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Mrkt710 Mrkt710 Document Transcript

  • NEW YORK INSTITUTE OF TECHNOLOGY School of Management I. COURSE NUMBER AND TITLE MRKT 710 - International Marketing II. FACULTY Dr. Abram Poczter Mailing Address: New York Institute of Technology School of Management 324 Wisser Library Old Westbury, NY 11568 USA Telecomm: Tel: (516) 686-7708 (Voice-mail Box, O.W.) Fax: (516) 484-8328 Internet E-mail: Office hours: Tuesday: 12:30 p.m-1: 30 p.m. @ 324 Wisser Library, O.W. Tuesday: 4:45-5:45 p.m. @ 324 Wisser Library, O.W Wednesday: 5:00 p.m.-5:45 p.m. @ 808 Manhattan Campus Thursday: 12:30 p.m.-1:30 p.m. @ 324 Wisser Library, O.W. Thursday: 4:00 p.m.– 5:00 p.m. @ 324 Wisser Library, O.W. and by appointment. III. COURSE DESCRIPTION The course is designed to develop an understanding of the problems and opportunities present in the international business environment, and the challenges involved in the development and implementation of international marketing strategies. Principally, the course consists of two parts, with about equal time allocation. Part I of the course will briefly overview the historic background of the international business and the concept of Corporate/Business Strategy. However, most of the Part I of the course will be devoted to the analysis of the external environment of international marketing. Theories and models related to the basic concepts underlying the trends in, and the dynamic interaction between the economic, legal, political, cultural, socio-demographic, and competitive elements of the external 1
  • environment will be discussed. It will also include a survey of the marketing research methodology related to the validation of the theoretical concepts as well as the assessment of the market threats and opportunities in various market segments. Part II of the course will be devoted to the discussion of the development, implementation and control of the marketing mix, i.e., Product, Place, Promotion, Price, for the targeted market segments. This constitutes the essence of Marketing Strategy. IV. COURSE OBJECTIVES To provide the student with an integrated framework for the marketing decision making in the field of international marketing. This framework includes understanding of the inherent differences and similarities in the global marketplace, concepts and tools needed for market analysis, application of marketing principles for strategic and tactical planning, implementation and control. V. TEXTBOOK AND OTHER MATERIALS A. Required Textbook: Kotabe, Masaaki and Kristiaan Helsen. Global Marketing Management. Update 2000, Wiley, Inc. B. Recommended Textbooks and Pamphlets: Cateora, Philip, R., International Marketing, 1996, 9th. Ed., Richard, D. Irwin, Inc., Onkvisit, Sak and John J. Shaw, International Marketing; Analysis and Strategy, 1993, 3rd. Edition, Macmillan Publishing Co., A standard text. The strength is in a good discussion of the corporate context, excellent examples and vignettes. Toyne, Brian and Peter Walters, Global Marketing Management, Allyn and Bacon, 1993 An attempt is made to transcend the standard international marketing approach, but in spite of the "global" in the title, the authors have not succeeded, in my opinion. A. Internet Resources: Some useful cites: – International Business Resources Directory maintained by CIBER at Michigan State University (Absolutely Spectacular) – US Customs (import guide) 2
  • – Organization for Economic Cooperation and Development – US Bureau of Census -- US Department of Commerce – International Trade Administration (US Department of Commerce) -- United Sates International Trade Commission USITC analysts and economists investigate and publish reports on U.S. industries and the global trends that affect them. The agency also updates and publishes the Harmonized Tariff Schedule of the United States. -- World Trade Organization – US Office of Patents and Trademarks – International Monetary Fund – International Bank for Reconstruction and Development (World Bank) – Central Intelligence Agency (World FactBook) – Any legal topic (including business) USE INSTEAD OF NTDB (Crazy!!!) – Industry Research Desk -- International Organization for Standardization -- United Nations -- Transparency International Organization (bribes, corruption, etc) VI. COURSE REQUIREMENTS 1. TERM PROJECT 3
  • Allowable types of term project are: A. A traditional term paper on a selected topic of interest, such as: Marketing (select a product) In (select an international market) This type of a paper will contain the analysis of the market environment, proposed market segments and the marketing mix. One should, at the beginning of the course gather some encyclopedic information on the market/country of interest, as well as the list of further sources, references, etc. Topics and detailed outlines of the papers must be submitted for acceptance prior to the date of Midterm Evaluation -OR- B. Research Log Instead of the traditional term paper you may opt for an alternative, I call - Research Log. Student shall select articles related to the topics covered in this course, from the journals recommended below. Research Log will consist of ten (10) units. Each unit will contain: 1. A synopsis of an article (or articles, if you are ambitious) 2. Critical evaluation of the article, in light of the material contained in the class lectures/ discussions, textbook, and outside readings. Students are encouraged to: a. Discuss the selected articles with the instructor during the office hours, as well as bring up comments based on he articles during class lectures/discussions b. Complete one or two of the Research Log units prior to Midterm, and get a feedback from the instructor Otherwise, it is sole responsibility of the student to select and process" articles with a substantial international marketing content. Term Projects, regardless of the selected type, must comply with the general standards for term papers in a graduate course, I.E., typed, original, direct citations enclosed into quotation marks, footnoted, etc. Projects deadline is the day of the Final Exam. Missing the deadline will result in issuance of a grade one level below its actual worth. In search for a topic of the paper as well as a supplementary reading sources the following, non-exhaustive list of publications should be considered:  Columbia Journal of World Business 4
  •  European Journal of Marketing  Harvard Business Review  International Marketing Review  Journal of International Business Studies  Journal of International Marketing  MSU Business Topics  Journal of Marketing  Journal of World Business Of course, a part of your daily/weekly routine is reading of WSJ, and Business Week, so I just would like to remind you to turn to the international business sections. 2. EXAMINATIONS: There will be two, in-class examinations: Midterm, and a Comprehensive Final. All exams are multiple choice with an option to qualify any number of answers. In other words, if you understand a given question, however, none of the alternatives provided seem to be satisfactory, you may, after selecting the best alternative, further clarify your answer in a short essay. EXTRA CREDIT REPORTS. During the course, there will be ample opportunities for finding relevance of the course material to the events in the business world, things you observe and/or read about in the business press. Extra credit report is a short (1 to 3 typewritten pages) description of such a happening and an interpretation, using the vernacular developed in the course.  Each extra credit report will have a Heading, including: student’s name, ID (or social security) number. Number and name of the course, course sections, and the number of the report.  The body of an extra credit report must use sub-heads: Summary and Analysis Heading Summary Here, you are to summarize the article, happening, event, etc Analysis Here, you are providing the interpretation using concepts discussed in class.  Underline the key concepts DISCUSSED IN CLASS and used in the interpretation/analysis. 5
  •  Submit a copy of the original article, if any, on which the extra credit report was based.  The extra credit reports could be submitted in person, via fax, and e-mail (requirement to submit a copy of the article is waved). Subsequent extra credit reports can not rely on concepts discussed in the previous ones.  There is no limit as to how many reports a students submits. Suggested sources for Extra Credit reports only, they CAN NOT be used for the Research Log: *Business Week (by far the most popular source) *Forbes *Wall Street Journal *Etc. The extra credit work will be graded between 0% and 3% (Max), and added to the Midterm score, if submitted on the day of the Midterm, or added to the Final Exam score, if submitted on the day of the Final Exam. Extra Credit reports submitted after Midterm must incorporate material covered after Midterm. No extra-credit report will be accepted after the date of the Final Exam. Again, it is advisable to submit a specimen of the extra credit work as soon as possible. It will be graded and returned to you. All graded and un-graded extra credit reports must be submitted with the exam papers. VII. GRADING CRITERIA Midterm . . . . . . . . . . . . . 20% Research Paper . . . .. . . . 40% Final Exam . . . . . . . . . . 30% NOTE: • Unauthorized absence from either Midterm or Final Examinations will automatically lead to issuance of "W"-grade (Withdrawn). • The deadline for submission of Term Paper/Research Lag is the last class meeting. Missing this deadline will result in issuance of "I"-grade (Incomplete), and when submitted, the Paper/Log will be graded one level below its actual worth. VIII. COURSE OUTLINE SECTION I OBJECTIVES: 6
  • 1. Gaining an understanding of the role International Marketing plays in the overall corporate/business strategy 2. Familiarization with the theoretical underpinnings of international business, its historic development, its advantages and disadvantages. DISCUSSION TOPICS: 1. Concepts in Corporate/Business/Marketing Strategy, Interaction Between Marketing, Organizational and Financial Strategies 2. Short history of the international business practice and theory: • Comparative Advantage, • Relative Factor Cost and the Leontieff's Paradox, • Technology and Economies of Scale, • Linder Theorem • International Product Life Cycle: patterns of trade and direct investment • Porter's "Diamond of Competitive Advantage of Nations" • Economic/Political Co-operation: Worldwide and Regional Agreements its impact on the marketing strategy of a firm READINGS: Text: Chpts: 1,2,10,11 SECTION II OBJECTIVES: 1. Development of understanding of the economic, cultural and political trends in global markets. 2. Development of tools needed to convert the understanding of the external environment into estimation of market potential and its impact on marketing strategy. 3. Ability to forecast governmental policies (of course, with an error) resulting in political and economic threats and opportunities. DISCUSSION TOPICS: 1. Economic Nature of Foreign Markets, Balance of Payments, Input-Output Analysis, Estimation of Market Potential 2. Political/Legal Systems and Role of Government, Political Risk assessment and management 3. Cultural Environment of International Marketing, Levitt's theory of Globalization of Markets, "Measurement" of Culture READINGS: 7
  • Text: Chpts: 3,4,5,6,7 MIDTERM EXAM (Date to be announced) SECTION III OBJECTIVES: 1. Develop familiarity of sources of Data and Information useful for strategic and tactical decision making 2. Learn to apply the relevant information about the external environment to plan Product and Promotional strategies. DISCUSSION TOPICS: 1. Marketing Information Systems 2. Secondary Data and Primary Research Issues in International Marketing Research. 3. International Product Policy: • Definition of a "Product", • Standardization Vs Adaptation, • International Product Life Cycle (revisited), Portfolio Models, Impact of the external environment on Product Policy 4. International Promotion: • Standardization Vs Adaptation, • Role of culture in copy strategy, media strategy; • Media costs and availability, • PR, Publicity and Sales Promotion. READINGS: Text: Chpts:: 8,11,16,17 SECTION IV OBJECTIVES: 1. Learn about different modes of entry into international Markets, its advantages/disadvantages and strategic implications 2. Understand the conditions related to the choice of market entry mode 3. Role and functions of channels of distribution 4. Pricing strategies in international marketing DISCUSSION TOPICS: 8
  • 1. Mode of entry: • licensing, cross-licensing, protection of intellectual property in different legal systems • turn-key operations, technology transfer • joint and mixed ventures • direct investment economic and political risk • Export/Import: General types of arrangements: Indirect, Limited Direct, and Direct Exporting, export flow of products, promotion, ownership and payments, role of facilitating agents 2. Channels of Distribution: structure and functions 3. Global Logistics 4. Pricing Strategy: • penetration, skimming, dumping • Terms of Sale and Payment • Counter-trade READINGS: Text: Chpts:; 12,15,18 FINAL – Date will be announced in class ATTACHEMENTS: Attachment I International Marketing Plan – Outline I tried to make the outline as generic as possible to make it applicable to any type of international activity. Obviously, you will need to make an adaptation, depending on the specifics, such as exporting, licensing, joint venture, of your proposal. I. Executive Summary This section, written after the plan is completed, highlights the major assumptions and features of the Plan II. Goals and Objectives of the International Business Activity Goals are open-ended attributes the company wants to use as a be known for, the direction it wants to pursue. In this case, these are the attributes associated with exporting, of course, things such:  becoming a major player in a given international market  internationalize technology available in home country 9
  •  capitalize on economies of scale, synergy, etc., afforded by exporting  smooth-out cyclicality, seasonality.  add to the growth in revenues and profits, decrease dependency on the home (or any single market Notice, international activity is a part of corporate strategy, it is a response, a course of action which is based on strategic audit. Review Ansoff’s framework. Objectives are the measurable milestones on the road pointed out by the goals. (Who said business planing can not be poetic!) In other words, objectives are a quantification of goals. Thus,  Goal of becoming a major player in a given international market, could be translated into an objective of achieving X% of market share at different points in time  Goal of adding to the growth in revenues and profits, decrease dependency on the home (or any single market), could be translated into 50% of revenues and 30% of profits coming from international market. And, no single market should account for more than 25% in revenues and profits. III. Target Markets, Market Potential, Goals and Objectives In this section: A. Each target segment is evaluated in terms of the external trends:  Cultural/Social/Demographic, as they affect the demand for product category, and as they shape the consumer/buyer behavior  Legal/Political, as they affect export acceptability and operations  Natural Resources, Infrastructure (Marketing and technological)  Economic, as they affect the demand and financing  Competitive environment, including domestic and foreign competition Note: • Only the relevant trends are discussed • Trends do interact, for example, due to a worsening Balance of International payments economic), a country may pass anti-export laws (legal/political), which may change the nature of competition (competitive) B. Market Potential (for product/service) is evaluated, based on population/industry size, growth and reliance on export, etc. C. Goals and Objectives (in terms of sales, market share, etc.) for each market are established, based on an attainable competitive advantage. IV. Marketing Mix A. Product Decisions: What do intend to offer for sale, how will the product differ from what you sell domestically, in terms of brand name, content, packaging, marking, etc. What is the product positioning. B. Price Decisions: What is the pricing strategy within the “Poczter’s Iron Triangle” of cost, customer, competition. How will the price “behave” over time (penetration, skimming). C. Placement Decisions: 10
  • What is your entry strategy: licensing, franchising, indirect/direct exporting, direct investment/joint venture. What Terms of Sale are you going to use, in case of exporting. How do you see the channels of distribution in the future. D. Promotion Decision: Who is (are) the target audience(s). What promotional mix is going to be utilized (personal selling, advertising, PR (bribes?), publicity, sales promotion). Who is going to do what? V. Financing What funds do you need to finance the operations, where do they come from. How will you get paid, how will you protect yourself from exchange and credit risks. 11