Download 2017-02-17 1 International Marketing The Lecturer Course

2017-02-17
The Lecturer
International Marketing
Katarzyna Dziewanowska, PhD
[email protected]
Katarzyna Dziewanowska
Department of Marketing
Faculty of Management
University of Warsaw
Course Book
Hollensen S., Essentials of Global Marketing, Pearson,
2nd ed., Harlow 2012.
Additional (in Polish)
E. Duliniec, Marketing międzynarodowy, PWE,
Warszawa 2009
Office hours:
Mondays, B404
(see announcements at the website)
Slides from the class and the syllabus: website
folder: International Marketing
password: IM2016
I do not send slides and passwords to individuals via
email
Group project:
Our Moral Contract:
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Assessment
• Final written test - 60% of the final grade
– May 30th, 2016
• Group project – 30% of the final grade
– Presentations: May 23rd, 2016
• Ongoing assessment (class participation, case
studies, HWs) – 10% of final grade
• You are allowed to miss 2 classes
– Missed more? Lower grade, need to visit me during
office hours
– Missed 50% or more? No grade.
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Goal: introduction of a product into a foreign market
Objective: applying knowledge into practice
6 people
There will be peer review – you will grade 2 projects
Assessment (120 points – 30%):
– Presentation 5% (20)
– Written report:
• Merit/ correctness 10% (40)
• Completeness 5% (20)
• Creativity 5% (20)
• Formal 5% (20)
• We come on time
– Late x 2 = absence
• No food in class
• Be respectful to others
• Do not use phones or computers for unrelated
stuff – if I bore you, just drop the class
• Let’s be active and enthusiastic ☺
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Agenda
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6.
7.
a.
b.
c.
Poland: Economic Data
Introduction
SME: strategies in foreign markets
Analysis of international environment
Product selection
Foreign market assessment and selection
Entry strategy in foreign markets
Decisions regarding:
• GDP per capita: 68% of the EU average,
• GDP value USD: 474.8 bn in 2015 (current prices,
GUS),
• Economic growth: 3.6% GDP growth in 2015
• Inflation rate in 2015: -0.9%,
• Exports USD: 190.7 bn in 2015,
• Public debt/GDP: 51.3% (at the end of 2015,
GUS).
• Area: 312,679 km2
• Population: 38.5 mn (as of 31.12.2012)
Polish perspective
INTRODUCTION
Standardization and adaptation
STP
Marketing mix
8. Project presentations
9. Final test
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www.paiz.gov.pl
Why Invest in Poland?
Poland has stable economy and well-grounded macroeconomic
position.
Unique conditions for running a business are supported by
repeatedly confirmed resilience to economic crises.
Polish investment attractiveness derives from a number of factors:
• Ambitious and hard-working people.
• Diversified economy.
• Macroeconomic stability.
• Transformation.
• Vast internal market and free access to the European market.
• Price competitiveness.
SME - definition
Barriers to Polish Dominance in Foreign Markets
3 criteria: employment, turnover, total balance sheet
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Image
Key products
Trade traditions
Mentality of owners and managers
Supporting institutions
micro
small
medium
<10
<50
<250
≤ 2mn€
≤ 10 mn €
≤ 50 mn €
≤ 2 mn €
≤ 10 mn €
≤ 43 mn €
Not a SME if other stakeholders (non SME) have:
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◦ More than 25% of shares
◦ Right to over 25% of profit share
◦ More than 25% votes of shareholders meeting≤
Źródło: Ustawa o
swobodzie działalności
gospodarczej z 2 lipca
2004 r. (Dz. U.12z 2004 r.,
Nr 173, poz. 1807)
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Why SME?
Internationalization
Characteristics of SME
• What are they? What makes them different from
large companies?
• Resources and knowledge
• Strategy and planning
• Organizational structure
• Risk-taking
• Flexibility
• Economy of scale
• Sources of market information
High importance of SMEs:
• They constitute 99% operators in the market
(95% in OECD)
• They create 68,4% of GDP
• They employ 64,3% of people
(60-70% in OECD)
• They generate 45% of export value
(25-35% in OECD)
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• All decisions leading to international activity
of companies or countries
• Macro level – country
• Mezzo level - industry
• Micro level - company
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Decision Dimensions
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Organizational
dimension
Company
Spatial Dimension
Country A
I-2
• economic and financial
– Necessity of allocation of resources
– Income from foreign markets
Country C
Company
– Concentric form
– Selective form
– Island form
– Waterfall/cascade
– Sprinkler
– Mixed/combined
Country B
I-1
• Spatial dimension
• Organizational dimension
I-3
Country X
Country A
Country B
Country C
Country D
Country X
S-3
S-2
C-1
DM
Company
Country A
S-1
Country B
C-2
Country C
Country D
Country X
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Dimesions of Internationalization
Internationalization Models
Uppsala Model
Using foreign intermediaries
Foreign activity
internationalization
high
active
approach
So-so
very
similar
Similarities of foreign
markets
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Intermediaries responsible
For foreign operations
Domestic
activity
one
Internationalization process is incremental and
takes place via a learning process:
• Entering foreign markets of bigger cultural
distance and higher uncertainty
• Increasing involvement
◦ Explain reasons for FDI on the basis of factors such as:
capital, labor and its effectiveness, natural resources, etc.
Microeconomics models:
low
Passive
reaction
very
different
Macroeconomics models:
Own foreign
activities
medium
Involved in
Export/import
Involved in
production and
other functions
Eclectic models:
All functions
located abroad
few
Monopolistic advantage
Oligopolistic reaction
Currency zones
Location
Theory of product life cycle
Type of involvement
many
◦ Uppsala model
◦ J.H. Dunning’s model
◦ Network model
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Number of foreign markets
Uppsala Model FDI
Occasional
export
Independent
intermediaries
(eksport)
Foreign sales
branches
Foreign sales
and production
branches
Market A
Increasing market involvement
Market C
…
Market N
Increasing geographic
divesification
Market B
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The Criticism…
Network Approach
• The model does not allow for skipping of some
phases
• Doesn’t work for highly internationalized and
service industries
• Does not work for companies with high
resources
• Nowadays, internationalization processes
become faster due to diffusion of technology,
education, etc.
Internationalization is a part of development of
long-term relations and interactions between
suppliers and their customers
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Market internationalization
Company’s
internationalization
low
high
low
Early beginners
Late beginners
high
Lone internationals
International among
others
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Reasons for Internationalization
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Pro-Active
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Re-Active
High cultural diversification
High foreign debt
Unstable political situation
Unstable government
Problems with international exchange (currency
exchange, stability of currency)
Governmental limits for entering foreign
companies
Customs and barriers in international trade
Corruption
Technological piracy
High cost of adaptation of marketing activities
Difficulty in obtaining reliable market information
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How to Assess the Degree of Industry
Internationalization
Market factors:
-Customers’ needs
-Global customers
-Leading countries
Cost factors:
-Global benefits of scale
-Cost differences among
countries
-High costs of product
development
Benefits of Internationalization
Risk – the Key Difference
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Different Faces of Marketing
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MARKETING
The core, philosophy, principles
Competition factors:
-Global competitors
-Competitors from different
countries
-Co-dependence among countries
-Technical standards
-Marketing regulations
-Marketing infrastructure
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International Marketing
Infrastructural factors:
Industry
globalization
Cost-related (production, marketing)
Market-related (conditions, customers)
Supply-related (sources of supply, prices, labour cost)
Politics-related (support and enouragement)
methods, techniques, tools
Domestic market
Export marketing
Foreign marketing (domestic marketing)
Euromarketing
International marketing (Multi-)
Intercultural marketing
Global marketing
Foreign market
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