THE NATURE OF INTERNATIONAL MARKETING

Transcription

1 THE NATURE OF INTERNATIONAL MARKETING INTERNATIONAL MARKETING WONKWANG UNIVERSITY Professor In Woo Jun / Bcom, MBA, Ph.D

2 CONTENTS I. 1. Changes in Global Market Environment 2. The Global Market Environment at a Glance 3. Changes and New Challenges in Global Market II. THE FLOW OF INTERNATIONAL MARKETING 1. The Flow of International Marketing (Business) -1 & 2 2

3 1. Changes in Global Market Environment In the 21 st century, international market environments are changing continuously/dramatically across all industries. Under this tough circumstance, global companies success or failure in their business highly depends on how to adapt themselves into new environments. 3

4 2. The Global Market Environment at a Glance High Competition Diversity Uncertainty Complexity Global Manager (You are HERE) Less Prediction Dynamic Fast Changing Potential Entrants Source : Developed by In Woo Jun (2012) 4

5 3. Changes and New Challenges in Global Market The emergence of new economic powerhouses (e.g. the rise BRICs) Changes & New Challenges in Global Market Environment Matching the needs of new global consumers Supply > Demand The development of new technologies The growing transparency of corporate practice Source: Adapted from Lee, K. and Carter, S. (2009), Global Marketing Management, Oxford University Press, p. 9~22 5

6 Adopting the new rules of global standards Changes & New Challenges in Global Market Environment Emerging Non-U.S. MNEs Managing knowledge assets as a source of competitive advantage Carrying out CSR/CSV to achieve Win-Win for all stakeholders The growing importance of ethical management / behavior Source: Adapted from Lee, K. and Carter, S. (2009), Global Marketing Management, Oxford University Press, p. 9~22 6

7 3.1. The Emergence of New Economic Power House < The Rising of BRICs : GDP Trends USA vs. BRICs > Source: SERI (2010), The Emerging 30 Countries 7

8 < The Rising of KEM 30 : Population Analysis > * KEM 30 : Key Emerging Market (BRICs + New 26 Countries) Source: Euromonitor International, re-quoted from SERI (2010), The Emerging 30 Countries 8

9 3.2. Adopting the New Rules of Global Standards Enron Corporation was an energy trading and communications company based in Houston, TX, USA. Its employees in 2001 were around 21,000. After a series of scandals involving illegal accounting procedures, Enron went bankrupt in December Major reason of collapse : Window-dressing Settlement - Kenneth Lay (Chairman) : 24-year imprisonment (died in 2006) - Jeffery Skilling (President) : 24-year imprisonment 9

10 < Plunge of Enron Stock Price > Source: Washington Post 10

11 3.3. Emerging Non-U.S. MNEs < National Origin of Largest MNEs : 1973 & 2008 > Source : Hill, C. W. L., and Hernandez-Requejo, W. (2012), Global Business Today, 7 th Edition, McGraw Hill, p

12 < The Forbes Global MNEs by Region : 2010 > Source : 12

13 < The Forbes Global MNEs by Region : 2010 > Source : 13

14 < The World s Biggest MNEs : May 2014 > Source : 14

15 < The World s Biggest MNEs : May 2014 > Source : 15

16 3.4. Knowledge Assets as a New Source of Competitiveness Value-added < Smile Curve Model> Knowledge-based Society Industrialization Society R&D, Technology Brand, Contents Production/ Manufacturing HR, Infrastructure Source : Developed by In Woo Jun (2013) Marketing, Service Value Chain 16

17 < The Movement of Curve > Source : In Woo Jun (2012), Sustainable Management of a Korean Firm, International Studies Review, 13(2), p

18 3.5. The Growing Importance of CSR & CSV Source : Business Insider ( ) 18

19 3.6. The Importance of Ethical Management & Behavior < Cho s Dirty Behavior > < Namyang Incident > 19

20 < Collapse of Rana Plaza > < Bad Behavior by POSCO Executive > 20

21 THE FLOW OF INTERNATIONAL MARKETING 1. The Flow of International Marketing (Business) - 1 Market Analysis / Selection Strategy Formulation and Evaluation Strategy Implementation Monitoring Mission - Market Survey Objectives - Environment Analysis - Feasibility Study Strategies - Suitable - Acceptable - Feasible? Program - Market Selection Budgets Procedures Performance FEEDBACK Source: Re-designed by In Woo Jun (2012) based on Wheelen, T.L., and Hunger, J.D. (2007), Strategic Management and Business Policy, Prentice Hall 21

22 THE FLOW OF INTERNATIONAL MARKETING 2. The Flow of International Marketing (Business) - 2 A Firm s Mission & Vision Survey of the Markets Analysis of the Environment Selection of the Entry Modes Step 1 : The Analysis of Market Environment Marketing Strategy Product/Price Strategy Finance Strategy Trade Strategy Distribution Strategy Promotion Strategy Step 2 : The Formulation and Evaluation of Strategy Implementation of Strategy Step 3 : The Implementation of Strategy 22 Source : Designed by In Woo, Jun (2013)