LECTURE 9: INTERNATIONAL

MARKETING: LEARNINNG OUTCOMES

At the end of this lecture, students should be able
to:
Understand the practice of international
marketing including the reasons for its practise
and potential barriers
Explain the different market entry methods to
international markets
Understand the international marketing mix
including the principles and practice of
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standardisation and adaptation

INTERNATIONAL MARKETING
International marketing refers to the selling of
the firms products in overseas markets.
Reasons for International Marketing
Saturated domestic market
Increased competition in the local market
Product life cycle differences
Excess capacity
Organisational objectives
Financial reasons
Geographical diversification
Overseas demand

INTERNATIONAL MARKETING
ENTRY METHODS
Firms can enter into overseas markets via any of the
following methods:
Agent
Mergers
Acquisitions
Acquisitions
Joint ventures
Overseas subsidiaries
Franchising
Licensing
Assembly operations
Wholly-owned overseas operations
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INTERNATIONAL MARKETING MIX

The marketing mix in international markets is much more
complicated due to the likely differences relating to
economic, political and cultural conditions that may exist
in different international markets. As such, the elements
of the marketing mix such as product, price, place and
promotion will either have to be standardised or adapted
to suit local conditions.
Standardisation means selling a uniform offering in
terms of the product features, price, distribution and
promotions in all the markets that the company operates i
Adaptation on the other hand implies that the company
recognise the differences in international markets and as
such tailor its products, prices, distribution and promotions
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to suit local conditions.

LECTURE 10: B2B MARKETING: LEARNING

OUTCOMES

At the end of this lecture, delegates should be able

to:
Explain
Explain the concept of B2B marketing with
examples of B2B firms
Explain the characteristics of B2B marketing
Explain the B2B marketing mix
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BUSINESS-TO-BUSINESS
(B2B) MARKETING
B2B marketing is sometimes referred to as
organisational markets and it implies
organisations marketing their products and
services directly to other organisations to be used
as part of their own activities rather than for resale.
Organisational markets include organisations such
as manufacturers, hotels, hospitals, local
authorities and government institutions.
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CHARACTERISTICS OF B2B
MARKETING
These factors explain some of the basic
differences between B2B and B2C markets.
Size of purchase
Size of decision-making unit is larger and
includes many players
Frequency of purchase
Negotiation of contracts
Geographical diversity
Lead time between order and delivery
The issue of preferred supplier status

B2B MARKETING MIX

Products
Products are mostly made to order or to suit customer
specification
After sales service is normally included
Includes an element of service as well as product
Product demonstration and testing is often sought
Packaging
ac ag g will be for
o p
protection
otect o rather
at e than
t a for
o promotion
p o ot o
or self-service
Price
Price is not normally fixed
Prices can be negotiated depending on quantity, add-on
features and extra services
Trade discounts are offered
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Prices are set under a tendering system

B2B MARKETING MIX

Place
Delivery is usually direct from manufacturer to customer
Just In Time delivery is often practiced
On time delivery is particularly a very important requirement in
B2B markets
Promotion
P
ti
Personal selling predominates in B2B markets
Mass media are rarely used and advertising is confined to trade
magazines
Direct mail is also popular
Industrial or trade exhibitions also prove useful in B2B markets
Relationship or partnership marketing often forms the basis of
business relationships with he seller seeking repeat business in
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the long term

LECTURE 10: FMCG MARKETING:

LEARNING OUTCOMES

At the end of the lecture, students should be

able to:
Explain
p
the concept
p of FMCG with examples
p
of
FMCG firms
Identify the common characteristics of FMCGs
Explain the FMCG marketing mix
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FAST MOVING CONSUMER

GOODS (FMCG) MARKETING
Fast moving consumer goods are products that
are purchased and consumed by consumers on a
frequent or regular basis such as cigarettes, sugar,
milk and bread.
The FMCG market is extremely competitive and
hence branding becomes critical in determining
product success or otherwise.
Manufacturers of FMCG products include global
giants as Coca Cola, Unilever, Johnson and
Johnson and Proctor and Gamble.
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FMCG MARKETING MIX

Product:
Purchased often
Rapidly consumed
Packaging important
Branding
g very
y important
p
Price
Relatively inexpensive
Responsive to market demands
Competitive pricing often prevails
Profit margins can be low

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FMCG MARKETING MIX

Place
Manufacturer to distributor / retailer to consume
Internet
Intensive distribution strategy often used
Logistics
Logistics And supply chain distribution very
important
Promotion:
Emphasis on branding
Heavy advertising
Push and Pull promotional activities
Sales promotions carried out often
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CSR STRATEGIES (2)

Defensive strategy involves minimising or attempting to
avoid additional obligations arising from a particular
problem. There are several defensive tactics.
Legal manoeuvring
Obtaining support from trade unions
Lobbying
y gg
government
Accommodation strategy involves taking responsibility
for actions, probably when one of the following happens:
Encouragement from special interest groups
Perception that a failure to act will result in government
intervention
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BENEFITS OF SOCIAL
RESPONSABILITY
Improved market image: companys brands likely to gain

customers trust and loyalty (e.g body shop)

New market niches: some customers seek out suppliers

who act in a socially responsible way (Toyota hybrid car:

Pruis)
Acting responsibly may help the firm avoid the risk of

government action (e.g Shell 130m fine in 2004)

Its cheaper to act in a socially responsible manner, rather

than paying to repair damages

CSR IN ACTION

Charitable donations
Employee volunteer days
Sponsorship of local events
R
Recycling
li iinitiatives
iti ti
(paperless
(
l
billing)
billi )
Use of eco-friendly production
techniques

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