International INTERNA

TIONAL Marketing MARKETI NG Management MANAGE MENT

Dr Gautam Dutta BE, MBA, PhD (IIT) Gautam Dutta

BE, MBA, PhD (IIT)

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Objective of the course

Gain perspectives of international marketing; how is it different from domestic marketing? Familiarity with the environmental issues of marketing beyond national boundaries.

Understand the entry modes for international markets

Expand knowledge about global marketing information system and research

Analyse international marketing mix decisions

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Session Plan:
15 Sessions of 120 Minutes Each

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Framework
The Concept of International Marketing (1) The International Marketing Environment(2) Assessing Opportunity & Selection of Markets (2) Global Market Entry Strategy (3) Product & Branding Decision for International Markets (2) Pricing Decisions for International Markets (1) International Distribution Decisions (1) Promotional Decisions for International Markets(1) Organizing & Controlling International Marketing Organization (1) International Marketing: Strategic Aspects (1)

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Text Book : Global Marketing Management Kiefer Lee and Steve Carter: Oxford University Press , Indian edition Selected Reading on International Marketing

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Selected Readings on International Marketing

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READINGS
MODULE 1:The Concept of International Marketing Globalization of Markets. Theodore Levitt Managing in a borderless world by Kenichi Ohmae An integrative framework for cross cultural consumer behaviour by Luna and Gupta Market selection for international expansion by Sema, Eckman and Hyllegard Guide line for export market research by Cavusgil

MODULE 2 & 3The International Marketing Environment

MODULE 4 & 5 : Assessing Opportunity & Selection of Markets

MODULE 6 & 7 : Internationalization Theories & Entry Choices

Selecting overseas markets and entry modes: two decision processes or one? By Koch
The mechanism of internationalization by Johansson and Valne Theory of internationalization and their impact of market entry by Jeryl Whitelock

Theory Development within International Market Entry Mode - An Assessment by Flemming Cumberland
An Eclectic Theory of the Choice of International Entry Mode Author(s): Charles W. L. Hill, Peter Hwang, W. Chan Kim

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READINGS
MODULE 8 & 9: Product and Branding Decision for International Markets 1. International product positioning by Johansson and Thorelli The International Dimension of Branding: Strategic Considerations and Decisions International pricing decisions: A diagnostic approach by Samli The importance of price in international business development Distribution in Japan; problem and changes by Michael R. Czinkota International manufacturing and location designs: balancing configuration and co ordination aspects. Standardization versus adaptation of international advertising strategies: Towards a framework

MODULE 10: Pricing Decisions for International Markets

MODULE 11: International Distribution Decisions

MODULE 12: Promotional Decisions for International Markets

MODULE 13: RESEARCH IN INTERNATIONALMARKETING 1. An assessment of theoretical and methodological development in international marketing.: Aulakh and Kotabe Pattern and determinants of global marketing, by Yip. Standardization of international marketing strategy by firms from a developing country.

MODULE 14 ,15: International Marketing and Strategic Dimensions. 1. 2.

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Evaluation
Class participation including Readings/case analysis Quiz (Two ) Assignment( Group)

15%
15% 30%

End Term

40%

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GROUP WORKS
Case Analysis: 9 cases Assignment: 9 (Each group will select one out of the list on first come first serve basis )

Submission of assignment
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Submission of Assignments

Date:

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Elements of Marketing Customer Value

V = Benefit / Price

V = Value B = Perceived Benefits Perceived Costs P = Price

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The Three Principles of Marketing

CUSTOMER VALUE

DIFFERENTIATION

FOCUS

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Motives
Proactive motive :

Reactive motive:

Profit and growth goals Managerial urge Technology competence Foreign market opportunities Economies of scale Tax benefits

Competitive pressure Domestic market saturated Overproduction Extend sales of seasonal product Proximity to international customer.

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Internationalization of marketing activities basic marketing multidomestic marketing international marketing global marketing glocal marketing

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Marketing characteristics Physical environment Stage of eco dev

Product design

pricing distribution Advt, promotion packaging

Cultural factor
Industry condition Stages of PLC/competition

Marketing institutions

Legal restriction

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Global Marketing ?
Local & domestic marketing strive to maximize marketing activities exclusively in terms of International marketing & Multi national marketing strive to maximize marketing activities in terms of primarily Secondarily Adaptation to country specific need Tailoring to the need

Adaptation to domestic Standardization across situation countries Tailoring to the need Homogenization

Difference within the country

Concentration within national territory Dependence Synchronization Integration
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Similarity across the countries

Activity concentration Dependence on home country Synchronization Integration

Difference within each country

Activity Diffusion Independence of home country Flexibility Separation

Global market participation Vs Marketing continuum

To have a global level of market participation requires significant global market share, a reasonable balance between the businesss geographic spread and the markets spread and presence in globally strategic country markets.

High global market share is important but not the sufficient for global market participation. a global business need to have its geographic distribution of revenues in reasonable balance with that of the worldwide market.

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Marketing Program Standardization

Product design, Product positioning, Brand name,

Packaging,
Retail price, Basic advertising message, Creative expression, Sales promotion, Media allocation, Role of sales force,

Management of sales force,

Role of middlemen, Type of retail outlets, Customer service
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1.

In general, standardization is more practical in markets that are economically alike. Standardization strategy is more effective if worldwide customers, not countries, are the basis of identifying the segment(s) to serve

The greater the similarity in the markets in terms of customer behavior and lifestyle, the higher the degree of standardization. The higher the cultural compatibility of the product across the host countries, the greater the degree of standardization. The greater the degree of similarity in a firms competitive positions in different markets, the higher the degree of standardization
. Industrial and high technology products are more suitable for

4 5.

standardization than consumer products,

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7. 8.

Standardization is more appropriate when the home market positioning strategy is meaningful in the host market. The greater the difference in physical, political, and legal environments between home and host countries, the lower the degree of standardization. The more similar the marketing infrastructure in the home and host countries, the higher the degree of standardization

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Companies in which key managers share a common world view, as well as a common view of the critical tasks flowing from the strategy, are more effective in implementing a standardization strategy. The greater the strategic consensus among parent- subsidiary managers on key standardization issues, the more effective the implementation of standardization strategy. The greater the centralization of authority for setting policies and allocating resources, the more effective the implementation of standardization strategy
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