1. THERE IS NO SECURITY ON THIS EARTH, THERE IS ONLY OPPORTUNITY General Douglas Macarthur Somi

2. BUDAPESTI GAZDASÁGI FŐISKOLA INTERNATIONAL MARKETING LECTURE- 3 In English 2nd March 2012 – FRIDAY 0940hr –1110hr (E.F. 13-15) Miklós (Nicholas) SOÓS 0630 265 9638 miklosoos@hotmail.com somi

3. LECTURE DATES - TIMES - LOCATION RE: Miklós (Nicholas) SOÓS 1.FEB. 17.0940-1110 [E.F.13-15] 2.FEB. 24.0940-1110 [E.F.13-15] 3.MARCH 2.0940-1110 [E.F.13-15] 4.MARCH 9.0940-1110 [E.F.13-15] 5.MARCH 16. VACATION 6.MARCH 23.VACATION 7.MARCH 30. 0940-1110 [E.F.13-15] – re. feb.10 8.APR. 6. 0940-1110 [E.F.13-15] 9.APR. 13. 0940-1110 [E.F.13-15] 10.APR. 20. 0940-1110 [E.F.13-15] 11.APR. 27. 0940-1110 [E.F.13-15] 12.MAY 4. 0940-1110 [E.F.13-15] 13.MAY 11. 0940-1110 [E.F.13-15] somi

4. LecturesNo.% Lect. 1 1624 Lect. 2 2233 Lect. 3 Lect. 4 Lect. 5 Lect. 6 Lect. 7 Lect. 8 Lect. 9 Lect. 10 CLASS ATTENDANCE somi

5. Please ensure that you personally sign the attendance sheet every time you attend a lecture. somi

6. The visual contents of lectures will be available internally on the following site: K:\Hallgatok\ANGOL\Soós tanár úr somi

7. SOURCES, REFERENCES – SUGGESTED READINGS The course is NOT based on any specific textbook. The following are recommended. International Marketing, Cateora, P. & Graham, J. (2005) 12th edition, McGraw-Hill Global Marketing, Hollensen, S. (2004) 3rd edition, Prentice Hall International Marketing Strategy, Doole, I. & Lowe, R (2004) 4th edition Thomson International Marketing and Export Management, Albaum G, Prentice Hall London Principles of Marketing, Kotler P et. Al, 2 nd European edition, Prentice Hall E. 2003 Principles of Marketing, Jobber D, McGraw-Hill Principles of Marketing, Brassington F, Financial Times Prentice Hall, 2000 Marketing on the Internet: Principles of online marketing, Strauss J & Raymond F, Prentice Hall,1999 Internet sites: www.pmcinc.org/ www.tradeport.org www.FAS.USDA.gov somi

8. ASSESSMENT METHOD End of year written examination 60% Two (2) ‘mini’ exams of 20 min. duration during unannounced lectures 40% somi

9. Where we finished last week.

10. SUBSETS OF INTERNATIONAL BUSINESS International business Global marketing International marketing International management International finance International trade Source: Omar (2009) somi

11. 11 WHAT IS INTERNATIONAL MARKETING? THE PROCESS BY WHICH INDIVIDUALS AND COMPANIES IDENTIF Y PROVID E COMMUNICATEDELIVER needs and wants of customers in different international markets products, services and ideas competitively to satisfy needs and wants of different customer groups information about the products and services products and services internationally using one or a combination of foreign entry modes somi

12. WHY INTERNATIONAL MARKETS? Saturation in domestic markets Marketing is growing in certain internationa l markets Decline in domestic markets Demand for product / service in certain markets Extend products lifecycle somi

13. KEY DIFFERENCES BETWEEN DOMESTIC AND INTERNATIONAL MARKETING International Marketing is more complex – higher risk Usually involves a greater number of stakeholders International - Greater competition International Marketing involves the STANDARDISATION V ADAPTATION dilemma somi

14. INTERNATIONAL MARKETING SUCCESS FACTORS Conduct appropriate market research prior to entry Understand the micro and macro environment (particularly cultural factors) Employ suitably qualified personnel Display long-term commitment to the market somi

15. PROCESS MODEL OF INTERNATIONAL MARKETING International marketing strategy scope and framework Company resources and capabilities Environment Analysing international competitors Vision and strategy for international markets International marketing strategy International market entry strategies Strategic alignment and performance somi Vision and strategy for international markets Vision and strategy for international markets

16. INTERNATIONALIZATION PROCESS THEORY A number of various theories / MODELS exist that set out to explain the process of internationalisation BORN GLOBAL UPPSALA DUNNING’S ECLECTIC Aim at international markets from the beginning of existence. Usually small cutting-edge technological companies Swed.Uni. of Upp. (Johanson & Wiedersheim) the internationalisation of firms is a gradual process involving various stages combines the effects of ownership factors (i.e., rent-producing firm skills), location factors (i.e., environmental differences), and internalization factors (i.e., transaction-related concerns), to explain the structural choice of export, license, or investment to enter a foreign host market. somi

17. UPPSALA Internationalization model Companies begin their operation abroad in nearby markets and only gradually penetrate more far-flung markets. Also, companies entered new markets through exports. Wholly owned or majority-owned operations were established only after several years of export to the same market. FOUR SUCCESSIVE STAGES OF ENTERING FOREIGN MARKETS Stage 1. Stage 2.Stage 3. Stage 4. Sporadic exports…. No regular export activities Export via independent representatives (export modes) Establish foreign sales subsidiary Foreign production / manufacturing units INTERNATIONALIZATION PROCESS THEORY somi

18. DUNNING’S ECLECTIC Internationalization model This eclectic Ownership-Location-Internalization (OLI) emphasizes the importance of location variables in foreign investment decisions. According to Dunning the existence of the following conditions increase the chance of international production: OWNERSHIP ADVANTAGES LOCATIONAL ADVANTAGES INTERNALIZATIONAL ADVANTAGES Firms which own foreign production facilities has bigger ownership advantages compared to firms of other nationalities. ‘Advantages’ may consist of intangibles. It must be profitable for firms to continue these assets with factor endowments (labour, energy, materials, transport, communication channels) in the foreign markets It must be more profitable for the firms to use its advantages rather than selling them, or the right to use them, to a foreign firm. INTERNATIONALIZATION PROCESS THEORY somi

19. INTERNATIONAL MARKETING CONCEPT? So what are the differences between domestic and international marketing? The concepts, the methods are the same the culture the enviroment are the differences. somi 19/29

20. “ Ways of living, built up by a group of human beings ” A set of standards and beliefs shared by a group of people, which helps an individual decide what is ‘ right ’, what can be ok, how to feel, what to do and how to go about it ….. “ The way we do things around here ” The sum of conscious and unconscious values, ideas, attitudes and symbols that shape human behaviour and that are transmitted from one generation to the next …. “ The collective programming of the mind that distinguishes the members of one category of people from those of another ” INTERNATIONAL MARKETING Why are we concerned with culture? The marketing significance of culture is that it affects buyer behaviour So…. What is culture ???? somi 20/29

21. DIFFICULTIES ARE STEPPING STONES TO SUCCESS. Somi