MRKT 483 - International Marketing Management PDF

🌎 MRKT 483 - International Marketing Management Professor Hamid Etemad : [email protected] Office Hours Tue/Thu 5:30pm - 6:00 pm after class 💯 Evaluation Summary Assignment...

🌎 MRKT 483 - International Marketing Management Professor Hamid Etemad : [email protected] Office Hours Tue/Thu 5:30pm - 6:00 pm after class 💯 Evaluation Summary Assignment Lead team Due Date 22/10/2024 Critique team 12/11/2024 Critical analysis 12 or 14/11/2024 “Lead team” case analysis - 15% Midterm “Critique team” analysis - 10% Group project Critical analysis of ongoing ex - 15% Midterm - 30% Group term project - 25% Participation - 5% 💡 Notes MRKT 483 - International Marketing Management 1  PART I - The decision whether to internationalize MRKT 483 - International Marketing Management 2  🗒️ 03/09/2024 CH 1 - Global Marketing in the firm International marketing is important because it delivers value. Case study: ZARA why is Zara successful? Collect data and adjust it to clients’ liking ⇒ collect purchase information and research customer trends to determine what customers will want to wear in the next few weeks. However: the problem of sustainability Challenge : How does the flagship brand of Europe’s fast-fashion apparel retailer keep up with the latest trends? The Answer? : by implementing sophisticated information technology into its customer tracking and supply chain functions (AI will certainly affect this) Past result : Zara has over 1500+ women’s clothing stores in 78+ countries. Products move from design through the supply chain onto the store shelves in about 2 weeks. Question: how should Zara adjust for sustainability and climatic change? IKEA - why is IKEA globally successful? Understands + focuses on key benefits Eliminates cost of less strategic benefits Adjusts strategy locally as well Efficient/Effective marketers/players understand customers needs & wants segment by segment and region by region. Use of social media: embrace social media to connect better with customers 3/4 of North American companies now use social media for marketing purposes true customers are driving the way brands & stores are interacting with social media International marketing is coordination across all people and markets ⇒ each step in the supply chain involves international marketing MRKT 483 - International Marketing Management 3  ⇒ all member in the chain must ultimately focus on creating value for their customer and the end-user consumer, regardless of time and location 5 stage decision model in global marketing 1. The decision whether to internationalize 2. Deciding which market to enter 3. Market entry strategies 4. Designing the global marketing program 5. Implementing and coordinating the global marketing program. Past 2 decades in a glance: Friedman says the “world is flat” (2005) ⇒ international trade barriers have disappeared Transformation from WW1 to WW2 2007-2010: global financial crisis occurred Global strategy is feasible but need to account and adapt for local, regional, and national differences Industrial revolution (Water, Electrical powers, the Internet) is taking hold (automation…) Global light-house Network (GLNs) ⇒ go-to place for industrial organizations to learn and collaborate in advanced technology adoption. Innovations in manufacturing, opportunity for cross- company collaboration LSEs (Large Scale Enterprises) and SMEs (Small and Medium-sized Enterprises) LSEs - firms with >250 employees, account for avg long term costs MRKT 483 - International Marketing Management 121  slowing down price escalation lower factory costs rationalize logistics minimize intermediaries minimize complexities rationalize distribution negotiate to lower all margins other drivers of foreign market pricing: competition forcers push price down business model & manufacturing systems impact price cost components and internal system efficiencies all have impact costs (and prices) MRKT 483 - International Marketing Management 122  the cost structure and sourcing policies will have a large impact on costs (and prices) - reason for outsourcing the structure and distribution channels practices will also have a relatively large impact government policies, taxes, other levies and foreign exchange will have differing impacts as well International pricing framework: MRKT 483 - International Marketing Management 123  strategies for pricing a new product: MRKT 483 - International Marketing Management 124  consequence of longer channels (ex: Japanese multi-channels in consumer markets) summary - drivers of foreign market pricing: the system composition (cost components and system efficiencies) have impact on costs and eventually on prices the sourcing policies have a large impact on costs (and prices) competition forces price down and may push up costs the structure and policies of distribution channels will also have a relatively large impact government policies, tax, and other levies will have differing impacts as well. coordinating prices: ⇒ realigning prices to respond to: inflationary environments at home and host currency fluctuations at home and host local currency depreciation/appreciation is similar to local price inflation/deflation changing regulations at home and mainly at jost changing competitive environments at home and host recognition of contributions of the concerned institutions, mainly in host MRKT 483 - International Marketing Management 125  on-coming threat, or risk, of anti-competitive behaviors (dumping, transfer pricing) emerging change in competitive environments in a region ⇒ revisiting the management of price escalation: ways to stop or slow-down price escalation: 1. re-examine the cost structure: a. re-examine the cost components b. re-think and re-arrange sourcing arrangements c. re-design cost structure within the supply chain to include and increase scale and scope economies d. use geographically closer and more efficient suppliers e. use more efficient logistics to reduce time and financial costs f. use more efficient distribution systems g. re-examine corporate expectations (and services) h. re-examine organizational arrangements 2. re-examine channels: a. re-arrange the distribution channel b. re-arrange costly handling through re-packing (argument in favor standardization and manufacturing in low cost locations, full packaging and less handling) 3. re-examine products and their components, if still necessary: a. eliminate costly features (or make them optional) b. downsize the product c. assemble or manufacture the product in local/foreign markets considering impact on costs d. adapt and re-classify the product to escape tariffs and tax levies 4. re-examine customers if still necessary: a. re-do segmentation, targeting, positioning and re-configure when necessary MRKT 483 - International Marketing Management 126  a taxonomy of international pricing strategies: global pricing contracts: advantages and disavantages: MRKT 483 - International Marketing Management 127  different terms of payment: the process for handling letters of credit MRKT 483 - International Marketing Management 128  takeaways: 1. international prices are influenced by a much larger set of factors than their domestic counterparts 2. international prices can escalate beyond control very quickly 3. escalated prices are not beneficial: neither help the firm’s bottom line nor global market share 4. price coordination across markets is not an easy task and require careful considerations of customers’ purchasing power, currency fluctuation, inflation, regulations, impact on revenues… 5. the impact of grey market phenomenon can go beyond pricing strategy and impact product perception and corporate image 6. global pricing could/should reflect corporate orientation, objectives and mission and prices can reinforce brand image. Additional material: case study - Harley Davidson case study - Gillette Co. case study - Vaseline MRKT 483 - International Marketing Management 129  🗒️ 29/10/2024 CH 17 - Communication and promotion decisions and strategies communicating with the world consumers: principal topics opportunities, constraints & limitations in global communication global advertising budget decisions message-related decisions global media decisions choosing an advertising agency decisions related to coordination world-wide communications the role of other forms of communication Additional material: case study - case study - case study - case study - MRKT 483 - International Marketing Management 130