International International Marketing Marketing: Prof. Dr. Klemens Skibicki

INTERNATIONAL
MARKETING
Prof. Dr. Klemens Skibicki
© 2009 Brain Injection www.brain-injection.com 1

Prof. Dr. Klemens Skibicki – International Marketing www.xing.com/profile/Klemens Skibicki 1
Aims of the Course
to understand the importance of International Marketing

to think about environmental influences
to identify relevant international market segments
to define the global strategy
to decide on market entry strategies
to think
hi k about
b building
b ildi added
dd d value
l through
h h product
d
policy, communication, distribution and pricing

Contents
Nature and Definition of International Marketing

Analysing the International Marketing Environment (Micro + Macro)
in times of Globalization and Social Media/Web2.0
Social and Cultural Considerations in International Marketing
Cross Cultural Analysis and Transnational Segmentation
The Process of Potential Market Assessment
Defining the Global Strategic Position
The Market Entry Strategy
International Product Management
International Communication, Branding and PR in The Web 2.0 age
Pricing and Distribution in International Markets
Analyzing the Future Environment - Megatrends

Timetable
02.09. – Introduction
09.09. – no lecture (will be replaced by guest lecture)
16.09. – lecture
23.09. – lecture
30.09.
30 09 – lecture
l t
07.10. – lecture
14.10.
14 10 – lecture
21.10. – lecture
28.10. – lecture
04.11. – lecture
11.11. – lecture
18.11. – Coursework Presentations
Reading List
Doole & Lowe: International Marketing Strategy – Thomson Learning 4th
Edition
Hollensen: Global Marketing
g – Prentice HallJeannett & Hennessey:
y Global
Marketing Strategies - Houghton Mifflin
Mühlbacher, Dahringer & Leihs: International Marketing - A Global
Perspective,
p , Thompson
p Learning
g 3rd Edition
Mühlenbeck, F./Skibicki, K.: Community Marketing Management, 2.
überarb. Aufl. 2008
Mühlenbeck F
Mühlenbeck, F./Skibicki,
/Skibicki KK.:: Verkaufsweg Social Commerce
Commerce, 2008
Jeannett & Hennessey: Global Marketing Strategies - Houghton Mifflin

Usunier: Marketing Across Cultures - Prentice Hall
Ghauri & Cateora – International Marketing – 2nd Edition, McGrawHill

Working Method: Lectures + Coursework
Discussions/
solutions
l ti d
during
i
lectures
Teams Presentation of Coursework
Grading: 40% presentation

60% written exam

Presentations
20 minutes each group!!
g p
5‐7 minutes for each team member (a maximum
of 3 members)
of 3 members)
Please provide a printed version and an e‐mail version
of your presentation
description of each course work subject later

Definitions – narrow and broad view
What is Marketing?
Marketing function charged with defining target markets

and determining the BEST way to satisfy their needs
and wants competitively and profitably
Remember: Marketing = Corporate Governance?
“ – who is it?”

Definitions – International view
What is International Marketing?
“Performance of business activities designed to plan, price,

promote, and direct the flow of a company’s goods and
promote
services to consumers or users in more than one
nation for a profit
profit”

Definitions
International
What isMarketinggdefined
Marketing?
DOMESTIC MARKETING
which involves the company manipulating a series of controllable
aspects in a largely uncontrollable external environment within
specific political or geographic country boundaries

Definitions
MULTI-DOMESTIC MARKETING
which involves operating across a number of foreign markets in which
the controllable and uncontrollable aspects differ significantly. These
differences lead to the complexities in international marketing.

Definitions
Multi-domestic Marketing
First launched in France in 1969, Cif's
proposition was "powerful cleaning
without scratching". It used the well‐
known 'Skater' campaign to help open up
a new category in the market with the
claim "powders
claim powders can scratch like skates on
can scratch like skates on
ice".
During the 1970s, the brand was rolled
out across Europe under different names
including Jif, Viss, Vif and Vim for
phonetic and trademark reasons. In the
1980s, it was extended into Japan and
Australia and then into South Latin
Australia and then into South Latin
America and Central Europe.

Definitions
GLOBAL MARKETING
A company coordinates,
di t iintegrates
t t and
d controls
t l a whole
h l series
i off
marketing programs into a substantial global effort to achieve a
degree of synergy in the overall operations
operations.

Definitions
Global
What Marketing
is Marketing?
One of the biggest brands have interna-

tional appeal because they meet a need or
fulfill a desire that people share, no matter
where they live. Two of the biggest brands,
Dove and Knorr are good examples:
Families around the world need tasty y food
that's easy and enjoyable to prepare. Knorr
has the answer, expertly tailoring recipes
and ingredients for local tastes and making
products that fit into people’s lives, inclu-
ding meal kits,
kits frozen ready-meals
ready meals and
snacks as well as everyday bouillons and
seasonings.
From its earliest beginnings as a cleansing
bar Dove responded to consumer needs
bar,
and extended its portfolio to body care, hair
products and deodorants. Dove delivers
real benefit and satisfaction for millions of
people around the world, both functionally
and emotionally.

Definitions
Multi-domestic vs. Globalization

What is Marketing?
Multi-domestic Global approach

approachh

Definitions
Multi-domestic vs. Globalization

What is Marketing?
Multi‐domestic
Globaliziation

Some Explanations for Global Business
1. Comparative Costs
The theory of comparative costs suggests, that each country, owing to

its available resources and the efficiency of their use, has or can
develop specific advantages compared with other countries.
If each country specializes in products and services it can perform

comparatively
ti l bbetter
tt th
than others
th andd exchanges
h th
them ffor products
d t and d
services in which other countries are better. All Exchange partner will
benefit and the standard of living will increase.

2. Economies of scale
Comparative advantages alone cannot explain the fact that almost 2/3
of world trade happens between 29 developed countries, hosting only
15% of the world population. Those important trading nations became in
the meantime pretty similar when it comes to resources and technology.

3. Economies of scope

4. International Product Life Cycle

This theory claims to explain the process of dissemination of innovation
across national boarders.
exports
Volume of e
Phase 1 Phase 2 Phase 3 Phase 4

5. Transaction Cost Theory

Some Stimuli for Global Business
Global Competition
- a company might be active in a domestic, multi-domestic
or g
global industry
y
- and it may face local, regional and global competition
Access to resources
- treat the world as a source of supply
- access to cheaper sources, improve research, develop-
ments in process technology

Limited Growth in Domestic Markets

- many foreign markets offer more opportunities for
business expansion
- necessary means for survival
Political Change
-
-

International Trade: Abolition of Trade Barriers (Tariffs)

( )

Demographic Change
Cultural Change

Some Stimuli for Global Business ‐ Demographics




Some Stimuli for Global Business – Demographics, 1950
population
rank country
1950
1. China 562,579,779
2
2. India 369 880 000
369,880,000
3. USA 152,271,000
4. Russia 101,936,816
5. Japan 83,805,000
6. Indonesia 82,978,392
7. Germany 68,374,572
8. Brazil 53,443,075
9
9. UK 50 127 000
50,127,000
10. Italy 47,105,000
11. Bangladesh 45,645,964
12. France 42,517,690
13. Pakistan 39,448,232
14. Ukraine 36,774,854
15. Nigeria 31,796,939
16
16. Mexico 28 485 180
28,485,180
17. Spain 28,062,963
18. Vietnam 25,348,144
19. Poland 24,824,000
20. Egypt 21,197,691
source: U.S. Bureau of the Census, International Data Base (2008-06-18).

population
rank country
2010
1. China 1,347,563,498
2
2. India 1 184 090 490
1,184,090,490
3. USA 309,162,581
4. Indonesia 242,968,342
5. Brazil 201,103,330
6. Pakistan 179,659,223
8. Nigeria 152,217,341
9. Russia 139,390,205
10. Japan 126,804,433
11. Mexico 112,468,855
12. Philippines 99,900,177
13
13. Ethiopia 88 013 491
88,013,491
14. Vietnam 87,814,053
15. Egypt 84,440,272
16. Germany 82,282,988
17. Turkey 73,322,470
18. Congo, DR 70,916,439
19. Iran 67,037,517
20. Thailand , ,
66,303,290

population
rank country
2050
1. India 1,807,878,574
2. China 1,424,161,948
3. USA 420,080,587
4. Indonesia 313,020,847
5. Pakistan 295,224,598
7. Ethiopia 278,283,137
8. Nigeria 264,262,405
9. Brazil 260,692,493
10. Congo, DR 189,310,849
11. Philippines 171,964,187
12. Mexico 147,907,650
13. Uganda 128,007,514
14. Egypt 127,563,256
15. Russia 109,187,353
16. Vietnam 107,772,641
17. Japan 93,673,826
18. Sudan 88,227,761
19. Turkey 86,473,786
20. Afghanistan 81,933,479
21. Iran 81,490,039
22. Germany 73,607,121

Some Stimuli for Global Business – Demographics, youngest
age groups 2000 in % age groups 2050 in %
rank country
0‐14 15‐59 60+ 0‐14 15‐59 60+
1. Yemen 50.1 46.3 3.6 37.0 57.7 5.3
2. Niger 49.9 46.9 3.3 38.4 56.6 5.0
3. Uganda 49.2 47.0 3.8 34.8 59.5 5.7
Dem. Rep. of the
4. 48.8 46.7 4.5 31.7 62.1 6.2
C
Congo
5. Burkina Faso 48.7 46.5 4.8 33.9 59.5 6.5
6. Angola 48.2 47.3 4.5 36.7 58.1 5.2
7. Somalia 48.0 48.1 3.9 36.3 58.0 5.7
8. Burundi 47.6 48.1 4.3 33.3 59.9 6.8
9. Zambia 46.5 48.9 4.5 28.6 63.6 7.9
10. Chad 46.5 48.6 4.9 30.9 62.3 6.8

Some Stimuli for Global Business – Demographics, oldest
age groups 2000 in % age groups 2050 in %
rank country
0‐14 15‐59 60+ 0‐14 15‐59 60+
1. Italy 14.3 61.7 24.1 11.5 46.2 42.3
2. Greece 15.1 61.5 23.4 13.1 46.2 40.7
3. Germany 15.5 61.2 23.2 12.4 49.5 38.1
4. Japan 14.7 62.1 23.2 12.5 45.2 42.3
5. Sweden 18.2 59.4 22.4 14.0 48.3 37.7
6. Belgium 17.3 60.6 22.1 14.2 50.3 35.5
7. Spain 14.7 63.5 21.8 11.4 44.5 44.1
8. Bulgaria 15.7 62.6 21.7 13.8 47.6 38.6
9. Switzerland 16.7 62.1 21.3 12.5 48.6 38.9
10. Latvia 17.4 61.7 20.9 15.0 47.5 37.5
source: U.S.
U S Bureau of the Census,
Census International Data Base (2008-06-18)
(2008 06 18).

Some Stimuli for Global Business ‐ Economy
change
rank country GDP 2005 in US$ GDP 2006 in US$ GDP 2007 in US$
2006/2007
1. United States 12,397,900,201,984 13,163,899,650,048 13,811,200,294,912 4.92%
2. Japan 4,549,110,661,120 4,368,434,987,008 4,376,704,843,776 0.19%
3. Germany 2,786,966,896,640 2,896,876,273,664 3,297,232,551,936 13.82%
4. China 2,243,852,500,992 2,657,874,870,272 3,280,052,682,752 23.41%
5
5. United Kingdom
United Kingdom 2 231 895 064 576
2,231,895,064,576 2 376 985 477 120
2,376,985,477,120 2 727 805 976 576
2,727,805,976,576 14 76%
14.76%
6. France 2,136,450,662,400 2,248,086,913,024 2,562,287,730,688 13.98%
7. Italy 1,769,742,532,608 1,850,959,724,544 2,107,481,128,960 13.86%
8. South Asia 1,019,131,017,856 1,153,497,373,312 1,438,593,823,232 24.72%
9. Spain 1,126,047,809,536 1,224,675,688,448 1,429,226,389,504 16.70%
10. Canada 1,131,729,649,664 1,271,588,454,400 1,326,375,632,896 4.31%
source: U.S.
(2008 06 18).

Some Stimuli for Global Business – Economy, Exports
1000 million US$ change
rank country
2003 2004 2003‐2004
1. Germany 748.4 914.8 22.2%
United
2. 724.0 819.0 13.1%
St t
States
3. China 438.4 593.4 35.4%
4. Japan 471.9 565.5 19.8%
5
5. France 384 7
384.7 451 0
451.0 17 2%
17.2%
Netherlands
6. 293.4 358.8 22.3%
, the
7
7. Italy 290 2
290.2 346 1
346.1 19 3%
19.3%
United
8. 303.9 345.6 13.7%
Kingdom
9. Canada 272.1 322.0 18.3%
10. Belgium 254.6 308.9 21.3%
source: U.S.
(2008 06 18).

Some Stimuli for Global Business – Economy 2008
Rank Country GDP (in US$ millions)
1 United States 14,264,600
2 Japan 4,923,761
3 China 4,401,614
4 Germany 3,667,513
5 France 2,865,737
6 United Kingdom
g 2,674,085
, ,
7 Italy 2,313,893
8 Russia 1,676,586
9 Spain 1,611,767
10 Brazil 1 572 839

1,572,839
11 Canada 1,510,957
12 India 1,209,686
13 Mexico 1,088,128
14 Australia 1,010,699
15 South Korea 947,010
16 Netherlands 868,940
17 Turkey 729,443
18 Poland 525,735
19 Indonesia 511,765
20 Belgium 506,392
BRIC thesis .
Goldman Sachs argues that the economic potential of Brazil, Russia, India, and China
Quelle: Wikipedia 37
© 2009 Brain Injection www.brain-injection.com
Rank Country GPD (in US$ millions)
2 China 18 610 000

18,610,000
3 Japan 5,220,000
4 India 4,960,000
5 Germany 4,800,000
6 Russia 4,620,000
7 United Kingdom 3,940,000
8 France 3,530,000
9 Brazil 3,220,000
10 Italy 3,120,000
11 Mexico 2,670,000
12 South Korea 2,370,000
13 Canada 2 100 000

2,100,000
14 Indonesia 1,720,000
15 Turkey 1,520,000
16 Iran 1,450,00
17 Vietnam 1,340,000
18 Nigeria 1,120,000
19 Philippines 960,000
20 Pakistan 860,000
,
Quelle: Wikipedia
Rank Country GDP (in US$ millions)
1 China 70,710,000
, ,
3 India 38,227,000
4 Brazil 11,366,000
5 Mexico 9,343,000
6 Russia 8 564 000
8,564,000
7 Indonesia 7,010,000
8 Japan 6,675,000
9 United Kingdom 5,178,000
10 Germany 5,028,000
11 Nigeria 4,640,000
12 France 4,592,000
13 South Korea 4,083,000
14 Turkey 3,948,000
15 Vietnam 3,607,000
16 Canada 3,164,000
17 Philippines 3,010,000
18 Italy 2,950,000
19 Iran 2,663,000
20 Egypt 2,602,000
Quelle: Wikipedia






Some Stimuli for Global Business ‐ Culture

Major Religions of the World (mid-2007)2

Christian 2 199 817 400
2,199,817,400
Roman Catholics 1,121,516,000
p
Independents* 433,096,000
, ,
Protestants 381,811,000
Orthodox 233,146,000
Anglicans 82,586,000
Muslims 1,387,454,500
Hindus 875 726 000
875,726,000
Chinese universists 385,621,500
Buddhists 385,609,000
Sikhs 22,927,500
Jews 14,956,000
Quelle: Wikipedia
http://www2.ignatius.edu/faculty/turner/worldlang.htm

Technological Change
- low priced transportation
- telecommunication has revolutionized the world
- Internet as a basis-technology (Kondratjew-cycles)
- Web 2.0 is the first Social Medium !!!

Some Stimuli for Global Business – Consumer face…
a substantial
b t ti l iincrease iin purchasing
h i power
a greater variety of available goods
and services
a greater amount of information about practically
everything
ag
greater ease in interacting
g and p
placing
g and
receiving orders
an ability to compare notes on products and services

Some Barriers for Global Business
Which legal trade barriers exist?

Whatand
Visible Barriers: Tariffs is Marketing?
Q
Quota
- tax on volume
- tax on value
Invisible Barriers
- government regulations
- technical
h i l specifications
ifi i
- complex administration
- embargo and other quantitative regulations
Trading blocks
Wollen Sie mehr wissen? Gern…
E‐Mail: skibicki@brain‐injection.com
E‐Mail: k.skibicki@cbs‐edu.de
Twitter: http://twitter.com/KlemensSkibicki
Xing: http://www.xing.com/profile/Klemens_Skibicki
h // / fl / l kb k
www.cbs‐edu.de
www.brain‐injection.com


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INTERNATIONAL

Prof. Dr. Klemens Skibicki

© 2009 Brain Injection www.brain-injection.com 1

 to understand the importance of International Marketing

© 2009 Brain Injection www.brain-injection.com 2

 Nature and Definition of International Marketing

© 2009 Brain Injection www.brain-injection.com 3

 Jeannett & Hennessey: Global Marketing Strategies - Houghton Mifflin

© 2009 Brain Injection www.brain-injection.com 5

Teams Presentation of Coursework

Grading:  40% presentation

© 2009 Brain Injection www.brain-injection.com 6

© 2009 Brain Injection www.brain-injection.com 7

Marketing function charged with defining target markets

Remember: Marketing = Corporate Governance?

© 2009 Brain Injection www.brain-injection.com 8

What is International Marketing?

“Performance of business activities designed to plan, price,

© 2009 Brain Injection www.brain-injection.com 9

© 2009 Brain Injection www.brain-injection.com 10

© 2009 Brain Injection www.brain-injection.com 11

© 2009 Brain Injection www.brain-injection.com 12

© 2009 Brain Injection www.brain-injection.com 13

 One of the biggest brands have interna-

© 2009 Brain Injection www.brain-injection.com 14

Multi-domestic vs. Globalization

 Multi-domestic  Global approach

© 2009 Brain Injection www.brain-injection.com 15

Multi-domestic vs. Globalization

© 2009 Brain Injection www.brain-injection.com 16

The theory of comparative costs suggests, that each country, owing to

If each country specializes in products and services it can perform

© 2009 Brain Injection www.brain-injection.com 17

© 2009 Brain Injection www.brain-injection.com 18

© 2009 Brain Injection www.brain-injection.com 19

4. International Product Life Cycle

Phase 1 Phase 2 Phase 3 Phase 4

© 2009 Brain Injection www.brain-injection.com 20

5. Transaction Cost Theory

© 2009 Brain Injection www.brain-injection.com 21

© 2009 Brain Injection www.brain-injection.com 22

 Limited Growth in Domestic Markets

© 2009 Brain Injection www.brain-injection.com 23

 International Trade: Abolition of Trade Barriers (Tariffs)

© 2009 Brain Injection www.brain-injection.com 24

© 2009 Brain Injection www.brain-injection.com 25

© 2009 Brain Injection www.brain-injection.com 26

© 2009 Brain Injection www.brain-injection.com 27

© 2009 Brain Injection www.brain-injection.com 28

© 2009 Brain Injection www.brain-injection.com 29

10. Italy 47,105,000

11. Bangladesh 45,645,964

12. France 42,517,690

13. Pakistan 39,448,232

14. Ukraine 36,774,854

15. Nigeria 31,796,939

17. Spain 28,062,963

18. Vietnam 25,348,144

19. Poland 24,824,000

20. Egypt 21,197,691

source: U.S. Bureau of the Census, International Data Base (2008-06-18).

© 2009 Brain Injection www.brain-injection.com 30

to understand the importance of International Marketing

Nature and Definition of International Marketing

Jeannett & Hennessey: Global Marketing Strategies - Houghton Mifflin

Grading: 40% presentation

One of the biggest brands have interna-

Multi-domestic Global approach

Limited Growth in Domestic Markets

International Trade: Abolition of Trade Barriers (Tariffs)