RECOURCES FOR MARKETING
AND INTERNATIONAL
ACTIVITIES
Ing. Jiří Šnajdar
Mgr. Evžen Staněk
2013
RECOURCES FOR MARKETING AND INTERNATIONAL
ACTIVITIES
strategic decision and choice of conception
Export marketing
• effort for adaptation of commercial politics to conditions of
foreign market
• successive development of international activities
• orientation on geographic close markets
• realisation of marketing research, defining of marketing mix
and offer for particular markets
Global marketing
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security of integrated marketing
using of integrated marketing process on all markets
homogenous markets
exerting of TNC (transnational cooperation = MOO chains,
for example car factories)
Intercultural marketing
• firms produce products for world market and in necessary
amount adapt their products for local conditions
• social-cultural differences of consumer
• affinity of social classes in cultural zones
Trends
other tools necessary for realisation of relational marketing
new approaches
• ECR = Efficient Consumer Response
cooperation of supplier firms with commercial chains on
purpose of reduction of expenses and increase of
profitability
• Category management
effective control of assortment – aims to get a customer
with control of assortments in his offer
• SCM = Supply Chain Management
coordination (logistics) of control of goods flow among all
links of logistics chain, optimisation of stores
• Private Labels
Production under marks of distribution firms (Tesco)
STRATEGIC ALLIANCES IN INTERNATIONAL BUSINESS
Reasons of firms´ expansion
• increase of sales, higher potential, new outlets
• obtaining of sources – workers, finance, know-how,
technologies
• diversification of suppliers and clients (example price
advantage)
• minimising of risks
Strategic alliances
• expansion in 80th in telecommunication, aviation,
information technologies
• form of management of international business activities,
when one multinational company is interfaced with other
on purpose of multiplying of advantages and effects and
risks disintegrating, with preserving of proprietary
independence
• connecting vertical and horizontal
another point of view :
• cooperation of two companies, that connect part of their
activities with object to achieve synergy effect
• partners contribute to fulfil mutual strategic object
• from competitor becomes partner (competitors get in touch
– example air companies)
• from cooperation flows comparative advantage
Examples
• Alliance Sky Team
• Ford and Mazda
• Duracell and Gillette – distribution nets
Types of alliances
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technological
production
commercial
distribution
marketing
multifunction (connecting of more accesses)
Sourcing
• motivation = saving of expenses, quality, approach to
technologies, stuffs and materials
• entering on new foreign markets
• shopping zones
• e-commerce
INTERNATIONAL AMBIENCE
1. ECONOMICAL AMBIENCE
Global economy and tendencies in development
• break up of USSR – new economic era in middle and
eastern Europe
• globalisation
• diversification of economical ambience (economic
differences of countries are increasing)
• economical integration (mutual market of EU)
• movement of capital = leading power of world economy
• growth of work productivity
• growth of rough domestic product (GDP) in Latin America,
open markets
• commercial expansion of Asian countries
Main problems of the world
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population explosion (year 2010 – 7 billion people)
poverty (more than 1 billion people < 1 dollar per day)
1/3 people in productive age have no job
big attack on natural and raw materials sources
growing amount of refuse
cultural globalisation
terrorism, mafia
illiteracy
Subjects of international economic relations
• GATT = General Agreement of Tariffs and Trade (today
does not exist, was insufficient)
• WTO = World Trade Organisation (supervises the
accesses in scope of commercial relations –
discrimination and non-discrimination) – WTA replaces
GATT
• UNCTAD = United Nation Conference on Trade and
Development
• UNIDO = United Nation Industrial Development
Organisation
• OECD = Organisation for European Economic
Cooperation and Development
• IMF = International Money Found
• IBRD = International Bank for Reconstruction and
Development
Character of economic ambience
the world is here characterised with :
• economic system (commercial, central, combined)
• structure of economy – derives from overriding
character of economy
• industrial advanced countries
exporters of investment and goods large markets for all
types of goods
• countries getting industrial (Egypt, Brazil)
industrial production 10 – 20 % fast growing middle and
rich class
countries exporting raw materials
• nature sources markets for investments,
machinery, transport
• higher class – luxury goods (market opportunity)
developing countries
• handicraft and agriculture less market
opportunities
structure and level of incomes
• countries with very low family incomes (Ukraine,
Cuba) annual income to 500 USD
• countries with mainly low family incomes (Vietnam,
Turkey) 501 – 2000 USD
• countries with low or very high family incomes (Israel,
South Africa) 2001 – 10000 USD
• countries with low, middle or high family incomes
(Australia, France, USA) over 10000 USD
• countries with mainly middle high family incomes
(Sweden, Germany) over 10000 USD
economical development
(economical progress and structural changes, branch structure
and structural incomes, mainly growth of rough domestic
product)
Evaluation of economic quantity
category at characterisation of economical ambience
• number of population, population evolution, age parting,
expected length of life
• size of household
• phase of urbanisation (how many civic population on all
population – distribution, purchase decision)
• purchase power (incomes, savings, credits)
• inflation
• infrastructure
further economical criterions
balance of foreign trade (ZO), unemployment, productivity of
work, taxes, foreign exchanges, duties …
Chart of competitive ability
• macro and micro economical competition
• altogether are evaluating 59 countries
• index of competitive ability has 3 criterions :
-level of technology
-quality of public institutions
-macro economical ambience
• rank : 1. USA, 2. Finland, 3. Taiwan, 4. Singapore, 13.
Japan, 26. Estonia, 40. CZ
Index of economical freedom
• altogether 161 countries evaluated
• evaluation of Czech Republic
- important for investors
- most important evaluation – fiscal burden
- slow public administration
- corruption and black market
• the highest freedom – Hong Kong and Singapore
• from European view : Luxembourg, Ireland, Denmark,
Estonia
• rank : 6. USA, 19. Austria, Germany, 35. ČR, 44. Hungary,
62. Slovenia, 66. Poland and Slovakia
2. POLITICAL-LEGAL ENVIRONMENT
Basic determinants influencing formation of ambience
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political and national independence
political system
political conflicts
political climate
governmental system, government stability
national security
religious, racial problems
economical system
kind of law
Role of government
its task is to secure rivalry on market, protection of state against
undesirable goods, support of export + to guarantee it
legislatively…
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support of international transactions, foreign investors
obstacle (protection of state, firms)
rivalry among firms
government should improve protection of firms, state,
consumers
Law and order
• non written (Anglo-Saxon) law base of written law create
precedents, habits
• codified (continental) law codified law comes out from
stricter, clearer codex of laws, has more concrete definition
• general law regulations civil law, procedural law
• laws to foreign commercial activity price creation, forms of
enterprise, working hours, insurance, credits, quotas, laws of
foreign currency, transfer of profit, prevention of double
taxation
Political risk
• subjective methods and quantification
• firm FROST & SULIVAN (Political Risk Country Report)
prognosis for 5 years experts within 18 months assess
political stability, political regime and economic politic
• Beri Index (Political Risk Index) prognosis for 10 years
political spectrum is evaluated, racial structure, corruption,
strikes, social aspect 15 criterions, allocation of weight
3 x annually in 45 countries
Two types of political risks
• macro risk = threaten to all foreign companies
• micro risk = only some firms and spheres of operation
Risks elimination
• investigation and foreseeing
insurance, capital union with domestic firm, cooperation with
government, local management
Indicators of risk
• frequency of government changes, violence, terror, revolts
Government actions against the business
• damage to foreign firms
• expropriation = expropriation of company´s property
(nationalisation) with partial financial compensation
• consolidation = expropriation of company´s property
without any compensation
• domestication = adaptation of company – effort of
undertaking of firm into hands of local management or
local state administration
3. SOCIAL CULTURAL AMBIENCE
Culture
• complex of learned specimens of behaviour, summary of
visions about values, norms and rules, systems, attitudes,
habits
• artificial environment made by human
key to success in international marketing – conforming
and adaptation on specific culture
Subculture
• cultural elements for chosen group
• few cultures are homogenous, exist inner cultural
differences, based on nationality, religious, race …
Cultural universality
• characteristic elements, that can be applied on all cultures
Cultural variety
• cultural unique elements in certain society
Cultural elements
• material elements – cultural artefacts
- all consumable goods, all covers, all waste
- the tightest bounding of consumable goods with culture
- contradiction is solved by refusing of product
• non – material elements
- have different influence on dissonance of culture and
material elements
- social and cultural norms, complex of knowledge, ideas
Silent speech
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obeisance, gestures, body language, facial expressions
Consumable habits
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stable consumable preparations and usage of products
one of most obvious groups of non-material cultural
elements
• food habits, purchase habits – usage of credits, payments
cards …
Values
• each culture characterise basic values – prosperity,
money, enterprise
• we differentiate :
terminal values – comfortable life, excitement, freedom
instrumental values – bound to individual ambitiousness, meditativeness
Family
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different roles on family members
different size of family, women employment …
Religion
• essential influence of international trade
• determines human values, predetermine life style and
consumption
• Christianity :
modesty, consideration, simple life style, Christmas
dissimilarity - Orthodox, Lutheran, Catholic faith
• Islam : Muslims – middle East, Indonesia, practice 900 mil.
inhabitants
Koran – point of criminal, civil and
commercial law
Ramadan – month of fasting, decrease
of consumption status of
women, prayers, alcohol and pork
meat
is forbidden
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Hinduism :
India, posthumous life, respects castes - life
style, consumption orientation on family,
prohibition of beef meat, vegetarians, holy
animal - cow
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Buddhism :
modesty, suffering, penitence, meditation,
everlasting truths, south- eastern Asia and
Japan
Symbols
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superstitions (symbols understood of the action)
rituals
taboo – top of system of sociocultural regulative
(traditions, practices, laws, taboos)
myths, models, ideals
time and space perception
working ideas
art
Education
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influences rate and structure of consumption
determines decision and motivation
determines working power, competition, business
ambience
determines economical development
influences economical development of the country as
whole
Values and attitudes
• values = shared opinions or group norms, appropriated by
individuals
• attitudes = evaluation of alternatives, based on these
values
Aesthetics
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proves especially in peoples´ style and taste
style feeling interfere into production politics
Manners and habits
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different way of life – forms of behaviour, approach to
work, time, money
Cultural anthropology
• science dealing with following of different cultures
• necessary to be international marketing applicable – then
will offer better its product to given culture
• follows cultural elements
Main spheres of use of cultural anthropology knowledge
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product – especially design, but also characteristics
orientation of communication tools
sphere of sale power (business negotiations)
choice of distribution channels (ways of purchase)
Measurement of culture
Basic methods for marketing
• content analysis (verbal or pictorial communication)
• researches in terrain (questionnaire examinations,
interviews, projection techniques, observation, long-term
stay in given society)
Social classification
every society is marked out for social classification
• organisation of society into some homogenous groups
with similar interests and behaviour
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Social class
• opened group of individuals with similar categorisation,
e.g. the same vertical grade of social structure
• relatively constant homogenous groups of people, that are
in society sorted hierarchically and share similar interests,
values and behaviour
Warner stratification
compartmentalize society into 3 basic groups
each of it is further divided into 2 others
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Upper classes
Upper upper
Lower upper
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Middle classes Upper middle
Lower middle
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Lower classes
Upper lower
Lower lower
Social factors
influence categorisation into social group
Reference group
• social group, the individual identifies with
• its norms, values, behaviour he accepts
• it is used as scope of references
reference groups can be :
• member – individual is member of the group
• non-member – individual is not member
- aspirant – individual wants to be member
- dissociation – does not want to
Two basic ways of influence on purchase behaviour
• reference group as source of information and help with
variants evaluation
• reference group as target
Family
• basic opinionated orientation
Role and status
• role = activities that are expected from person from his
surrounding
• status = each role creates certain status, meaning of
society about given role
Influence of social class on consumable behaviour
1. recognising of needs and use of evaluating criterions
2. process from searching for information to purchase
decision
3. social language
4. choice of media
5. reaction on advertisement
6. purchase process
7. social mobility
Life style – AIO method
(Activities, Interests, Opinions)
- express consumable behaviour of people spheres :
• products, services and trade-marks
• values
• free time
Czech standards
i.e. how is possible to evaluate CZ on basis of this research
1. strong orientation on social relationships and creating of
mutual confidence (familiarity) = breeding ground for
corruption
2. hierarchy and authority, strict defined competence, decision
consulted with higher authority – difficult information flow,
managers can impose their will, trust to authorities, absence
of independence, initiative
3. emphasising of statute symbols – presentation of fortune,
social differences are demonstrated
4. national self-esteem and orientation on history, explanation
of presence by history, missing of bird´s-eye-view
5. small orientation on customer – insufficient sense of feeling
and services, compromise solutions, inability to catch the
customer …
6. traditional splitting of roles according to sex – role of woman
as a manager is repressed
Czech standards
i.e. how is possible to evaluate CZ on basis of this research
1. strong orientation on social relationships and creating of
mutual confidence (familiarity) = breeding ground for
corruption
2. hierarchy and authority, strict defined competence, decision
consulted with higher authority – difficult information flow,
managers can impose their will, trust to authorities, absence
of independence, initiative
3. emphasising of statute symbols – presentation of fortune,
social differences are demonstrated
4. national self-esteem and orientation on history, explanation
of presence by history, missing of bird´s-eye-view
5. small orientation on customer – insufficient sense of feeling
and services, compromise solutions, inability to catch the
customer …
6. traditional splitting of roles according to sex – role of woman
as a manager is repressed