one of the secrets to success is ideas mixed with inspiration

ONE OF THE SECRETS TO SUCCESS IS IDEAS MIXED

WITH INSPIRATION.

BUDAPESTI GAZDASÁGI FŐISKOLA

INTERNATIONAL MARKETING

LECTURE- 10In English

4th May2012 – FRIDAY

0940hr –1110hr (E.F. 7-9)

Miklós (Nicholas) SOÓS0630 265 9638

miklosoos@hotmail.com

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LECTURE DATES - TIMES - LOCATION RE: Miklós (Nicholas) SOÓS

1. FEB. 17. 0940-1110 [E.F.13-15]

2. FEB. 24. 0940-1110 [E.F.13-15]

3. MARCH 2. 0940-1110 [E.F.13-15]

4. MARCH 9. 0940-1110 [E.F.13-15]

MARCH 16. VACATION

MARCH 23. VACATION

5. MARCH 30. 0940-1110 [E.F.13-15] – re. feb.10

6. APR. 6. 0940-1110 [E.F.13-15] (guest lect?)

7. APR. 13. 0940-1110 [E.F.13-15]

8. APR. 20. 0940-1110 [E.F.13-15]

9. APR. 27. 0940-1110 [E.F.13-15]

10. MAY 4. 0940-1110 [E.F.13-15]

11. MAY 11. 0940-1110 [E.F.13-15]

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CLASS ATTENDANCE

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Lectures No. %

Lect. 1 16 24

Lect. 2 22 33

Lect. 3 30 45

Lect. 4 30 45

Lect. 5 35 52

Lect. 6 34 51

Lect. 7 34 51

Lect. 8 24 36

Lect. 9 19 28

Lect. 10    

Please ensure that you personally sign the

attendance sheet every time you attend a

lecture.

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The visual contents of lectures will be available internally on

the following site:

K:\Hallgatok\ANGOL\Soós tanár úr

(available internally only)

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SOURCES, REFERENCES – SUGGESTED READINGS

The course is NOT based on any specific textbook. The following are recommended.

International Marketing, Cateora, P. & Graham, J. (2005) 12th edition, McGraw-HillGlobal Marketing, Hollensen, S. (2004) 3rd edition, Prentice Hall

International Marketing Strategy, Doole, I. & Lowe, R (2004) 4th edition Thomson

International Marketing and Export Management, Albaum G, Prentice Hall London

Principles of Marketing, Kotler P et. Al, 2nd European edition, Prentice Hall E. 2003

Principles of Marketing, Jobber D, McGraw-Hill

Principles of Marketing, Brassington F, Financial Times Prentice Hall, 2000

Marketing on the Internet: Principles of online marketing, Strauss J & Raymond F, Prentice Hall,1999

Internet sites:

www.pmcinc.org/

www.tradeport.org

www.FAS.USDA.gov

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ASSESSMENT METHOD

End of year written examination 60%

Two (2) ‘mini’ exams of 20 min. duration

during unannounced lectures 40%

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BGF. INTERNATIONAL MARKETING – MINI TEST 1 - ASSESSMENTS

Markscale % No.

<45 8

46-50 5

51-55 0

56-60 3

61-65 0

66-70 3

71-75 0

76-80 1

81-85 0

86-90 0

91-95 0

96-100 1

Total no. of students: 21

Class average : 52%

Lowest score 10%

Highest score: 100%

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0

1

2

3

4

5

6

7

8

40(-)

41-45

46-50

51-55

56-60

61-65

66-70

71-75

76-80

81-85

MINI TEST 1 & 2 - RESULTS

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Where we finished last week.

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THE RESEARCH PROCESS & INTERNATIONAL ISSUES

Problem identification

Problem identification

Selection of research design

Selection of research design

Information gathering Data collection

Information gathering Data collection

Analysis & interpretation

Analysis & interpretation

Dissemination of results

Dissemination of results

Geography & distance Cultural Lack of marketing knowledge Differing perspective

Construct equivalence Measurement equivalence Sampling equivalenceSecondary data - Accuracy - Comparability - Reliability - SourcePrimary data - Respondent bias - Researcher bias

Comparability of results Local biases in results

Eliminate self-reference criterion Avoid culturally offensive conclusions

RESEARCH PROCESS INTERNATIONAL ISSUES

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DISTRIBUTION ??

Concerned with transporting goods and services in the most cost effective and efficient way, from where they are to where they needed to be.

The role of delivery (distribution) is to ensure the safe and timely provision of goods and services from the suppliers to the organisation and from the organisation to the final customer or client – the final journey to Place, from the four Ps.

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IMPORTANCE OF DISTRIBUTION

Marketing channel decisions are among the most important decisions that management faces. The company’s channel decisions are linked with every other marketing decision.

The company’s pricing depends on whether it uses mass merchandisers or high quality specialty stores.

The firm’s sales force and advertising decisions depend on how much persuasion, training and motivation the dealers or resellers need.

Whether a company develops or acquires certain new products may depend on how well those products fit the abilities of its channel members.

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DISTRIBUTION CHANNEL is an organised network of agencies that combine to LINK PRODUCERS WITH USERS.

Distribution is the physical flow of goods through channels.

A channel makes a product or service available in a convenient location (place), makes a product or service available when wanted

(time), packages or reprocesses product or service into a usable form (form), advises about the product or service and its attributes

(information).

In international marketing distribution channels can be a source of competitive advantage OR a cause of problems.

Channels involve relationships and the management of those relationships will determine the success of the firm’s international

marketing efforts.

Important to establish the right distribution channel because title is transferred, control is more difficult to exercise and competitive

environment is fiercer.

International distribution channels can be of varying length.somi

DISTRIBUTORSHIP

DISTRIBUTOR • buys from the supplier on his own account, at own risk,

in his name

• resells to customers on his own account,

• supplier may be subject to warranties

Supplier customersDistributor

Distribution contract

Sale contract

sales

service

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THE DISTRIBUTOR

• imports the product on his own account,

• resells on his own account, at own risks

• marks up the supply price to cover his profit,

• if necessary undertakes services,

• normally carries a stock,

• likely is involed in local publicity,

• undertakes distribution in the market

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THE SUPPLY PROCESS: - SUMMARISED

THE ORGANISATION

Buys

Processes

Sells

S U

P P

L I

E R

– M

A N

U F

A C

T U

R E

R

C U

S T

O M

E

R

info

rmat

ion

info

rmatio

n

Purchase inquiry

Sales information

Negotiation, agreement

Supply

Payment

Information on performance

Purchase inquiry

Sales information

Negotiation, agreement

Supply

Payment

Information on performance

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Manufacturer Manufacturer Manufacturer Manufacturer

Exporting intermediary

Importing intermediary

in foreign country

Wholesaler in foreign country

Retailer in foreign country

Exporting intermediary

Wholesaler in foreign country

Wholesaler in foreign country

Wholesaler in foreign country

Retailer in foreign country

Retailer in foreign country

Retailer in foreign country

Importing intermediary

in foreign country

Consumer or industrial

user

Consumer or industrial

user

Consumer or industrial

user

Manufacturer Manufacturer

Consumer or industrial

user

Retailer in foreign country

Consumer or industrial

user

Consumer or industrial

user

INTERNATIONAL DISTRIBUTION CHANNELS LONG VERSUS SHORT

LO

NG

CH

AN

NE

LS

HO

RT

CH

AN

NE

L

And/or And/or And/or And/or

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BASIS UPON WHICH APPROPRIATE CHANNEL INTERMEDIARIES ARE TO BE CHOSEN

THE 11 Cs

1. Customer characteristics

2. Culture

3. Competition

4. Company objectives

5. Character of market

6. Cost

7. Capital required

8. Coverage needed

9. Control issues

10.Continuity provided

11. Communication effectiveness

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PRICEis the only marketing variable that produces revenue

Price in international marketing is often used as an indicator of quality until experience indicate

otherwise.

When price is perceived as being similar for alternative products , then product quality or value as communicated through the brand becomes the

deciding factor in the decision to purchase.

IMPORTANT ASPECTS OF PRICING

Prices must:

1. provide the customer with value for money

2. cover the costs of product or service

3. be competitive

4. be consistent with corporate objectives

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PRICE & DEMAND

In open markets, the demand for a product or service is related to the extend

to which people are able and willing to buya product or service at different prices.

In open markets, the demand for a product or service is related to the extend

to which people are able and willing to buya product or service at different prices.

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THE DETERMINANTS OF DEMAND

The demand for a product or service depends on 4 elements:

1. The price of the product / service

2. The prices of competing products / services.

3. The consumer’s income.

4. The consumer’s preferences.

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INTERNATIONAL PRICE STRATEGY FRAMEWORK

Firm-level factors• Strategic objectives• M.share, profit,costs• 4Ps…………• Inventory level

Firm-level factors• Strategic objectives• M.share, profit,costs• 4Ps…………• Inventory level

Product-specific factors• Life cycle• Substitutes• Quality, service, delivery

Product-specific factors• Life cycle• Substitutes• Quality, service, delivery

Environmental factors• Competition• Exchange rate• Inflation rate

Environmental factors• Competition• Exchange rate• Inflation rate

Market-specific factors• Consumers• Government intervention• Distribution channel• Barriers to trade

Market-specific factors• Consumers• Government intervention• Distribution channel• Barriers to trade

Foreign price setting• price relation to product line• redesign & price implication• transfer price setting• inflation adjustment• pricing for multinational clients• client-specific pricing

Foreign price setting• price relation to product line• redesign & price implication• transfer price setting• inflation adjustment• pricing for multinational clients• client-specific pricing

CIVILAZATION IS THE INTELLIGENT MANAGEMENT OF HUMAN EMOTION.