GSBS6041 Contemporary Global Marketing,Week 1 An Introduction to International Marketing,Introductions,Robert Scrymgour,Assessment,Blackboard,You must be enrolled All course documents ( PPTs, outline) External Source Links Discussion Forum Announcements Turnitin Gradebook,Turnitin,Major Assignment must be submitted Logon through Blackboard Multiple revisions 24 hour turnaround on revisions,Student Manual,General Information Working in Groups Assignment support Referencing Time Management Exam Anxiety,Your Turn,Name Nationality Occupation or background Program (MBA, MMktg, MIS etc) Number and types of subjects already completed * Dont forget to sign the attendance sheet,OH No ! Not Groups,Subject Recap,Case Study Presentations Major Assignment Consultation Exam ENJOY and have FUN ,Introduction,Global versus local approach to international marketing Exporters in the Australasian region: Indigenous small and medium-scale exporters (SMEs) Local subsidiaries of transnational firms,0,Definition of International Marketing,“International marketing is the process of planning & undertaking transactions across national boundaries that involve exchange”,The New International Marketing Environment,Shrinking communications Major changes in the international trading scene Firms focus on the interests of stakeholders,0,Stakeholders of the International Firm,0,Driving Forces in International Marketing,Market needs Technology Cost Communications,Restraining Forces in International Marketing,Political systems Legal requirements Cultural norms Economic development Technological environment,Restraining Forces in International Marketing (Cont.),Controls over entry and access to markets Actual or perceived risk Commercial Cross-cultural Country Financial,Drivers of Growth in the International Economy,Driven by change in management orientation Ethnocentric Orientation Polycentric Orientation Regiocentric Orientation Geocentric Orientation International monetary framework,Drivers of Growth in the International Economy (Cont.),World trading system International monetary framework Communications and transport Technology,Approaches to International Marketing,From domestic to transnational Domestic orientation - export to overseas agent Move to international marketing - commit resources to overseas market Take multinational stance - adapt for the market Move to global marketing - provide competitive global offering,Approaches to International Marketing (Cont.),From export to holistic focus Export through local (Australian) agent Export direct Establish overseas office Manufacture the product in the country under license Set up factory & operations in destination country,Concepts Underlying International Marketing,Comparative advantage Product lifecycle extension Internalisation Relationships & networks,The Wheel of International Marketing,The Firms Environment,Domestic Country Environment,Foreign Environment,The World from An Australian Business Perspective,Australias Merchandise Exports by Destination, 2003-4,Australias Imports by Sector, 2003-4,The Global Economic Scene,Recent Trends: Global markets & competitors Reduction of trade barriers Surge in capital movements Increases in manufacturing productivity World economy impacts on local economies Spread of market driven economies Growth of e-commerce,0,Economic Systems & Structure,Systems Market allocation system Command allocation system Mixed system Structure Agriculture, Industry, Services Development Stage GNP per capita Income levels,0,International Trade,Debate focused on issue of protectionism Tariff versus non-tariff barriers The World Trade Organization (WTO) Economic integration Preferential Trading arrangements Free trade areas Customs Unions Economic Unions,Within the Asian Trading Region,ASEAN Free Trade Area Singapore, Malaysia, Thailand, Indonesia, Philippines, Brunei, Vietnam, Laos, Cambodia, & Myanmar ASEAN + 3 (Japan, China, & South Korea) APEC ASEAN nations, Australia, New Zealand, Canada, USA, Japan, South Korea, Chile & Mexico Viewed as a possible counterbalance to EU & NAFTA Bilateral Free Trade Agreements For example, Australia - USA, Thailand, & Singapore.,Consumption Patterns,Engels Law - expenditure on other items Product saturation Merchandise trade Services trade,Trading Environment,Regulated by Governments Governments desire to control trade flows tends to be motivated by: Financial issues Security issues Safety issues Health issues Protectionist issues,Measuring Markets (Cont.),Levels of Income Population Quality of life over time Infrastucture Debt Resources,Marketing Implications,Need to monitor the economic environment on both a global and individual country basis Provides knowledge: To target specific markets Nature of customers and demand Most important segments Entry strategy Marketing mix Market potential,The Financial Environment,Foreign exchange issues Rates of exchange fluctuate Spot market rate Forward market rate Ex