International Marketing

Course Agenda
Session 1. International Marketing Concept
Session 2. International Marketing Environment
Session 3. Foreign Market Entry Strategies
Session 4. Portfolio Strategies
Session 5. Product Decisions
Session 6. Pricing Decisions
Session 7. Promotional Decisions
Session 8. Distribution decisions
Session 9. Marketing-Mix: International Practice
Session 10. Marketing Research and International Marketing Plan

Session 1. International Marketing Concept
Marketing - the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships in a dynamic environment
Marketing – winning and “locking-in” customers

Marketing Concept
A managerial philosophy that an organization exercise so as to satisfy customer needs through a coordinated set of activities, allowing the organization to achieve its goals as well
Industrial Era (1900) - strong demand, efficiency
Sales Era (1920) - weak demand, sales orientation (sell the produced goods)
Marketing Era (1950) - relationship marketing (long-term, mutually satisfying relationships), produce what is needed

International Marketing Definitions
Marketing «over political borders»
Marketing targeted at foreign consumer demands
Key decisions: foreign market entry decision specific market decision strategy decision marketing mix decision (5 «р»)

Famous Marketing Blunders
Otis elevator in USSR- sign said good for sex
Parker Pen (ink) in Latin America - false impression that the product helped preventing pregnancies
Pepsi Cola in Germany- translated from Come Alive with Pepsi to Come out of the Grave with Pepsi
GM in Belgium- translation error made Body by Fisher as Corpse by Fisher

Famous Marketing Blunders
Exxon (gas) in Thailand - used meaningless tiger symbol
Warner-Lampert (mouthwash) in Thailand - depicted love scenes in violation of local customs
McDonald Douglas (aircraft) in India - mistakenly depicted Pakistan people instead of Indians
Goodyear Tire in Germany - made illegal claims of superiority
General Mills (breakfast cereal) in England - appealed to kids

Export Motives
Internal proactive: managerial urge, growth / profit goals, marketing skills, economies of scale, unique product
Internal reactive: risk diversification, excess capacity, extend sales of a seasonable product
External proactive: foreign market opportunities, promoting organizations
External reactive: foreign initiator, home market limitations, stagnant or declining home market, global company attack

Possible Risks
Misunderstanding foreign consumer
Low product competitiveness
Different business culture
Lack of communication skills
Unfamiliar legal environment (extra costs)
Lack of managers with foreign experience
Political, legal, currency risks

Marketing Strategy
Target market - a specific group of buyers whose needs and wants a company focuses its marketing efforts on
Marketing Mix - 4 «P» (+People), firm-controlled marketing activities
Marketing environment - competitive, economic, political, legal, sociocultural, technological factors which face buyers and affect the marketing mix

Global Economy
Internationalization (aspects - world trade, direct investments; drivers - market opportunities, excessive capacity)
Global segments
Blurring (deleting borders among states, industries, goods/services/impressions)
Acceleration of business (trades, product development, order execution; intangible assets; connectivity - people, firms, nations)

Strategic Choice
Global marketing (Coca-Cola, McDonalds, Levi Straus, Marlboro) / Multinational marketing (Unilever 1000 brandnames, P&G)
Logic for standardization - homogeneity of needs, lower prices, higher quality, global segments growth, “one sight, one sound, one sale”, “echo” effect
Logic for adaptation - heterogeneity of needs
Mandatory adaptation - language, differing standards (electrical systems, measurement systems), legislation..
Voluntary adaptation - exporter’s decision
Often- a compromise of the two strategies (“think globally, act locally”)

Case 1. Standardization or Adaptation?

Session 2. International Environment
Economic forces
Culture
Socio-demography
Political/legal forces
Technology
Competition

Economic Environment
Economy structure – “natural economy” countries (self-consumption+exchange), raw components exporters, industry-developing countries (20% processing industry), developed countries
Triad Concept (Golden billion countries) – geographical borders / consumer demand homogeniety
Trends: business megapolisization, “companies-states”

Business System Concept

Cultural Environment
Interpersonal relations: high context - Asia, Arab countries (intuition, power of word, tradition, informal, no contract) low context- Western countries (formal, contract details, external lawyer)
Corporate culture - Hofstede, 1983
Consumption culture
Trend: cross-cultural migration

Socio-Demographic Environment
Population growth - 6,5 bln, consumption growth (=consumer markets?)
Age structure - Mexico/Japan
Ethnic markets- Japan/US (76% - Europeans, 12% - Afro, 9% - Latin, 3% - Asia)
Trends: households structure (singles, couples, 1+children, ОРОР), geographic removals (minorities, urbanization, suburbanization), non-geographic groups, permanent communication, life duration

Political / Legal Environment
Political stability
Role of government (income centralization, state trading volumes, investment policy)
Government controls - license requirements, tariffs, quotas, extra taxes, exchange controls
Promotional activities (financial, information services, export facilitating, private organizations)

Technological Environment
Different standards
Informational systems (internet, intranet, extranet)
Trends: infinitive reach, short life cycle, “small-mini-micro”, “light-weightness”, consumer technological helplessness

Competitive Environment
(Michael Porter’s Model)

Competitive Environment
Competitors - «us or them» / alliances
Potential entrants - «study your industry» / industry blurring
Buyers - well-informed («how much?» / «environmentally friendly?”)
Suppliers – few / many (quality, but power)
Substitutes - changed

Competitive Environment Trends
Soft competition
Small niches
Goods / services / impressions (emotions)
Brand races
False pricing

Brand Values in 2013
Apple — $ 185,071 bln.
Google — $ 113,669 bln.
IBM — $ 112,536 bln.
McDonald’s — $ 90,256 bln.
Coca Cola — $ 78,415 bln.
AT & T — $ 75,507 bln.
Microsoft — $ 69,814 bln.
Marlboro — $ 69,383 bln.
Visa — $ 56,060 bln.
China Mobile — $ 55,368 bln.

Russian Brands
«Сбербанк» (70th place; $ 12,655 млрд.)
МТС (82d place; $ 10,633 млрд.)

Case 2. IKEA’s Expantion in the U.S. Market
What are the reasons behind IKEA'S success in the United States market?
Why is advertising so important in the US market?
What are the risks associated with the kind of TV advertising campaign initiated by IKEA?
Why didn’t “word-of-mouth” work for IKEA?

Session 3. Foreign Market Entry Strategies
Market Selection Methods
PEST-analysis
SWOT-analysis
Market Penetration Strategies
Target Market Segmentation
Competitive Differentiation and Positioning

Foreign Market Entry Goals
Profit
Market share
Market test
Risk diversification
Setting barriers to competitors

Market Selection Methods
Waterfall (the “nearest neighbor” method)
Sprinkler (the most promising countries selection)

First-Rank Criteria
Measurability of segments (size, purchasing power)
Consumer accessibility (language, skills, understanding foreign culture)
Profitability (adaptation cost, tariffs, taxes, cost of resources)
Marketing effectiveness (consumer attitudes, education, feedback profile)

“Sprinkler” Steps
Geographic segmentation - market indicators (barriers), product indicators (barriers), market potential evaluation
Socio-economic segmentation - demand indicators (qualitative, quantitative), supply indicators (competition, distribution, media)
Sales and profitability evaluation - matching to company goals and resources

Indicators of Segmentation
Market indicators (not depend on a specific situation): country (economy, politics, culture, demography, population), consumer (demographic, socio-economic, phsicographic characteristics)
Product indicators: country (economic and legal barriers, market conditions, lifestyle), consumer (behavior - consumption, attitudes, loyalty, benefit)

Market Selection Simple Model

Market Selection Standard Model

PEST-Analysis

SWOT-Analysis

Penetration Strategy:
Concentration vs Diversificaton
t
«Optimal market»
Number of markets
Concentration (“ant”) strategy
Diversification (“bee”) strategy

Concentration vs Diversificaton
(Key Decision)
1) Competitive goal (diversificaton – setting barriers for entrants, concentration - achieving high market share and strong competitive position in a country)
2) Different efforts in marketing (diversificaton - rely on local distributors, concentration - invest in marketing mix, get more control over the market)

Concentration vs. Diversification (Strengths)
Specialization
Market penetration
Market knowledge
Staff experience
Networking
Greater flexibility
Less dependence
Lower risk
Lower costs per country
Concentration
Diversification

Target Market Segmentation
Breaking down the market for a particular product or service into segments of customers that differ in terms of response to marketing strategies
Geographical and demographic criteria
New marketing era (new criteria)
“Segments of one” (personalization)

Positioning
Positioning – creating and retaining a clear product image (perception) in customers’ mind
Which differences are the most significant for customers?
What are the positions of competitors relatively to those differences?
What is the best position?

Positioning modes
Product functions
Advantages, problem solving
Usage method
User category
Relation (comparison) to (with) another product

Competitive profile
Image
Quality

Competitive differentiation
Competitive differentiation – designing differentiating characteristics of a product comparatively to competitors

Competitive differentiation strategies
Product (extra opportunities in usage, effectiveness of usage, design, reliability)
Service (office, transportation, set-up, learning, consultancy, repair…)
Promotion (image, advertising…)
Personnel (dress-code, service culture, visual identity, organizational style…)

Segmentation and positioning steps
Segment the market
Define target segments
Define target customers demands for the product
Design products satisfying those demands
Evaluate positions of competitors within the chosen segments through the eyes of the target customers
Choose differentiation strategies corresponding target customer demands
Design marketing Mix based on the results of positioning and differentiation
Evaluate the probable sales volume of your products

Case 3a. NovoNordisk Segmentation
What is the target market for a pharmaceutical company?

SEGMENTATION of the doctors
approach each
doctor separately
justify price,
approach MOH,
then opinion leaders
SECTORS
SPECIALITY
more detailed information
simpler approach

SEGMENTATION of the doctors (cont’d)
less frequent visits
# of PATIENTS
ATTITUDES
highlight the long term benefits
development of strong relationship
Insulin deficiency related with meals
Emphasis on the nature of the disease during pre-launch

TARGET GROUPS

Case 3b. BENIHANA of TOKYO
Rocky Aoki Story – the first restaurant in New York
Characteristics of an American consumer
Japanese cooking in American style

BENIHANA success factors
Low cost of employees
Low cost of food
Low cost of beverages
Good placing
Aggressive advertising

Cost Structure at BENIHANA

Differentiation at BENIHANA
Lounge (bar)
Large eating space
«Hibachi» table in ancient Japanese village
Small kitchen and warehouse
Experienced Chef for 2 tables (learning)
No waiters
Simple menu (stake, chicken, prawns)

BENIHANA in Moscow

BENIHANA in Moscow

BENIHANA in Moscow

BENIHANA in Moscow

Session 4. Portfolio Strategies
Boston Consulting Group Matrix
General Electric Matrix

Portfolio Analysis (BCG Matrix)
Relative Market Share
Sales growth rate
10%
20%
10x 5x 1x 0,5x 0,1x

Portfolio Analysis (formulas)
SGR = (S1 - S₀) / S₀
RMSc = MSc / MSl
RMSl = MSl / MSf,
S - sales
c – company
l – leader
f – the first follower

Portfolio Analysis (BCG Matrix)
Relative Market Share
Sales growth rate
10%
20%
10x 5x 1,5х 1x 0,5x 0,1x

Portfolio Analysis (BCG Matrix)
Relative Market Share
Sales growth rate
10%
20%
10x 5x 1,5х 1x 0,5x 0,1x
USA
Russia
France
China

Portfolio Analysis (BCG Matrix)
Relative Market Share
Sales growth rate
10%
20%
10x 5x 1,5х 1x 0,5x 0,1x
France
France
France
France

Portfolio Analysis (Matrix GE)
Firm competitiveness
Market (country) attractiveness
3
3
6
9
6
9

GE Matrix Composite Dimensions
Attractiveness
Market growth
Market capacity
Economic and political stability
Competitiveness
Marketing skills
Product image
Distribution network and service quality
Rank from 0 to 9 to get positions in the matrix

Portfolio Analysis (Matrix GE)
3
3
6
9
6
9
USA
China
France
Russia

GE Matrix Advantages
Combines firm’s SW and market OT
Defines primary role of each specific market in international context (harvesting, investment, advertising…)
Applicable to investment and strategic alliance entry modes as it is to export
Replaces 2 single with 2 composite dimensions applied to export issues

Case 4a. BCG Matrix
Define the position of all the products in BCG matrix

Case 4b. GE Matrix
Factor Evaluation
Population incomes - 5
Company market share - 7
Market potential - 3
Market knowledge - 5
Competitive pressures - 2
Legislation - 6
Marketing skills - 5
Financial resources - 7
Product quality - 6
Task
Define the «Х-company» position in accordance with the given evaluation of “Attractiveness / Competitiveness” factors

Session 5. Product Decisions
International Competitiveness
International Product Life Cycle
New Product Introduction
International Product Mix

Marketing Mix (4 “p”)
Product
Price
Promotion
Place
People
Physical intangibility (нематериальность)
Process indefeasibility (неотделимость от процесса)
…………………………..

Famous blunders and decisions
Apple vs IBM in Japan
P&G in Japan
General Motors of Canada
East-Indian company (1857)
“Speaking doll” of Gong-Kong
Ford in Europe

International Competitiveness
Product features (core and complementary)
Productivity, cost and price
Transfer of R&D to foreign subsidiaries instead of licensing
Quality improvement systems («quality circles», TQM, TQC, “just-in-time”, “kaizen”, “camban”, “6 sigma”….)
Quality standards (ISO-9000, ISO-14000, JIS)
Country competitive position

Inventory Threats

Traditional Product Life Cycle
Sales / profit
Time

International Product Life Cycle
6 – imports in country A
Product export
Capital export

PLC Models
Successive mode (market milking, limited resources, no-fashion goods)
Parallel mode (aggressive innovation, global marketing)
Reverse mode (national market is less attractive)

Successive Mode

Parallel (Synchronized) Mode

Factors of PLC Reduction Trend
Foreign markets specific environment:
no competitors
foreign partner opportunity
policy change
trade limitations
National market environment:
intensive competition
aggressive innovative strategy

New Product Introduction
Export domestic products
Piggyback marketing
Benchmarking
Changing existing products
Internal product development

Changing Existing Products
Product modification
New uses for existing products
industrial use of home-use product
male/female product
related application

Product Development
R&D location: centralization /decentralization
Breakthroughs / improvements (“kaizen tean”)
Trends: R&D transfer abroad; R&D transfer to subsidiaries (instead of licensing)

Breakthroughs / improvements

Marketing goals priorities

Product Mix Strategies
Product Mix – a set of product lines
Short / long product line
Width, length, depth of Product Mix

Product Mix: Internal Determinants
Goals - profit, market share, risk spreading
Resources - surplus production capacity, the better use of technology, managerial and marketing skills capacity
Philosophy of management (sales-oriented or marketing-oriented)

Product Mix: External Determinants
Customer - values, product use, “built-in” images (“made in”)
Competition (penetration cost)
PEST-factors

Market / product development strategies

Case 5. BARBIE product policy
What is the key to success?

Session 6. Pricing Decisions
Export Price Determinants
Price Lines and the “Cannibalism Effect”
Export Price Escalation
Pricing Methods and Strategies

Export Price Determinants
Costs
Competition
Customers
Product features
Legal and political factors
Economic situation
Company strategy

2120
1312
98
Price
Sales volume
Price Lines and the “Cannibalism Effect”

Export Price Escalation
Product cost in exporter country
Export cost prior to entering an importer country (documentation, transportation, insurance, exporting department activities)
Import cost in importer country (import tax, custom duty, storage cost, distribution cost)

Foreign and Domestic Prices
Export prices are lower - less known, “plus” business, competitors produce cheaply, attractiveness of increased sales
Export prices are higher - high entry cost (price escalation), extra investment, added risk
Export prices are on par - fair price, easily altered price, lack of knowledge

Cost Pricing
Marginal price
“Technical price” (break-even point)
“Cost plus”

Competition-Based Pricing
Prices based on current international price levels
Prices based on international practices of pricing
Following the industry leader price
Following the competitors’ prices
Auction, bargaining, stock exchange pricing

Pricing Strategies for New Products
Skimming the market
Penetration pricing

Skimming the Market
Time (PLC stage)
Price

Skimming the Market

Penetration
Time (PLC stage)
Price

Product Type Based
Pricing Strategy

Differentiated Pricing Towards
Different Countries
Discriminative pricing
Preferential pricing
Integration of price and product mix / country mix
Constant prices
Equal prices

Psychological Pricing
Prestige (premium) pricing
Agiotage pricing
“Price to quality” pricing
Habitual pricing
Unrounded prices

“Price to quality” pricing
H
H
M
M
L
L

PLC-Based Pricing Strategy

Case 6. BIC vs GILLETTE
50s – ball pens
70s – lighters
80s – razors

Session 7. Promotional Decisions
Techniques of Promotion
International Promotional Strategy
Promotional Barriers
International Promotion Trends

Techniques of Promotion
Advertising
Public relations
Personal selling
Sales promotion
Direct marketing
Package
AdTraction

Advertising
Advertising – non-personal paid communication (TV, radio, street, internet, product placement….)

Public relations
Publications
Public “out-door” activities (exhibitions, holiday sales, celebrations, events)
Company / product news
Press-conferences, interviews
Endowment activities

Sales Promotion
Samples
Bonuses, gifts, “sales”
“In-door” activities (product presentations, competitions)
Handouts (brochures, posters, magazines, souvenirs)
Stationary aides (external zone, entrance, trading area, cashier area)
Distribution network promotion (personnel training, corporate meetings)

Merchandizing
Product allocation
Purchase facilitation
“Space management”
Easy access to information

Personal Sales
Company representatives
Experts
Public channels (network marketing)

Direct Marketing
Direct mail
Telemarketing (phone, fax, call-service)
TV-shops
Electronic commerce
SPAMs
SMS-offers

Packaging Roles
Dual role - protection, promotion
VIEW test:
visibility (be distinguished among competitors)
informative (quickly communicate the content)
emotional impact (create favorable impression)
workability (protection and efficient in home use)

Packaging Components
Language
Size
Color
Cost
Picture

Promotion-Mix Composition
Market type factor: consumer / business
Product type factor: individualized/standardized, differentiated/regular etc.
“Push” strategy: focus on dealers, brokers, wholesalers (many similar brands in a segment)
“Pull” strategy: focus on consumers (clear brand differences and advantages)
Competitor-oriented strategy (giving a standard, comparison, benchmarking)

Promotional Barriers
Language (KFC in China; “touch-toe”; Ford Caliente in Mexico; Chevrolet Nova in Spain)
Cultural backgrounds (Thailand delegation; Hitachi branch in USA)
Customer values and preferences (bicycle in Europe and USA)
Non-verbal communication
Symbols (meaning of color; animals in ads)
Legislation
Economic factors

Factors Affecting
International Promotion
Globalization of Business
Growing competition pressures
Technological breakthrough

International Promotion Trends
Growth of promotional expenses
High profitability of advertising business
Emerge of advertising agencies international network
Growing importance of branding
Replacing traditional advertising by BTL methods

Advertising Spending (% of GNP)

Standardization/Adaptation Strategies

Preferred International Promotional Strategy
Global concept plus partially adapted promotional message (“Think globally, act locally”)
Movie adaptation
Slogan adaptation
Foreign media adaptation
Mandatory adaptation

International Media
Global media (Time, Wall Street Journal, Financial Times, CNN, MTV, Euronews, Internet)
Local national media
“Covering” media (Russia – CIS, France – Belgium – Switzerland)
Product Placement

The Biggest Advertising Agencies
WPP Group, London
Interpublic Group of Companies, NY
Omnicom Group, NY
Dentsu, Tokyo
Cordiant, London (with Saatci & Saatchi)
Young & Rubicam, NY
Euro RSCG, Levallois-Perret
Grey Advertising, NY
Hakuhodo, Tokyo
Leo Burnett, Chicago
True North Communications, Chicago
D’Arcy Masius Benton & Bowles, NY
Publicis Communication, Paris
BDDD Group, Paris

Case 7a. Repositioning in Kentucky Fried Chicken
Why did “Kentucky Fried Chicken” change its name and logo for short “KFC” version in 1991?

Case 7b. Goodyear Tire and Rubber
Goodyear Tire and Rubber advertized products in 39 countries with slogan "Goodyear, take me home
Ad videos were different by country (in UK – slow and serious conversation? In Brazil – humor episode)

Адаптация рекламы Coca-Cola
Coca-Cola Light Plus впервые появилась в Бразилии в 2010 году на "Неделе моды" в Сан-Паулу. Предполагалось, что новинка в первую очередь заинтересует взрослых потребителей – сочетание элегантного дизайна бутылки с низкой калорийностью напитка сделала его хитом продаж. А в 2012 году Coca Cola выпустили в Бразилии свою модную линию одежды. Образы рекламной кампании вышли зажигательными, как сами бразильцы. Для продвижения Coca Cola пригласила популярных бразильских моделей, которые по задумке режиссера фотосессии резвились и наслаждались солнцем и великолепной погодой на белом как снег пляже. Коллекция была рассчитана на жизнерадостных веселых молодых людей и включала в себя большой ассортимент одежды. (известные «карнавальные» характеристики бразильцев присутствуют и в рекламе)

Адаптация рекламы
Пообещав бороться с ожирением на глобальном уровне, Coca-Cola решила начать с Аргентины, учитывая уровень значимости проблемы в этой стране. В 2013 компания представила первый натуральный низкокалорийный напиток под названием Coca-Cola Life со смесью сахара и стевии, содержащмй вдвое меньше калорий, чем обычная Coke. Компания создала рекламный ролик новой колы под названием “Primer Beso”, что в переводе с испанского значит «первый поцелуй» (аргентинцы все воспринимают на уровне чувств).

Адаптация рекламы
В Канаде креативное агентство MacLaren разработало наружную кампанию под названием "Straw" ("Соломинка") для Coca-Cola, использовав слоган "Refresh on the Coca-Cola side of life", который можно перевести как "Освежайся на кокакольной стороне жизни". Оригинальная наружная реклама называется "Окна", "Постеры", "Лестница" и "Биллборд". Здесь можно проследить определенную сдержанность, даже мрачноватость, присущую канадцам.

Session 8. Entry Modes
Indirect export
Direct export
Grey export (parallel trading)
Overseas production (manufacturing, assembly)
Contracting (license, franchising, contract manufacturing, management contracting, joint venture, strategic alliance)

Indirect Export
Home country based merchants (export merchant, trading company, “cable” merchant)
Home country based agents (commission house, confirming house, resident buyer, broker, export management company, manufacturer’s export agent)
Cooperative organizations: piggyback marketing, exporting combinations - associations, cartels

Evaluation of Independent Marketing Organizations
Difficult to categorize
Short time
Minimum financial outlay
Promote only the most profitable products
Inevitable conflict (differences in goals, target customers, channel design, channel policies)

Direct Export
Home country based department (export manager, built-in or separate export department, export sales subsidiary)
Traveling salesperson
Foreign sales branch
Storage or warehousing facilities abroad
Foreign sales subsidiary
Foreign based distributors and agents

Evaluation of Dependent Organizations
Full return from sales (no sharing profits)
Complete control over marketing
Thorough knowledge of foreign markets
Export channels are permanent and reliable
Product goodwill accrues to manufacturer rather than to a marketing organization
Higher expenditures and risks
Specialist necessity

Grey Export (Parallel Trading)
Deteriorate pricing
Change cash flows
Accelerate market penetration
Market demand test
Access to risky and “closed” markets
Duracell case

Manufacturing / Assembly
Location – “climate” for foreign capital, production considerations, competition, political risk (transfer, operational, general instability, ownership/control)
Ownership - full (subsidiary) or partial (JV, stock company, merger)
Implementation - acquisition or greenfield

Strategic Alliances
Goal - enhance long-run competitiveness of partners
Advantages - sharing large investments (R&D), access to complementary resources (technologies), risks spreading, economies of scales, specialization, co-opetition, rationalization
Drivers - innovation, market globalization
Core dimensions - goal compatibility, strategic advantage, commitment, coordination, planning, communication and conflict resolution, dependence

Licensing
Licensing - the right to use:
1) technology, know-how, manufacturing processes
2) trademark, brand name, logos
3) product design
4) marketing knowledge
5) other trade secrets
Objectives:
1) foothold for later move
2) reciprocal know-how
3) revenue of the company-owned patents, trademarks, know-how

Licensing Pros and Cons
Advantages - use licensee’s resources, royalties, market test
Drawbacks - lack of control and flexibility

Franchising
Incomplete licensing - supplement of important ingredient of the finished product (Coca-Cola: syrup; McDonalds: raw food)
Start-up loans
Mandatory training
Standardization of operations
“Soft” franchising

Contract Manufacturing
Products manufactured by foreign partner are targeted for sales in this country or elsewhere
Retaining marketing and distribution, often transfer of technology and technical assistance
Applied under limited resources or exporting problems

Contract Manufacturing
Pros and Cons
Advantages - minimum investment/rapid entry, control over marketing and service (=trademark protection), avoids currency and financial risks, avoids pricing problems (which arise with subsidiary)
Drawbacks - profit transferred to contractor, trains a potential competitor (know-how), weak control over product quality, difficult to find satisfactory partner

Management Contracting
Local investor provides capital, international marketer provides management know-how
One of the forms – “Turnkey operation” (construction of a plant, personnel training, initial operation of the plant)
Option to buy all or a part of a newly created firm

Management Contracting
Pros and Cons
Advantages - low risk, guaranteed income and quick return, functional control without legal responsibility, clarity in decision making (less arbitration)
Drawbacks - complicated contract (future problems and management limitations), hinder other operations

Joint Venture
Shared ownership and control
Technical and emotional effect
Advantages - good for limited capital firms, low risk (easier adaptation, savings, government support), greater sales/profits (nationalist-oriented consumers)
Limitations - shared profits, managerial disputes
Most important - local partner selection (difficult), anticipation of all possible disagreements

Disagreements in Joint Venture
Profit reinvestment / dividend maximization
Partner share evaluation
Foreign market penetration levels
Marketing strategy
Branding
New products and technologies
Quality and ecology standards

Strategic Alliances
Goal – enhancement of partners’ competitiveness
Advantages – access to extra resources (technologies), risk sharing, scale economies, specialization
Required terms – compatibility of goals, strategic benefits, trust, coordination, conflict resolution mechanism, planning

Strategic Alliance Forms
R&D-consortia (sharing engineers)
Cross-distribution agreements
Marketing agreements
Investment agreements
Manufacturing agreements

Distribution Mode Selecting Criteria

Case 8. KFC in Mexico
Should KFC leave
the Mexico market???

Session 9. Marketing-Mix: International Practice
McDonalds Product Decisions

Case 9a. McDonalds Product Decisions
Fast-food
Fast-marketing

McDonalds Marketing
Space design (furniture)
Loud noisy music
Time limit per customer
Standardized positive phrases
Beverages – the largest income
Girls…….
Constant floor cleaning
Personnel rotation
“Anything else?...” in cash-box
Difficult franchising

Session 10. Marketing Research and International Marketing Plan

International Marketing Plan
Foreign market selection
Situational analysis (PEST/ STEP/ STEEP, SWOT)
Target market definition and segmentation
Competitive differentiation and positioning
Marketing mix (4 “p”)
Sales forecast, budgeting, evaluation, control

Маркетинговая информация позволяет предприятию:
Снизить финансовый и имиджевый риск
Получить конкурентные преимущества
Следить за маркетинговой средой
Координировать стратегию
Оценивать эффективность работы
Подкреплять интуицию менеджеров

Виды маркетинговой информации
Первичная информация - данные, получаемые в результате специально проведенных для решения конкретной маркетинговой проблемы полевых исследований
Вторичная информация - данные, собранные ранее для целей, отличных от целей конкретного маркетингового исследования

Достоинства и недостатки первичной информации:
Достоинства первичной информации:
- сбор в соответствии с поставленной целью;
- известна и контролируема методология сбора;
- результаты доступны для компании и могут ограждаться от конкурентов;
- известна степень надежности.
Недостатки:
- большое время на сбор и обработку;
- дороговизна;
- сама фирма не всегда может собрать все необходимые данные.

Внутренние источники вторичной информации (документация фирмы)
Бюджеты
Отчеты
Счета
Архивы
Предыдущие исследования и др.

Внешние источники вторичной информации
Публикации национальных и международных официальных организаций
Публикации государственных органов, министерств, муниципальных комитетов и организаций
Публикации торгово-промышленных палат и объединений
Сборники статистической информации
Отчеты и издания отраслевых предприятий
Книги, сообщения в журналах и газетах
Публикации учебных, научно-исследовательских, проектных институтов и общественно-научных организаций, симпозиумов, конгрессов, конференций
Прайс-листы, каталоги и другие фирменные публикации
Материалы консалтинговых организаций

Достоинства и недостатки вторичной информации
Достоинства:
- дешевизна по сравнению с первичной информацией;
- возможность сопоставления нескольких источников;
- быстрота получения по сравнению со сбором первичной информации.
Недостатки:
- неполнота;
- устареваемость;
- иногда неизвестна методология сбора и обработки;
- невозможность оценить достоверность.

Основные секторы рынка маркетинговой информации
Экономическая информация
Биржевая и финансовая информация
Профессиональная и научно-техническая информация
Коммерческая информация
Статистическая информация
Массовая и потребительская информация
Заказные маркетинговые исследования

Маркетинговая информационная система

Основные преимущества использования МИС
Организованный сбор информации
Широкий охват информации
Предупреждение кризисов в деятельности фирмы
Координация планов маркетинга
Скорость анализа
Представление результатов в количественном виде

Использование МИС для принятия маркетинговых решений

Стадии маркетингового исследования

Основные методы исследования
Наблюдение
Эксперимент
Групповые исследования
Качественные исследования
Обзорные исследования

Преимущества и недостатки четырех контактных методов

Примеры открытых вопросов

Примеры закрытых вопросов

Последовательность критериев при работе с отчетом

Международный план маркетинга
Выбор зарубежного рынка
Ситуационный анализ (PEST, SWOT)
Определение и сегментация целевой аудитории
Конкурентное дифференцирование и позиционирование
Маркетинг-микс (4 “p”)
Прогноз продаж, бюджет, оценка, контроль