International Marketing

Tổng hợp các câu hỏi trong bộ môn marketing quốc tế bằng tiếng anh của trường đại học Kinh tế quốc dân. Define strategic planning and briefly describe the four steps that lead managers and the firm through the strategic planning process. Discuss the role marketing plays in this process. Explain the main contents of an international marketing plan

Discussing the concepts

Chapter1:

1.What is marketing and what is its primary goal? What is export marketing? What isinternational marketing? What is global marketing? What is international marketing

management? Explain the concept “global localization”

Marketing is a management function, a process by which companies create value for customers

and build strong customer relationships to capture value from customers in return

Primary Goal:

– Create value for customers and build customer relationships from understanding the marketplace and customer needs

– Capture value from customers in return

Export marketing includes the management of marketing activities for products which cross the

national boundaries of a country, the scope of export marketing involves the only activity of exporting cargo/commodities and services

International marketing is the application of marketing principles in more than one country, by

companies overseas or across national borders the scope of international marketing involves setting up of the overseas branch for processing, assembling, packaging & direct manufacturing International marketing run through direct investment, joint ventures and collaborations turn-key projects

Export marketing will respond to domestic market competition whereas international

marketing will not respond to the interest of the domestic market.

Global marketing: Global marketing is more than simply selling a product internationally

Rather, it includes the whole process of planning, producing, placing, and promoting a

company’s products in a worldwide market Large businesses often have offices, factories at different location in the foreign countries they market to, but with the expansion of the Internet, even small companies can reach customers throughout the world

International Marketing Management is the management of companies’ marketing process It

is the art and science of selecting target markets and building profitable relationships from target market globally and is consistent with the companies’ decisions on:

1. Company’s Strategies

2. Company’s International Business Strategies

3. International Entry Strategies

Global Localization (Glocalization) means customizing a product or service offered by a

global entity, according to consumers of specific region It is is the adaptation of international products around the particularities of a local culture in which they are sold The process allows integration of local markets into world markets

2.Compare and contrast customer needs, wants, and demands Describe the market offering,

customer value and satisfaction, exchange and relationships Explain the difference between

share of customer and customer equity

States of felt deprivation

They include basic physical needs

for food, clothing, warmth, and

safety; social needs for belonging

and affection; and individual needs

for knowledge and self expression

Marketers did not create these

needs; they are a basic part of the

human makeup

The form human needs take as they are shaped by culture and

individual personality.

An American needs food butwants a Big Mac, french fries, and

a soft drink A person in PapuaNew Guinea needs food but wantstaro, rice, yams, and pork Wants

areshaped by one’s society and aredescribed in terms of objects thatwill satisfy those needs

When backed by buying power, wants become Demands Given

their wants and resources,people demand products withbenefits that add up to the mostvalue and satisfaction

Market offerings: Some combination of products, services, information, or experiences

offered to a market to satisfy a need or want Market offerings are not limited to physical

products They also include services — activities or benefits offered for sale that are essentially

intangible and do not result in the ownership of anything Examples include banking, airline,

hotel, tax preparation, and home repair services

Customer Value and Satisfaction: Consumers usually face a broad array of products and

services that might satisfy a given Need To choose among these many market offerings

customers form expectations about the value and satisfaction that various market offerings will deliver and buy accordingly Satisfied customers buy again and tell others about their good

experiences Dissatisfied customers often switch to competitors and disparage the product to

others Marketers must be careful to set the right level of expectations If they set expectations

too low, they may satisfy those who buy but fail to attract enough buyers If they set expectationstoo high, buyers will be disappointed

Customer-perceived value: The difference between total customer value and total customer

cost Customers compare their perceived values among companies to make buying decision

Customer satisfaction: The extent to which a product’s perceived performance matches a

buyer’s expectations

Exchange is the act of obtaining a desired object from someone by offering something in return

In the broadest sense, the marketer tries to bring about a response to some market offering The

response may be more than simply buying or trading products and services A political

candidate, for instance, wants votes, a church wants membership, an orchestra wants an

audience, and a social action group wants idea acceptance

Marketing consists of actions taken to build and maintain desirable exchange relationships with

target audiences involving a product, service, idea, or other object Beyond simply attracting newcustomers and creating transactions, companies want to retain customers and grow their

businesses Marketers want to build strong relationships by consistently delivering superior customer value

The portion of the customer’s purchasing

that a company gets in its product

future

For example, Amazon.com is highly skilled at

leveraging relationships with its 88 million

customers to increase its share of each

customer’s purchases Originally

an online bookseller, Amazon.com now offers

customers music, videos, gifts, toys,

consumer electronics, office products, home

improvement items, lawn and garden

products, apparel and accessories, jewelry,

tools, and even groceries

In the 1970s and 1980s, Cadillac had some ofthe most loyal customers in the industry To

an entire generation of car buyers, the nameCadillac defined American luxury Butcadillac customers were getting older(average age 60) and average customerlifetime value was falling AlthoughCadillac’s market share was good, itscustomer equity was not To increasecustomer lifetime value and customer equity,Cadillac needs to come up with more stylishmodels and marketing that can attract younger

buyers

3.Explain how a company designs a customer-driven marketing strategy What are the five

different marketing management orientations?

To design a customer-driven marketing strategy Companies need to answer two questions:

1 What customers will we serve (what’s our target market)?

Target customers are customer groups that company choose to serve.

The company must first decide whom it will serve It does this by dividing the market into segments of customers (market segmentation) and selecting which segments it will go after (target marketing) Some people think of marketing management as finding as many customers

as possible and increasing demand But marketing managers know that they cannot serve all customers in every way By trying to serve all customers, they may not serve any customers well Instead, the company wants to select only customers that it can serve well and profitablyFor example, Nordstrom profitably targets affluent professionals; Dollar General profitably targets families with more modest means.

2 How can we serve these customers best (what’s our value proposition)?

The way to serve target customers is the way a company differentiate and the way it positions

in the market

The company must also decide how it will serve targeted customers—how it will differentiate and position itself in the marketplace A brand’s value proposition is the set of benefits or values

it promises to deliver to consumers to satisfy their needs

Such value propositions differentiate one brand from another They answer the customer’s question, “Why should I buy your brand rather than a competitor’s?” Companies must design strong value propositions that give them the greatest advantage in their target markets

For example, the Smart car is positioned as compact, yet comfortable; agile, yet economical; and safe, yet ecological It’s “sheer automotive genius in a totally fun, efficient package Smart thinking, indeed.”

Five Marketing Management Orientations:

1. Production concept

The idea that consumers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency

2. Product concept

The idea that consumers will favor products that offer the most quality, performance, and

features and that the organization should therefore devote its energy to making continuous product improvements

The idea that a company’s marketing decisions should consider consumers’ wants, the

company’s requirements, consumers’ long-run interests, and society’s long-run interests

4.Define strategic planning and briefly describe the four steps that lead managers and the firmthrough the strategic planning process Discuss the role marketing plays in this process Explain

the main contents of an international marketing plan

Strategic planning: The process of developing and maintaining a strategic fit between the

organization’s goals and capabilities and its changing marketing opportunities

1. At the corporate level, the company starts the strategic planning process by defining its overall purpose and mission (see Figure 2.1)

2. This mission (A statement of the organization’s purpose what it wants to accomplish in the larger environment) is then turned into detailed supporting objectives that guide the entire company

3. Next, headquarters decides what portfolio of businesses (The collection of businesses and products that make up the company) and products is best for the company and how much support to give each one In turn, each business and product develops detailed marketing and other departmental plans that support the company-wide plan

4. Thus, marketing planning occurs at the business-unit, product, and market levels It supports company strategic planning with 38 more detailed plans for specific marketing opportunities

Marketing plays a key role in the company’s strategic planning in several ways First,

marketing provides a guiding philosophy—the marketing concept—that suggests that company strategy should revolve around building profitable relationships with important consumer groups.Second, marketing provides inputs to strategic planners by helping to identify attractive market opportunities and assessing the firm’s potential to take advantage of them Finally, within

individual business units, marketing designs strategies for reaching the unit’s objectives Once the unit’s objectives are set, marketing’s task is to help carry them out profitably

environment Top management sets the company’s mission, objectives, broad strategies, and policies Marketing managers make decisions within the strategies and plans made by top

management

2 Suppliers

Suppliers form an important link in the company’s overall customer value delivery network They provide the resources needed by the company to produce its goods and services Supplier problems can seriously affect marketing Rising supply costs may force price increases that can harm the company’s sales volume Most marketers today treat their suppliers as partners in creating and delivering customer value

3 Marketing Intemediaries

In creating value for customers, marketers must partner with other firms in the company’s value delivery network - Firms that help the company to promote, sell, and distribute its goods to final buyers

6.Name and describe the elements of a company’s macroenvironment Discuss how theinternational trade system and the economic, political-legal, and cultural environments affect acompany’s international marketing decisions Discuss the three ways to enter foreign markets

Company’s Macroenvironment:

1 Demography

The study of human populations in terms of size, density, location, age, gender, race, occupation,and other statistics The demographic environment is of major interest to marketers because it involves people, and people make up markets Changing demographics mean changes in

markets, which in turn require changes in marketing strategies

Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities Concern for the natural environment has spawned a so-called green

movement in industries ranging from PCs to diesel locomotives

5. Technological

Perhaps the most dramatic force now shaping our destiny The forces that create new

technologies, creating new product and market opportunities

6. Political and Social

Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society

decisions call for weighing the probable rate against the level of risk

Companies looking abroad must start by understanding the international trade system When

selling to another country, a firm may face restrictions on trade between nations Governments may charge tariffs, taxes on certain imported products designed to raise revenue or protect domestic firms

The international marketer must study each country’s economy Two economic factors reflect

the country’s attractiveness as a market: its industrial structure and its income distribution.Nations vary greatly in their levels and distribution of income Some countries have industrial economies, which constitute rich markets for many different kinds of goods At the other

extreme are subsistence economies; they consume most of their own agricultural and industrial output and offer few market opportunities In between are developing economies that can offer outstanding marketing opportunities for the right kinds of products

Economic factors can have a dramatic effect on consumer spending and buying behavior For example, until fairly recently, American consumers spent freely, fueled by income growth, a boom in the stock market, rapid increases in housing values, and other economic good fortunes They bought and bought, seemingly without caution, amassing record levels of debt However, the free spending and high expectations of those days were dashed by the Great Recession

Nations differ greatly in their political-legal environments In considering whether to do

business in a given country, a company should consider factors such as the country’s attitudes toward international buying, government bureaucracy, political stability, and monetary

regulations Some nations are very receptive to foreign firms; others are less accommodatingCompanies must also consider a country’s monetary regulations Sellers want to take their profits

in a currency of value to them Ideally, the buyer can pay in the seller’s currency or in other world currencies

Cultural Each country has its own folkways, norms, and taboos When designing global

marketing

strategies, companies must understand how culture affects consumer reactions in each of its

world markets In turn, they must also understand how their strategies affect local cultures

Three ways to enter foreign markets

Exporting

Entering a foreign market by selling goods produced in the company’s home country, often with little modification The simplest way to enter a foreign market is through exporting The

company may passively export its surpluses from time to time, or it may make an active

commitment to expand exports to a particular market In either case, the company produces all its goods in its home country It may or may not modify them for the export market Exporting involves the least change in the company’s product lines, organization, investments, or mission

Joint venturing

Entering foreign markets by joining with foreign companies to produce or market product or

service Joint venturing differs from exporting in that the company joins with a host country partner to sell or market abroad It differs from direct investment in that an association is formed with someone in the foreign country There are four types of joint ventures: licensing, contract manufacturing, management contracting, and joint ownership

Direct investment

Entering a foreign market by developing foreign-based assembly or manufacturing facilities Thebiggest involvement in a foreign market comes through direct investment—the development of foreign-based assembly or manufacturing facilities If a company has gained experience in exporting and if the foreign market is large enough, foreign production facilities offer many advantages The main disadvantage of direct investment is that the firm faces many risks, such asrestricted or devalued currencies, falling markets, or government changes In some cases, a firm has no choice but to accept these risks if it wants to operate in the host country

Chapter 3

7 Consumer markets refers to the markets where people purchase products for consumption

and are not meant for further sale, where in the seller sells the product for a primary reason of making profits while buyer buys the products for personal use This market is dominated by the products which consumer use in their daily life Markets dominated by products and services designed for the general consumer Consumer markets are typically split into four primary categories: consumer products, food and beverage products, retail products, and transportation products Industries in the consumer markets often have to deal with shifting brand loyalties and uncertainty about the future popularity of products and services

Business markets

Business markets operate “behind the scenes” to most consumers Most of the things you buy involve many sets of business purchases before you ever see them.Business market in simple words is business to business market where in the products or services of a particular

organization are sold to or purchased by other organization or business It also happens in support industries where the products that are manufactured are components required to be assembled into the products or services offered by some other business organization

What are the major differences between the two?

In consumer market the purchase might even be made when the products are not required in day

to day activities But in business market the business has to buy to stay profitable

The business buyer is sophisticated in terms of the process involved in buying, decision making while on the other hand the consumer in the consumer market might not be as sophisticatedThe business buyer is an information-seeker, constantly on the lookout for information and advice On the other hand the consumer only searches information when he requires to make a decision

Packaging is important in consumer market while its nonexistent in the business market

Expert advice is taken while making purchases in the business market as against the consumer market

Consumer market product are simplistic while business products are complicated

International markets is a market outside the international borders of company’s country of citizenship

8 Market segmentation The market consists of many types of customers, products, and needs

The marketer must determine which segments offer the best opportunities Consumers can be grouped and served in various ways based on geographic, demographic, psychographic, and behavioral factors The process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or

marketing programs is called market segmentation

Every market has segments, but not all ways of segmenting a market are equally use-ful For example, Tylenol would gain little by distinguishing between low-income and high income pain

reliever users if both respond the same way to marketing efforts A market segment consists of consumers who respond in a similar way to a given set of marketing efforts In the car market, for example, consumers who want the biggest, most comfortable car regardless of price make up one market segment Consumers who care mainly about price and operating economy make up another segment It would be difficult to make one car model that was the first choice of

consumers in both segments Companies are wise to focus their efforts on meeting the distinct needs of individual market segments

We should target those segments we can serve most efficiently and effectively: Market

Targeting This is the second step of setting up a marketing strategy

Segmentation-> targeting -> differentiation and positioning

on and enter those segment

Whether a company decides to enter one or more segments may also depend on its resources If these are limited, it may be better served to focus on one or a few smaller segments, which we call market niches In the best case, the company should look for segments competitors overlook

or ignore Alternatively, a company can decide to enter several segments This may be based on

a strong relation between the segment in terms of resembling needs, or on the company’s

widespread resources For instance, clothing companies often target more than only one segment:males, females, children and so on A large company such as a major car manufacturer might even decide serve all market segments by offering a complete range of products.s in which we can generate the greatest customer value over time

Variables used in segmenting markets (slide Major Segmentation Variables)

9 2 factors to evaluate market segment: market segment size and market segment growth

The requirements for effective market segmentation are as follows

a) Measurable: The size, needs, purchasing power, and characteristics of the customers in the segment should be measurable Quantification should be possible

b) Divisible: The segments should be differentiable There must be clear-cut basis for dividing customers into meaningful homogeneous groups They should respond differently to different marketing mixes There should be differences in buyer's needs, characteristics and behaviour for dividing in groups

c) Accessible: The segment should be reachable and serviceable It should be accessible through existing marketing institutions, such as distribution channels, advertising media and sales force There should be middlemen to distribute the products

d) Substantial: The segment should be substantial It should be large enough in terms of

customers and profit potential IT should justify the costs of developing a separate marketing mix

e) Actionable: It should be actionable for marketing purposes Organizations should be able to design and implement the marketing mix to serve the chosen segment

The way companies identify attractive market segments and choose a market targeting strategy in IM

(slide: combination of market understanding and company’s capability, 5 options to expand to international markets, standardization and adaption)

10 The way companies differentiate and position their product for maximum competitive advantage in the marketplace (slide 5 steps in positioning process)

Chương 4

11 product in marketing is anything that can be offered to the market to exchange, to bring values and satisfaction to customers

Key product decision

-Decide on the level and composition of the benefits of the product

Determine where the product is in the market place, its level of need to determine whether it should produce this product

-decision on the catalog and catalogues

Danh mục sản phẩm là tập hợp tất cả sản phẩm và sản phẩm cá nhân của người bán hàng cung cấp trên thị trường / chào bán cho người mua

-Decide on the brand of the product

Make products popular with consumers

-Decision on the packaging, marks mark