and the
    firm must be able to prevent arbitrage from
    occurring
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                          ‫محمد رضا طبیبی‬            42
Market Pricing Policy

Problems:
 The firm must be able to segment markets
  and prevent arbitrage between them,
  otherwise will be gray market (legal imports
  but outside normal distribution channels).
 May have dumping complaints in importing
  country.
 May damage brand name (due to lower price)


                   ‫مرکس آموزش های کاربردی‬
                       ‫محمد رضا طبیبی‬        43
Figure 16.3 Determining the profit-maximising price




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                          ‫محمد رضا طبیبی‬              44
Global Promotion Strategies
Promotion: All efforts by the firm to enhance
the desirability of its product to potential
buyers. Involves communication with host
country audiences, so is most culture-bound
of the four P‘s.
The promotion mix includes: advertising,
personal selling, sales promotion, and public
relations.

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                     ‫محمد رضا طبیبی‬         45
(1) Advertising
 Message firm wants to convey

 Medium: Types of media (communication
  channels) available to convey message
 Extent firm wants to globalize its advertising
  effort (global or local or regional strategy?)




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                         ‫محمد رضا طبیبی‬            46
(2) Personal Selling
 Making sales on the basis of personal
  contacts through sales representatives.
  Can hire local sales reps. Advantages:
  know local culture, close contact with
  customers, easier to get market
  information. Disadvantages: relatively
  high cost, may need regional office to
  provide support personnel.



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                      ‫محمد رضا طبیبی‬        47
(3) Sales Promotion
 Specialized marketing efforts such as in-
  store promotions, coupons, samples,
  direct mail campaigns, attending trade
  fairs.
(4) Public Relations
 Efforts to enhance firm‘s reputation and
  image with the general public, convince
  public that the firm is a ―good corporate
  citizen.‖ Need to win political allies and
  lobby governments. See as ―insider‖ in
  foreign market.

                   ‫مرکس آموزش های کاربردی‬
                       ‫محمد رضا طبیبی‬          48
Five Global Product and Promotion
Strategies




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                    ‫محمد رضا طبیبی‬       49
    Global Place/distribution Strategies
       Place/distribution refers to (1) the
    problem of physically transporting products
    from where they are made to where they are
    sold, and (2) selecting the means by which
    the firm will merchandise its products in those
    markets.




                      ‫مرکس آموزش های کاربردی‬
                          ‫محمد رضا طبیبی‬          50
‫‪Distribution channel options‬‬




           ‫مرکس آموزش های کاربردی‬
               ‫محمد رضا طبیبی‬       ‫15‬
Whole-Channel Concept for International
Marketing




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                    ‫محمد رضا طبیبی‬        52
Scope of Marketing Planning

   Marketing Strategy;         by product + by market
    [ selection, resource commitment, positioning ]

   The Marketing Mix; by product + by market
    [ The 4P‘s: product, price, placement, promotion ]

   Standardisation / Adaptation of Mix
    [ global integration versus local responsiveness ]

                                                         Fred Robins




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                                 ‫محمد رضا طبیبی‬                 53
Western Marketing Planning
Source: Malcolm McDonald




       The Main Steps
             Step     1    Mission statement
             Step     2    Corporate objective
             Step     3    Marketing audit
             Step     4    SWOT analysis
             Step     5    Assumptions
             Step     6    Marketing objectives and strategies
             Step     7    Estimation of expected results
             Step     8    Identification of alternative plans and mixes
             Step     9    Budget
             Step     10   Detail of implementation in first year
                                         ‫مرکس آموزش های کاربردی‬             Fred Robins
                                             ‫محمد رضا طبیبی‬                               54
Japanese Marketing Planning
Source: Warren Keegan




                        The Japanese approach is strategic:
       Defining the Business
                             The Philosophy of the Business
                             Product / Market Scope - focus and commitment
                             Selection of Products / Markets / Segments
                             The Technologies to be Mastered
       Determining Goals / Objectives
       Targeting
       Market Objectives
                             Learning
                             Entry
                             Takeover
                             Holding
       Functional Strategies - The Marketing Mix
                                                                              Fred Robins
                                         ‫مرکس آموزش های کاربردی‬
                                             ‫محمد رضا طبیبی‬                                 55
‫‪Market entry strategies‬‬




       ‫مرکس آموزش های کاربردی‬
           ‫محمد رضا طبیبی‬       ‫65‬
           Market entry strategies

(1) Selection of Transportation Mode(s)
 Tradeoff of time versus money: faster modes
  - higher cost. Choice influenced by perish
  ability of product, packaging requirements,
  exposure to damage.
 Choice affects stock of inventory that must be
  held, and the length of the international order
  cycle time (from placing an order to customer
  taking delivery).
                    ‫مرکس آموزش های کاربردی‬
                        ‫محمد رضا طبیبی‬          57
Criteria for Assessing Market Entry
Methods ( Casson & Buckley
   Dissemination risk- stealing technology / know how
   Degree of control
   Resource commitment- how much are you willing to
    commit ?
   Degree of flexibility- what can you do if do not
    reach your sales/ profit plan
   Integration- to what extent must your new venture
    be integrated with existing operations ?
   Credibility- are your skills/ brands tranferrable?

                       ‫مرکس آموزش های کاربردی‬
                           ‫محمد رضا طبیبی‬            58
‫‪Market Entry Strategies‬‬




               ‫مرکس آموزش های کاربردی‬
                   ‫محمد رضا طبیبی‬       ‫95‬
Market Entry Strategies


   Exporting:
       Indirect: working through independent
        international marketing intermediaries.
       Direct: company handles its own exports.




                         ‫مرکس آموزش های کاربردی‬
                             ‫محمد رضا طبیبی‬        60
Market entry strategies-Export



   Low risk. Good way to test market without high investment
   Direct or indirect. Indirect is selling via distributor in home market.
    Direct is selling direct to distributor / retailer in other market
   Distributor agreements should be made covering eg.sales
    targets/volumes, distribution, A&P expenses. Distributors have
    local knowledge and established distribution network, and sales
    teams
   In- Market experience not gained
   Direct to retailers..but how many can you reach ? Eg Export to
    Spar & Billa , but do you need KAM ?




                               ‫مرکس آموزش های کاربردی‬
                                   ‫محمد رضا طبیبی‬                        61
Market entry strategies-Web



    Can be low risk. Can be very attractive for
    small businesses
   Good for high ticket / low transport cost items
   Brand reputation important ( Lands End)
   Books,tickets,wines, clothes, drugs, music
   Not practical for many businesses (
    Fmcg/services)



                          ‫مرکس آموزش های کاربردی‬
                              ‫محمد رضا طبیبی‬       62
Market Entry Strategies

   Joint Venturing:
       Joining with foreign companies to produce or
        market products or services.
   Approaches:
       Licensing
       Contract manufacturing
       Management contracting
       Joint ownership

                         ‫مرکس آموزش های کاربردی‬
                             ‫محمد رضا طبیبی‬            63
Market entry strategies-JV



   Joint Venture-Pooling of assets or knowledge by two or more
    firms who share joint ownership and control over the results of
    the pooling ( Kumar 1997 )
   Share risks & control
   Two parties form a third company in which they both own shares
    The parties contribute ;Local knowledge , connections of local
    partner, with skills , brands ,knowledge of international brand
    owner .ALSO capital, factories, equipment,from both / either side
   It is a marriage ! ( P&G in China with HWL )




                             ‫مرکس آموزش های کاربردی‬
                                 ‫محمد رضا طبیبی‬                     64
Market entry strategies-JV



   What does the JV partner offer you
        legal entry
       capital ( Coke Anchor bottlers,

       local connections ( telecoms, )

       manufacturing , logistics, sales network ( beer, frozen
         pizza )
   It is a marriage ! ( P&G in China with HWL )




                             ‫مرکس آموزش های کاربردی‬
                                 ‫محمد رضا طبیبی‬                   65
Licensing

   License brand name, patent, technology
   Must have known brand name or invest in marketing
   Receive royalty or fee ( 2-10 % turnover )
   No capital needed .Can be faster .
   Good when import restrictions,foreign ownership
    concerns
   Licensing /contract pack production when
       high transport/selling price ratio ( beer, juice,SD)




                              ‫مرکس آموزش های کاربردی‬
                                  ‫محمد رضا طبیبی‬               66
Licensing

   Cartoon / films eg Jurassic Park had 690 licensees
    covering 5000 products, with over $1 bn in retail
    sales
   License details trademark rights, copyrights,
    conditions of use, geography,conditions of use of
    characters, level of exclusivity,performance,
    payment conditions, approval procedures




                        ‫مرکس آموزش های کاربردی‬
                            ‫محمد رضا طبیبی‬               67
Licensing

   Problems with
       Finding good quality partners
       Stealing technology eg Meiji
       Brand name devaluation
       No knowledge gained of a market
       Returns lower




                        ‫مرکس آموزش های کاربردی‬
                            ‫محمد رضا طبیبی‬       68
Franchising

 As licensing but also can include
  systems, management services,
  controlling
 Often used in the service sector
  eg.Fast food,soft drinks,motels,car
  rentals,windscreens, copy shops

               ‫مرکس آموزش های کاربردی‬
                   ‫محمد رضا طبیبی‬       69
Management contracts-MNC

MNC provides key personnel to operate business for a
 fee, until local staff are trained




                     ‫مرکس آموزش های کاربردی‬
                         ‫محمد رضا طبیبی‬            70
Direct Investment

   The development of foreign-based assembly
    or manufacturing facilities
   This approach has both advantages and
    disadvantages.




                    ‫مرکس آموزش های کاربردی‬
                        ‫محمد رضا طبیبی‬          71
Market entry strategies-DFI

   100% owned- a subsidiary
   Higher risks, slower , but can always make an
    acquisition if you wish to more quickly enter the
    market
   Acquisition risks
   A subsidiary can take many forms.
       Marketing only ( Company only , with / without staff) eg
        Nike
       Sales company ( sales office & staff )
       Sales & distribution ( plus warehousing / vehicles)
       S & D plus sub – contract manufacture
       S & D & manufacturing

                             ‫مرکس آموزش های کاربردی‬
                                 ‫محمد رضا طبیبی‬                    72
Ownership v control




                                                 100 % owned
                                                     &SIA


                                  JV

                                                 Management
            Licensing      franchising            contract




                        ‫مرکس آموزش های کاربردی‬
                            ‫محمد رضا طبیبی‬                     73
‫‪Payment and Export terms‬‬




        ‫مرکس آموزش های کاربردی‬
            ‫محمد رضا طبیبی‬       ‫47‬
     Overview of an Export Transaction


   The foreign buyer
   Negotiating costs
       Goods
       Incoterms – who‘s responsible for what?
       Method of payment – costs?
       Pro Forma Invoice
       How to ship? Associated costs

                       ‫مرکس آموزش های کاربردی‬
                           ‫محمد رضا طبیبی‬         75
       Pro Forma
       Invoice
   Becomes the sales
    contract
   Spells out the details of
    seller & buyer
    responsibilities
   Eliminate
    misunderstandings
   Buyer may use to get
    import license
   You will know your costs



                           ‫مرکس آموزش های کاربردی‬
                               ‫محمد رضا طبیبی‬       76
Shipping the goods

   Documentation
       U.S.: Shippers Export Declaration
           Harmonized System (HS) Schedule B numbers
           Electronic filing through AES
           Export license?
       Foreign side
           Certificate of Origin?
           Invoice
           Import Permit?
   Labeling


                                 ‫مرکس آموزش های کاربردی‬
                                     ‫محمد رضا طبیبی‬       77
Payment Methods

   Prepayments (advanced payment)
   Documentary letter of credits (L/C)
   Documentary Collections
   Open Accounts
   Consignments




                      ‫مرکس آموزش های کاربردی‬
                          ‫محمد رضا طبیبی‬       78
Payment Methods

   Method 1: Prepayments
       Time of payment : Before shipment
       Goods available to buyers : After payment
       Risk to exporter : none
       Risk to importer : complete
   Method 2: Letters of credit (L/C)
       Issued by a bank on behalf the importer promising to pay
        the exporter upon presentation of the shipping documents.
       Time of payment : When shipment is made
       Goods available to buyers : After payment
       Risk to exporter : Very little or none
       Risk to importer : Very little or none
                             ‫مرکس آموزش های کاربردی‬
                                 ‫محمد رضا طبیبی‬                     79
‫‪Types of L/C‬‬




   ‫مرکس آموزش های کاربردی‬
       ‫محمد رضا طبیبی‬       ‫08‬
 Documentary credit Procedures
                              1.Sale contract

         Importer                                                 Exporter
                              5.Deliver Goods

                   8.                                          6.               4.
    2.
               Documents                                    Present           Deliver
Request
               & Claim for                                 Documents         Letter of
For credit
                Payment                                                       Credit

                             7.Present Documents
        Importer's                                             Correspondent
          Bank                   9.payment                          Bank

                                3.Send credit



                                  ‫مرکس آموزش های کاربردی‬
                                      ‫محمد رضا طبیبی‬                                     81
‫‪Type of Drafts‬‬




   ‫مرکس آموزش های کاربردی‬
       ‫محمد رضا طبیبی‬       ‫28‬
Payment Methods
   Method 3a: Sight Drafts ( Bill of exchange ) or Documents
    Against payment
     These are unconditional promises drawn by exporter
      instructing the buyer to pay the face amount of the drafts.
     Time of payment : On presentation of draft
     Goods available to buyers : After payment
     Risk to exporter : carries , if draft is unpaid
     Risk to importer : Relies on exporter
   Method 3b: Time Drafts( Bill of exchange) or Documents
    against acceptance
     Time of payment : On maturity of draft
     Goods available to buyers : Before payment
     Risk to exporter : Relies on buyer to pay draft
     Risk to importer : Relies on exporter



                            ‫مرکس آموزش های کاربردی‬
                                ‫محمد رضا طبیبی‬                      83
Payment Methods
   Method 4 : Consignments
       The exporter ships the goods to the importer while still
        retaining actual title to the merchandise.
       Time of payment : At time of sell buy buyer
       Goods available to buyers : Before payment
       Risk to exporter : Allow importer to sell Before paying
       Risk to importer : none
   Method 5 : Open accounts
       The exporter ships the merchandise and expects the buyer
        to remit payment according to agreed-upon terms.
       Time of payment : As agreed upon
       Goods available to buyers : Before payment
       Risk to exporter : Relies completely on buyer
       Risk to importer : none

                              ‫مرکس آموزش های کاربردی‬
                                  ‫محمد رضا طبیبی‬                   84
Export & Import Terminology


 E       F                             C     D



                                       CFR
        FCA                                  DAF
                                       CIF   DES
EXW     FAS                                  DEQ
                                       CPT   DDU
        FOB                                  DDP
                                       CIP




              ‫مرکس آموزش های کاربردی‬
                  ‫محمد رضا طبیبی‬                   85
INCOTerms
                   EXW               FCA        FAS         FOB
Def                EX                Free       Free        Free
C: Customer        Work              carrier    alongside   on
S: Seller                                       ship        board
Method             L,A,R,S L,A,R                Sea         Sea
Loading            C                  S         C           S
Custom clearance   C                  S         C           S
Export license     C                  S         S           S
Freight charge     C                  C         C           C
Insurance          C                  C         C           C
Unloading          C                  C         C           C
Tax                C                  C         C           C
                       ‫مرکس آموزش های کاربردی‬
Custom duty        C                  C
                           ‫محمد رضا طبیبی‬       C           C     86
INCOTerms
                   CFR                 CIF             CPT            CIP




                         Freight
                         Cost &

                                           & Freight
                                           insurance
                                           Cost


                                                           paid to
                                                           Carriage
                                                                      paid to
                                                                      insurance
                                                                      Carriage
Def
C: Customer
S: Seller


Method             Sea                 Sea             L,A,R          L,A,R
Loading            S                   S               S              S
Custom clearance   S                   S               S              S
Export license     S                   S               S              S
Freight charge     S                   S               S              S
Insurance          C                   S               C              S
Unloading          C                   C               C              C
Tax                C ‫آموزش های کاربردی‬C
                                      ‫مرکس‬
                                                       C              C
                          ‫محمد رضا طبیبی‬                                    87
Custom duty        C                   C               C              C
INCOTerms
                     DAF         DES     DEQ
Def                  Delivered Delivered Delivered
C: Customer          at frontier EX-ship Ex- Quay
S: Seller
Method               L,A,R                  Sea   Sea
Loading              S                      S     S
Custom clearance     S                      S     S
Export license       S                      S     S
Freight charge       S                      S     S
Insurance            C                      C     S
Unloading            C                      C     S
Tax                  C                      C     C
                   ‫مرکس آموزش های کاربردی‬
Custom duty          C ‫محمد رضا طبیبی‬       C     C     88
INCOTerms
                                   DDU           DDP
Def                                Delivered     Delivered
C: Customer                        Duty unpaid   Duty paid
S: Seller
Method                             L,A,R         L,A,R
Loading                            S             S
Custom clearance                   S             S
Export license                     S             S
Freight charge                     S             S
Insurance                          S             S
Unloading                          S             S
Tax                                S             S
                   ‫مرکس آموزش های کاربردی‬
Custom duty                        C
                       ‫محمد رضا طبیبی‬            S           89
International business negotiation




             ‫مرکس آموزش های کاربردی‬
                 ‫محمد رضا طبیبی‬       90
Negotiation Content

   Non-task sounding
   Task-related exchange of information
   Persuasion
   Concessions and agreements




                     ‫مرکس آموزش های کاربردی‬
                         ‫محمد رضا طبیبی‬       91
Marketing may mean Negotiating

   Remember that negotiation takes us through all of
    the following sequence:
           FROM            ‗us‘ and ‗them‘
           THRU            culture
           THRU            company
           THRU            character
           THRU            tactics
           THRU            timing
           THRU            talk
           TO              ‗a deal‘
                                                 Fred Robins




                       ‫مرکس آموزش های کاربردی‬
                           ‫محمد رضا طبیبی‬               92
Preparing to Negotiate
Source: Claude Cellich, World Executive’s Digest, February 1997, pp.58/9.




        Know your own position;
                              clearly defined objectives - realistic and prioritised

        Know the other side‘s position
                              not always possible - but you can always ask questions

        Know your competition;
                              competitors are the invisible third party - they influence !

        Know your negotiating limits;
                              know point at which sale becomes unprofitable

        Develop strategies & tactics;                                            planning is critical
                                                                                                         Fred Robins
                                                         ‫مرکس آموزش های کاربردی‬
                                                             ‫محمد رضا طبیبی‬                                            93
Principled Negotiation

             RESTS ON FOUR POINTS:
   Separation of the people from the problem
   Focus on interests, not positions
   Identification of options before trying to reach a
    decision
   Ensuring the result is based on objective criteria
                                                    Fred Robins




                        ‫مرکس آموزش های کاربردی‬
                            ‫محمد رضا طبیبی‬                 94
Debate and Conflict

   ―The first person to raise his voice has lost
    the argument.‖ (Chinese proverb)
   Use of indirection and projection
   Face-to-face vs. anonymous comments
   Western adversarial ―rule of law‖ based on
    consistent universal ideals vs. solution for the
    case at hand in context


                      ‫مرکس آموزش های کاربردی‬
                          ‫محمد رضا طبیبی‬           95
Making use of Hofstede

   High power distance
           makes status appeals effective eg. India, Indonesia
   High uncertainty avoidance
           makes testimonials effective eg. Japan, France
   High collectivism
           so feature groups not individuals eg. Asia generally
   High masculinity
           Means ‗competition‘ and ‗success‘ influence people eg. Japan
   Long-term orientation
           so feature thrift/perseverance/longevity eg.Confucian zone
                                                                           Fred Robins




                                 ‫مرکس آموزش های کاربردی‬
                                     ‫محمد رضا طبیبی‬                               96
The Nature of (Asian) Business


     ― You do not negotiate a contract;
       you do negotiate a relationship ‖

            [ Chinese businessman ]


                                           Fred Robins




                  ‫مرکس آموزش های کاربردی‬
                      ‫محمد رضا طبیبی‬              97
Chinese Negotiation
[ To a Chinese, negotiation is an art form ]




          Negotiation extends well beyond office hours
          Go-slow tactics often deliberate with the impatient
          A signed contract is not an end but a beginning
          There is generally a technical phase before the
           commercial; and often two negotiation teams
          Ask for names, titles and rank in advance
          Chinese expect visitors to make first presentation;
           don‘t like surprises and expect a brief in advance.
                                                                        Fred Robins

                                               ‫مرکس آموزش های کاربردی‬
                                                   ‫محمد رضا طبیبی‬                 98
‫‪Risk management‬‬




    ‫مرکس آموزش های کاربردی‬
        ‫محمد رضا طبیبی‬       ‫99‬
Risk management

   Strategic questions
       Are we facing any risk?
       How serious is it?
       How can we avoid/reduce the risk?




                         ‫مرکس آموزش های کاربردی‬
                             ‫محمد رضا طبیبی‬       100
What is Risk Management

   May be define as a field of activity seeking to
    eliminate , reduce and generally control pure
    risk.
   Risk management is the identification and
    response to potential problems with sufficient
    lead time to avoid a crisis
   Is a process


                      ‫مرکس آموزش های کاربردی‬
                          ‫محمد رضا طبیبی‬          101
Risk management cycle

    Risk                                 Risk

  Monitoring                        Identification




    Risk                                 Risk

  Handling                              Analysis




               ‫مرکس آموزش های کاربردی‬
                   ‫محمد رضا طبیبی‬                    102
How to assess

   First identify the risk
   Then evaluate and estimate the risks,
   See if the risks are acceptable or not
    (meaningful)




                      ‫مرکس آموزش های کاربردی‬
                          ‫محمد رضا طبیبی‬       103
Tools for Identifying Risks

   Checklist (e.g. Boehm's top ten risk list)
   Framework (e.g. McFarlan‘s framework)
   Questionnaires (e.g., Barki, Rivard, And
    Talbot Survey)




                      ‫مرکس آموزش های کاربردی‬
                          ‫محمد رضا طبیبی‬         104
Classification of the Methods

   Qualitative unstructured method (e.g. grand
    tour , expert opinion)
   Qualitative structured method (Delphi
    technique , standardized checklists ,
    scenarios)
   Quantitative method




                     ‫مرکس آموزش های کاربردی‬
                         ‫محمد رضا طبیبی‬           105
Risk Analysis

   For each identified, evaluate the probability of
    occurrence
   For each identified risk evaluate the impact if
    risk should occur
   Prioritize your risk handling effort based on
    both probability and impact




                      ‫مرکس آموزش های کاربردی‬
                          ‫محمد رضا طبیبی‬          106
Assessing impact

   Here we ask : ―What is the damage or impact
    if something does go wrong?
   Three factors can be used to assess impact
       Nature of the risk (i.e. the problems that are likely
        if it occurs)
       Scope of the risk (i.e. when and for how long will
        the impact be felt)



                           ‫مرکس آموزش های کاربردی‬
                               ‫محمد رضا طبیبی‬               107
Risk Matrix Example

Risk     Probability Impact                  Prob *   priority
Factor                                       impact

A        2           5                       10       1


B        4           2                       8        3


C        3           3                       9        2


                    ‫مرکس آموزش های کاربردی‬
                        ‫محمد رضا طبیبی‬                           108
Risk Monitoring

   Should be done periodically
   Useful to regular assess and update project
    risk exposure
   Senior management should involved in
    monitoring and should be aware if exposures
   Listen to the project group



                     ‫مرکس آموزش های کاربردی‬
                         ‫محمد رضا طبیبی‬       109
What is country risk ?

   Political
   Economic
   Financial




                ‫مرکس آموزش های کاربردی‬
                    ‫محمد رضا طبیبی‬       110
Risk management Techniques classified

   Risk avoidance                                Risk spreading
       Exposure limits or                            Geographic
        ceiling                                        Diversification
       Short payback period                          Product/process
                                                       diversification
   Risk prevention
       Plant security                            Risk retention
       Employee protection                           Currency speculation
                                                      Premium for risk
   Risk reduction
       Joint venture                             Risk transfer
       Local borrowing                               All type of insurance
                          ‫مرکس آموزش های کاربردی‬
                              ‫محمد رضا طبیبی‬                              111
‫‪END‬‬

‫.‪Do The Best Impact At The First‬‬




                ‫مرکس آموزش های کاربردی‬
                    ‫محمد رضا طبیبی‬       ‫211‬

				
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