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lnternational Marketing Chapter1 Introduction

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What is marketing?What is global marketing? Why it is important?What is meant by global localization?

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Слайд 1lnternational Marketing

Chapter1
Introduction

lnternational MarketingChapter1Introduction

Слайд 2What is marketing?

What is global marketing?
Why it is important?

What

is meant by global localization?

What is marketing?What is global marketing? Why it is important?What is meant by global localization?

Слайд 3Marketing
What is a Market?
A market is all potential customers who

share
common needs and wants and who have the ability
and

willingness to buy the product.

What is Marketing?
The process used to determine the customers’
needs. satisfy the customers’ needs and in
order to make a profit.



MarketingWhat is a Market?A market is all potential customers who share common needs and wants and who

Слайд 4




Analyzing the needs of the people
Trying to guess what types

of products they want
Estimate how much they will buy
Predict when

they will want to buy
Determine where they go to buy the stuff
Analyzing the needs of the peopleTrying to guess what types of products they wantEstimate how much they

Слайд 5…. And
Figure out the best price to sell it at

- and can you still make a profit selling it

at that price
Decide on promotional things to create awareness about the product
Look at the competition to see what they are doing with pricing, features etc.


…. AndFigure out the best price to sell it at - and can you still make a

Слайд 6The idea that you must satisfy the customers’

needs and wants in order to make a profit.

Businesses must

have the right goods and services at the right time, at the right price and at the right place. Plus they must communicate this to their customers


The idea that you must satisfy the customers’   needs and wants in order to make

Слайд 7The Marketing Mix is comprised of four basic marketing strategies,

collectively known as the“Four P’s.”


The Marketing Mix is comprised of four basic marketing strategies, collectively known as the“Four P’s.”

Слайд 8Product Strategy
What product to make
How to package it
What brand name

to use
What image to project

Price Strategies
Reflects what the customers are

willing and
able to pay.


Product StrategyWhat product to makeHow to package itWhat brand name to useWhat image to projectPrice StrategiesReflects what

Слайд 9Place Strategies
How and where a product will be distributed




Promotion Strategies
How

will the customer be told about the product
What will the

message be
When and where will it be delivered
With what media

Place StrategiesHow and where a product will be distributedPromotion StrategiesHow will the customer be told about the

Слайд 10When you buy a product - the cost of marketing

amounts to 40 ~ 60% of the total
eg.

If we buy shoes for $70, $35 of that 70 has been spent on marketing (including advertising, market research, development etc.)

When you buy a product - the cost of marketing amounts to 40 ~ 60% of the

Слайд 11The marketing functions
Buying
Selling
Transportation
Storage
Standardization
Financing
Risk Taking
Information

Collection

The marketing functionsBuying				      Selling					TransportationStorageStandardizationFinancing				Risk Taking				Information Collection

Слайд 12B.Global marketing
• Exporting: Marketing domestically produced

goods and services in foreign countries.


• Importing: Purchasing foreign goods and services.

Global Marketing: Focuses resources on global
market opportunities and threats

B.Global marketing• Exporting: Marketing domestically produced          goods and services

Слайд 13The main difference is the scope of activities
because global

marketing occurs in markets
outside the organization’s home country.

Marketing has become more complex.

Any Risk?

The main difference is the scope of activities because global marketing occurs in markets outside the organization’s

Слайд 14
Unstable governments
Foreign-exchange problems
Different culture
Legal system
Foreign entry and government bureaucracy
Tariffs

and other trade barriers
High cost of product and communication adaptations

Unstable governmentsForeign-exchange problemsDifferent culture Legal systemForeign entry and government bureaucracyTariffs and other trade barriersHigh cost of product

Слайд 15Increases in new products, product extensions, high cost of distribution

and shelf space.
Expansion of retailer control and power, changing

media habits.
Ultimate goal of programs
Timing goals
Global compepitors
Company needs a larger customer base for economies of scale.


Increases in new products, product extensions, high cost of distribution and shelf space. Expansion of retailer control

Слайд 16Decisions to make:
Deciding to go abroad
Deciding which markets
Deciding how to

enter markets
Deciding on marketing programs
Deciding on marketing organization

Decisions to make:Deciding to go abroadDeciding which marketsDeciding how to enter marketsDeciding on marketing programsDeciding on marketing

Слайд 18CASE
In Hong Kong, a German businessperson is

driving a Lexus; he’s wearing Bruno Magli shoes, Irish cashmere

socks, Calvin Klein underwear, an Armani suit, with a Gucci belt.

He has a Mont Blanc pen, in his Italian shirt. He’s going to meet an American investor at a KFC restaurant, for a Coke.

CASE  In Hong Kong, a German businessperson is driving a Lexus; he’s wearing Bruno Magli shoes,

Слайд 19When he gets home, sitting on an ottoman, he has

an Absolut vodka nightcap, while listening to
American country western

music.

When he gets home, sitting on an ottoman, he has an Absolut vodka nightcap, while listening to

Слайд 20Reasons for Global Marketing

A. To Survive and Growth
1. Access to

new markets and resources
2. Manage marketing tasks more efficiently and

effectively
3. Expand customer base to include developed and developing nations
4. Against competitors with lower costs (due to increased access to resources)



Reasons for Global MarketingA. To Survive and Growth1. Access to new markets and resources2. Manage marketing tasks

Слайд 21B. To Diversify Product and Market Portfolios
and Improve

competitiveness
Effects of seasonal and cyclical fluctuations in one market offset

by others
Diversification increases market size and enhances economies of scale


B. To Diversify Product and Market Portfolios  and Improve competitivenessEffects of seasonal and cyclical fluctuations in

Слайд 22C. To Operate Within a Global Marketplace
Goods, services, capital, technology,

and labour are going global
Reduced government restrictions are affecting global

marketing
Bilateral and multilateral negotiations are reducing restrictions

C. To Operate Within a Global MarketplaceGoods, services, capital, technology, and labour are going globalReduced government restrictions

Слайд 23For US-based companies, 75% of sales potential is outside the

US.
About 90% of Coca-Cola’s operating income is generated outside the

US.
For Japanese companies, 85% of potential is outside Japan.
For German and other EU companies, 94% of potential is outside Germany.


For US-based companies, 75% of sales potential is outside the US.About 90% of Coca-Cola’s operating income is

Слайд 25Toyota's history dates back to 1897, In 1933, Sakichi established

an automobile department and the first passenger car prototype was

developed in 1935.

During a visit to Ford to study the US automotive industry, Kiichiro (Sakichi Toyoda 's son )saw that an average US worker's production was nine times that of an average Japanese worker. He realized that to compete globally, the Japanese automobile industry's productivity had to be increased.
Toyota's history dates back to 1897, In 1933, Sakichi established an automobile department and the first passenger

Слайд 26In June 1995, Toyota announced the 'New Global Business Plan,'

aimed at advancing localization and increasing imports over a three

year period.

A major objective of this plan was to increase Toyota's offshore production capacity to 2 million units by 1998.

Apart from this short-term global business plan, Toyota also came up with a long-term global business vision in June 1996, named the 'Global Vision 2005.
In June 1995, Toyota announced the 'New Global Business Plan,' aimed at advancing localization and increasing imports

Слайд 27In April 2002, Toyota announced another corporate strategy to boost

its globalization efforts. the '2010 Global Vision' was aimed at

achieving a 15% market share of the global automobile market by early 2010.

By mid-2003, Toyota was present in almost all the major segments of the automobile market that included small cars, luxury se, pickup trucks, SUVs, small trucks and cvehicles. Toyota had 45 manufacturing plants in 26 countries and regions by this time, and sold vehicles in 160 countries.
In April 2002, Toyota announced another corporate strategy to boost its globalization efforts. the '2010 Global Vision'

Слайд 28One of its strongest markets was the US, the world's

largest automobile market. Toyota had emerged as a strong foreign

player in Europe as well, with a 4.4% market share. In China, it had a 1.5% market share.

The other major markets in which the company was fast strengthening its presence were South America, Southwest Asia, Southeast Asia and Africa. Back home in Japan, it enjoyed a market share of over 43%.
One of its strongest markets was the US, the world's largest automobile market. Toyota had emerged as

Слайд 29In January 2004, leading global automobile company and Japan's number

one automaker, Toyota Motor Corporation , replaced Ford Motors (Ford).

as the world's second largest automobile manufacturer.

Worldwide sales of 6.57 million units in fiscal 2004; sales of 2.12 million units in North America by 2004; a 5% market share (800,000 units sales) in Europe by 2004; a 15% market share in the global market and a 10% market share in China by 2010.



In January 2004, leading global automobile company and Japan's number one automaker, Toyota Motor Corporation , replaced

Слайд 30Toyota has been badly hit by the global economic crisis

in 2008 and said its global sales were down 4

% in 2008, but GM witnessed sales fall 10.8 % in the same period.

In 2008.Toyota has overtaken General Motors as the largest car maker in the world in terms of sales volume. Toyota sold 8.97 million vehicles , beating the 8.35 million sold by the Detroit auto giant and ending GM's 77-year reign at the top. And held the position for three years.
Toyota has been badly hit by the global economic crisis in 2008 and said its global sales

Слайд 31
Toyota came back in 2012 with full production and higher

discounts in a bid to gain market share. Toyota sold

9.75 million vehicles , compared with 9.29 million for GM. And it was boosted by a 27% sales increase in the U.S .

The Japanese giant sold 2.43 million vehicles globally in the first three months of 2013, fending off strong competition from both Volkswagen and General Motors, which sold 2.27 million and 2.36 million respectively.
Toyota came back in 2012 with full production and higher discounts in a bid to gain market

Слайд 32Analysts felt that the following factors were helping the company

in its quest to become a truly global automobile major:



Strong financial condition
Globally efficient production system
Unique corporate culture
The ability to develop a product range that met the unique needs and desires of customers in different regions
Analysts felt that the following factors were helping the company in its quest to become a truly

Слайд 33D. Globalization
Globalization is the process of international integration

arising from the interchange of world views, products, ideas, and

other aspects of culture.

A shirt could have very well been made with Chinese cotton sewed by Thai hands, shipped across the Pacific on a French freighter crewed by Spanish to a Los Angeles harbor.
D. Globalization  Globalization is the process of international integration arising from the interchange of world views,

Слайд 35Boeing is actively pursuing a strategy for globalization and global

value creation through new partnerships, joint ventures, mergers and acquisitions,

supplier relationships and a greatly expanded international presence.
Their customers are in more than 90 countries around the world, and they have employees in about 70 countries. About 3% employees of Boeing are based outside the US including approximately 3,000 in Australia with hundreds more in Britain, Germany and Russia.

Boeing is actively pursuing a strategy for globalization and global value creation through new partnerships, joint ventures,

Слайд 36As Boeing produces globally, it also is sourcing globally.

Almost

400 Russian engineers work for Boeing in Moscow, and are

linked electronically to a design team in Seattle.
As Boeing produces globally, it also is sourcing globally. Almost 400 Russian engineers work for Boeing in

Слайд 37The recent establishment of a new Phantom Works research and

technology center in Madrid will allow Boeing to tap European

expertise in areas under study there — environmental and air traffic management technologies.
The recent establishment of a new Phantom Works research and technology center in Madrid will allow Boeing

Слайд 38The series of Boeing-sponsored International Technology Summits that have been

held in Tokyo, London, Paris and Madrid. More are scheduled

for Berlin, Seoul, and other locations.

These events bring together decision makers from important regions to discuss key topics such as air traffic management, aerospace and the environment, international co-operation in defense, future aircraft concepts, advanced manufacturing and more.
The series of Boeing-sponsored International Technology Summits that have been held in Tokyo, London, Paris and Madrid.

Слайд 39Jeppesen Sanderson Inc., a Boeing subsidiary since October 2000, is

the world's leading supplier of flight information, flight planning services,

aviation weather services, maintenance information and aviation training systems.

It has an 85 percent global airline market share for its core navigation services such as aeronautical charts and electronic navigation data. Jeppesen products are a key component of Boeing's growing customer information services business. Jeppesen has offices in the US, UK, Germany, Australia, China and Russia.
Jeppesen Sanderson Inc., a Boeing subsidiary since October 2000, is the world's leading supplier of flight information,

Слайд 41volkswagen (VW)
Q: Where is the VW Golf designed?
A: Corporation in

Germany

volkswagen (VW)Q: Where is the VW Golf designed?A: Corporation in Germany

Слайд 42Q: Where might the parts originate for the U.S. Model?
A:

Japan; Mexico, China…

Q: Where might the parts originate for the U.S. Model?A: Japan; Mexico, China…

Слайд 43Q: For the U.S. model, where might the vehicle

be assembled?
A: Mexico…


Q: For the U.S. model, where might the vehicle   be assembled?A: Mexico…

Слайд 44Q: For the U.S. model, where might the steel come

from for the parts?
A: South Korea…

Q: For the U.S. model, where might the steel come from for the parts?A: South Korea…

Слайд 45Q: For the U.S. model, where might the rubber come

from for the tires?
A: Malaysia…

Q: For the U.S. model, where might the rubber come from for the tires?A: Malaysia…

Слайд 46Q: For the U.S. model, where might the fuel come

from to run the car?
A: Canada, or Saudi Arabia…

Q: For the U.S. model, where might the fuel come from to run the car?A: Canada, or

Слайд 48Every American household is full of goods made in China.

 Whether it’s clothes, toys, or increasingly technology, Made in China

is hard to miss.  Yet, those goods are not China brands. They’re Nike. They’re Hasbro. They’re Ralph Lauren.
Every American household is full of goods made in China.  Whether it’s clothes, toys, or increasingly technology,

Слайд 49C. Global localization
It means a successful global marketer must have

the ability to “ think globally and act locally”.

A central

issue in global marketing is how to tailor the global marketing concept to fit a particular product or business


C. Global localizationIt means a successful global marketer must have the ability to “ think globally and

Слайд 50Case McDonald’s Global Marketing
Marketing Mix Element Standardization Localized
Product

Promotion



Place

Price
Big Mac

Brand name

Advertising

slogan “I’m Loving It”

Free-standing

Big Mac is $3.10 in U.S. and

Turkey

McAloo Tikka potato burger (India)
Slang ’Macca’s (Australia)
MakDo (Philippines)
McJoy magazine, “Hawaii Surfing Hula” promotion (Japan)
Home delivery (India)
Swiss rail system dining cars
$5.21 (Switzerland)



Case   McDonald’s Global MarketingMarketing Mix Element  Standardization		LocalizedProduct	Promotion	Place	Price			Big MacBrand nameAdvertising slogan “I’m Loving It”Free-standingBig Mac

Слайд 51Summary
Marketing is the process used to determine the customers’

needs. satisfy the customers’ needs and in order to make

a profit.

4Ps: Product. Price. Place. Promotion

Doing global marketing is risky. But there are still many reasons for that.

Do Remember: Think globally and act locally.

Summary Marketing is the process used to determine the customers’ needs. satisfy the customers’ needs and in

Слайд 52Reference
市场营销学 陆娟 南京大学出版社
市场营销学 胡正明 山东人民出版社
国际市场营销学 闫国庆 清华大学出版社


Reference市场营销学 陆娟 南京大学出版社市场营销学 胡正明 山东人民出版社国际市场营销学 闫国庆 清华大学出版社

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