S1-Globalization Imperative Economic and Financial Environment - Nigel

INTERNATIONAL
MARKETING
Globalization Imperative, Economic
and Financial Environment
Dr. Khanh Ngo

khanh.ngo@isb.edu.vn
www.isb.edu.vn
About me
• Dr. Khanh Ngo, Doctor at University of

Grenoble 1, France, 2008
• Senior Lecturer at ISB and UEH
• Former Sales & Marketing Director of
Endress+Hauser Asia Pacific Regional Support
Center (manage Vietnam, Taiwan, New
Zealand, Philippines, Bangladesh, Myanmar,
Srilanka, Nepal, Bhutan, Cambodia, Laos,
Brunei,…)
• Former Country Manager of Endress+Hauser
Myanmar
• Former Sales & Marketing Manager of VES
• Email: khanh.ngo@isb.edu.vn
2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

Prof. Nigel
• Prof. Nigel, Industry/Professional Fellow, UTS; Adjunct

Professor, UEH Vietnam; Advisor, Thammasat Business
School, Thailand.
• Former Head of the School of Marketing; Director,
Postgraduate Programs; Director of the Centre for
International Business. He was also a Visiting Professor in
USA universities
• Area of international/global marketing, with a particular focus
on the internationalisation of organisations in the Asian region
• Extensive experience in teaching courses and delivering
seminars in many countries (including the USA, China,
Singapore, Sri Lanka, Myanmar, Thailand and Vietnam).
• Extensive experience in managing and conducting over 100
commercial market research projects for Australian public and
private sector organisations.
Class Introduction
www.menti.com
Code:

Self-introduction
What is your major?
What is your learning expectation for IMk course?

Assessment Overview
Weight Type of Length (No. of

No. Assessment task Due date
(%) Task words)
1 In-class participation 20% Individual
with lecturer (Dr. Khanh
Ngo)
with industry lecturers
(Dr. Phat Tang or MBA.
Chanh Pham)
3 Final group project 60% Group Report: 10000 2 days before
(presentation and words +/-10% Session 15
report)
TOTAL 100%

Your project: suggested company
Company Company Company
Biti's Trung Nguyen International Vinfast

Hảo Hảo instand noodle Minh Long Ceramic Saigontourist
Vinamit Phuc Long coffee Vietnam Airlines
Bibica Vinh Hao drinking water Phở 24
L'angfarm Bien Hoa's sugar Vietjet airlines

Your group

Introduction
https://www.youtube.com/watch?v=XE9dWhGX_l4 https://www.youtube.com/watch?v=OX6mldvRzGw

Global Marketing Management
Global Marketing Development of Competitive

Globalization
Environment Strategy
Globalization Global Economic Global Marketing

Imperative Environment Research
(Chapter 1) (Chapter 2) Chapter 6
Financial Environment
(Chapter 3)
Global Segmentation Global Marketing
and Positioning Strategy
Global Cultural Environment
Chapter 7 Chapter 8
and Buying Behavior
(Chapter 4)
Political / Legal Environment

(Chapter 5)

Global Marketing Management
Global Market Global Marketing

Entry Strategy
(Chapter 9) Strategy Development
Communicating with the World

Global Product Policy Decision 1 Consumer
(Chapter 10) (Chapter 13)
Global Product Policy Decision 2 Sales and Cross-Cultural
(Chapter 11) Management
(Chapter 14)
Global Pricing Global Logistics and Distribution

(Chapter 12) (Chapter 15)
Export/Import Management
(Chapter 16)

Overview
Globalization Imperative
• Why Global Marketing is Imperative
• International Trade and International Business
• Evolution of Global Marketing
• Appendix: Theories of International Trade and the Multinational Enterprise
Global Economic Environment
• Country Competitiveness
• Emerging Economies
• Regional Economic Arrangements
Global Financial Environment
• Foreign Exchange and Foreign Exchange Rates
• Economic and Financial Turmoil Around the World

Globalization Imperative
www.isb.edu.vn
Global growth of trade
https://www.youtube.com/watch?v=Xc0bR9tiDyU

Question
Why should a Vietnamese company go global?

Why global marketing is imperative?
• Saturation of domestic market:

Domestic-market saturation in the
industrialized parts of the world and
marketing opportunities overseas are
evident in global marketing

• Powering growth in
emerging markets
Next 10 to 20 years, BEMs will
provide many opportunities in
global business.
CEA (China, HK area, Taiwan),
India, CIS (Russia, Central Asia,
Caucasus states), S. Korea,
Mexico, Brazil, Argentina, S.
Africa, Central Europe region,
Turkey, and ASEAN

• Global competition: • Global cooperation:

• Global distribution network • Competitive pressure

• Technology revolution: Internet…

International Trade and International Business
Who manages International Trade
• International trade: consists of exports and Prevalence of MNEs in the global economy, 2016 (%)
imports
• International business: includes international
trade and foreign production
• International business are managed on a
global basis.
• Who manages International Trade:
Growth of Multinational Corporations (MNCs)
is a major aspect of global markets
Intra-firm trade
Source: OECD Analytical AMNE database.

Question: menti.com
How about Vietnam? Which company can go global?

Question
Map the Evolution of Global Marketing? Where are mostly

Vietnamese companies in this evolution? Example?

Evolution of Global Marketing

Appendix: Theories of International Trade and the
Multinational Enterprise

Global Economic
Environment
www.isb.edu.vn
Export – Source CIA World Fact Book
www.isb.edu.vn
Questions
How do you think about the potential of Vietnam’s merchandise export in next 5 years? Why?

Exhibit 2-3: Foreign Direct Investment Inflows
www.isb.edu.vn
Question
Why should Vietnamese marketer look into FDIs flow in a

country?

Country Competitiveness
• Country competitiveness refers to the productiveness of a country

(infrastructure, health, education and well-functioning,..) which is
represented by its firms’ domestic and international productive
capacity
• Country competitiveness is not fixed.
• The role of human skill resources has become increasingly
important as a primary determinant of industry and country
competitiveness.
www.isb.edu.vn
Country Competitiveness
www.isb.edu.vn
Questions
Country competitiveness: what does it mean for

Vietnamese marketer?

Question
What is the difference from marketing in developing

countries and developed countries?

Regional Economic Arrangements
• An evolving trend in international

economic activity is the formation
of multinational trading blocs.
• There are more than 120 regional
free trade areas worldwide.
• Ex: According to FTA ASEAN-China,
if Malaysia wants 0% tax while
exporting pants to China then it
needs 40% of pants produced in
Malaysia or ASEAN
www.isb.edu.vn
Question: Menti
Which free trade agreement does Vietnam have?

Global Financial
Environment
www.isb.edu.vn
Foreign Exchange and Foreign Exchange Rates
• Foreign exchange is the monetary mechanism allowing the transfer of funds from
one nation to another.
• The existing international monetary system always affects companies as well as
individuals.
• For example:
• In mid 2015, Toyota reported an increase in their profits
• Their companies’ oversea businesses in US collect sales in USD but report in Japanese Yen.
• If Yen depreciate against USD by 1 yen then Toyota profit will increase 40 billion yen (332
million USD)
• Many countries attempt to maintain a lower value for their currency in order to
encourage exports
www.isb.edu.vn
Foreign Exchange and Foreign Exchange
Rates
• Spot market: transaction is made immediately

• Forward market:
• Delivery at some future date (30, 60, 90 days from the purchase
date)
• Buyer can lock in on exchange rate and avoid currency fluctuation
– currency hedging
• Exist for strongest currencies: Euro, USD, Pound, Yen,…
www.isb.edu.vn
Question
Should Vietnamese company use currency hedging? And why?

Economic and Financial Turmoil Around the
World
Which economic and financial crisis do you know?
www.isb.edu.vn
Group activity
How do consumers response to the recession in the

relationship with product category and with brand?

Exhibit 3-6: Changes in the Consumption Pattern
During a Recession
www.isb.edu.vn
Exhibit 3-6: Changes in the Consumption Pattern
During a Recession
www.isb.edu.vn
Group activity
How do corporate response to the recession? How

should marketer do?

World: Corporate Responses
• Short-term orientation: maximize

year to year profit (or minimize
loss)
• Long-term orientation: tolerates
some short term loss for future
gain
www.isb.edu.vn
World
• Corporate Responses to the regional financial crises:

• Pull-out
• Emphasize a product’s value
• Change the product mix
• Repackage the goods
• Maintain stricter inventory
• Look outside the region for expansion opportunities
• Increase advertising in the region
• Increase local procurement
www.isb.edu.vn
Summary

Assessment Overview
Weight Type of Length (No. of

No. Assessment task Due date
(%) Task words)
with lecturer (Dr. Khanh
Ngo)
with visiting lecturer (Dr.
Phat Tang and MBA.
Chanh Pham)
3 Final group project 60% Group Report: 10000 2 days before
(presentation and words +/-10% Session 15
report)
TOTAL 100%

Project steps
Company International Marketing

Introduction and International
Marketing Strategies Mix Strategy and
market research Economic Evaluation
Company Introduction Situation Analysis Product/ Service

Strategy
Identifying products with SWOT Analysis Place (logistic,

export potential distribution) Strategy
Evaluation of Alternative
Determining your Price Strategy
Marketing Strategies
company’s export
readiness
Promotion Strategy
Economic Evaluation

Your project: suggested company
Company Company Company
Masan - Omachi Trung Nguyen International Vinfast
Hảo Hảo instand noodle Minh Long Ceramic Saigontourist
Vinamit Highland coffee Vietnam Airlines
Bibica Vinh Hao drinking water Hoa Phat Steel
Vietjet airlines
Phở 24

Hint for your project: company
1. A Vietnamese company considering the export of a product or service to a country where

they are not presently represented
2. A Vietnamese company considering the export of a new product or service to a country

where they are represented, but the new product or service requires a significantly different
marketing strategy e.g. distribution
3. A multinational company where the product or service was designed or developed in

Vietnam and is now available for export to new countries or existing countries where a
significantly different marketing strategy is required
4. The import country will be assigned by lecturers: Australia
5. Different project teams choosing the same product or service may be acceptable. A project
register will be approved by the guest speakers

Homework for session 1: Which company and
country will you choose?
1/ Company introduction
2/ Identifying products with export potential

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INTERNATIONAL

Dr. Khanh Ngo

• Dr. Khanh Ngo, Doctor at University of

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

• Prof. Nigel, Industry/Professional Fellow, UTS; Adjunct

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

What is your major?

What is your learning expectation for IMk course?

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

Weight Type of Length (No. of

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

Company Company Company

Biti's Trung Nguyen International Vinfast

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

Global Marketing Development of Competitive

Globalization Global Economic Global Marketing

Political / Legal Environment

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

Global Market Global Marketing

Communicating with the World

Global Pricing Global Logistics and Distribution

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

Why should a Vietnamese company go global?

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

• Saturation of domestic market:

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

• Global competition: • Global cooperation:

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

• Global distribution network • Competitive pressure

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

• Technology revolution: Internet…

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

Source: OECD Analytical AMNE database.

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

How about Vietnam? Which company can go global?

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

Map the Evolution of Global Marketing? Where are mostly

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

Why should Vietnamese marketer look into FDIs flow in a

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

• Country competitiveness refers to the productiveness of a country

Country competitiveness: what does it mean for

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

What is the difference from marketing in developing

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

• An evolving trend in international

Which free trade agreement does Vietnam have?

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

• Spot market: transaction is made immediately

Should Vietnamese company use currency hedging? And why?

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

Which economic and financial crisis do you know?

How do consumers response to the recession in the

2/1/2023 Dr. Khanh Ngo www.isb.edu.vn

How do corporate response to the recession? How