International Business Management

[Luciano]

sir plz help me.

1. What factors must a firm consider while addressing the make or Buy decision?

2. Why are brand names an important marketing tool for international business?

[balfor]

DHRUV,

HERE IS  SOME USEFUL  MATERIAL.

REGARDS

LEO LINGHAM

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1. What factors must a firm consider while addressing the make or Buy decision?

FOR  LOCAL  MAKE

-raw  material  availablity.

-price  of  raw materials.

-labor  availability.

-cost  of local  labor.

FOR  IMPORTS

-outsourcing  cheaper.

-volume  availability

-imports  tariffs  in   favour.

-timing  is  a major  factor.

OTHER  FACTORS  TO  CONSIDER

Political(incl. Legal)   [ [Poltical] EST[Environment][Legal] ]

-Environmental regulations and protection [what  are  the  government regualtions/ protection laws  that  must be  observed ]

-if  it  is encouraging, you go for  make.

-if  not  then, go  for  imports.

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-Tax policies

what tax  hinder the business and what  taxes  incentives  are available]

-if  there incentives for  local  make, go  for  it.

-if  there none, go  for  imports.

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-International trade regulations and restrictions

[ does  the  government    encourage  exports / with  high tariffs  on  imports]

-if  there  are tariffs on  imports, go for local  make.

-if  there  are  no  tariffs on  imports, go  for  imports

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-Contract enforcement law/Consumer protection

[does  the  government  enforce  on  consumer  protection ]

-if  the laws  favor local  make, go  for  it.

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-Employment laws]

[ is the  government    encouraging  skilled  immigrants  with  temp. permits]

-if  the skilled labors  are  available, at   affordable  rate, go for  it.

-otherwise  go  for   imports.

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-Government organization / attitude

[ does  the  government  have  a   very  positive  attitude  towards  this   industry]

-IF   the government  is  positive, go  for  local  make.

-otherwise  go for  imports

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Economic     [P[Economics][Social]TEL ]

-Economic growth

[  what  is  the economic growth rate  /  what  are  the  reasons ]

-if  the economic  growth is strong, go  for  local  make.

-otherwise  go  for  imports.

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-Interest rates & monetary policies

[ are  the  interest  rates    under control /  is there   a  sound  monetary  policies]

-if  the rates  are  high, go  for  imports.

-if  the  rates  are  low,  local  make  would be  ideal choice.

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-Taxation

[  has  the  taxation    encouraged  the  industry ]

-if  the  taxation  is  high, go  for  imports.

-otherwise  go  for  local  make.

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-Exchange rates

[ is   there  well  managed   exchange  controls  and  is it  helping  the  industry]

-if  the  exchange  are  favourable,  go  for  imports.

-otherwise  go for  local  make.

---------------------------------------------------------------------- Technological  [  PES [Technology] EL]

Government research spending

[is  the  government    spending  on research  and  development]

-if the  government is  offering  grants  for  local R&D,

GO FOR  LOCAL  MAKE.

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New inventions and development

[ are  new  inventions     being   encouraged  for  developments]

-IF  THERE  IS  ENCOURAGEMENT,

GO  FOR  LOCAL  MAKE.

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2. Why are brand names an important marketing tool for international business?

BRANDING/  BRAND  NAMES   ARE   IMPORTANT FIRST, LET  US  REVIEW  THE  MARKETING CONCEPT.

MARKETING  CONCEPT  IS  THE  PROCESS OF  

-IDENTIFYING   THE  NEEDS  OF  THE  CUSTOMER

-DEVELOPING  A  PRODUCT/SERVICE --A  SOLUTION TO  SATISFY THE  NEEDS  OF  THE  CUSTOMER.

-CREATE  A  POSITION  FOR THE  PRODUCT[SOLUTION]

IN THE  CUSTOMER  BUYING  SYSTEM THROUGH  A   USP--UNIQUE SELLING  PROPOSITION.

-DETERMINE  THE  RIGHT  VEHICLE  TO  CARRY  THE

MESSAGE  OF  POSITIONING   IN THE  MINDS  OF THE  CUSTOMERS

-DETERMINE  THE   RIGHT  PROMOTION  PACKAGE

TO  WIN  CUSTOMER  LOYALTY

-DETERMINE  THE  RIGHT  PLACE  TO  LOCATE THE

PRODUCT  WHERE  THE  CUSTOMER  CAN  BUY

-DETERMINE  THE  CUSTOMER  SATISFACTION  LEVEL  FOR  THE  PRODUCT.

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FOR  A  NEW  PRODUCT TO  BE  SUCCESSFUL,

IT MUST  SELL - REPEAT  SELL --SEEK  LOYALTY  FROM  CUSTOMERS.

IN THE  MARKETING  CONCEPT, BRAND  MANAGER

CREATE  USP [unique  selling  proposition ] TO  POSITION  THE  PRODUCT IN THE  CUSTOMER' S  MIND.

WHAT  IS   A  BRAND

Brand A brand is a mixture of attributes, tangible and intangible, symbolised in a trademark, which, if managed properly, creates value and influence. "Value" has different interpretations: 1.from a marketing or consumer perspective it is "the promise and delivery of an experience"; To marketers, brand equity = retained customers

2.from a business perspective it is "the security of future earnings"; To financiers, brand equity = retained earnings. 3.from a legal perspective it is "a separable piece of intellectual property." Brands offer customers a means to choose and enable recognition within cluttered markets.

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Brand Equity The sum of all distinguishing qualities of a brand, drawn from all relevant stakeholders, that results in personal commitment to and demand for the brand; these differentiating thoughts and feelings make the brand valued and valuable.

BRAND  EQUITY   REFLECTS  HOW  THEY  THINK   ABOUT  THE  BRAND.

The Seven Components of Brand Equity

Brand Permeation: a weighted combination of brand and advertising awareness and

availability(i.e., distribution).

Brand Distinctiveness: a weighted combination of measures that indicate brand

differentiation, uniqueness, and superiority.

Brand Quality: An overall assessment of the brand as a whole and its line extensions in

terms of its overall reputation for quality of product or service.

Brand Value: A weighted combination of measures that reflect the extent to which the

brand delivers what buyers pay for—often known as “price-value.”

Brand Personality: The extent to which the brand’s image is congruent with who the

buyer is or wants to be.

Brand Potential: The extent to which consumers will pay more for, go out of their way

for, or are willing to try this brand’s new products, services, or line extensions.

Competitive Inoculation: The extent to which the consumer would stick with the brand

in times of adversity or competitiveness.

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Brand Personality The attribution of human personality traits(seriousness, warmth, imagination, etc.) to a brand as a way to achieve differentiation. Usually done through long-term above-the-line advertising and appropriate packaging and graphics. These traits inform brand behavior through both prepared communication/packaging, etc., and through the people who represent the brand - its employees.

BRAND  PERSONALITY  REFLECTS  HOW  PEOPLE  FEEL  ABOUT  THE  BRAND.

Brand Personality is one of the core dimensions of brand equity. Brand personality refers to

the emotional side of a brand image. It is created by all experiences of consumers with a

brand, but advertising plays a dominant role in personality creation.

BRAND PERSONALITY  IS  CREATED  WITH Brand Permeation: a weighted combination of brand and advertising awareness and

availability(i.e., distribution).

Brand Distinctiveness: a weighted combination of measures that indicate brand

differentiation, uniqueness, and superiority.

Brand Value: A weighted combination of measures that reflect the extent to which the

brand delivers what buyers pay for—often known as “price-value.”

Brand Personality: The extent to which the brand’s image is congruent with who the

buyer is or wants to be.

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MICHELLE,

NOW  YOU  CAN  A  STRONG  LINK   BETWEEN THE  

BRAND  EQUITY  AND  BRAND  PERSONALITY.

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FOR   A  NEW  PRODUCT  TO  BE  SUCCESSFUL,  IT  MUST

-bring continuous  sales

-gain market share, -win consumer  preference

-build  loyalty

-raises  the  relative  price.

WHICH   RAISES  THE   EQUITY/   BRAND  EQUITY  OF  THE  NEW  PRODUCT

THAT  IS  WHY  BRANDING  IS  SO  IMPORTANT.

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FOR   A  NEW  PRODUCT,  WE   CREATE  A  BRAND  IDENTITY

THROUGH

-symbol / logo / fonts/ color/ sound.

-product features/ benefits/ quality/ certainty/ reliability/delivery/ packaging/design.

WITH   WHICH    WE  CREATE  

-a  perception  through

-a  visual/ communication/ behavior

WHICH   RESULTS  IN   A   BRAND  PERSONALITY

WHICH   CONSISTS  OF -BRAND  PERMEATION

-BRAND  DISTINCTIVENESS

-BRAND  VALUES

-BRAND  IMAGE

WHICH  HELPS  TO  DEVELOP   

1. BRAND  PLATFORM, WHICH  INCLUDES

-vision

-mission

-value

-personality

-positioning  

-strategy

2.BRAND  ARCHITECTURE,  WHICH  INCLUDES

-association

-commitment

-earnings

-essence

-identity

-extension

-harmonization

-image

-licensing

WHICH   CREATES   FOR  THE  NEW  PRODUCT

-sales

-market  share

-consumer  preference

-builds  loyalty

-raises  relative  price

WHICH  RAISES  THE  NEW  PRODUCT BRAND  EQUITY

-distinctiveness

-perceived  quality

-value

-permeation

-personality

-competitive  innoculation

-potential

THIS  EQUITY  VALUE  IS  VERY  IMPORTANT

TO  THE  COMPANY ---- WHY

the  figures  below  indicate  why?????

1.Coca-Cola 65.3 BILL.

2.Microsoft 58.7 BILL.

3.IB M 57.1 BILL.

4.GE 51.5 BILL.

5.Nokia 33.7BILL.

6.Toyota 32.1 BILL.

7.Intel 30.9 BILL

8.McDonald’s 29.4 BILL.

9.Disney 29.2 BILL.

10.Mercedes-Benz 23.6 BILL.

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