Designing an international marketing program

An international marketer goes through the same steps in designing a marketing program as domestic marketer. However, the international marketer must decide whether to use a global or customized approach. Careful marketing research must be done to help the international marketer decide whether to modify or maintain domestic product, price, place, and promotion strategies.

We start with the product. The following options can be considered here.

- Extension: Selling the same product in other countries is an extension strategy. It works well for products like Coca-Cola, Wrigley's gum, General Motors cars, and Levi's jeans.

- Adaptation: Changing a product in some way to make it more appropriate for acountry's climate or preferences is an adaptation strategy. For example Exxon sells different gasoline blends based on each country’s climate.

- Invention: Designing a product to serve the unmet needs of a foreign nation is an invention strategy. This is probably the strategy with the most potential, since there are so many unmet needs, yet it is actually the least used.

Price.Most foreign countries use a cost-plus pricing strategy. For internationalfirms this can mean their products are priced higher than the local goods. Why? International products must include not only the cost of production and selling, but also tariffs, transportation and storage costs, and higher payments to intermediaries.

Dumping is when a firm sells a product in a foreign country below its domesticprice. This is most often done to build a share of the market by pricing at a competitive level. Another reason is that the products being sold may be surplus or cannot be sold domestically, and are therefore already a burden to the company. The firm may be glad to sell them at almost any price.

Some U.S. pharmaceutical firms have sold penicillin, for example, at a lower price in foreign countries than at home. They justify this by saying that R&D costs are not included in foreign prices. Japan has been accused of following a dumping strategy for some of its products in the United States. Its response is that the volume sold here allows economies of scale, the savings of which are passed on to U.S. consumers.

An unusual pricing dimension of international marketing is countertrade, using barter rather than money in making international sales. Although countertrade accountsfor only about 10 percent of the world trade, it is growing in importance. An unpleasant aspect of pricing is bribery, the practice of giving or promising something of value in return for a corrupt act. This is a common practice in many countries to reduce red tape and make sales. Although in many countries bribery is an accepted business practice in some international sales, it is officially illegal in all countries.

Place.An international marketer must establish a channel of distribution to meet thegoals it has set. The first step involves the seller; its headquarters is the starting point and is responsible for the successful distribution to the ultimate consumer.

The next step is the channel between the two nations, moving the product from the domestic market to the foreign market. Intermediaries that can handle this responsibility include resident buyers in the foreign country, independent merchant wholesalers who buy and sell the product or agents who bring buyers and sellers together. Once the product is in the foreign nation, that country's distribution channels take over. Foreign channels can be very long or surprisingly short, depending on the product line.

1. Give your own examples of product extension, adaptation, and invention.

2. Describe some international marketing price policies.

3. What steps does product placement involve?

4. Three Ps have been mentioned in the text. Using your knowledge from previous texts describe the way the fourth P works in International Marketing.

Ex. 6.Explain, in your own words, the following terms.

needs, wants, prospective customer, wholesaler, retailer, things of value, resale, buying decision, basic necessities, ultimate consumer, target market, controllable factors, tangible items, intangible items.

Ex.7.Think of the verbs that are mostly used with following nouns.

exchange, needs, wants, services, goods, decision, product, benefit, commission, increase, price.

Ex.8.Think of the nouns that are commonly used with the following verbs.

satisfy, exchange, achieve, occur, create, shape, discover, concentrate, market, obtain, charge.

Ex. 9.Logically organize the following sentences to make up the text. The firstsentence is given to you.

1. A basic decision in marketing products is branding.

2. Some brand names can be spoken, such as a Big Mac hamburger.

3. The Campbell Soup Company is the trade name of that firm.

4. In branding an organization uses a name, phrase, design, symbols, or combination of these.

5. A trademark identifies that a firm has legally registered its brand name or trade name

6. Other brand names cannot be spoken, such as the rainbow-coloured apple (the logotypeorlogo)that Apple Computer puts on its machines and in its ads.

7. A brand name is any word, “device” (design, sound, shape, or colour), or combinations of these used to distinguish a seller’s goods or services.

8. A trade name is a commercial, legal name under which a company does business.

9. It helps to identify its products and distinguish them from those of competitors.

10.So the firm has an exclusive use, thereby preventing others from using it.

What title would you give to the text?

Ex. 10.Fill in the gaps with the missing words.

Category, research, marketer, services, process, utility, exchange, profit,information, cycle, concept, marketing, advertising, goods, advertiser, extension, effectiveness

Marketing is the … companies use to make a … by satisfying their customers' needs for products. A more complicated … at the core of marketing is the perceived equal-value …, which implies three phases in the marketing-exchange … : finding out who customers are and what they want; interpreting this … for management in order to shape products; and devising strategies to inform customers about the product's … and to make it available to them. Advertising is concerned with the third step in the … process. It is one of several tools that … can use to inform, persuade, and remind groups of customers, or markets, about their … and … . Its … depends on the communication skill of the … person. It is also effective only to the extent that other marketing activities, such as market …, are correctly implemented.

There are three … of participants in the marketing process: customers, markets, and marketers. To reach customers and markets, … use the marketing communication process, which is an … of the human communication process.

Ex. 11.Join the halves.

A.

1.In the past, each of the countries of the European Union

2.These differences made it difficult and expensive

3.Now, these countries are abandoning old political

4.It helps to reduce taxes and other barriers

5.This unification has eliminated over 300

6.Trucks loaded with products spill

7. The increased efficiency is reducing costs and

8.These changes make Europe that largest unified market

9.By the year 2010 the EU may expand to include at

10.These changes have dramatically altered opportunities available to marketing

11.The international competition fostered by the unification of Europe has also provided

B

1.across the European continent and Britain.

2.creating millions of new jobs.

3. impetus for the US, Mexico, and Canada to develop more cooperative trade agreements.

4. managers both in Europe and in other parts of the world.

5. had its own trade rules and regulations.

6. to move products from one country to the others.

7..squabbles and nationalistic prejudices in favour of cooperative efforts.

8. separate barriers to inter- European trade.

9.commonly applied at national boundaries.

10. least 25 countries and 450 million people.

11.in the world, and more changes are coming.

Read the sentences once again. Do you see that you have written the text? What

is it about? What title would you offer?

Ex. 12.Give Russian equivalents to the following.

Encounter difficulties; to do international marketing; exploit a better business opportunity; with little room for growth; demand may shift t a newer product; to return to other markets; the dimensions being evaluated; offer investment incentives; to compete fairly in the domestic markets; protect themselves against; duties are imposed; quotas are revised; a means of entry; the option chosen; domestically produced goods; do not require intermediaries; contract for a large volume of purchases; under licensing; the right to a trademark; in return for a loyalty or a fee; capital-free entry; the product manufactured locally; the advantages are twofold; dumping prices; bribery; reduce red tape.

Ex.13.Render the following into English.

1.Marketing – процесс выяснения и удовлетворения потребностей.

2.Buyer’s behaviour – процесс принятия покупателем решения о том, какой продукт покупать и у кого. Процесс состоит из пяти последовательных этапов: осознание проблемы, поиск информации, оценка информации, решение о покупке, оценка после покупки.

3.Market segmentation – процесс разделения рынка на субрынки, каждый из которых образован группой потребителей в чем-то похожих друг на , друга например, уровнем образования, возрастом.

4.Marketing mix – маркетинговый комплекс, состоящий из продукта, системы его распространения, рекламы и цены, который фирма использует для обслуживания потребителей на его целевом рынке.

5.Target market – особая группа потребителей, чьи потребности собирается удовлетворять предприятие.

6.Branding – использование дизайна, символа, имени или их комплекса для идентификации продукта, что дает производителю ряд преимуществ.

7.Consumer goods – товары, покупаемые для непосредственного удовлетворения потребностей покупателя.

8.Distribution channel – цепь фирм, которые участвуют в покупке и продаже товаров по мере их продвижения от производителя к пользователю.

9.Durable goods – товары, срок потребления которых превышает один год. 10.Positioning – процесс подгонки имиджа товара потребностям его целевого рынка.

11.Product life cycle – период, в течение которого продукт последовательно проходит через стадии зарождения, роста, зрелости и упадка.

12.Publicity – общественное мнение о компании или ее продукте.

13.Trademark – символ или наименование сорта, который защищён законодательно.

Ex. 14.Give the English equivalents to the following.

Нет необходимости в маркетинге; больше, чем он потребляет; ссылки на такие темы, как деньги, кредит, богатство; эра производства; эра продаж; эра маркетинга; излишки обмениваются на; удовлетворять потребности; конечный потребитель; покупать для собственного пользования; нечто, имеющее ценность; незанятые производственные мощности; возросшие продажи и прибыли;из-за высоких налогов; отношение правительства к зарубежным рынкам;прямой экспорт; принимающая страна.

Ex.15.Translate into English.

1.Маркетинг тесно связан с такими социальными науками, как экономика, социология, психология.

2. Маркетинг изучает людей в социальном контексте.

3.Mаркетинг – это система научных и практических взглядов, направленных на изучение и управление рыночными отношениями

4. Цель маркетинга – определить нужды и потребности своих будущих потребителей.

5.Четыре основных управляемых фактора маркетинга– это товары, цена, размещение и продвижение.

6. Потребитель не может отделить услугу от ее поставщика.

7. Внешние рынки могут предоставить больше возможностей для роста компании. 8. Одна из сложностей – это оценка политических и правовых условий в стране.

SPEAK AND WRITE

1.Three Cs? What do they stand for?

2. What is a target market? .Explain, in your own words, what each element of the four Ps involves.

3. What are different approaches to branding used by organizations?

4. What options of entering into the international market do you know? What are advantages and disadvantages of each of them?

5..Speak about the main steps in designing an international marketing program?

6.“The producer, not the consumer is king. After all, the producer is the one who advertises. Therefore, the producer is the one who creates wants and thereby influences what consumers will purchase.” True or false? Explain.

МИНИСТЕРСТВО ОБРАЗОВАНИЯ И НАУКИ

РОССИЙСКОЙ ФЕДЕРАЦИИ

Федеральное государственное автономное учреждение

высшего профессионального образования

«Казанский (Приволжский) федеральный университет»

Рустамова М.А.

Киященко О.А.

Плахова Е.А.

Учебно-методическое пособие по курсу « Английский для экономистов»

Для студентов средних и старших курсов

Казань 2015

Рекомендовано кафедрой романо-германских языков и международной коммуникации, института международных отношений, истории и востоковедения

Казанского ( Приволжского) федерального университета

в качестве учебного пособия

УДК 800: 070=20(07)

ББК 81.2 Англ-923

А-95

Научный редактор:

Доктор филологических наук , профессор Хисамова В.Н.

Рецензенты:

Кандидат филологических наук, доцент Ахметзянов И.Р.

Кандидат филологических наук, доцент Матыгуллина З.А.

Рустамова М.А., Киященко О.А., Плахова Е.А. Учебно-методическое пособие по курсу « Английский для экономистов»/ Под ред.доктора филол. наук, профессора Хисамовой В.Н.- Казань: КФУ, 2015.-

Английский для экономистов - учебное пособие предназначено для студентов экономических специальностей и рассчитано на лиц, обладающих знанием нормативной грамматики английского языка и имеющих словарный запас в 2000 лексических единиц.

Пособие состоит из вводной части и пяти модулей. Каждый модуль посвящен основополагающим понятиям экономики и содержит тексты и упражнения.

Часть II

UNIT 4

ADVERTIZING

The success of any business depends upon its ability to attract customers willing and able to make monetary exchanges for products and services. To do this, a business must find, understand, and communicate with potential customers where they live, work, and play.

Your vocabulary

Advertising

-communication intended both to inform and persuade.

Ad

- an informal word meaning an advertisement

Advert

-

- the same as ad

Advertisement

- an announcement in mass media about a product, event, job vacancy, etc.

Advertiser

-a person or company that pays for a product or service to be advertised

Adman

-a person whose profession is advertising

Commercial

- an advertisement on television or radio

Advertising campaign

- a planned series of advertisement intended to advertise a product or service

Ex. 1.Study the following synonyms to the wordadvertise. What are their Russianequivalents?

Promote-- to make sure that people know about a new product or service by arrangingspecial events.

Hype up– an informal word meaning to try to make people think that something ismuch better than it really is.

Plug (give smth a plug) –informal word meaning to try to make people interested inyour product or service, for example by mentioning it in a TV or radio conversation when you are supposed to be talking about something else.

Push –an informal word meaning to advertise a new product very heavily, with a lot ofadvertisements.

Translate the following sentences. Pay attention to the words in italics.

1.You must have seen those computer games – they have been heavily advertised on TV and all the Sunday papers.

2.To promote their new brand of shampoo, they are selling it at half price for a month.

3. In order to market a product well you need to be aware of public demands.

4. Like most Hollywood movies it was so hyped up that when I saw it I felt rather disappointed.

5.The author used the opportunity of appearing on TV to give his latest book a plug.

6. Revlon is really pushing its new range of beauty creams.

7.At this time of year, the papers are full of advertisement for skiing holidays.

8.BMW is running an aggressive campaign to publicize its 2001 models.

Ex. 2.How many antonyms to the following words can you put down? Compare yourlist with that of your partner. Ask each other questions using the words from your lists ofantonyms.

Primitive,

hire,

announce,

accuse of,

build,

develop,

promote,

proponent,

spiritual.

Ex. 3.Can you think of the synonyms to the following words? Consult a gooddictionary, if necessary. In what do these synonyms differ? Exemplify your understanding with your own sentences.

Merchant,

goods,

launch,

edifice,

sponsor,

announcement,

commerce,

commercials,

eye- catching,

proponent,

face-to-face,

consumer,

customarily,

channel.

Ex.4.Like any other sphere of business, advertising means tough competition first ofall. The following words will help you in the situation when you are to describe this toughness.

Compete, vie, be in competition with, fight, contest, pit oneself against, competitor, rival, battle, straight fight, rivalry, competition, competitive, cut-throat, dog-eat-dog, rat race.

Now try to define the right sentence for the words above. Change their forms if necessary. Some words can be used twice.

1. This computer firm is strong enough … on equal terms at home and abroad. 2.Advanced technology and low wage costs are helping the Taiwanese firms … internationally.

3. His restaurant is now so good that it … … … some of the best in London.

4. If you want the job, you’ll have … for it.

5.The two major tabloid newspapers … with each other for the best stories.

6.In a desperate bid to dominate the market, they had … … … the giants of the computer industry.

7.The leadership election will be … by four candidates.

8. …for these jobs is very tough – we have over 200 applicants for just six posts. 9.These acting awards are … in an atmosphere of intense rivalry.

10.In such a fiercely … environment, it’s inevitable that some companies will go out of business.

11.Their company was our main … for that share of the market.

12.There is … competition between drug companies these days.

13.There was a long … for control of the publishing company.

14.Advertising is a … business.

15.The stress of the … … is a major cause of health problems.

16.With only two candidates left, it will be a … … between them for the post.

17.This information is secret, which could be of great value to our …

Ex. 6.Open the brackets.

It's difficult (to sell) anything when the whole world (to seem) your potential market. That is where segmentation (to come) into the picture.

The marketing concept(to hold) that any organization (to exist) (to gratify) theneeds and desires of those consumers it (to be) best in the position (to serve). Segmentation (to involve) selecting those groups of consumers who would probably (to be) most receptive to the market item in question. Market segmentation (to be) the key to all advertising decisions. Advertisers (to use) market segmentation (to determine) positioning strategy, media strategy, andcreative strategy.

How the elusive consumer scientifically (to pinpoint)? Methods of consumer targeting (to include) an exploration of socio-cultural influences on consumer behavior. Advertisers may (to examine) the influence of groups, social class, and familial ties on consumers. Advertisers (to be concerned) also with individual influences on consumer behavior. They (to be interested in) the psychological concepts of learning, perception, motivation, personality, and attitudes and attitude change.

Still another way (to study) a target market (to be) through an examination of the decision process. This process (to begin) with need recognition and (to go) on to search, brand comprehension and evaluation. Choice (to be) the outcome.

Of course, not all advertisers (to have) the financial resources (to conduct) their own detailed research programs. They can (to carry out) small-scale surveys by mail, over the phone, or by direct interview. The library, too, can (to be) a valuable source of consumer behavior data, as can professional research outfits equipped (to cope with) problems that (to be) beyond the abilities of the low-budget advertiser.

Read the text once again and explain the meanings of the words and phrases which have been highlighted.

Ex.7.Study the following word-combinations. What are their Russian equivalents?

all or nothing, back against the wall, to cope with, to cut one’s losses, in the last resort, a long shot, make or break, on the blink, to save the situation, a snap decision, to save the day, to save (or lose) face, the tip of the iceberg, without fail.

Translate the sentences into Russian.

1. This company has an all-or nothing policy with its smaller suppliers.

2. The new product was so successful that production was barely able to cope with demand.

3. This product has almost outlived its lifespan – we should cut losses and take it off the market at once.

4. We have failed, but our back’s not against the wall yet. We have to think over our plan again.

5. If the advertising manager’s poor performance continues, then in the last resort the company will have to remove him and replace him with someone else.

6. The research and development department have come up with a new idea. They say it’s a long shot, but worth trying. We have to decide whether it’s worth risking the money.

7. Be very careful how you treat the chairman’s wife, she has a great influence over her husband. In effect, she can make or break a young executive like you.

8. No, I didn’t get the message; our lines of communication must be on the blink.

9. So, you want us to help your company out of its difficulties by lending you money, but you’re not prepared to give us a stake. Putting it differently, you expect us to save the day for you and get nothing in return.

10. Declining product quality and poor after-sale service, have resulted in the company losing a good deal of face with its customers.

11. The risks involved in this project have been clear from the outset – we simply cannot make snap decisions, everything has to be calculated.

12. The recent financial scandal on the stock market stands to be just the tip of the iceberg.

13. We can accept your offer, on condition that you can guarantee even-day delivery without fail.

Ex. 8.Translate into Russian in written form.

Advertising is defined as the non-personal communication of information usually paid for and usually persuasive in nature, about products, services, or ideas by identified sponsors through various media.

Advertising may be classified by target audience (consumer, industrial), by geography (local, international), by medium (radio, newspaper, television), or by its function or purpose (product advertising, noncommercial advertising, action advertising).

Advertising began in ancient times when most people could not read or write. As manufacturing and communication technologies developed, so did advertising. Printing was the first major technology to affect it, and cable television and computers are the most recent. Since World War II, advertisers have attempted to differentiate products through positioning strategies and other techniques.

As a marketing tool, advertising serves several functions:

- To identify and differentiate products.

- To communicate information about the product.

- To induce the trial of new products by new users and to suggest repurchasing by existing users.

- To stimulate a product's distribution.

- To increase product use.

- To build brand preference and loyalty.

- To lower the overall cost of sales.

LET’S READ AND TALK

T E X T 1

Before we start reading, let’s recollect some historic events and names. What do you know about the Babylonians, the Barbarians, the Dark Age, the Roman Empire?