Pazarlama İlkeleri Marketing - Midterm 2 fatihbook.com 1 [ INTERNATIONAL MARKETING ] Why international markets become important? @ Reasons: (1) Operating up of new markets + Japan and Pacific Rim countries (300 million people) + OPEC (Oil producing) countries (200 million) + Communist Block (500 million) + China + Emerging markets (India) (Countries with large population but unstable markets) (2) Developments in Infrastructure + Communication (Eskiden telefon edebilmek için saatlerce bekleniyordu) + Banking (Eskiden döviz taşımak yasaktı) + Transportation (Air fillos) (Flower Antalya to London) (3) International Organizations + GATT (WTO: World Trade Organization) - Try to reduce trade barriers through bilateral agreements - As a result of reducing barriers; rich countries become richer and poor get poorer + IMF (International Monetary Fund) - Gives credit to countries in economic crises - When IMF gives loan, establish some conditions - Dç işlerimize karışıyor (2001 krizinde v erdiği parayı yönetmesi için Kemal Dervişi ataması gibi...) (4) International Free Trade Areas + Capital, Labor, Goods... can travel freely from one member country to another + Example: European Union (Avrupa Birliği) (5) Financial Incentives + To increase international business less develops countries are offering finance increase to attract foreign... + For example: Give free land, immunity from taxes (6) Low Labor Cost in LDC (Less Develop Countries) + Because labor costs are low (wages, salaries...) + For example USA companies open factory in China + MNC (Multi National Company) (Çok Uluslu Şirket) - Large companies' revenue comes from other companies (7) Privatization (Özelleştirme) of State Enterprises + Increase international relationship (8) Fewer ecological restrictions in LDC @ Factors that Restrict International Marketing (1) Political and Economic Instability (Kararsızlık) + If political and economy are always changing rapidly, foreign managers don’t go these countries + Difficult to attract foreign managers (2) Cultural Differences + Languages, religion, traditions, customs etc. + If it is very different, foreign company don’t want because they are going to face more problems (3) Risk of Expropriation (Kamulaştırma) + Government taking over foreign company - Example: Fidel Castro nationalized all USA Companies Risk of Terrorism + Usually target foreign businessmen - Örnek: Deniz Gezmişin Dngiliz konsolosunu kaçırması (4) Trade Barriers ( WTO try to reduce these:) a) TARIFF (Tax on imports) + Reasons: - To obtain revenue for government - To protect domestic industry b) QUOTA (Quantitative limit on imports) + Protecting domestic industry 7000 tractor needed 5000 producing by TC companies 2000 is quota for import + To conserve foreign exchange receives c) EMBARGO (Ban on trade with a given country) + The only reason is political - Examples: Arab - Israel USA - Cuba fatihbook.com 2 (WTO allows these:) d) Standards and Regulations + Japonya'nın havlu ihtiyacının %60 ını Meksikalı şirketler karşılıyormuş.. Japonya bunun önüne geçmek icin havlulara standart getirmiş ve sadece kıvırınca kulağa giren havluların ithaline izin vermiş @ If you want to export; start from neighbors, because: + You may have cultural similarities (Syria, Greek) + Lower transportation cost [ ENTRING STRATEGIES ] * Standardized is cheaper * Adoption increase cost (1) Ethnocentric + Designing a marketing mix (STANDARDIZED STRATEGY) for the domestic customers + Don’t consider foreign customers (2) Geocentric + Designing marketing mix for the WORLD marketing customer + Standardization is not domestic; worldwide + Keinchi Ohmoe - Relatively educated people like similar kinds of music, TV Shows, textile... - For example: Benetton uses same slogan in each country (3) Regiocentric + Designing different marketing mix however not for each country, for each REGION + Ex: Colgate Misvak in Muslim region (4) Polycentric + Designing a different marketing mix (ADOPDATING STRATEGY) for each country you enter + Change product in each COUNTRY - Ex: Mc Donalds: Mc Turco, Coca Cola: Ramazan Kampanyalari, Gillette: Kenan Sofuoglu [ ADOPDATING IN PRODUCT ] + Don’t use pork in Islamic countries + Change in package (Arabs like colorful packages) + Change in brand name - Ex: NOVA + Change advertising [ ENTRY METHODS ] (1) Exporting (Selling our products in other countries) + DIRECT EXPORTING - Spend money, time, hire personnel - Change marketing mix + INDIRECT EXPORTING - Don’t try to sell product however somebody comes Türkiye and bring your products to their own country - If there is no effort, this called "indirect exporting" (2) Joint Venture Turkish Co. (local domestic) (100% of investment) US Co. (Foreign Co.) (no investment) (A) Foreign Licensing (Franchising) + Mc Donalds sell the right to use name and symbols to TC Company + PAY ROYALITY: Lump sum payment in advance (peşinat) + a % of yearly sales (B) Management Contract (Yönetim Sözleşmesi) + Istanbul Hilton Oteli Aydın Doğanın ama Amerikalılar yönetiyor (C) Foreign Assembly (Montaj Endüstrisi) + The Turkish Company imports some parts of the finish products and assemblies them in Turkiye + Especially automotive industry put together and sell (D) Contract Manufacturing (Fason Imalat) + TC Companies do manufacturing but marketing of product done by foreign companies (E) Turnkey Operation (Anahtar Teslimi) (3) Partnership + Part of the investment is done by TC firm + Other parts of investment is done by foreign firms (4) Direct Investment + 100% of investment is done by foreign firm fatihbook.com 3 [ TARGET MARKETING ] (1) Market Segmentation + Dividing the market into segments based on differences in demand MALE FEMALE Young Middle Old Old Middle Young RICH RICH MIDDLE MIDDLE POOR POOR @ Criteria for Segment + Demographic (# of children, age, gender) + Geographic (American-European) + Psychographic (Lifestyles) + Buying Motivations (Why they buy the product?) - For example buying toothpaste reasons are different: - Healthy teeth - White shine teeth - Mouth breath + If only one variable for segmentation called "SINGLE VARIABLE" - Ex: Only produce for male/female (gender based on) - Become cheaper - Larger segments + If more than two, called "MULTI VARIABLE" - More clearer definition about customers - Smaller segments (2) Evaluating the Segments + We can choose the most profitable/attractive segments @ Criterias + Size of the segment (larger sizes are more profitable) + Income per person + Potential to grow + Level of competition (3) Entering Strategies A) Entering the Entire Market (All Segments) a) Undifferentiated Strategy - Mix all segment - Offering a standard marketing (Hayat Su for everyone) b) Differentiated Strategy - Offering different marketing mix for each segment (nabza göre şerbet) B) Entering the Single Segment (Concentrating) + Designing a special marketing mix for only one special segment + Guerilla Marketing - Example Efes: Basketball Eczacıbaşı: Volleyball + Problem: You put all eggs in one pocket