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Lecture 7: Ch. 8 | Int'l Marketing-MKTG 335-G | Chad Jardine, Utah Valley University, 2015–2017

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Lecture 7: Ch. 8 | Int'l Marketing-MKTG 335-G | Chad Jardine, Utah Valley University, 2015–2017

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Chapter 8: Marketing Research

This presentation is part of a series of lectures by Chad Jardine, teaching MKTG 335-G, International Marketing at Utah Valley University, 2015–2017.

International marketing is a fascinating topic and I hope publishing my lectures will inform and educate. It's important to note that this is NOT an online course. The video contains lecture content only and is presented without the course context where assignments, exams, and a schedule of other coursework would be included. Enjoy!

Chapter 8: Marketing Research

This presentation is part of a series of lectures by Chad Jardine, teaching MKTG 335-G, International Marketing at Utah Valley University, 2015–2017.

International marketing is a fascinating topic and I hope publishing my lectures will inform and educate. It's important to note that this is NOT an online course. The video contains lecture content only and is presented without the course context where assignments, exams, and a schedule of other coursework would be included. Enjoy!

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Lecture 7: Ch. 8 | Int'l Marketing-MKTG 335-G | Chad Jardine, Utah Valley University, 2015–2017

  1. 1. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. International Marketing MKTG 335-G
  2. 2. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. “In marketing I've seen only one strategy that can't miss - and that is to market to your best customers first, your best prospects second and the rest of the world last.” Photo Credit: http://kotaku.com/memories-of-doom-by-john-romero-john-carmack-1480437464 —John Romero Developer and Game Designer Quote of the Week
  3. 3. McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. The International Legal Environment: Playing by the Rules Chapter 7
  4. 4. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Takeaways: Chapter 7 What You Need to Know: • Four legal heritages • Issues of jurisdiction • Dispute resolution methods • Intellectual property rights issues • Legal differences between countries • How U.S. law applies internationally
  5. 5. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. International Law • No uniform law governs international commerce • That means you have to comply with the laws of ALL jurisdictions. Introduction
  6. 6. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. International Law Ancient Egyptian concept of Ma’at
  7. 7. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. International Law Judeo-Christian ethic rooted in The Law as delivered by Moses.
  8. 8. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. International Law • Common Law • Civil or Code Law • Islamic Law • Marxist Residue Bases for Modern Legal Systems
  9. 9. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. 7-7 Legal Traditions Common Law Code Law Derived from English (Anglo-Saxon) law and tradition. Derived from Roman law. Found in England, the United States, Canada, and countries with English influence Found in Germany, France, and many non-Islamic, non- Marxist countries.
  10. 10. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. 7-7 Legal Traditions Common Law Code Law Based on tradition & precedent or case law (previous court interpretations) NOT all-inclusive Based on comprehensive codes: commercial, civil & criminal Intended to be all-inclusive Ownership determined by use Ownership determined by registration Evidence of agreement may be binding. Agreement may not be binding if not properly registered Compliance expected barring an act of God Acts of God extend to the unforeseen (i.e., labor strikes/riots) Common Law countries are codifying commercial law
  11. 11. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Case 2-6 Sex and Pig Livers U.S. Company contracted for 30K lbs. of fresh frozen pork livers, of customary merchantable quality. Goods are prepared and shipped according to U.S. standards. German purchaser objects.
  12. 12. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Case 2-6 Sex and Pig Livers We ordered customary merchantable quality. You have sent us 40% sow livers.
  13. 13. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Case 2-6 Sex and Pig Livers Who cares about the sex of the pig the liver came from?
  14. 14. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Case 2-6 Sex and Pig Livers We do. Here in Germany, we don’t pass off spongy sow livers as the firmer livers of male pigs.
  15. 15. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Case 2-6 Sex and Pig Livers This shipment wasn’t merchantable. You owe us $1,000 price allowance.
  16. 16. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Case 2-6 Sex and Pig Livers If they are good enough for American tastes, they should be good enough for you.
  17. 17. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. 7-7 Legal Traditions Islamic Law The Koran forms the basis for Shari’ah (Islamic Law) Used in Pakistan, Iran, Saudi Arabia and other Islamic states Includes property rights, economic decision-making and types of economic freedom
  18. 18. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. 7-7 Legal Traditions Islamic Law Overriding objective is social justice Prohibits the payment of riba (interest) Patterns of social and economic behavior Insurance is sometimes questioned because it deals with uncertainty and shares characteristics with gambling
  19. 19. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. 7-7 Legal Traditions Marxist-socialist Economies Some countries retain some legal notions of justice from their Marxist period.
  20. 20. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Jurisdiction Whose legal system has jurisdiction?
  21. 21. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Jurisdiction The World Court and International Court of Justice in the Hague resolve disputes between nations.
  22. 22. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Jurisdiction Disputes may be between: • Governments • A company and a government • Two companies from two different countries
  23. 23. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Jurisdiction Jurisdiction is generally determined on the basis of: • Jurisdictional clauses in the contracts • Where a contract was entered into • Where the provisions of the contract were performed
  24. 24. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Jurisdiction Disputes may be resolved by: • Conciliation or Mediation • Arbitration • Litigation
  25. 25. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Conciliation Conciliation or mediation is a non-binding agreement between parties to resolve disputes by asking a third party to mediate differences
  26. 26. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Conciliation Discussion between parties and mediator are confidential and statements made by either party may not be used in future litigation or arbitration
  27. 27. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Arbitration Parties select an arbitrator to act as a referee to determine the merits of the case and make a judgment both parties agree to honor
  28. 28. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Litigation Creates a great deal of fear and uncertainty
  29. 29. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Litigation ▪ Fear of creating a poor image ▪ Fear of unfair treatment in a foreign court ▪ Difficulty in collecting a judgment ▪ Cost and time ▪ Loss of confidentiality
  30. 30. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Protection of Intellectual Property: Counterfeiting and Piracy
  31. 31. 1-‹#› Protection of Intellectual Property:
 Counterfeiting and Piracy ▪ Firms spend millions of dollars establishing brand names or trademarks to symbolize quality and design only to be counterfeited and pirated ▪ Piracy and counterfeiting leads to lost sales from the unauthorized use of U.S. patents, trademarks, and copyrights which amount to about $60 billion annually as well as lost jobs ▪ Counterfeited pharmaceutical drugs can also lead to death and bad publicity
  32. 32. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Intellectual Property Rights Common Law Code Law In U.S. prior use establishes rights. In many code law countries, registration establishes rights regardless of prior use.
  33. 33. 1-‹#› International Conventions ▪ Many countries participate in international conventions designed for mutual recognition and protection of intellectual property rights • The three major international conventions include: • The Paris Convention for the Protection of Industrial Property, commonly referred to as the Paris Convention, includes the United States and 100 other countries • The Inter-American Convention includes most of the Latin American nations and the United States. • The Madrid Arrangement, which established the Bureau for International Registration of Trademarks, includes 26 European countries.
  34. 34. 1-‹#› Other Managerial Approaches ▪ The traditional, but weak remedies for American companies operating in countries such as China are several • prevention, that is, engage local representation and diligently register IP with the appropriate agencies • pursue negotiation and alternative dispute resolution • complain to the Chinese authorities • complain to the U.S. government and World Trade Organization (WTO). ▪ Multinational companies such as Microsoft, Philips and warner Brothers are coming up with other alternative approaches based on the factors that motivate consumers to engage in piracy
  35. 35. 35
  36. 36. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Cyberlaw Internet law can be vague and may incompletely cover issues such as the protection of domain names, taxes, jurisdiction, and contracts
  37. 37. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Cyberlaw New laws are being passed addressing online issues. European reaction to U.S. Govt. privacy policy runs counter to the trend (and thwarts) the benefit of cloud computing.
  38. 38. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Cyberlaw Cybersquatting is an example of an international Internet- based trademark issue.
  39. 39. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. Cyberlaw Taxes are a huge issue based on where products are sold. Origination? Destination? In-between?
  40. 40. 1-‹#› Jurisdiction of Disputes and Validity of Contracts ▪ Since existing laws relating to commerce do not always clearly address the uniqueness of the Internet, a body of cyberlaw is being created. ▪ Two of the most troubling areas are: • determining whose laws will prevail in legal disputes between parties located in different countries • establishing the contractual validity of electronic communications
  41. 41. 1-‹#› Commercial Law within Countries:
 Marketing Laws ▪ When doing business in more than one country, a firm must comply with different marketing laws ▪ All countries have laws regulating marketing activities in promotion, product development, labeling, pricing, and distribution channels ▪ In Austria, premium offers, free gifts, or coupons are considered as cash discounts and are prohibited ▪ Premium offers in Finland are allowed as long as the word free is not used ▪ French law permits sales only twice a year, in January and August
  42. 42. 1-‹#› Green Marketing Legislation ▪ Multinational corporations also laws on environmental issues such as industrial pollution, hazardous waste disposal, and rampant deforestation ▪ Green marketing laws focus on environmentally friendly products and on product packaging and its effect on solid waste management ▪ Germany has passed the most stringent green marketing laws that regulate the management and recycling of packaging waste
  43. 43. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. • Operates under 
 “first to register” rule • Promotes technology sharing • Patent applications public • Patents granted in 4 to 6 years • Patents valid 20 years from application date issued 7-32 • Operates under 
 “first to invent” rule • Protects individual inventors • Patent applications secret • Patents granted in up to 24 months • Patents valid for 17 years from application date issued Patent Law
  44. 44. 1-‹#› Foreign Countries'Antitrust Laws ▪ The European Community, Japan, and many other countries have begun to actively enforce their antitrust laws patterned after those in the United States ▪ Antimonopoly, price discrimination, supply restrictions, and full- line forcing are areas which lead to less competition and higher prices for consumers
  45. 45. 1-‹#› U.S. Laws Apply in Host Countries ▪ Leaving the boundaries of a home country does not exempt a business from home-country laws ▪ What is illegal for an American business at home can also be illegal by U.S. law in foreign jurisdictions for the firm, its subsidiaries, and licensees of U.S. technology
  46. 46. 1-‹#› Export Restrictions ▪ National Security Laws ▪ Determining Export Regulations ▪ Electronic services: ELAIN, STELA, ERIC and SNAP
  47. 47. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. For Next Class Due by Next Class (Mar 2, 2016): • Written Review: a16z Podcast After the Smartphone • Exam #2 (on Canvas)—Ch. 5–8
  48. 48. International Marketing: MKTG 335-G Course copyright © Chad Jardine. Images, works cited, etc. are copyright © their respective owners. International Marketing MKTG 335-G

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