International Marketing 2
2. The international Marketing environment
2. The international Marketing environment
Stages in the international marketing process
1. Analysis
2. Planning
3. Implementation
4. Control
Analysis of the Environment
Global Environment
- Economic & Financial Environment
- Socio Cultural environment (Buying Behavior)
- Political & Legal environment
Industry Environment
- Distributors
- Customers
- Suppliers
- Competitors
Socio Cultural environment (Buying Behavior)
Elements of culture
- Social interaction (among people, reference groups)
- Language (silent & spoken)
- Aesthetics (beauty and good taste)
- Value system (norms and standards)
- Education
- Material Life
Socio Cultural environment (Buying Behavior)
Attitudes
A person's consistently evaluations, feelings and tendencies towards an object or idea.
Socio Cultural environment (Buying Behavior)
Belief
A pattern of knowledge that an individual holds to be true about the world.
Socio Cultural environment (Buying Behavior)
Value
Enduring belief that a specific mode of conduct is preferable to another mode of conduct
Hofstede´s cultural classification scheme
- Power Distance The degree to which the less powerful members of a society accept and expect that power is distributed unequally.Socio Cultural environment (Buying Behavior)
- Individualism versus collectivism
Individualism: individuals are expected to take care of themselves and their immediate families only.
Collectivism: individuals can expect members of a particular in-group to look after them in exchange for loyalty.
- Masculinity versus femininity
Masculinity: a preference for achievement, heroism, assertiveness and material reward for success.
Femininity: a preference for cooperation, modesty, caring for the weak and quality of life.
- Uncertainty avoidance
The degree to which the members of a society feel uncomfortable with uncertainty and ambiguity.
- Long-term versus short-term orientation
Long-term orientation: can be interpreted as society’s search for virtue.
Short-term orientation: generally have a strong concern with establishing the absolute Truth.
- Indulgence versus restraint
Indulgence: enjoying life and having fun.
Restraint: strict social norms
Economic & Financial Environment
2 Market characteristics
Economic freedom: Trade policy, taxation policy, wage and price controls, property rights (Ranges from “free” to “repressed”)
Stages of market development: Based upon Gross National Product (GNP) Ranges from high-income to low-income countries
Economic & Financial Environment
Marketing opportunities in LDCs
LDC have a shortage of goods and services
Long-term opportunities
- Look beyond per capita GNP
- Consider first mover advantage
- Set realistic deadlines
- Consider the LDCs collectively rather than individually
Economic & Financial Environment
Country attractiveness variables
Foreign involvement in the economy:
- Degree of foreign investment in country or in a specific industry
- Rules governing foreign investment
Availability and quality of infrastructure
- Traffic networks for distribution capabilities
- Communication systems for marketing
- Energy (electrical & fuel)
Financial market situation
- Currency's stability
- Credit availability
Political & Legal environment
Types of regional trade agreements
- Preferential Trade Area: An agreement in a set of countries to reduce but not eliminate trade restrictions among themselves
- Free trade Area: An agreement in a set of countries to eliminate Trade restrictions among themselves.
- Customs Union: An agreement in a set of countries to eliminate trede restrictions among themselves and to adopt a common external tariff.
- Common Market: An agreement of a set of countries to eliminate trade restrictions among themselves, to adopt a common external tariff, and to allow the free movement of labor and physical capital among member countries.
Political & Legal environment
Government policies and regulations
- Investment regulations
- Trade laws
- Embargoes and sanctions
- Export controls
- Import controls
Political & Legal environment
Political risks for Companies Categories & Types
Categories of political risk:
-War
- Corruption
Types of political risk
- Ownership risk (e.g. seizure of assets)
- Operating risk (ongoing operating interference)
- Transfer risk (in shifting funds between countries)
Political & Legal environment
International law
Disputes between nations are issues of public international law
- Judicial arm of the United Nations
- International Court of Justice
- International law, 3 main sources:
- Customs
- international treaties,
- court decisions
Intellectual property (3 Ways of protection)
- Patent: Exclusive right to make, use, and sell an invention for a specified period of time.
- Trademark: Distinctive mark used to distinguish it from competing products
- Copyright: Establishes ownership of a written, recorded, performed, or filmed creative work
Infringement of intellectual property (3 Ways)
- Counterfeiting: Unauthorized copying and production of a product
- Associative counterfeit: Product name differs slightly from a well-known brand
- Piracy: Unauthorized publication or reproduction of copyrighted work
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Lernkarten
Stages in the international marketing process
1. Analysis
2. Planning
3. Implementation
4. Control
Analysis of the Environment
Global Environment
- Economic & Financial Environment
- Socio Cultural environment (Buying Behavior)
- Political & Legal environment
Industry Environment
- Distributors
- Customers
- Suppliers
- Competitors
Socio Cultural environment (Buying Behavior)
Elements of culture
- Social interaction (among people, reference groups)
- Language (silent & spoken)
- Aesthetics (beauty and good taste)
- Value system (norms and standards)
- Education
- Material Life
Socio Cultural environment (Buying Behavior)
Attitudes
A person's consistently evaluations, feelings and tendencies towards an object or idea.
Socio Cultural environment (Buying Behavior)
Belief
A pattern of knowledge that an individual holds to be true about the world.
Socio Cultural environment (Buying Behavior)
Value
Enduring belief that a specific mode of conduct is preferable to another mode of conduct
Hofstede´s cultural classification scheme
- Power Distance The degree to which the less powerful members of a society accept and expect that power is distributed unequally.Socio Cultural environment (Buying Behavior)
- Individualism versus collectivism
Individualism: individuals are expected to take care of themselves and their immediate families only.
Collectivism: individuals can expect members of a particular in-group to look after them in exchange for loyalty.
- Masculinity versus femininity
Masculinity: a preference for achievement, heroism, assertiveness and material reward for success.
Femininity: a preference for cooperation, modesty, caring for the weak and quality of life.
- Uncertainty avoidance
The degree to which the members of a society feel uncomfortable with uncertainty and ambiguity.
- Long-term versus short-term orientation
Long-term orientation: can be interpreted as society’s search for virtue.
Short-term orientation: generally have a strong concern with establishing the absolute Truth.
- Indulgence versus restraint
Indulgence: enjoying life and having fun.
Restraint: strict social norms
Economic & Financial Environment
2 Market characteristics
Economic freedom: Trade policy, taxation policy, wage and price controls, property rights (Ranges from “free” to “repressed”)
Stages of market development: Based upon Gross National Product (GNP) Ranges from high-income to low-income countries
Economic & Financial Environment
Marketing opportunities in LDCs
LDC have a shortage of goods and services
Long-term opportunities
- Look beyond per capita GNP
- Consider first mover advantage
- Set realistic deadlines
- Consider the LDCs collectively rather than individually
Economic & Financial Environment
Country attractiveness variables
Foreign involvement in the economy:
- Degree of foreign investment in country or in a specific industry
- Rules governing foreign investment
Availability and quality of infrastructure
- Traffic networks for distribution capabilities
- Communication systems for marketing
- Energy (electrical & fuel)
Financial market situation
- Currency's stability
- Credit availability
Political & Legal environment
Types of regional trade agreements
- Preferential Trade Area: An agreement in a set of countries to reduce but not eliminate trade restrictions among themselves
- Free trade Area: An agreement in a set of countries to eliminate Trade restrictions among themselves.
- Customs Union: An agreement in a set of countries to eliminate trede restrictions among themselves and to adopt a common external tariff.
- Common Market: An agreement of a set of countries to eliminate trade restrictions among themselves, to adopt a common external tariff, and to allow the free movement of labor and physical capital among member countries.
Political & Legal environment
Government policies and regulations
- Investment regulations
- Trade laws
- Embargoes and sanctions
- Export controls
- Import controls
Political & Legal environment
Political risks for Companies Categories & Types
Categories of political risk:
-War
- Corruption
Types of political risk
- Ownership risk (e.g. seizure of assets)
- Operating risk (ongoing operating interference)
- Transfer risk (in shifting funds between countries)
Political & Legal environment
International law
Disputes between nations are issues of public international law
- Judicial arm of the United Nations
- International Court of Justice
- International law, 3 main sources:
- Customs
- international treaties,
- court decisions
Intellectual property (3 Ways of protection)
- Patent: Exclusive right to make, use, and sell an invention for a specified period of time.
- Trademark: Distinctive mark used to distinguish it from competing products
- Copyright: Establishes ownership of a written, recorded, performed, or filmed creative work
Infringement of intellectual property (3 Ways)
- Counterfeiting: Unauthorized copying and production of a product
- Associative counterfeit: Product name differs slightly from a well-known brand
- Piracy: Unauthorized publication or reproduction of copyrighted work
