1. ONE OF THE SECRETS TO SUCCESS IS IDEAS MIXED WITH INSPIRATION.

2. BUDAPESTI GAZDASÁGI FŐISKOLA INTERNATIONAL MARKETING LECTURE- 10 In English 4th May2012 – FRIDAY 0940hr –1110hr (E.F. 7-9) 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] MARCH 16. VACATION MARCH 23.VACATION 5. MARCH 30. 0940-1110 [E.F.13-15] – re. feb.10 6. APR. 6. 0940-1110 [E.F.13-15] (guest lect?) 7. APR. 13. 0940-1110 [E.F.13-15] 8. APR. 20. 0940-1110 [E.F.13-15] 9. APR. 27. 0940-1110 [E.F.13-15] 10. MAY 4. 0940-1110 [E.F.13-15] 11. MAY 11. 0940-1110 [E.F.13-15] somi

4. CLASS ATTENDANCE somi LecturesNo.% Lect. 1 1624 Lect. 2 2233 Lect. 3 3045 Lect. 4 3045 Lect. 5 3552 Lect. 6 3451 Lect. 7 3451 Lect. 8 2436 Lect. 9 1928 Lect. 10

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 (available internally only) 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. BGF. INTERNATIONAL MARKETING – MINI TEST 1 - ASSESSMENTS Markscale %No. <458 46-505 51-550 56-60 3 61-65 0 66-703 71-750 76-801 81-850 86-900 91-950 96-100 1 Total no. of students: 21 Class average :52% Lowest score 10% Highest score:100% somi

10. MINI TEST 1 & 2 - RESULTS somi

11. Where we finished last week. somi

12. THE RESEARCH PROCESS & INTERNATIONAL ISSUES Problem identification Selection of research design Information gathering Data collection Analysis & interpretation Dissemination of results Geography & distance Cultural Lack of marketing knowledge Differing perspective Construct equivalence Measurement equivalence Sampling equivalence Secondary data - Accuracy - Comparability - Reliability - Source Primary data - Respondent bias - Researcher bias Comparability of results Local biases in results Eliminate self-reference criterion Avoid culturally offensive conclusions RESEARCH PROCESS INTERNATIONAL ISSUES Somi

13. DISTRIBUTION ?? Concerned with transporting goods and services in the most cost effective and efficient way, from where they are to where they needed to be. The role of delivery (distribution) is to ensure the safe and timely provision of goods and services from the suppliers to the organisation and from the organisation to the final customer or client – the final journey to Place, from the four Ps. somi

14. IMPORTANCE OF DISTRIBUTION Marketing channel decisions are among the most important decisions that management faces. The company’s channel decisions are linked with every other marketing decision. The company’s pricing depends on whether it uses mass merchandisers or high quality specialty stores. The firm’s sales force and advertising decisions depend on how much persuasion, training and motivation the dealers or resellers need. Whether a company develops or acquires certain new products may depend on how well those products fit the abilities of its channel members. somi

15. DISTRIBUTION CHANNEL is an organised network of agencies that combine to LINK PRODUCERS WITH USERS. Distribution is the physical flow of goods through channels. A channel makes a product or service available in a convenient location (place), makes a product or service available when wanted (time), packages or reprocesses product or service into a usable form (form), advises about the product or service and its attributes (information). In international marketing distribution channels can be a source of competitive advantage OR a cause of problems. Channels involve relationships and the management of those relationships will determine the success of the firm’s international marketing efforts. Important to establish the right distribution channel because title is transferred, control is more difficult to exercise and competitive environment is fiercer. International distribution channels can be of varying length. somi

16. DISTRIBUTORSHIP DISTRIBUTOR buys from the supplier on his own account, at own risk, in his name resells to customers on his own account, supplier may be subject to warranties Supplier customers Distributor Distribution contract Sale contract sales service somi

17. THE DISTRIBUTOR imports the product on his own account, resells on his own account, at own risks marks up the supply price to cover his profit, if necessary undertakes services, normally carries a stock, likely is involed in local publicity, undertakes distribution in the market somi

18. THE SUPPLY PROCESS: - SUMMARISED THE ORGANISATION Buys Processes Sells S U P P L I E R – M A N U F A C T U R E R C U S T O M E R information Purchase inquiry Sales information Negotiation, agreement Supply Payment Information on performance Purchase inquiry Sales information Negotiation, agreement Supply Payment Information on performance somi

19. Manufacturer Exporting intermediary Importing intermediary in foreign country Wholesaler in foreign country Retailer in foreign country Exporting intermediary Wholesaler in foreign country Retailer in foreign country Importing intermediary in foreign country Consumer or industrial user Manufacturer Consumer or industrial user Retailer in foreign country Consumer or industrial user INTERNATIONAL DISTRIBUTION CHANNELS LONG VERSUS SHORT LONG CHANNEL SHORT CHANNEL And/or somi 35/52

20. BASIS UPON WHICH APPROPRIATE CHANNEL INTERMEDIARIES ARE TO BE CHOSEN THE 11 Cs 1.Customer characteristics 2.Culture 3.Competition 4.Company objectives 5.Character of market 6. Cost 7.Capital required 8.Coverage needed 9.Control issues 10.Continuity provided 11. Communication effectiveness somi

21. PRICE is the only marketing variable that produces revenue Price in international marketing is often used as an indicator of quality until experience indicate otherwise. When price is perceived as being similar for alternative products, then product quality or value as communicated through the brand becomes the deciding factor in the decision to purchase.

22. IMPORTANT ASPECTS OF PRICING Prices must: 1.provide the customer with value for money 2.cover the costs of product or service 3.be competitive 4.be consistent with corporate objectives Somi

23. PRICE & DEMAND In open markets, the demand for a product or service is related to the extend to which people are able and willing to buy a product or service at different prices. In open markets, the demand for a product or service is related to the extend to which people are able and willing to buy a product or service at different prices. Somi

24. THE DETERMINANTS OF DEMAND The demand for a product or service depends on 4 elements: 1.The price of the product / service 2.The prices of competing products / services. 3.The consumer’s income. 4.The consumer’s preferences. Somi

25. somi INTERNATIONAL PRICE STRATEGY FRAMEWORK Firm-level factors Strategic objectives M.share, profit,costs 4Ps………… Inventory level Firm-level factors Strategic objectives M.share, profit,costs 4Ps………… Inventory level Product-specific factors Life cycle Substitutes Quality, service, delivery Product-specific factors Life cycle Substitutes Quality, service, delivery Environmental factors Competition Exchange rate Inflation rate Environmental factors Competition Exchange rate Inflation rate Market-specific factors Consumers Government intervention Distribution channel Barriers to trade Market-specific factors Consumers Government intervention Distribution channel Barriers to trade Foreign price setting price relation to product line redesign & price implication transfer price setting inflation adjustment pricing for multinational clients client-specific pricing Foreign price setting price relation to product line redesign & price implication transfer price setting inflation adjustment pricing for multinational clients client-specific pricing

26. CIVILAZATION IS THE INTELLIGENT MANAGEMENT OF HUMAN EMOTION.