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1、Self-Reference Criterion (SRC) SRC is an unconscious reference to ones own cultural values, experiences, and knowledge as a basis for decisions Ethnocentrism refers to the notion that ones own culture or company knows best how to do things Both the SRC and ethnocentrism impede the ability to assess

2、a foreign market in its true light Reactions to meanings, values, symbols, and behavior relevant to our own culture are different from those of foreign Relying on ones SRC could produce an unsuccessful marketing program History and Geo Historical events between nations influence business and history

3、 In short, any nations business and political culture is shaped by history History is subjective Study of geography is important in the evaluation of markets Need to be knowledgeable about the effects of geographic diversity on the economic profiles of various nations Climate and topography are exam

4、ined as facets of the broader and more important elements of geographyGeography, Nature, and Economic GrowthLinkage exists between geographic location and economic growth (SH, YZ river Delta, HK, Singapore)Countries that suffer the most from major calamities are among the poorest in the world, which

5、 influences ability to market products.Poor economic development can result in lack of investment in environment barriers remove.Elements of Culture: Cultural ValuesDifferences in cultural values, which is found to exist among countries, affects consumer behavior Hofstede, who studied over 90,000 pe

6、ople in 66 countries, found that the cultures differed along four primary dimensions:1. Individualism/Collective Index (IDV), which focuses on self-orientation2. Power Distance Index (PDI), which focuses on authority orientation3. Uncertainty Avoidance Index (UAI), which focuses on risk orientation;

7、 and 4. Masculinity/Femininity Index (MAS), which focuses on assertiveness and achievementThe Impact of American CultureWays in which U.S. culture has influenced management style include, but are not limited to, the following: 1. “Master of destiny” viewpoint (Will Smiths “I was born to reign”, thin

8、k(?) is Chinese believe same?)2. Independent enterprise as the instrument of social action (% of US companies in fortune 500?, Bill Gates donation to his fortune v.s Chinas refusal to donate to disaster)3. Personnel selection and reward based on merit (selection, retain and offer opportunities v.s b

9、ased on relatives and friendship v.s Japanese ) 4. Decisions based on objective analysis (Data v.s reasoning, KFC standard v.s Chinese vague cooking)5. Wide sharing in decision making ( Practice: subordinates are expected to come with recommended decision proactively)6. Never-ending quest for improv

10、ement (Continuous improvement: Eg. CSX changing GM)7. Competition yielding efficiency ( Both internal and external competition, Adam smith, invisible hand notion. chinas market economy, China telecom v.s China Uni-comPolitical Risks of Global BusinessThe political environment of countries is a criti

11、cal concern for the international marketer Sovereign stability Nationalism Economic Risks Other political risksReducing Political VulnerabilityRelations with governments can be positive if M.N.E. can stimulate growth of local industry and economy by :Increasing exports or reducing imports through im

12、port substitution (open global or regional manufacturer in target country to increase its export to home country)uses locally produced resources (v.s global contract)transfers capital, tech., skills (trained local)creates jobs, and/or (local employment)makes tax contributionsReducing Political Vulne

13、rabilityOther image - polishing practices :P&G/ Colgate/Coca-Cola s sponsoring to school, charity, hospital, etc.Government P.R. Eg. top management meeting,Political PayoffsResponse actively to nature disaster, etc. Crisis P.R., eg. quality recall etc.Bases for Legal SystemsThe bases for the maj

14、ority of the legal systems of the world include:Common law, derived from English law and found in England, the United States, Canada, and other countries once under English influenceCode law, derived from Roman law and found in Germany, Japan, France, and in non-Islamic and non-Marxist countriesIsla

15、mic law derived from the interpretation of the Koran and found in Pakistan, Iran, Saudi Arabia, and other Islamic states A commercial legal system in the Marxist-socialist economies of Russia and the republics of the former Soviet Union, Eastern Europe, China, whose legal system is based on the econ

16、omic, political, and social policies of the stateInternational Dispute ResolutionInternational disputes can be resolved by: Conciliation (also known as mediation) is a nonbinding agreement between parties to resolve disputes by asking a third party to mediate differences Conciliation sessions are pr

17、ivate and all conferences between parties and the mediator are confidential Eg. Underworld system The arbitration procedure calls for the parties involved to select a disinterested and informed party or parties as referee to determine the merits of the case and make a judgment that both parties agre

18、e to honor In most countries, decisions reached in formal arbitration are enforceable under the law Eg. 08 CSX company bus painting recovery Litigation deals with filing a lawsuit to settle commercial disputes Lawsuits should be avoided for many reasons including cost, frustrating delays, and extend

19、ed aggravation, and fear of creating a poor image, damaging public relations, fear of unfair treatment in a foreign courtCultural Change & Resistance to ChangeCultural change helps in the marketing of products from one culture to a different culture Eg. Internet, western fast food, shampoo, Star

20、bucks, Coke Although some cultures embrace change, others are resistant to it Eg. Acceptance of genetically modified (Franken) food in Europe/China, Bean oil, Tomato, Chicken, Pork, Eggs Cultural resistance to change means crucial to marketers, consumers are expected to accept that within limits of

21、financial resource and payback period Global Marketing Management-Glocalization Based on all the debate above, if you are CEO, what decision you will make out of this dilemma? globalizationlocalizationstandardization adaptation-External marketKFC Deep fried dow Pecking folks Spring roll Walt Disney

22、Kungfu Panda Kungfu movie Crouching tiger & hidden dragon Coco-cola spicy sprite, Tea flavored soft drinks-Internal function Finance Marketing SKU deletion NPDGlobal Marketing Management-Glocalization Nestlé sells more than 8,500 products produced in 489 factories in 193 countriesThe “Nestl

23、é way”- Evolution Not revolution(1)think and plan long term (2)decentralize(3)stick to what you know (4)adapt to local tastesGlobal Marketing Management-Glocalization Globalization v.s localization = Glo-calization Glo-calization by culture boundry instead of country boundry “M&A” for a sou

24、nd glocalization Analyzing Product Components for AdaptationThe many dimensions of a product can be divided into 3 distinct components as illustrated in the model below: (圖在書上236頁(yè))Country-of-Origin Effect and Global Brands Many factors affect brand image, but one factor of great concern is the (COE)

25、 on the markets perception of the product Country-of-origin effect (COE) can be defined as any influence that the country of manufacture, assembly, or design has on a consumers positive or negative perception of a product When the customer becomes aware of the country of origin, there is the possibi

26、lity that the place of manufacture will affect product or brand image The country, the type of product, and the image of the company and its brands all influence whether the country of origin will engender a positive or negative reaction Innovative Products and AdaptationAnalyzing the 5 characters o

27、f innovation can help on determining the rate of acceptance and resistance of a innovationDimensions ExplanationMeasurement to diffusion-Relative advantage perceived value Uniqueness + comparing to old-Compatibility acceptable by norms, values Believability +-Complexity degree of complexity Communic

28、ation -Trialablity degree of economic Importance/ + & social risk Purchase intention -Observablity easy to communicate Communication +International marketing placement strategy Market-entry strategies Understand foreign country distribution channel Alternative Market-Entry Strategies(圖在書上210頁(yè))Im

29、port-oriented distribution structure An importer controls a fixed supply of goods and the market system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers Key features: Demand > supply, Customer seeks supply Importer-wholesal

30、er performs most marketing functions (CSXs Indian importer ),independent agencies that provide AD, research, warehousing, storage, transportation, financing are not exist or underdeveloped It wont happen in a national scale but may be found in specific categories or productJapanese Distribution Stru

31、cture Distribution in Japan has long been considered the most effective non-tariff barrier to the Japanese market The Japanese distribution structure is different enough from its U.S. or European counterpartsIt has four distinguishing features: high density of middlemena structure dominated by many

32、small middlemen dealing with many small retailers channel control by manufacturers, business philosophy shaped by a unique culture, and laws that protect the foundation of the systemthe small retailerJapanese Distribution Systems- Channel Control Manufacturers control on channel is maintained throug

33、h the following elements:1. Inventory financing - with credits extending for several months.2. Cumulative rebates are given annually for quantity purchase, early payment, sales targets, performing service, maintaining inventory level, participant promotion, loyalty program, following suppliers prici

34、ng policy, etc.3. Merchandise returns that are allowed to the manufacturer if not sold well.4. Promotional support to intermediaries in the form of displays, advertising layouts, and management education programsLocating Middlemen - SourceFirms seeking overseas representation should compile a list o

35、f middlemen from such sources as the following: Publications Commercially published directories Business publications Business groups U.S. Department of Commerce Chamber-of-commerce groups Middlemen associations Exhibition Export Exhibition Channel research Other manufacturers of similar but noncomp

36、etitive goods Consultants Foreign Management consultantsChapter Learning Objectives1. Designing an international sales force2. Recruiting 3 types of international sales3. Special training needs of international personnel4. Motivation techniques for international sales representatives5. Design compen

37、sation systems for an international sales force6. Evaluation & control of the sales forceDesigning the Sales Force The first step in managing a sales force is its design, design start with distribution strategy As described in previous chapters, distribution strategies will often vary from count

38、ry to country, from time to time, some markets may require a direct sales force, whereas others may not, Eg. SX TT MT Direct account ; Coca-Cola : support distributor office direct sales Rep. - K/A + support distributors team The hard sell that may work in some countries can be in appropriate in oth

39、ers Automobiles have been sold door to door in Japan for years where “Personal selling as a rule has to be localized for even the most global of corporations and industries” Selecting Sales and Marketing PersonnelTo select personnel for international marketing positions effectively, management must

40、choose individuals who have the following traits:1. Maturity 2. Emotional Stability3. Breadth of Knowledge 4. Positive outlook(can-do attitude)5. Flexibility(can-do solutions) 6. Like to be with people7. Integrity 8. Cultural Empath9. Energetic and 10. Enjoy Travel Selecting Sales and Marketing Pers

41、onnel Beginning positions are generally screened to evaluate candidates value and nature for potential training by group discussion, role play .etc. instead of know-how and knowledge. For higher positions, Reference and working experience check are 1st important in China v.s interview For highest po

42、sitions, interview will conducted as a dinner or something, may involve his wife or her husband, will focus on key achievements (checked before interview) and chemistry to each other. Traits suitable for 1 country may not work in another, pay & education may not positively-related in Japanese co

43、mpanies Managers culture affects personnel decisions, they tend to recruit people like him/herRecruiting Marketing and Sales Personnel + - Solution- Expatriates-Better knowledge to -High cost -Make it clear that company and product -Cultural barriers overseas experience-Add prestige to product -Limi

44、ted # of qualified is ticket to top Man.-Effective communicate -Reluctant to relocate -Immigrant citizenwith headquarter -Host country restriction with 2nd background- Virtual expatriate -Dont need -Lack of close contact Still growing trend family relocate with subordinate & - close to head offi

45、ce customers.-cost saving -Travel related illness, accident,lonely,violence (Finance Luo, Jame Mao)- Local nationals No cultural & legal - Their advice tend to be Is preferred by mostbarriers, understand ignored by headquarter of companybusiness structure. (CPGZ, AP division)Many familiar with -

46、 Mal reputation ofUS management style “being a sales”Cost saving. - Talent gap, 10:1 in China- 3rd-country nationalsQualified talent regardless - Cultural barriers etc. Option of their home country -Host country restriction Cost savingTraining for International Marketing Selection mistakes are costl

47、y, so sales training is important Training for the expatriates focuses on the customs and the special foreign sales problems that will be encountered Expatriates are also captives of their own habits and patterns. Before any training can be effective, open-minded attitudes must be established Eg. Da

48、ta oriented decision making v.s decide by feeling and reasoning Training trends Training of local personnel require greater emphasis on the company, its products, technical information, and selling methods, but most important, maybe its value Internet training (trend) v.s classroom training (is decl

49、ining) Overseas S.T.A. is another kind of important training Insights of training As long as ethic and integrity goes align with reference, cultural mistakes are not problems. Many believe the most effective training are of on-jobMotivating Sales Personnel Motivation is especially complicated becaus

50、e the firm is dealing with different cultures, Individual incentives that work effectively in the United States can fail in other cultures Motivating by Communication IO Training The Changing Profile of Global Manager Changing of competitive environment from domestic-only to globalization, results in the changing of CEO profile, few comp

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