Dr. Elmos Konis International Marketing The natural way

Dr. Elmos Konis International Marketing The natural way

Dr. Elmos Konis International Marketing The natural way to growth and internationalisation

A pie is made New product The natural way to growth and

internationalisation You enter this market Competitor Your share

One way to Growth: You get a bigger share of this market Competitor Your share Another way to grow:

The market as a WHOLE grows Competitor Your share A third way for company growth: New

products Another new pie is made A fourth way to company growth Another way to grow: Internationalisation

Competitor 1 Your share Competitor 2 The three ways to view markets. Which is best for SMEs?

Aggregation Segments Segmentation

gender income family life cycle age

The three ways to view markets Customisation And a fourth, mass customisation Which type of market should SMEs choose?

B2B (you need a specific audience to notice you) Retail (you also need a specific audience to notice you!) What should SMEs do to go international?

(The basic principles of marketing still hold true! Slide 12)

Is there a need for the product abroad?

Is there a niche? Do we know the TM well? (stay focused!) Who are the competitors? How powerful are they? Can there be an advantage? (e.g. personal relations) Would local collaborations be a better bet? Do we have a network? Relationship marketing!

What are the difficulties (legal, political, cultural, technological) If you cant beat them join them. Large companies cooperate with SMEs Do you have an established brand? If not, find another way. E.g

The International Marketing Mix Foreign environment (uncontrollable) 1

Political/legal forces 7 Cultural forces

Domestic environment (uncontrollable) Political/ legal

forces (controllable) Price Promotion

6 Geography and Infrastructure

Economic forces 2 Competitive

structure Competitive Forces Product Channels of distribution

7 Level of Technology

Economic climate 5 4 Structure of

distribution 3 Environmental uncontrollables

country market A Environmental uncontrollables country market B Environmental

uncontrollables country market C Consider the perception of your country in the host country

Seek information and help! Get help! E.g. 09/11/2011 - Small Business, Big World a new partnership to help SMEs seize global opportunities

The European Commissions new strategy aimed at helping SMEs to expand their business outside the European Union:

Strengthening and mapping the existing supply of support services Creating a single virtual gateway to information for SMEs

Making support schemes at EU level more consistent Promoting clusters and networks for SME internationalisation Rationalising new activities in priority markets Leveraging existing EU external policies How does a small firm fight its war?

Attack Defend Guerilla The great leveller The internet! (Thanks Sir Tim Berners Lee for the WWW!)

Today you can be born global and succeed even if you are small How come? Access to and affordability of

technology The information highway Availability of innovation Ease of travel Ease of communication, building contacts

Today you can be born global and succeed even if you are small Ease of entry in some How come? industries

Help from various sources Fewer barriers to trade Migration of talent Today, people do more research before buying

Inherent strengths of SMEs

Flexibility and adaptability Speed of response in developing markets Niche marketing and unique differentiation Lower overheads Today, the quirky exotic image sells

Deciding Whether to Go Global Reasons to consider going global: Foreign attacks on domestic markets Foreign markets with higher profit opportunities Stagnant or shrinking domestic markets

Need larger customer base to achieve economies of scale Reduce dependency on single market Follow customers who are expanding or moving A quick look at Cyprus

So, what just happened to Cyprus? Its a Free Market We can Learn from the big boys:

e.g. Demonstrate that you can think globally! (And you understand different values) BUT, Avoid the big mistakes of big companies!

Honda "Fitta" is a slang rather vulgar word used in Sweden, Finland, Denmark and Norway to designate the vxxxxa. Later, the Honda "Fitta" was renamed "Honda Jazz" In most Spanish-speaking countries, we associate "Pajero" with "pajear" which is the vulgar version of "mxxxxxxxxe". It was renamed "Mitsubishi Montero"

In Portuguese-speaking countries, "Pinto" means "pxxxs. It speaks for itself! Fly in leather: "Vuela en cuero," which means simply "Fly naked"

Kekoukela" which means in some dialects "Mare stuffed with wax" or even "Toad stuffed with wax" . Characters changed to Kokoukole" or "Kekoukele" which means "Happiness in the mouth" The traditional "Finger lickin 'good, in Chinese, the slogan became: "We will cut your fingers" or "Eat your fingers"

Puff in English slang is gay Hhm No comment

So, there is room for SMEs too! Convergence or divergence? The importance of language

SLEPT Industrial Structure Shapes a countrys product and service needs, income levels, and employment levels.

Subsistence Economies Raw Material Exporting Economies Industrializing Economies Industrial Economies Income Distribution

Political-Legal Environment Attitudes Toward International Buying Government Bureaucracy

Political Stability Monetary Regulations Cultural Environment Sellers must examine the ways consumers in

different countries think about and use products before planning a marketing program. Business norms vary from country to country. Companies that understand cultural nuances can use them to advantage when positioning

products internationally. Cultural Differences When Nike learned that this stylized Air logo resembled Allah

in Arabic script, it apologized and pulled the shoes from distribution. Looking at the Global Marketing

Environment The International Trade System: Restrictionstariffs, quotas, embargos, exchange controls, and non-tariff trade barriers. The World Trade Organization: Helps Tradereduces tariffs and other international trade

barriers. Regional Free Trade Zones: Groups of nations organized to work toward common goals in the regulation of international trade. Summary of Major International Marketing

Decisions Finally, the Importance of language

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