2. AN INTERNATIONAL BUSINESS ENVIRONMENT (L301) PRESENTATION
ABU YOUSUF MD ABDULLAH,
PHD
PROFESSOR
INSTITUTE OF BUSINESS ADMINISTRATION
UNIVERSITY OF DHAKA
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7. Superior sales and distribution by itself can create a monopoly, even
with no product differentiation. The converse is not true. No matter
how strong your product—even if it easily fits into already
established habits and anybody who tries it likes it immediately—
you must still support it with a strong distribution plan.
— Peter Thiel, Zero to One
“
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13. PUSH AND PULL
FACTORS
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These compel firms to
expand beyond their
country of origin.
These attract
firms into foreign
markets.
14. PUSH AND PULL
FACTORS
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Domestic market may become too saturated.
Consumer demand patterns may change over time.
Increasingly restrictive government regulations may force
a firm to expand overseas
15. PUSH AND PULL
FACTORS
15
With a global population of over 7 billion, the global
market place is packed with endless opportunities.
Cheap labor is one of the chief cost driven factors that
are attracting MNCs to China.
Entering the global marketplace presents an opportunity
to learn the market practices in the industry.
16.
17. 17
DIFFERENCE BETWEEN TRADITIONAL AND
INTERNATIONAL PROMOTION
THE DEVIL IS IN THE DETAILS
What your promotional
objectives should be
depends on the level of
familiarity a market has
with your product.
Contents of the promotional
message will have to change
depending on the cultural and
social values of the market.
Which promotional
medium is more effective
varies from country to
country.
Segmenting and
Targeting cannot
be copied and
pasted.
21. 21
CULTURAL CONTEXT
SOME IMPORTANT DIMENSIONS OF
Getting straight to the point
vs beating around the bush
Differences in norms and
taboos
Varying levels of female
empowerment
Focus on celebrities vs focus on
historical and cultural lineage
22.
23. 23THE IMC PROMOTIONAL MIX
FLEXIBLE, HIGHLY ADAPTABLE STRATEGY THAT IS CONSISTENT AT ITS CORE
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24. SALES PROMOTION
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Coupons
Discounts
Free Samples
Special Sales
Usually
occurs at the
point of
sales.
Effective for
FMCG
Products.
Effective in
regions which is
less accessible
by other media.
Marketing activities which aim to stimulate consumer purchases and improve retailer or
middlemen effectiveness and cooperation. They usually occur at the point of sale.
25. TRADE SHOWS
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Time and sector-defined marketing events. Aimed primarily at B2B Consumers.
Effective for
companies looking
to introduce their
exports into a new
territory
Showcase different
business firms’
products, services
and their
manufacturing
capabilities
Can create demand
for products from
both the suppliers’
side and the
consumers’ side
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PERSONAL SELLINGFace to face interaction between seller and buyer for the purpose of
sale of an offering.
Very Hard to
Say No to a
Good Salesman
The need to
develop cultural
intelligence for
international
promotions
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DIRECT SELLINGMulti-Channel Approach that Focuses on Customer, Data Analytics and Accountability. Online
and Mobile Marketing is a big focus.
Newsletters
Flyers
Online Ads
SMS Ads
Effective for
products for whom
cultural factors do
not play as large a
role
Analytics gives
chance to measure
actual impact of
marketing
campaign
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PUBLIC
A concerted effort on part of the company to
generate goodwill among all relevant stakeholders.
RELATIONS
29. 29
ADVERTISEMENTSThe most widely used—and possibly the most potent– promotional
tool in the international IMC mix.
ANNUAL GLOBAL
EXPENDITURE (2014)
STANDARDIZED
VS ADAPTIVE
EFFECTIVENESS OF
VARIOUS MEDIA
VARIES FROM
COUNTRY TO
COUNTRY
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BARRIERS TO INTERNATIONAL PROMOTION
1 Gross translation problems
Subtle distinctions from language to language
Different accents and dialects
2 Values, customs, morals, religious views
3 Some consider advertisements too crass.
Transformational vs Informational
4 Comparative ads banned in most countries
outside US
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TAKEAWAYS
There is no
alternative to
International
Promotion
There are subtle
differences between
traditional and
international
promotion
Business communication
theory provides the
framework to understand
these differences
International
Marketers fail when
they do not understand
cultural context
IMC is the most
effective way to address
these problems
Even then, several
challenges still
remain
Constant research
and dedicated local
teams are key to
success