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International Marketing MC5059NI Week 1 Lecture

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Lecturer details and contacts Rajan Thapa MBA from Kaplan Financial, London. Affiliated to Liverpool John Moores University. ACCA from Kaplan financial. Email: rajan.thapa@islingtoncollege.edu.np

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Contents Module aims and objectives Module capabilities and learning outcomes Module outline Reading list Teaching and learning methods Module assessment Introduction to international marketing

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Aims and objectives Understand the nature, scope and role of marketing in global firms operating in international markets Assist students in developing a global practical perspective on the commercial marketplace and the environmental factors which impact upon it

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Aims and objectives (contd..) Assist students in developing the range of analytical, digital, evaluative, reflective, communication and creative skills required to support marketing decision-making internationally.

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Learning outcomes Upon completion of the International Marketing module, students will be able to: Explain the differences between domestic and international marketing and the context in which international marketing decisions are taken Understand the diversity of international markets and the range of political, economic, cultural, technological and competitive environmental influences bearing upon them

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Learning outcomes (contd..) Understand how businesses of various sizes implement and evaluate their marketing mix strategies simultaneously in multiple dynamic environments Prepare and communicate the results of an international market analysis Develop a critical, analytical, flexible, entrepreneurial, global, ethical and creative mind-set

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Module outline Introduction to international marketing Initiation of internationalisation Theories of internationalisation Development of the firms international competitiveness Cross-cultural consumer research International Marketing Environment Classification and analysis of global cultures and consumer behaviour International market selection and segmentation 1.International positioning strategies 2. Market entry Strategies (Part I) - Export modes Market entry strategies (Part II) -Intermediate modes -Hierarchical modes

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Reading and case studies We will follow the case studies as mentioned in the module booklet of LMU.

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Reading list Main textbook: - Hollensen, S. (2010) Global Marketing, A Decision-Oriented Approach, 5th edition, London: FT/Prentice Hall, Pearson Education Ltd Kotabe M. and Helsen K. (2011) Global Marketing Management, 5th Edition, John Wiley & Sons Inc.

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Where to get the notes from??? Fserver

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Teaching and Learning methods Total study hours= 300 hrs. Scheduled learning and teaching activities= 99 hrs. This includes lectures and seminars and directed activities. Guided independent study= 201 hrs.

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Module assessment components TypeWeightingDue weekDescription Group presentation10%8Group presentation Group coursework30%8Group report Coursework60%As per the university Three hours unseen written exam

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Assessment strategy GROUP PRESENTATION This 10 minute group presentation which takes place in week 8 assesses students ability to synthesise and summarise the written project and to present in a concise and coherent manner the key factors which have contributed to their final group decision with regards to the three foreign markets. This presentation is worth 10% of the overall module mark.

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Assessment strategy GROUP REPORT Details: The 1500 words in-course assessment requires students to identify, analyse and evaluate 3 (three) international markets of their choice (however, they cannot pick the United Kingdom as one of them) for a given product/service and justify their recommendations by using appropriate marketing theory. Their home country is the UK and their products are to be marketed outside the UK. This assignment invites groups of 3 students to carry out extensive additional secondary research for many weeks in order to identify those markets, analyse the necessary environments, rank them, and reflect upon the manufacturers need to consider their return on investment (ROI). The product range/line/category is allocated to each group in week 5, when the teams are formed. From then onwards the groups meet up weekly outside as well as in class and work on this entrepreneurial project. All groups will submit a diary of meetings as well as a team role sheet.

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Assessment strategy Examination Three hour. To recognize key theoretical constructs, Apply them to a range of hypothetical and real world situations derived from material covered during the teaching programme and Show awareness of recent developments in the global economy

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Introduction to International Marketing

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Learning Objectives Distinguish between domestic, international marketing and global marketing Explain the evolution of global marketing based on the EPRG framework Identify drivers for global integration and market responsiveness Explain the regionalisation alternative to globalisation

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MARKETING- REVIEW OF WHAT YOU LEARNT ON PREVIOUS MODULE 1.What is Marketing? 2.The Marketing Mix 3.The Marketing Environment 4.The Marketing Planning Process 5. Buyer Behaviour 6. Marketing Segmentation

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Domestic marketing vs. international marketing

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DOMESTIC MARKETING Focus on domestic sales and markets Relatively homogenous market Data usually available and relatively easy to collect Uniform financial climate Single currency Limited scope with reduced competition

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DOMESTIC MARKETING (CONTD..) Within domestic markets, both domestic and international companies can be found trading What are the advantage for domestic companies compared to those of international? Taxes and tariffs, or face regulatory barriers, Domestic companies receive assistance like tax credits from the government.

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DOMESTIC MARKETING (CONTD..) What should the country do.keep supporting the domestic companies or allow international companies to operate more freely? There should be balance

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INTERNATIONAL MARKETING Fragmented and diverse markets Data collection formidable task, requiring higher budget Political factors frequently vital Variety of financial climates Currencies differing in real value and stability

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INTERNATIONAL MARKETING (CONTD..) Identifying needs and wants of customers in different countries and cultures, Providing products/services, technologies and ideas To give the firm a competitive marketing advantage (Bradley, 2005)

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REASONS FOR GOING GLOBAL Saturation of domestic markets Emerging markets Global competition Global co-operation Internet revolution

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STAY AT HOME OR GO GLOBAL? SLOBERG (1997) says that the firms decision to stay at home or to go abroad depends on the two dimensions; Industry globalism and Firm preparedness for internationalization

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SOLBERG NINE STRATEGIC WINDOWS Solberg (1997)

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EVOLUTION OF GLOBAL MARKETING worldview of a firms business activities can be described as the EPRG framework (Perlmutter, 1969; Chakravarthy and Perlmutter, 1985). Its four orientations are 1.Ethnocentric 2.Polycentric 3.Regiocentric 4.geocentric

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ETHNOCENTRIC The home country is superior and the needs of the home country are most relevant Controls are highly centralized The organization and technology implemented in foreign locations will essentially be the same as in the home country. Assumes products and practices that succeed at home will be successful everywhere Leads to a standardized or extension approach E.g. export marketing.

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POLYCENTRIC (MULTI DOMESTIC) Each country is unique and therefore should be targeted in a different way Adapts to the different condition of production and marketing in different location to maximize profit in each location. This leads to localised product. Control with affiliates is highly decentralized and The communication between them are also limited.

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REGIOCENTRIC (MULTINATIONAL) The world consists of regions (e.g. Europe, Asia, the Middle East). The firm tries to integrate and coordinate its marketing programme within regions, but not across them. E.g. The NAFTA or European Union market Some companies serve markets throughout the world but on a regional basis Ex: General Motors had four regions for decades: GMNA:GM North America GME : GM Europe GMLAAM: GM Latin America/Africa/Mid-East GMAP: GM AsiaPacific

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GEOCENTRIC (GLOBAL) Entire world is a potential market Strives for integrated global strategies Also known as a global or transnational company Retains an association with the headquarters country Pursues serving world markets from a single country or sources globally to focus on selected country markets Leads to a combination of extension and adaptation elements Think global, act local

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GLOBAL MARKETING Global marketing is defined as the firms commitment to coordinate its marketing activities across national boundaries in order to find and satisfy global customer needs better than the competition. This implies that the firm is able to: develop a global marketing strategy, based on similarities and differences between markets; exploit the knowledge of the headquarters (home organization) through worldwide diffusion (learning) and adaptations; transfer knowledge and best practices from any of its markets and use them in other international markets.

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GLOCALISATION refers to the development and selling of products or services intended for the global market, but adapted to suit local culture and behaviour (think globally, act locally, and manage regionally). E.g. Coca-Cola is both global and local Source: Hollensen (2011)

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The principle of transferring knowledge and learning across borders Source : Hollensen (2011)

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GLOBAL INTEGRATION VS MARKET RESPONSIVENESS

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GLOBAL INTEGRATION/ MARKET RESPONSIVENESS MATRIX

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FORCES FOR GLOBAL INTEGRATION REMOVAL OF TRADE BARRIERS (DEREGULATION) GLOBAL CUSTOMERS RELATIONSHIP MANAGEMENT/NETWORK ORGANIZATION STANDARDIZED WORLD WIDE TECHNOLOGY WORLDWIDE MARKETS GLOBAL VILLAGE WORLDWIDE COMMUNICATION GLOBAL COST DRIVERS

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FORCES FOR MARKET RESPONSIVENESS CULTURAL DIFFERENCES REGIONALISM/PROTECTIONISM DEGLOBALIZATION TREND

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THANK YOU

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ANY QUERRIES????