mkt1 - International Environment: International...

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Unformatted text preview: International Environment: International Environment: INT’L MKTG OVERVIEW Int’l marketing is the process of planning, conducting transactions across national borders to create exchanges that satisfy the objectives of individuals and organizations. International Environment: International Environment: The Importance of World International Trade: ­the scope of its expansion ­the opening up of new markets in the restructuring and emerging economies ­the level of competition ­rational allocation of resources ­increases the cooperation of countries International Environment: International Environment: INT’L MKTG OVERVIEW Mini case 1.2: Discussion Topic: Cork versus Plastic Discuss the pros and cons of global competition as related to the story of the effect of competition between the Seattle based Supreme Corp Inc and the Portuguese based natural cork incorporation. Relate your discussions to environmental safety, the concerns of small traditional exporters and to the global consumer at large. The Effect of Global Linkage The Effect of Global Linkage A freeze in Brazil and its effects on coffee production are felt around the world as coffee becomes scarce and its price rises. A decline in the value of the Mexican peso affected financial markets in all emerging economies and impacted Poland, Hungary, and the Czech Republic. The Effect of Global Linkage The Effect of Global Linkage ­The Political Turmoil in Middle East Affects the Stock market in New York ­The instability of governments in Latin America affects the US economy ­The devaluation of the US $ affects the whole world ­WTO’s position on China impacts the prices of labor­intensive products globally. The Link between Domestic and The Link between Domestic and International Trade Growth Percentage of Growth 12% 10% 8% 6% 4% 2% Domestic Growth Trade Growth 20 00 19 99 19 98 19 97 19 96 19 95 19 94 19 93 19 92 19 91 19 90 19 89 19 88 19 87 0% Year Structural Changes of Export Structural Changes of Export % Growth (1983-1998) 400% 350% 300% 250% 200% 150% 100% 50% 0% Australia Canada Merchandise Exports Germany Japan Commercial Services Exports USA The Importance of Export for the American The Importance of Export for the American Economy ­ 1 out of every 3 U.S. farm acres is producing for export 1 of every 6 U.S. manufacturing jobs produces for export $1 of every $7 of U.S. sales goes abroad 1 of every 3 cars, 9 out of 10 TVs, 2 out of 3 suits, and every VCR sold in the U.S. is imported. Travel and tourism is the #1 source of U.S. foreign exchange. Opportunities and Challenges Opportunities and Challenges Change and discontinuity requires active responses. International activity may be crucial to a firm’s survival and growth. International opportunities require careful exploration. Firms and individuals must be capable of adapting to the environment. Isolation is impossible today. Risk factors Target Market Selection Occupants Occupants Opposition Opposition Operations Operations Objects Objects Target Target Target Market Market Market Market Organization Organization Occasions Occasions Objectives Objectives Outlets Outlets Marketing Management Marketing Management Product Product Product Product Policy Policy Promotion Promotion Communication Communication Policy Policy Target Target Target Target Market Market Market Market Place Place Distribution Distribution Policy Policy Price Price Pricing Pricing Policy Policy The Marketing Process The Marketing Process Stages in the Marketing Process Analysis: Analysis: • Collect data on the eight O’s from data sources- primary and secondary, Collect data on the eight O’s from data sources- primary and secondary, iinternal and external, formal and informal. Screen data for opportunities nternal and external, formal and informal. Screen data for opportunities to employ company resources for competitive advantage. to employ company resources for competitive advantage. Planning: Planning: • Develop a marketing plan which includes a situation analysis, goals and Develop a marketing plan which includes a situation analysis, goals and objectives, long-term strategies and short-term tactics, cost and profit objectives, long-term strategies and short-term tactics, cost and profit estimates, and anticipated changes in organizational structure. estimates, and anticipated changes in organizational structure. Implementation: • Take actions to put the plan into action. Adjust implementation activities Take actions to put the plan into action. Adjust implementation activities to account for environmental changes in market conditions. to account for environmental changes in market conditions. Control: • Use annual planning (sales to forecast), profitability, and efficiency Use annual planning (sales to forecast), profitability, and efficiency controls to monitor the plan’s successes and failures. controls to monitor the plan’s successes and failures. Geographical Perspectives Geographical Perspectives Location Location Movement Movement Climate Climate Place Place Geographic Geographic Questions Questions Region Region Interaction Interaction The Global Market: A Curse and Blessing The Global Market: A Curse and Blessing An American market analysis was sent to one of the African countries to analyze and estimate the market potential for American made shoes. The expert came back from his trip and in his debriefing session, he said that there is no hope for selling shoes as almost all citizens are walking bare­feet. Another market analyst went to the same place and came back with a different tone. The second analyst concludes, “let’s get there as soon as possible as the market is just an ocean.” Discuss why the reports from both marketers are misleading. What kind of products (beyond shoes) can you sell in developing countries? Refer to the info in The Global Market: A Curse and Blessing The Global Market: A Curse and Blessing Critical view on market analysis: a) In Sierra Leone the average life span is 39 b) In Nigeria 9% of the kids will die at birth c) In Uganda the family annual income is likely to be about $602 ...
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