1、GSBS6041Contemporary Global MarketingWeek 1An Introduction to International Marketing2IntroductionsRobert ScrymgourWeek Date Topic Other(as applicable)1 01/02 Introduction to International Marketing Chapters 1&2 2 08/02 Cultural&Social Environment Chapter 3 3 TBA The Political and Legal Environment
2、Chapter 4 4 22/02 International Marketing Research and Market Selection and Entry Chapters 6&7 5 01/03 Modifying Products and Services for International Markets Chapters 13&14 6 08/03 International Promotion and Advertising Overseas Chapter 15 7 15/03 International Pricing for Profit Chapter 16 8 22
3、/03 International Distribution Chapter 17 9 29/03 Environmental Group Presentations 10 05/04 Planning and International Strategy Chapter 8 EASTER BREAK 6 April to 13 April 11 19/04 Competitive Strategies Chapter 9&10 12 26/04 Relationship Management Issues in International Marketing Chapter 12 Exami
4、nation period 3 May to 11 May 4AssessmentAssessment Item Related Learning Outcomes Weighting(%)Submission Date Method of Submission Returnable(yes/no)Group Case Study Presentation&Report 2&3 15 Weeks-2-10 During Lecture In Class Yes Group Environmental comparison Presentation 1 to 6 15 Week 9 During
5、 Lecture In Class Yes Individual Major Project Report 1 to 6 30 Week 12 Lecture Electronic Yes Final Examination 40 Refer Exam Timetable Total 100 5BlackboardYou must be enrolledAll course documents(PPTs,outline)External Source LinksDiscussion ForumAnnouncementsTurnitinGradebook6TurnitinMajor Assign
6、ment must be submittedLogon through BlackboardMultiple revisions24 hour turnaround on revisions7Student ManualGeneral InformationWorking in GroupsAssignment support ReferencingTime ManagementExam Anxiety8Your TurnName NationalityOccupation or backgroundProgram(MBA,MMktg,MIS etc)Number and types of s
7、ubjects already completed*Dont forget to sign the attendance sheetOH No!Not Groups10Subject RecapCase Study PresentationsMajor AssignmentConsultationExam ENJOY and have FUN 11IntroductionGlobal versus local approach to international marketingExporters in the Australasian region:Indigenous small and
8、medium-scale exporters(SMEs)Local subsidiaries of transnational firms12Definition of International Marketing“International marketing is the process of planning&undertaking transactions across national boundaries that involve exchange”13The New International Marketing EnvironmentShrinking communicati
9、ons Major changes in the international trading sceneFirms focus on the interests of stakeholders14Stakeholders of the International Firm15Driving Forces in International MarketingMarket needsTechnologyCostCommunications16Restraining Forces in International MarketingPolitical systemsLegal requirement
10、sCultural normsEconomic developmentTechnological environment17Restraining Forces in International Marketing(Cont.)Controls over entry and access to marketsActual or perceived riskCommercialCross-culturalCountryFinancial18Drivers of Growth in the International EconomyDriven by change in management or
11、ientationEthnocentric OrientationPolycentric OrientationRegiocentric OrientationGeocentric OrientationInternational monetary framework19Drivers of Growth in the International Economy(Cont.)World trading systemInternational monetary frameworkCommunications and transportTechnology20Approaches to Inter
12、national MarketingFrom domestic to transnationalDomestic orientation-export to overseas agentMove to international marketing-commit resources to overseas marketTake multinational stance-adapt for the marketMove to global marketing-provide competitive global offering21Approaches to International Mark
13、eting(Cont.)From export to holistic focus1.Export through local(Australian)agent2.Export direct3.Establish overseas office4.Manufacture the product in the country under license5.Set up factory&operations in destination country22Concepts Underlying International MarketingComparative advantageProduct
14、lifecycle extensionInternalisationRelationships&networks23The Wheel of International Marketing24The Firms Environment25Domestic Country Environment26Foreign Environment27The World from An Australian Business Perspective28Australias Merchandise Exports by Destination,2003-429Australias Imports by Sec
15、tor,2003-430The Global Economic SceneRecent Trends:Global markets&competitorsReduction of trade barriersSurge in capital movementsIncreases in manufacturing productivityWorld economy impacts on local economiesSpread of market driven economiesGrowth of e-commerce 31Economic Systems&StructureSystemsMa
16、rket allocation system Command allocation systemMixed systemStructureAgriculture,Industry,ServicesDevelopment StageGNP per capita Income levels32International TradeDebate focused on issue of protectionism Tariff versus non-tariff barriersThe World Trade Organization(WTO)Economic integrationPreferent
17、ial Trading arrangementsFree trade areasCustoms UnionsEconomic Unions33Within the Asian Trading RegionASEAN Free Trade AreaSingapore,Malaysia,Thailand,Indonesia,Philippines,Brunei,Vietnam,Laos,Cambodia,&MyanmarASEAN+3(Japan,China,&South Korea)APECASEAN nations,Australia,New Zealand,Canada,USA,Japan,
18、South Korea,Chile&MexicoViewed as a possible counterbalance to EU&NAFTABilateral Free Trade AgreementsFor example,Australia-USA,Thailand,&Singapore.34Consumption PatternsEngels Law-expenditure on other itemsProduct saturationMerchandise tradeServices trade35Trading EnvironmentRegulated by Government
19、sGovernments desire to control trade flows tends to be motivated by:Financial issuesSecurity issuesSafety issuesHealth issuesProtectionist issues36Measuring Markets(Cont.)Levels of IncomePopulationQuality of life over timeInfrastuctureDebtResources37Marketing ImplicationsNeed to monitor the economic
20、 environment on both a global and individual country basisProvides knowledge:To target specific marketsNature of customers and demandMost important segmentsEntry strategyMarketing mixMarket potential38The Financial EnvironmentForeign exchange issuesRates of exchange fluctuateSpot market rateForward
21、market rateExchange rates may or may not be set to float independentlyForecasting exchange ratesPurchasing power parityEconomic factorsPolitical factors39Foreign Exchange Issues(Cont.)Managing foreign exchange risk exposureTransaction exposureTranslation exposureEconomic exposureGovernment intervent
22、ionMultiple exchange rates40Financial ManagementFinancing-just as important as priceSources of fundsBanks and governmentsForfeiting and factoringTypes of financial riskCommercial riskPolitical riskForeign exchange risk41Coping with RecessionPull outEmphasize a products valueChange the product mixRep
23、ackage the goodsMaintain stricter inventoryLook outside the region for expansion opportunitiesIncrease advertising in the regionIncrease local procurement42International Financial SystemInternational Monetary Fund(IMF)Cooperative monetary policyManages international financial system-liquidityWorld B
24、ankEconomic&social infrastructure projectsFoster deregulation&market activitiesInternational AidPoliticalFinancialAltruistic43Marketing ImplicationsNeed to know the sources of funds when doing business overseasNeed to monitor the financial situation in the economy of the overseas countryProvides an
25、indication of the likely stability of the exchange rate,availability of funds,and the cost of fundsMechanisms exist to assess and minimise financial risks442.The global political and legal environment45Political Environment-Individual GovernmentsGovernment affects almost every aspect of business lif
26、e in a country.National politics affect business environment directly,through changes in policies,regulations,and laws.The political stability and mood in a country affect the actions a government will take.Home Country vs.Host Country.46Political Environment-Individual Governments Structure of Gove
27、rnment:Ideology CommunismCapitalismSocialismPolitical PartiesSingle-party-dominant countryDual-party systemMulti-party systemGovernment Policies and Regulations:It is the role of government to promote a countrys interests in the international arena for various47Political Host Government ActionsGover
28、nment procurementTenders:local content requirementsBuy local campaignsDick Smiths productsOwnership controlsQantas and TelstraInvestment controlsFIRBControl of portfolio and FDI48Political-Host Government ActionsOwnership ChangesExpropriationgovernment takeover with compensationless common since mid
29、 1970s Confiscationas above,no compensationDomestication/Phase outtransfer of ownership and management over timeLimitations imposed:media and natural resourcesAbove decreasingly commonTrend-privatisation49The globalisation of terrorism July 7 2005 7 bomb blast in LondonSept 9 2004 truck exploded out
30、side Aust embassy in JakartaSept 1 2004 Chechen rebels take over a school in BeslanMar 11 2004 3 train explosions in MadridNov 15 2003 bombing at HSBC Bank in InstanbulSept 30 2003 bombing in Bogota nightclub,ColumbiaA report by the OECD put potential losses from a single large terrorist attack at$5
31、0 billion-250 billion.50Terrorism and the World EconomyAccording to an IMF study,the September 11,2001 terrorist attacks in New York and Washington D.C.resulted in major losses for the U.S.economy.The short-term lost economic output was estimated as$47 billion.The stock market lost$1.7 trillion.In a
32、ddition,125,000 workers were laid off for 30 days.Terrorist activities disrupt international movement of supplies and merchandise and financial flows.51The Strait of Malacca,through which a quarter of the worlds maritime trade passes,makes a tempting target for terrorists and piratesAt 500 mi(800 km
33、)long and from c.30 to 200 mi(50320 km)wide,betweenSumatra and the Malay Peninsula.Linking the Indian Ocean with the South China Sea,it is one of theworlds most important sea passages.Piracy remains a problem in the strait.Going for the jugular.Jun 10th 2004|SINGAPORE From The Economist52The politic
34、s of The Kra CanalChina want the canalSingapore do not want the canalThailand are in favourThe decision is still to be made but it could change the face of the world forever!53International AgreementsG7(Group of Seven)is an economic policy coordination group made up of political leaders from Canada,
35、England,France,Germany,Italy,Japan,and the United States.G8(Group of Eight)consists of G7 and Russia.COCOM(The Coordinating Committee for Multilateral Controls)was founded in 1949 to stop the flow of Western technology to the former Soviet Union;members countries include Australia,Japan and the NATO
36、 countries except Iceland.54Legal issues facing an international marketer55Legal StructuresInternational lawNo enforceable body:customs,treaties and court decisionsInternational tribunals for arbitrationCommon law:Britain,former colonies such as Singapore and Hong Kong and commonwealth generally con
37、sidered low riskCode law-based on Roman lawRomania,Italy,France,Germany,Switzerland&MexicoIslamic law-based on KoranSaudi,Pakistan,Libya,Arab statesSocialist law-marxist socialismformer USSR,China,Vietnam,Cuba and Angola56Quality of Legal StructuresSource:The Economist 7th April 2001,p16China Improv
38、ing since 1970s to 90s but long way to go.Cultural revolutionGeneration of lawyers and judges lost sophisticated legal system scrappedJudges poorly paid with no formal qualifications corruptionNew laws on Joint ventures SingaporeMuch less corruption but political interference57Issues Transcending Na
39、tional BoundariesISO 9000 certification has become an essential marketing tool for firms.ISO 14000 is based on the principle of self regulation,thereby minimizing surveillance and sanctions.Intellectual Property Protection:TRIPs(Trade-Related Aspects of Intellectual Property Rights)Patent(first-to-f
40、ile&first-to-invent principles)58Issues Transcending National Boundaries Copyright The Digital Millennium Copyright Act(DMCA)Trademark(prior-use,first-to-use&first-to-file principles)Trade SecretParis ConventionPatent Cooperation TreatyPatent Law TreatyEuropean Patent ConventionBerne Convention59Cou
41、nterfeitingTo make a copy of(usually with the intent to defraud/deceive)To make fraudulent copies of somethingNot genuine;imitating something superiorA copy that is represented as the originalNote:Discussions on Counterfeiting based on MGSM class assignment by 60A victimless crime?One BBC study in 2
42、004 found:52%willingly buy fake clothing/footwear16%willingly purchase fake perfume“.is it really such a big deal?”61Reported victims:Nigeria 1995:2500 died after using fake meningitis fake vaccineIndia 1998:30 died after drinking Chinese cough syrup that contained anti-freezeChina 2001:Dozens of in
43、fants died after being fed fake formula milkChina 2001:Shenzen Evening News reports 192000 people died that year by fake drugsUSA 2001:American Airlines crash suspected to have been caused by forged aviation parts62Business Impact P&G 15%pf branded soap/detergents in China are fake($150m p.a in sale
44、s)Gillette 25%of Parker pens,Duracell batteries,Gillette razors are fakeYamaha 5 out of 6 Yamaha branded motorbikes/scooters in China are fakeSE Asia 10%chance of buying fake OTC medicineChina 50%chance of buying fake OTC medicines63Needing to know the risks beforehandIslamic Revolution of 1979Despi
45、te economical growth,there was much opposition against the Mohammad Reza Shah,and how he used the secret police,the Savak,to control the country.Strong Shii opposition against the Shah,and the country came close to a situation of civil war.The opposition was lead by Ayatollah Khomeini,who lived in e
46、xile in Iraq and later in France.His message was distributed through music cassettes,which were smuggled into Iran in small numbers,and then duplicated,and spread all around the country.This was the beginning of Iranian revolution.64Risk AssessmentRisk assessment is more formally based on:Host Gover
47、nment stabilityStrength of host governments commitment to specific rules:ownership,contracts given ideology and powerLikely longevity of government If current government changes-likely impactBased on answers to above:What decisions should be taken now?6566Risk Reduction by firmEstablish contacts with host country governing eliteBecome indispensable part of local supply chainDistributed resourcesDomestication policy Domestication of brand eg.McDonalds in SerbiaMaking financial risk local-Joint venturesReduce exposure of capital assets(TCA implications)Political risk insurance(EFIC)in Australia
