International Marketing

MKT303 International

Marketing Social and technological factors impacting international marketing

Workshop 3

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What will we be learning? Week Topic

1 Introduction to International Marketing

2 Political and economic factors impacting international marketing

3 Social and technological factors impacting international marketing

4 Legal and environmental factors impacting international marketing

5 Assignment presentations

6 Study week (Attendance is compulsory).

7 Trade relations

8 Culture and communications

9 Market entry – an international marketing approach

10 Getting a product to the customer – international context

11 Product management and surviving in an international marketing

12 Future of international marketing and ethics

Why am I learning this?

Building a cultural understanding through

social factors is essential to building success

in an international market. Similarly,

technology can impact how you enter and

sustain a market presence.

Workshop Activity

Revision

What did we discuss last week? Identify the

three main points that you’ve learned during

last week’s class.

Share your thoughts with the rest of the

class.

This Topic’s Big Idea

“Media play a powerful role in

establishing and perpetuating

social norms.”

Jackson Katz

Learning Outcomes

1. Identify social factors that are relevant in international marketing

2. Explore the impact of technology in international marketing decisions

3. Build an understanding of the macroenvironment and its impact on marketing

4. Examine how changing attitudes alter marketing perception

External Factors

Organisation

Political

Economic

Social

Technological

Legal

Environmental

Cannot control

external factors

Social Factors

Social

• Demographics –

trends that exist

within a population

• Culture – customs,

values, beliefs that

exist within a group.

Source: Photo by Priscilla Du Preez on Unsplash

Demographics

• Data that relates to a specific population

• Demographic data includes: population growth rate, age distribution, gender distribution, income levels, consumer spending

• In Australia demographic data is freely available through the Australian Bureau of Statistics: https://www.abs.gov.au/websitedbs/censushome.n sf/home/quickstats?opendocument&navpos=220

• The World Bank has a range of global datasets: https://data.worldbank.org/indicator

Is the world getting better?

Is the world getting

better? View

http://bit.ly/mkt303world

Global population

Source: https://data.worldbank.org/indicator/sp.pop.totl

Poverty is Declining

• There has been a decline in the levels of global poverty leading to increased quality of life.

• With poverty reducing consumers can purchase more.

• We have more time for leisure.

Life Expectancy

is Increasing

• People are living

longer.

• Child mobility rates

have been declining.

• Women are less likely

to die during

childbirth.

We are becoming

more educated

• People around

the world are

becoming

smarter

• More education

means that

people have

the ability to

make informed

decisions.

Economic Growth is Faster

• Economic growth in

developing countries

has been exponential.

• We are earning more

income.

Source: https://www.bbc.com/future/article/20190111-seven-reasons-why-the-world-is-improving

COVID-19 has impacted the

economy

• In a post COVID-`9

environment

economic growth has

slowed.

• The graph depicts the

2020 March quarter.

Source: https://www.bbc.com/future/article/20190111-seven-reasons-why-the-world-is-improving

Conflicts are Declining

• Global conflicts are in

decline.

• Countries around the

world are becoming

more cooperative.

• Globalisation is

becoming prominent.

Source: https://www.un.org/development/desa/dpad/wp-content/uploads/sites/45/publication/SDO_BP_Cederman_Pengl.pdf

Workshop Activity

Brainstorm Session

If the world is becoming a better place, how

can marketers take advantage of this?

Share your thoughts with the rest of the

class.

Gucci

Marketing to Millennials

• Gucci has been able

to market to

millennials globally

• View

bit.ly/mkt303gucci

Source: https://www.businessinsider.com.au/gucci-millennials-teens-love-designer-comeback-2018-11?r=US&IR=T

India Undertaking

Luxury Marketing

• The Maharani of Manhattan: https://bit.ly/mkt303india Targets wealthy American audiences

Dove:

Marketing to ‘Real’ Women

• Started in 2004

• Use of diverse women in advertising

• $2.5 to $4 billion in first 10 years of the campaign

• Dove became Unileaver’s best product worldwide.

• Watch bit.ly/mkt303dovebeaut y

Source: https://www.effie.org/case_database/case/5F50_2019_E-335-405

Brands must be Careful

• Facebook ad for Dove in 2017 cause controversy

• Black woman becoming a white woman

• Social media uproar about advertisement

• Dove made public apology

Source: https://www.nytimes.com/2017/10/08/business/dove-ad-racist.html

Workshop Activity

Brainstorming Session

In groups of three to four discuss why do

brands need to be aware of social values?

What examples can you find of where this right

or wrong?

Share your thoughts with the rest of the class.

Coca Cola and

American values

• One of the biggest fails in marketing history – 23 April 1985

• Reformulated Coke – occurred due to Pepsi taste test challenge and Coca Cola losing market share

• 200,000 consumers tested New Coke

• 1,500 phone calls a day about the issue

• July 1985 – old Coke returns

• For more info: https://www.coca- colacompany.com/news/the- story-of-one-of-the-most- memorable-marketing- blunders-ever

Source: Coca Cola

Advertising a Country

It is culture that helps to

market a country

Source: https://www.instagram.com/italiait/ Source: https://www.instagram.com/australia/?hl=en

Workshop Activity

Brainstorming Session

If you were to market Australia what would

you focus on?

Share your thoughts with the rest of the

class.

PESTLE

Technological • Most dramatic force transforming the international

environment

• Provides for new markets and opportunities

• Development of a wide range of new technologies

• Increase in international trade in technology-related products and services

• Improved communication and better access to communication

• Reduced costs of doing business

We are living in an

increasingly Digital World

Source: https://wearesocial.com/digital-2020

Source: https://ourworldindata.org/

29

Technology and opportunities

for International Marketers

• Supporting infrastructure: – Access to reliable electricity supplies

– Availability of maintenance and repair facilities

– Skills and knowledge

• Creates Opportunities – New markets in international domain

– Assists small to medium-sized enterprises

– Reduces impact of national boundaries

Online Retail

• The retail environment is rapidly changing.

• Ecommerce retailers are becoming more acceptable as a way to purchase goods.

• COVID-19 has caused a change in consumption behaviour including a shift to greater online shopping.

• The story of Amazon: bit.ly/mkt303amazon

Source:https://www.abc.net.au/news/2020-04-22/retail-sales-surge-in-march-toilet-paper-rise-

pasta-sales-double/12172606

Online Shopping

in Australia

• More than 73% of

Australian households

shopped online in

2018

Source: https://auspost.com.au/content/dam/auspost_corp/media/documents/inside-australian-online-shopping-ecommerce-report.pdf

Alipay

http://bit.ly/mkt303alipay

http://bit.ly/mkt303alipay2

Sourcehttps://intl.alipay.com/:

Workshop Activity

Brainstorming Session

How can Alipay market to Australian

audiences?

Share your thoughts with the rest of the

class.

Next Week

Legal and environmental factors impacting

international marketing.