Download Differences between domestic marketing and international marketing

International Marketing
国际市场营销
Chapter 1. The nature of international
marketing
Students already familiar with the rudiments of
general marketing theory know that marketing is far
more than selling: profitability and added shareholder
value are the ultimate aim of all marketing pursuits.
Marketing is a collection of activities, including
advertising, public relations and sales
promotions, marketing research and new product
development, package design and merchandising,
personal selling and after-sales service, and the
determination of selling prices.
Seven ”P”
1：Promotion—including advertising, merchandising,
public relations, and the control and deployment of
sales staff;
2: Product—design and quality of output,
assessment of consumer needs, choice of which
products to offer for sales, after-sales service and
policies for customer care;
3: Price—choice of pricing strategy, prediction of
competitors’ responses;
 4: place—selection of distribution channels,
transport arrangements.
 5: people—the people who are in regular
contact with the customers, and whose activities
represent the company to the outside world.
 6: process—the sequence of events involved in
delivering the product’s benefits to the
consumers.
 7:physical evidence—the tangible proof that
the product has been delivered and consumed.
Differences between domestic
marketing and international marketing
Domestic marketing ☆; International marketing★
☆ Researching data is available in a single language and is usually easily
accessed .
★ Research data is generally in foreign languages and may be extremely
difficult to obtain and interpret.
☆ Business is transacted in a single currency
★Many currencies are involved, with wide exchange rate fluctuations.
☆Head office employees will normally possess detailed knowledge of home
market
★Head office employees might only possess an outline knowledge of the
characteristics of foreign markets.
Differences between domestic
marketing and international marketing
Domestic marketing ☆; International marketing★
☆Promotional messages need to consider just a single national
culture.
★Numerous cultural differences must be taken into account.
☆Market segmentation occurs within a single country.
★Market segments might be defined across the same type of
consumer in many different countries.
☆Communication and control are immediate and direct.
★International communication and control may be difficult.
Differences between domestic
marketing and international marketing
Domestic marketing ☆; International marketing★
☆Business laws and regulations are clearly understood.
★ Foreign laws and regulations might not be clear.
☆Business is conducted in a single language.
★Multilingual communication is required.
☆Business risks can usually be identified and
assessed.
★Environments may be so unstable that it is extremely
difficult to identify and assess risks.
Differences between domestic
marketing and international marketing
Domestic marketing ☆; International marketing★
☆Planning and organizational control systems can be simple and direct
★ The complexity of international trade often necessitates the adoption of
complex and sophisticated planning, organization and control systems.
☆Functional specialization within a marketing department is possible
★International marketing managers require a wide range of marketing skills.
☆Distribution and credit control are straightforward.
★Distribution and credit control may be extremely complex.
Domestic marketing ☆; International marketing★
☆Selling and delivery documentation is routine and easy to
understand.
★Documentation is often diverse and complicated due to
meeting different border regulations.
☆Distribution channels are easy to monitor and control.
★Distribution is often carried out by intermediaries, so is much
harder monitor.
☆Competitors’ behaviour is easy predicted
★Competitors’ behaviour is harder to observe, therefore less
predictable.
☆New product development can be geared to the needs of the
home market.
★New product development must take account of all the
markets the product will be sold in.
Reasons for Marketing Abroad
1. Economies of scale and scope and
“experience curve” effects resulting from
increased outputs;
2. The existence of lucrative markets in
foreign countries that are not available at
home.
3. Saturated markets in the home country.
4. Response to incoming competitive
activity.
5, Today, new product development typically
requires so much expenditure that in many
cases firms intending to introduce new
products must adopt an international
perspective.
6, The higher turnover derived from
international sales might enable a firm to
initiate new product research and
development that in the long term will give it a
competitive edge.
7, Corporate plans can be anchored against a
wider range of international opportunities.
8.
There might be less competition in some foreign
markets.
9. A sudden collapse in market demand in one
country may be offset by expansion in others.
10. Opportunities may be afforded by new trade
agreements between nations, or by the opening up
of new markets in countries that were previously
closed to imports. An example of this is the gradual
opening up of trade with China.
11. Consumers in some foreign markets might be
wealthier than consumers in the firm’s own country.
Internationalization Model
According to the Uppsala model, firms go through
the following stages:
1. Exporting ,usually indirectly and often
opportunistically or passively.
2. Acting exporting.
3. Directing exporting.
4. Establishing a sale office in the
overseas country
5. Establishing warehouse facilities in the
overseas country.
6. Assembly or manufacture overseas.
7. Establishing a subsidiary overseas.
8. Full multinational status, with
autonomous branches in other
countries.
9. Global status, sourcing raw materials
wherever convenient, manufacturing
where most convenient, and seeking
out market segments that cross
national boundaries.
The environments of international
marketing
 All marketing activities occur within legal,
economic, cultural, political and other
environments to which strategies and
policies must relate. Marketers need to
operate within the constraints of this
environment, and in the case of
international marketing there will be more
than one environment constraining the
company at any one time.
Cultural
factors
Market
demand
Political
system
Sociodemographic
environment
International
business
Technology of the
distribution system
Coping with environmental change
 Most of the firm’s environments have to be
taken as they are and cannot be controlled,
yet they have profound consequences for
marketing management. Thus procedures are
needed for the speedy identification of fresh
market opportunities resulting from
environmental change. A two-step procedure
for scanning environments and coping with
environmental change is necessary.
 ☻First, the firm should predict the external
changes that might occur and then detail: how
the organization would be affected by them and
how it should respond.
 ☻ Second, it should list the business’s major
functions, followed by an outline of all
environmental factors likely to affect these
functions. Unfortunately there is a huge number
of external variables that might affect a firm
‘operations, creating the danger that some
important variables maybe overlooked.
案例：欧洲寒流袭击又遭“断气”

1月7日，受到来自西伯利亚和北欧的冷空气影响，
欧洲主要地区连日来受到一股寒流侵袭，东部和中部主要
地区录得摄氏零下31度至零下10度低温，连日来有10多
人冻死，空中和陆路交通受阻。

欧盟国家约四分之一的天然气从俄罗斯进口，其中约
80%经由乌克兰境内管道输送。由于在2009年天然气供
应价格和过境费等问题上未能达成协议，俄罗斯天然气工
业股份公司元旦日切断了对乌克兰的天然气供应。以乌克
兰“偷气”为由，俄罗斯周三完全切断了经由乌克兰输往
欧洲的天然气，造成众多欧盟成员国面临愈来愈严峻的天
然气短缺局面。也让欧盟对这两国可靠能源伙伴的身份产
生强烈怀疑。
 俄方此前称乌方盗取的天然气占俄全部过
境天然气的15%，约为8600万立方米。俄
气总裁米勒此前曾计算指出，如果乌克兰
继续盗取俄过境天然气，那么乌欠俄气的
债务可能会由2008年的6.14亿美元增至10
亿美元。而乌方则称俄方选择的输气路线
“技术上不可实现”，双方互不相让各执
一词，直到两国总理会面才解决问题。
（俄罗斯总理普京和乌总理季莫申科 ）

双方达成协议，俄供乌天然气售价将以欧洲
价格标准为基准执行，但乌方今年可享受20％折
扣，同时，乌方今年继续按去年议定的优惠标准
向供欧天然气收取“过境费”。

在经过艰苦谈判和相互妥协后，俄罗斯天然
气工业股份公司（俄气）当地时间1月19日晚与
乌克兰石油天然气公司（乌石气）在莫斯科签署
了2009年至2019年的天然气合同。这项合同的
签订表明，持续了一段时间的俄罗斯和乌克兰之
间的天然气纠纷终于得到解决，受到断气煎熬的
十多个欧洲国家恢复天然气供应。
The Americas：NAFTA
 The North American Free Trade Agreement
（NAFTA）took effect on January 1994 and will
eliminate all tariffs and trade obstacles between
member countries by 2009. Internal tariffs on a
large number of product categories were
removed immediately. NAFTA is unique as a
trading bloc in that it brings together two of the
world’s most affluent countries (Canada and the
United States) with Mexico, a poor and
economically underdeveloped country.
EUROPE: West European
Integration

The West European market is
dominated by the European Union and, in
particular, by a golden triangle’ (roughly
within the area enclosed by Liverpool,
Cologne and Paris) that contains 60 per
cent of the entire EU population, but with a
land mass smaller than the United Kingdom.
The Union itself consists of 15 countries,
which together represent one of the largest
and most affluent integrated trading groups
in the developed world.
 欧盟27个成员国的名单
 奥地利、比利时、丹麦、芬兰、法国、德
国、希腊、爱尔兰、意大利、卢森堡、荷
兰、葡萄牙、西班牙、瑞典和英国
 2004年5月1日入盟的10个东欧国家：匈牙
利、波兰、捷克、斯洛文尼亚、斯洛伐克、
爱沙尼亚、立陶宛、马耳他、塞浦路斯
 2007年1月1日罗马尼亚和保加利亚加入欧
盟，总人口达到4.8亿
ASIA PACIFIC

The Pacific Ocean touches so many
countries, including all of Oceania, Southern
Asia, China, the West Coast of the United
States and ,of course, Japan.
 ♣ The four dragons: China’s HongKong,
Singapore, South Korea and China’s Taiwan.
 ♣ Emerging industrial countries: Indonesia,
Malaysia, Philippines and Thailand ,plus
Vietnam.
What is the Third Would
 The first problem is to define the meaning
of the term” Third World”. Initially it was
used to distinguish the rest of the world
from the “First World” (Europe) and the
“New World” of North America. Today,
however, it is generally used to describe
those underdeveloped economies with the
severest economic problem. The
difference between’ underdeveloped and
developing’ countries is itself important.
花卉产业链全球化布局

优越的自然环境和低廉的人力成本，是肯尼
亚、中国、哥伦比亚等亚非发展中国家花卉种植
业崛起的关键。由于气候温和，日晒充足，这三
个国家被公认为全球最适合花卉养殖的三个地区，
而老牌种植大国荷兰由于纬度偏高，温度、日晒
等自然条件相对欠缺，不得不广泛采取温室养殖，
种植成本相对较高，因此荷兰逐渐将种植业务外
包，这也促成了发展中国家种植业务的崛起。花
卉出口正成为肯尼亚等国的重要外汇收入来源，
其中肯尼亚年出口创汇约为2.5亿美元，埃塞俄比
亚的花卉出口也达到1.25亿美元 。

提高远程交易的成功率：统计数
字表明将来花卉及植物的交易方式将
为数字化模式，在2005～2006年间，
花卉园艺贸易增长了100%，而仅
2007年，远程交易的总额就增长了
74%，目前三分之一的总交易额均是
数字化交易完成，将来10年内将增加
到80%左右。
Strategic considerations in
international marketing
 1: The definition of strategy

The Concise Oxford Dictionary defines”
strategy” in militaristic terms. Strategy, it
asserts, is “the imposition upon an enemy of a
place and time and conditions for fighting
preferred by oneself ”. Business strategy may
be similarly described.
 It means choosing a general direction for
the firm , together with organizational
designs, polices, systems and a style of
management best suited for beating the
competition ”in the field”. Adoption of
correct strategies causes the firm to offer
the right products to the right markets at
the right time with the right quality and at
the right price.

Strategy differs from “tactics” in that,
whereas strategy involves the formulation
of general and wide-ranging polices,
tactics concern practical methods for
implementing strategic decisions.
Strategy define the major overall goals of
the organization. Plans state how these
goals are to be accomplished. Strategy
concerns ideas, creativity and grand
conceptions; plans involve instrumental
measures for the efficient allocation of
resources.
International marketing strategy
derives from the firm’s overall corporate
strategy and concerns such matters as
product positioning, branding strategies,
choice of target countries and methods
for entering them, whether to use
national or international media for
promotional campaigns, and so on.


The process of formulating and
implementing strategies begins with a
statement of the mission of the
business, ie： its fundamental purpose,
why it exists and – in the broadest
terms- what it wishes to do.
Mission statements cover five
components：





● Purpose-- the organization’s reason for
existing;
● Strategic goals-- what it wishes to achieve;
● Values--how it relates to its stakeholders;
● Standards-- organizational policies and
norms of behaviour;
● Strategic pathway--the means it will use to
achieve its goal
Nokia values

The values of our company make us different.
They provide a sense of direction for consistent
behaviour as employees and citizens of the
world, and in our quest to be a great internet
company. Through extensive employee
engagement, Nokia has now created new
values that reflect our business and changing
environment. They act as a foundation for our
evolving culture and are the basis of our
operational mode. Living them every day is our
shared philosophy.
 Engaging You
For us ‘Engaging you’ incorporates the
customer satisfaction value and deals with
engaging all our stakeholders, including
employees, in what Nokia stands for in the
world.
Achieving Together
Achieving together is more than collaboration
and partnership. As well as trust, it involves
sharing, the right mind-set and working in formal
and informal networks.

Formulation of a competitive strategy
involves an analysis of the strengths and
weaknesses of the firm in question and of
its rivals, identification of key success
factors in the markets in which the
business is to operate, and definition of
consumer attributes, demands, attitudes
and behaviour.
 Critical success factors are the
variables that determine whether a
company can beat its rivals in the market
concerned.
Critical success factors








(1).The product:
● Fulfils a clear need
● Has many uses
● Has unique features
● Is psychologically appealing
● Can be modified easily
● Is the right quality
● Performs better than that of competitors




(2).Demand for the product is:
● Growing rapidly
● Expected to continue to expand
● Concentrated in high-spending
consumers
 ● Concentrated in high-involvement
consumers
 ● Concentrated in easily-accessible
areas






(3).Delivery is:
● Fast
● Reliable
● Followed by excellent customer care
● Accompanied by attractive warranties
● Competitively priced
 (4).Promotion is :
 ● The right mix for the product’ life cycle
stage within its market, the market
segment itself, and corporate strategic
needs.
 ● Geared to local tastes and preferences
 ● Based on a positive brand image
2008 National
Export Strategy
 The Trade Promotion Coordinating Committee
(TPCC) is an interagency group chaired
 by the U.S. Secretary of Commerce. The Export
Enhancement Act of 1992 established
 the TPCC to provide a unifying framework to
coordinate the export promotion and
 financing activities of the U.S. Government, as
well as to develop a comprehensive
 plan for implementing strategic priorities.
State of Trade
 C O N C LUS I O N

Several external factors have contributed to the
success of U.S. exports in recent years, including the
growth of foreign markets, changes in the terms of trade
(i.e., exchange rates),and lower costs of conducting
international business. Yet the most important factors
driving U.S. exports are inherent to U.S. industry. An
open and growing global economy plays to the strengths
of U.S. industry as the most productive, innovative, and
competitive in the world.
Broadening and Deepening the Base
of Exporters

With slowing economic growth at home
and continued strong import demand abroad,
now is the time for U.S. companies to
expand into foreign markets. Our goal is to
engage more U.S.companies than ever in the
global marketplace, by raising awareness of
export opportunities and assistance.

The challenge is reaching potential exporters
throughout the large and diverse U.S. business
community of 27.2 million firms.The solution is
strategic partnerships among all stakeholders in
the United States who share an interest in seeing
our country continue to prosper through exports.
The U.S. Government is also taking several
concrete steps to make its services more
accessible, especially for small companies and
new exporters who most need help.
Foreign Competition and Trade
Promotion Assistance

Most every competitor country we have
reviewed identifies expansion of exporting
opportunities for small and medium-sized
enterprises (SMEs) as a national economic
priority. TheEuropean Union is concerned that
only 8 percent of its SMEs export. European
research concludes that the number of exporters
is the main determinant of their countries’
exporting base, and encourages governments to
make broadening the number of exporters a
priority.

France committed to increasing the
number of SMEs exporting by 50 percent.
Likewise, Australia committed in 2002 to
an ultimately successful campaign to
double its SME exporters. Japan, South
Korea, and neighboring Association of
Southeast Asian Nations (ASEAN) have
similarly identified SME exporting as an
important public objective.

Addressing the “SME gap” has also been
a priority of the United States and a
perennial priority of the National Export
Strategy. The governments of our trading
partners approach the issue from different
perspectives. Some subsidize financing and
market entry programs for new exporters.
Others have created umbrella agencies that
combine industry, finance, trade policy, and
trade promotion under one roof.

None of these approaches is suited to
the U.S. style of governance, which
looks to maximize and complement the
role of public and private partners. It is
important to know, however, what we are
up against in the competitive global
marketplace.
日刊：亚洲三国将成未来投资热点
著名投资大师吉姆·罗杰斯（资料图）
著名投资大师吉姆·罗杰斯（资料图）

Michael Porter provided a framework
that models an industry as being
influenced by five forces. The strategic
business manager seeking to develop an
edge over rival firms can use this model to
better understand the industry context in
 which the firm operates.
Chapter3，International Marketing
Research


Many firms do little research before they enter a
foreign market. Often, decisions concerning entry and
expansion in overseas markets and selection and
appointment of distributors are made after a cursory,
subjective assessment of the situation. The research
done is often less rigorous, less formal , and less
quantitative than for domestic activities. Furthermore,
once a firm had entered a foreign market, it is likely to
discontinue researching that market.

A major reason why managers are
reluctant to engage in international
research is their lack of sensitivity to
differences in culture, consumer tastes
and market demands. Often managers
assume that their methods are both best
and acceptable to all others. Fortunately,
this is not true. What a boring place the
world would be if it were!
 Despite the reservations firms have,
research is as important internationally as
it is domestically. Firms must learn where
the opportunities are, what customers
want , why they want it, and how they
satisfy their needs and wants so that the
firm can serve them efficiently.

Firms must obtain information about
the local infrastructure, labor market, and
tax rules before making a plant location
decision. Doing business abroad without
the benefit of search places firms , their
assets, and their entire international future
at risk.
Types of data
 1, Geographical parameters
♣ Total GDP
♣ GDP per capita
♣ Economic trends
♣ Balance of payments position: future
foreign exchange problem.
 ♣ Tariff and non-tariff barriers.
 ♣ Exchange controls.




 ♣ Structure of imports by value and
product.
♣ Rates of growth of imports.
 ♣ Growth rates of market sectors,
especially those that represent attractive
markets.
 ♣ Political stability.
 ♣ Government controls and attitudes
towards business.
 ♣ Consumer expenditure by volume and
product category.
 ♣ Rate of investment in fixed capital and
industrial equipment.
 ♣ Wage rates by gender and occupational
category.
♣ Number of doctors per 1,000 population
 ♣ Legal constraint on business, and
internal restrictions on trade.
 ♣ quality of , and ease of entry to,
distribution channels.
 ♣ Competitors’ prices.
2,Total population
 ♫ Proportion of population within each
age range and income group.
 ♫ Ratio of urban to rural dwellers.
 ♫ Occupational breakdown of working
population.
 ♫ Population growth rate.
 ♫ Lifestyle analysis.
 ♫ Consumer tastes
 ♫ Average family size
♫ Average age of dwellings by region
♫ Religious groupings
♫ Languages
♫ Literacy rates
♫ Schooling and length of time spent in
education.
 ♫ Health care availability
 ♫ Mortality rates





 ♫ Per capita expenditure on medical
products
 ♫ Debt collecting facilities
 ♫ Transport infrastructure
 ♫ Advertising costs