MBA Hospitality Management

10. International Marketing

©Jon Twomey 2010


  
J ocus on Customers
J
ew technologies
J Influences (on customers
and companies)
J ractical application
J inancial appreciation
J Management style

|
 

International Marketing
Learning Outcomes

By the end of this session, students will be able to explain:

J hat is International Marketing?

± hether to go international?
± here to operate?
± hat to market in an overseas environment?
± How should we operate internationally?
J hy go international?
J The 6 stages of ³going international´
J The benefits of international trade

|
 

0

  

J a


  The nations position in factors of production,
such as skilled labour or infrastructure, necessary to compete in a given
industry

J   
 . The nature of the home demand for the
industry product or service

J      
 
 . The presence or absence

in the nation of supplier industries ad related industries that are
internationally competitive

J a

 



 
 

. The conditions in the
nation governing how companies are created, organises and managed,
and the nature of domestic rivalry.

|
 

 inancial Implications of International
marketing
J International capital
± Start-up capital
± orking capital

J International financial risk

± oreign exchange risk
± olitical risk

J epatriation of profits
± Taxation
± olitical factors

|
 

The International Environment

J lobalisation
± The macro forces driving globalisation
± The forces inhibiting globalisation

J atterns of orld Trade

J acilitators of orld Trade

J Barriers to orld Trade

|
 

International esearch

 
0


± Social
J Measurements
± olitical & Legal ramework
J olitical risk
J Legislation
J rotectionism
± Economic Structure
J Identifying market size
J
ature of the economy
± Technology
J Technological development & impact on the marketing
mix

|
 

The C actors

¦ 


J Measures of economic development
J Stages of development
J egional groups
± Types of trading groups
± The major regional trade organisations
± The Single European Market
± European Economic & Monetary Union

|
 

The C actors

¦ 

J hat is culture
J Self eference Criteria
J High/Low context cultures
J Cultural Convergence
J Hofstede model of national
cultures
J Buyer behaviour
± Consumers
± Business
± overnment

|
 

 cultural differences
2
 


 
 

ey dimensions to explain cultural differences

J 0


measures how far superiors exercise power

J
 
  

clarity and order v novelty i.e. change rules rather than simply obey

J 
  
individual achievement or collectivist (collectivist influenced by
extended families)

J  



Masculine cultures emphasis on possessions, status in eminine
quality of life and environment

|
 

Hofstede¶s model of national cultures
An example

     
   
 M
 


 
 

More developed Latin 2 2 M M



 


More developed Asian M 2 M 2




Germanic !  M !  M

 
  
 

Anglo !  !  2 2

" 

 

|
 

Self reference criterion

J A person¶s unconscious reliance on:

± cultural values
± experience
± nowledge

| 

|
 

The C actors

¦   
J orters 5 orces
J Structure of industry
J The theory of competitive advantage
J Stages in competitive development

|
 

International Market esearch (IM)

O
   
J The information stream
J The IM process
J Sources of information
J esearch Methodology
± Scanning methods
± Segmentation
± roblems with interpretation

ë0 0  

0 0 


|
 

International esearch

J Information Management Systems

J roblems of International Market esearch

J Agency selection

|
 

Marketing Audit - ESOS adapted from otler

aunctions  ystems
-the 7 s -information for planning
and control

nvironment rganisation
-Micro & Macro -structure and style

0roductivity  trategy
-rofitability & Cost -Mission, Aims, Objectives
effectiveness and Strategy

|
 

Market Entry

J Market entry strategies

J Level of involvement
J Market entry methods
± Indirect exporting
± Direct exporting
J ithout direct investment
J ith direct investment
± Overseas production
J Exit strategy

|
 

Market Entry Methods

 

  
#
 
| 

 
$

 



 
  


 ! 

" 


O

  !


 
0

 
 

 

 

  




  %0 &' 
|
 

Matrix for comparing alternative
methods of market entry

val ation riteria ntry methods

Marketing

s sidiary Wholly

ndirect irect Marketing local o ned
  

xport
xport s sidiary assem ly icensing
 Join vent re operation
N m er of markets
Market Penetration
3 Market feed ack
4 nternational Marketing earning
ontrol
Marketing osts
Profits
8 nvestment
9 dminstration
oreign pro lmes
lexi ility
Risks

 %  
  
|
 

roduct olicy

J hat is a product?
J Standardisation vs.
adaptation
J roduct/promotions
mix
J roduct
positioning/branding
J ackaging/labelling/
maintenance
J ortfolio analysis

|
 

roduct olicy

J
ew roduct Development

J International Trade Lifecycle
J roduct Divestment
J Services
± Importance of services internationally
± Characteristics of services
± Extended mix for services
± Service quality

|
 

ricing olicy

J ole of pricing
J ricing objectives
J Approaches to pricing
J actors influencing international pricing decisions
J Export ricing
J Transfer ricing
J oreign Exchange isk
J Countertrade & Barter

|
 

Marketing Communications

O
   
 
 
J Advertising
J 
J ersonal selling
±
egotiation
± Sourcing the salesforce
± ecruitment/training & motivation
J International trade fairs/exhibitions
J Sales romotion
J Sponsorship
J Direct Marketing
± orces for and against DM development

|
 

Marketing Communications

J Cultural considerations

J ush & pull strategies

J Media selection
± Availability
±
ew media
± Scheduling

J Other market considerations

± Stage of economic development
± Distribution infrastructure
± Competition

|
 

Marketing Communications

J lanning the international campaign

± actors to consider
± Agency selection
± Standardisation of message
± Media selection
± Decide on budget

|
 

 actors affecting channel choices

x

x
x  

x
x
x  
x 

|
 

 
Distribution and Logistics



J Transportation
J Storage
J JIT
J Documentation
J I
COTEMS
J Issues in logistics
J ey trends in Distribution and Logistics

|
 

eople & rocess

J eople
± International staff
± International
customers
± Staff/customer
interaction

J rocess
± Degree of contact
± Quality control
standards

|
 

Evaluation and Control

J Short term vs. long term

J inancial measures
J
on-financial measures
J Obtaining performance information
J Maintaining and enforcing control

|
 

Evaluation and control

J Other methods of evaluation and control

J The Balanced Scorecard Approach
J Benchmarking
J Self-assessment
J The Learning Organisation
J Investment Analysis
J Customer analysis and retention

|
 

Influences on
International marketing

J ublic attitudes to
business ethics
± Social responsibility
and sustainability

J reen pressures

|