MBA国际市场营销

nullGlobal MarketingGlobal MarketingSpring 2003Some AboutsSome AboutsAbout me About this course About the project About the examination About grading Text StructureText StructureIntroduction to global marketing The global marketing environment Global market opportunities Global marketing strategy Global marketing program Global marketing management List of QuestionsList of QuestionsWhat is global marketing? Do we have to go global? Why? Where shall we go? What shall we know before plunging ourselves into the storming sea? How can we survive and thrive in a foreign market? Global Marketing -- IntroductionGlobal Marketing -- IntroductionWhat is Global Marketing?What is Global Marketing?What is marketing?What is marketing?The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual and organizational objectives. The Three Principles of MarketingThe Three Principles of MarketingCustomer Value Value Equation: V=B/P Differential Advantage FocusWhat is global marketing?What is global marketing?Practicing marketing in the global environment. An organization that engages in global marketing focuses its resources on global market opportunities and threats Globalization Globalization An open economic system Non-discrimination Global brands Global structures Exports % share of world productionExports % share of world productionAnnual % Growth of trade and GDP 1959 – 96Annual % Growth of trade and GDP 1959 – 96GDPGDPEffects of globalization on businessEffects of globalization on businessCheap offshore production Reduced transport costs Virtual communication Standardization of logistics Global marketing Export & Import By Regions   2002/01-10 Export & Import By Regions   2002/01-10 Corporate Globalization -China’s CaseCorporate Globalization -China’s CaseWalmart World Women Basket Ball Games Haier in USA Tsingdao Beer Global Marketing VS Domestic MarketingGlobal Marketing VS Domestic MarketingMore difficult: language, law, culture, trade and non-trade barriers, market research, and communication; More complicated: currency, measures and weights, customs, monetary exchange, transportation, insurance, and counter-claim More risky: credibility, currency exchange, political risk, transportation, and pricing More opportunities and more profitable, hopefully. Should we go global?Should we go global?Internal analysis Resources, managerial mindset, strengths, weaknesses,etc. External analysis Competition, opportunities, threats, benefits, risks, etc. Cost VS IncomeManagement OrientationManagement OrientationManagement’s assumptions or beliefs-both conscious and unconscious-about the nature of the world Ethnocentric Polycentric Regiocentric Geocentric EthnocentricEthnocentricHome country is superior. Domestic Company: No opportunities outside the home country; International Company Products and practices that succeed in the home country will be successful anywhere; Foreign operations are secondary or subordinate NissanPolycentricPolycentricEach country is unique. Multinational Company: Each subsidiary should develop its own business and marketing strategies according to the specific situation in that country. Problem: Cost, control, headquarter out of gameRegiocentric & GeocentricRegiocentric & GeocentricRegiocentric: Each region is unique and an integrated regional strategy is to be developed to serve that region. Geocentric: The entire world is a potential market and integrated world market strategies should be developed. Global or transnational company. Global Localization: Think globally, act locally.Philips VS MatsushitaPhilips VS MatsushitaPhilips Electronics Polycentric: 7 models of TV based on 4 chassis, Variety Matsushita Geocentric: global strategy, 2 models of TV based on a single chassis, low price Driving and Restraining Forces Affecting Global Integration and Global MarketingDriving and Restraining Forces Affecting Global Integration and Global MarketingDriving ForcesDriving ForcesTechnology Internet, Satellite Dish, Globe Spanning TV Regional Economic Agreements NAFTA, EU, ASEAN, GCC, APEC Market Needs and Wants Converging, Global Brand, Transportation and Communication Improvements Jet Plane, Large Cargo Ship, email, fax, videoconferencing, cost deduction Driving Forces Cont.Driving Forces Cont.Product development costs Quality World Economic Trends More opportunities Less resistance World-wide deregulation and privatization Driving Forces Cont.Driving Forces Cont.Leverage Experience transfers Scale economies Resource utilization Global strategy The Global/Transnational CorporationRestraining ForcesRestraining ForcesManagement Myopia Organization Culture Integrate global vision and perspective with local market initiative and input Mutual respect National controls and barriers Tariff barriers and non-tariff barriersThe Global Economic EnvironmentThe Global Economic EnvironmentChanges in The World Economy Changes in The World Economy Emergence of global markets Economic integration Global companies, global brands Capital movements far exceed the volume of global merchandise and services trade $4 trillion VS. London Eurodollar Market, $100 trillion, VS. Foreign exchange $250 trillion Changes in The World EconomyChanges in The World EconomyProductivity VS. Employment Application of new technologies Increase in production efficiency Plant emigration Internal reformsChanges in The World EconomyChanges in The World EconomyWorld economy becomes the dominant economic unit The end of the cold war Collapse of USSR, ISC, E. European China, Vietnam, Cuba, North Korea Economic SystemsEconomic SystemsMarket Allocation Market economy Role of the state Command Allocation Planned economy Role of the state Mixed System Which plays the leading role? Stages of Market Development Based on GNP Per CapitaStages of Market Development Based on GNP Per CapitaLower-Income Countries <$766 Lower-Middle-Income Countries $766-$3036 China 10239.8/129=$799 Shanghai >$2000 Upper-Middle-Income Countries $3036-$9386 High-Income Countries >$9386Low-Income CountriesLow-Income CountriesPreindustrial countries, less than $766 Limited industrialization, high percentage of population in agriculture and farming High birth rates Low literacy rates Heavy reliance on foreign aid Political instability and unrest Africa, south of Sahara Lower-Middle-Income CountriesLower-Middle-Income CountriesLess developed countries (LDC) Early stage of industrialization Consumer markets expanding Low labor cost Labor-intensive products manufacturingUpper-Middle-Income CountriesUpper-Middle-Income CountriesIndustrializing countries Percentage of people in agriculture dropping sharply Degree of urbanization increasing High literacy Relatively low wage costs High-Income CountriesHigh-Income CountriesIndustrialized Countries Sustained economic growth Knowledge-based Service sector New products and innovations Income and PPP Income and PPPPurchasing Power Parity Real Income Standard of Living The concentration of income Regional, nationally, and within nations “Triad”: US, Canada, EU, and Japan Income inequality in developing countries Implication for MarketersImplication for MarketersProfitability Chances and challenges Marketing’s Role Market potential evaluation Emerging Markets EvaluationEmerging Markets EvaluationSocial and Cultural EnvironmentsSocial and Cultural EnvironmentsDifferences Similarities Marketers’ two-folded task. Recognize difference Find similaritiesCultureCultureCulture includes both conscious and unconscious values, ideas, attitudes, and symbols that shape human behavior and that are transmitted from one generation to the next. Culture is learned, not born with. Culture can be changed.Implications for Global MarkersImplications for Global MarkersFood, drink preferences KFC, Colgate, Coco-cola, Green Giant Foods, and soy sauce Color, flower, and other preferences White, green, chrysanthemum, Corbie, dog, Converging global attitudes Cultural universals Be culturally sensitive!High and Low-Context CulturesHigh and Low-Context CulturesLow-context: messages are explicit, words carry most of the information in a communication. “I mean what I say”. High-context: much more information resides in the context of communication, including background, associations, and basic values of the communications rather in the verbal message. “Guess what I really mean.”High and Low Context CulturesHigh and Low Context CulturesCommunication and NegotiationCommunication and NegotiationLanguage barriers It’s a “yes” or “no”? “You are invited to take advantage of the chambermaid”. “Ease your bosoms. This coffee has carefully selected high quality beans and roasted by our all the experience.” The lift is being fixed for the next day. During that time we regret you will be unbearable.” Nonverbal communication Verbal VS. NonverbalSocial BehaviorSocial BehaviorSneeze, belch, sharing food Saudi: Don’t ask the host about the health of his spouse. Don’t show the soles of your shoes. Don’t touch or deliver with the left hand. Japan, Korea, China, India Venezuela, Indonesia Africa “Madam” or “ma’am” Analytical Approaches to Cultural FactorsAnalytical Approaches to Cultural FactorsDon’t assume you know everything. Don’t judge others by the culture you are from. There are no perfect cultures in this world, or there is no such culture superior than another. Try to understand the beliefs, values, and motives of another culture Be open, be understanding.Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of NeedsPhysiologicalSafetySocialEsteemSelf-actualizationHofstede’s Cultural TypologyHofstede’s Cultural TypologyPower distance Individualism or Collectivism Masculinity or Femininity Uncertainty avoidance Power DistancePower DistanceThe extent to which the less powerful members of a society accept or expect that power to be distributed unequally. High power distance Low power distanceIndividualism or CollectivismIndividualism or CollectivismIndividualistic culture: Each member of society is primarily concerned with his or her own interest and those of the immediate family. Collectivist culture: All of society’s members are integrated into cohesive in-groupsMasculinity of FemininityMasculinity of FemininityMasculinity A society in which men are expected to be assertive, competitive, and concerned with material success while women fulfill the role of nurturer and take care of the family Femininity A society in which the social roles of men and women overlap, with neither gender exhibiting overly ambitious or competitive behaviorUncertainty AvoidanceUncertainty AvoidanceThe extent to which the members of a society are uncomfortable with unclear, ambiguous, or unstructured situations.Environmental SensitivityEnvironmental SensitivityThe extent to which products must be adapted to the culture-specific needs of different national markets.Product AdaptationHighLowEnvironmental SensitivityLowHighIntegrated CircuitComputerFoodImpact on Marketing Impact on Marketing Consumer behavior Campbell in US VS in Italy Instant coffee in UK VS. in Sweden Cake in US VS. in UK Personal aspect of international businessSuggested SolutionsSuggested SolutionsStake: expatriate failure averages $75,000, loss of business: $2.5 billion Research Training in cross-cultural competency “Boot camp” “International exposure” “Workshop” The Political, Legal, and Regulatory Environments of Global MarketingThe Political, Legal, and Regulatory Environments of Global MarketingThe Political EnvironmentThe Political EnvironmentSovereignty Political risk Taxes Dilution of Equity Control Expropriation SovereigntySovereigntyThe supreme and independent political authority. Control the flow of goods across borders Stage of development The political and economical system Protectionism: Agriculture Privatization dilutes the command portion of a mixed economy Global market integration erodes national economic sovereignty.Political RiskPolitical RiskThe risk of a change in government policy that would adversely impact a company’s ability to operate effectively and profitably. HK, Argentina, Venezuela, TaxesTaxesDiverse geographic activities of MNC Host country tax avoidance Bilateral tax treatiesDilution of Equity ControlDilution of Equity ControlControl ownership of foreign-owned companies. Equity percentage in local projects or joint ventures Become an insider ExpropriationExpropriationGovernmental action to dispossess a company or investor. Compensation Nationalization: Ownership of the property or assets in question is transferred to the host government. ConfiscationExpropriationExpropriationCreeping expropriation: limitations on repatriation of profits, dividends, royalties, or technical assistance fees from local investments or technology arrangements. Tariff and non-tariff barriers Intellectual property restrictions Remedies: buy insurance, follow the lawInternational LawInternational LawRules and principles that nation-states consider binding upon themselves. Public law, international commercial law Common law VS code lawWhich Law Applies?Which Law Applies?Be explicit in the contract The place of the domicile or principal place of business of one of the parties The place where the contract was entered The place of performance of the contractIntellectual PropertyIntellectual PropertyPatents and Trademarks Registration Protection Counterfeiting: The unauthorized copying and product of a product. Imitation: Use of a product name that differs slightly from a well-known brand Piracy: The unauthorized publication or reproduction of copyrighted work.Intellectual Property ProtectionIntellectual Property ProtectionThe Paris Union: International Convention for the Protection of Industrial Property. The Patent Cooperation Treaty European Patent Convention TRIPs: Trade Related Intellectual Property RightsAntitrustAntitrustTo combat restrictive business practices and to encourage competition. Consten’s case, Grundig Ruling: “Territorial protection proved to be particularly damaging to the realization of the common market.” IBM and Microsoft in EuropeLicensing Licensing Licensing is a contractual agreement in which a licensor allows a licensee to use patents, trademarks, trade secrets, technology, or other intangible assets in return for royalty payments or other forms of compensation. What assets? At what price? The right to “make”, “use”, or “sell”? Sublicense? “Exclusive or nonexclusive?” Creation of competitor.Trade SecretsTrade SecretsConfidential information or knowledge that has commercial value. TRIPs requires signatory countries to protect against acquisition, disclosure, or use of trade secrets in a manner contrary to honest commercial practices. Bribery and Corruption - A World-wide problemBribery and Corruption - A World-wide problemConflict resolutionConflict resolutionLitigation Differences in language, legal systems, currencies, traditional business customs and patterns, discovery procedure, and enforcement. Complex, time consuming, costlyArbitrationArbitrationInternational Chamber of Commerce The New York Convention AAA and China Beijing’s Conciliation Center. Swedish Arbitration Institute International Council for Commercial Arbitration UN Conference on International Trade Law The Regulatory EnvironmentThe Regulatory EnvironmentGovernmental and nongovernmental International Economic Organizations Price control, valuation of imports and exports, trade practices, labeling, food and drug regulations, employment conditions, collective bargaining, advertising content, competitive practices, etc.Regional Economic OrganizationsRegional Economic OrganizationsWTO EU NAFTA ……Global Markets and BuyersGlobal Markets and BuyersTrends of Global MarketTrends of Global MarketMarkets in almost every world region are expected growing. The fastest growing markets are the developing countries. The fastest growing regions in the developing world are East Asia The fastest growing country in East Asia is China.The BoomThe BoomEconomic Cooperation & Preferential Trade ArrangementsEconomic Cooperation & Preferential Trade ArrangementsInternational economic cooperation Free Trade Area (FTA) Customs Union Common Market Economic Union WTO and GATT Regional Trade AreasRegional Trade AreasnullFree Trade Area (FTA)Free Trade Area (FTA)A group of countries that have agreed to abolish all internal barriers to trade among themselves. Certificates of originCustoms UnionCustoms UnionMember countries agree to the establishment of common external barriers. The Central American Common Market, Southern Cone Common Market (Mercosur), and the Andean GroupCommon MarketCommon MarketRemoval of internal barriers Establishment of external barriers Elimination of barriers to flow of factors (labor and capital) within the market Free markets not only for product, but also for services and capital.Economic UnionEconomic UnionCreation of a unified central bank; Usage of a single currency-a struggle; Common policies on agriculture, social services and welfare, regional development, transportation, taxation, competition and mergers Political unity, a central government; From GATT to WTOFrom GATT to WTOGATT: A treaty between 125 nations who agreed to promote trade among members. Trade-disputes settlement, no power of enforcement WTO: A forum for trade-related negotiations. A system to settle trade disputes Service industry: Market-entry barriers in banking, insurance, telecommunications, etc. Regional Economic OrganizationsRegional Economic OrganizationsAPEC: Asian Pacific Economic Cooperation North American Free Trade Agreement Central American Common Market Andean Group Southern Cone Common Market Caribbean Community and Common MarketRegional Economic OrganizationsRegional Economic OrganizationsAssociation of Southeast Asian Nations The European Union Cooperation Council for the Arab States of the Gulf Economic community of West African States South African Development Coordination Conference nullnullnullnullnullGlobal Marketing Information Systems and ResearchGlobal Marketing Information Systems and ResearchAcquire Global Information Acquire Global Information Superabundance in developed countries Scarcity in LDC and underdeveloped countries Where and how to get the right information ScanningGlobal Marketing Information SystemGlobal Marketing Information SystemMIS defined Gathering, analyzing, classifying, storing, retrieving, and reporting EDI: Electronic Data Interchange Beneton’s MIS Timely, cost-efficiently, actionable Subject Agenda for a Global MISSubject Agenda for a Global MISMarkets Competition Foreign exchange Prescriptive information Resource information General conditionsMarketsMarketsDemand estimates Consumer behavior Products Channels Communication media availability and cost Market responsivenessCompetitionCompetitionCorporate strategies Business strategies Functional strategies Foreign ExchangeForeign ExchangeBalance of payments Interest rates Attractiveness of country currency Expectations of analystsPrescriptive InformationPrescriptive InformationLaws, regulations, rulings concerning taxes, earnings, dividends in both hose countries and home countryResource InformationResource InformationAvailability of human, financial, information, and physical resourcesGeneral ConditionsGeneral ConditionsOverall review of sociocultural, political, technological environmentsScanning ModesScanning ModesSurveillance Informal information gathering Viewing and monitoring Search Formal information gathering Investigation and Research Rule of ThumbRule of ThumbCreate an efficient and effective scanning system in both the home country and the host countries Create a MIS system Expanding information coverage to other regions of the worldSources of Marketing InformationSources of Marketing InformationHuman