2 Situation Analyses in International Marketing

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 The Company’s Microenvironment
(Kotler & Amstrong 2010)
• Microenvironment (môi trường vi mô): all the of the actors
close to the company that affect its ability to create value for
and relationship with its customers
– The Company
– Suppliers
– Marketing Intermediaries
– Competitors
– Publics
– Customers
• Macroenvironment (môi trường vĩ mô): broader forces that
affect the actors in the microenvironment
– Demography
– PESTLE
– Regional and International Institutions, Bilateral and Multilateral11
Agreements
2 The Company’s Microenvironment

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 Microenvironment: The Company

• Value Chain (Chuỗi giá

trị) of the Company
– The way the company
research customers’
needs
– The way the company
create values to customers
• Vision, strategies, and
values of the company
decide marketing and
international marketing
• Accessing international markets
Board of
Diectors
• Business level decisions
• Functional level decisions (marketing, HR, operation,
Board of finance).
Directors
• Cooperate with other departments in the company to
ensure the implementation of marketing decisions (4Ps);
• Measured, monitored (finance) and
Marketing
• Adjusted actions (policies, people).

objectives Managers

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 Microenvironment: The Suppliers
• How do suppliers contribute to creating values for customers?
– Provide inputs at right quality, right time and right price
– Participate with company in designing and modifying products
– Introduce applications and new solutions (pharmaceutical, cosmetics,
medical equipment and materials)
• Toyota, Honda, Yamaha and Canon request their suppliers
to
– Deliver inputs several times at right places and right times
– Participate in researching, designing and producing samples
– The suppliers may choose to follow or not when Toyota, Honda, Yamaha,
Canon enter international markets
• 2 choices of a company when entering international markets
– Mobilize current suppliers (suppliers from countries that the company
has offices/factories)
– Find new suppliers (local)
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Microenvironment: The Marketing Intermediaries
• How do marketing intermediaries contribute to creating values
for customers?
– Delivering products to customers of the company at a lower cost
– Transporting and storing, financing, matching, promoting, following up
• Tasks of marketing managers when company enters
international markets
– Research current available marketing channels in
international markets
– Make decisions on what channels to use by the company
• Affecting Factors
– Degree of accession to international markets of the
company
– Industries’ characteristics
– Political relations, regulations, policies of host countries
companies to use domestic marketing intermediaries. 17
• General trend: host country governments
 Marketing intermediaries of Vinamilk

• 3 marketing channels of Vinamilk Vietnam

– Traditional (from distributors to levels of agents by geography)
– Modern (hypermarkets like Big C, Metro, Vinmart; supermarkets like
Fivimart, Intimex; and direct orders at Vinamilk’s branches)
– Direct Sales (to schools, hotels, restaurants and organizations).

• Marketing channels of Vinamilk when entering international

markets
– Main channel: distributors
– Sign contracts with official distributors in the USA, EU, Australia,
Thailand, Cambodia and other South East Asian countries.
– Main tasks of distributors: storage, preservation, promotion, market
development.
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 Microenvironment: Competitors

• Activities of competitors directly affect customers’ satisfaction of company’s

products and services
– Customers compare cost and benefits received from company: customers’ perceived values
– Customers compare cost and benefits received from company’s competitors: customers’ perceived
values
• Views of company on competitors
– Market point of view (the same customer need, the same customer group)
– Industry point of view (same industry)
• 4 degrees of competition
– Similar products/services to the same customers at similar prices/Cạnh tranh nhãn hiệu (trên
cùng phân khúc thị trường)
– Same products or class of products/Cạnh tranh ngành (tất cả công ty sản xuất cùng loại sản phẩm)
– Products that supply the same service/Cạnh tranh công dụng (giải trí, vận chuyển)
– The same consumers dolars/Cạnh tranh chung (trên cùng túi tiền của khách hàng)
• Examples
– Nokia, Apple and Samsung
– Uber and taxi companies 19
 Microenvironment: Publics
• Publics (công chúng): any group that has an actual or potential interest in
or impact on the company’s ability to achieve its objectives (Kotler &
Amstrong, 2010).
• 7 types of publics
– Financial publics (banks, funds, share holders)
– Media publics
– Government public (policies on products, advertising)
– Citizen-action publics (consumer organizations, environmental groups, trade union)
– Local publics
– General publics (attitude toward to the company’s products and activitites)
– Internal publics (staff, managers, volunteers)

• Opinions, behaviors and reactions from publics: directly affect customers’

expectation, perceived values and evaluation about company’s products
and services
– Uber in India
– Working environment at Google, Twiter 20
 Microenvironment: Customers
• Customers: center of all marketing decisions
• Types of customers
– Consumer markets
– Business markets
– Reseller markets
– Government markets
– International markets
• Tasks of marketing managers
– Research the buying pattern of customers
– Research the roles of participants in the buying process (users,
influencers,
buyers, deciders, gatekeepers).
• Examples
–
– Decider
Roles ofof buying home
engineers furniture indepartments
and purchasing the family (Vietnam, USA, France) 21
in Japanese
companies
 Topics 3 & 4

1. Introduction of the company.

2. Discuss elements of its microenvironment.
3. Discuss the importance of each element to the company. Give 2 examples in 2
selected countries.
4. What micro factors affected the recent launch of a company’s product? How
well
has the company dealt with these factors?
5. Evaluate the company’s marketing strategy so far. What has the company
done
well? What not? How might it improve its strategy?

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2 The Company’s Macroenvironment

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 The Company’s Macroenvironment

• Macroenvironment: broader forces that affect the actors in

the microenvironment, hence, affect the company’s
marketing decisions.
– Demographic Environment
– PESTLE (Political, Economic, Social, Technological, Law, Natural
Environment)
• Kotler: Economic, Natural, Technological, Political, Cultural
– International institutions

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 Macroenvironment: Demography

• Demography: study of human population

– Size
– Density
– Location
– Age
– Gender
– Occupation
• Purpose of study
– Understand customers
– Understand publics of microenvironment
• Application
– Market Segmentation (education, households,
geography)
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– Forecast trends
 Laos
• Population
– Population: 6.8 mil
– Average age: 21.6
– Ranges of ages from 15-64: 60.8% of population
– Density: 28 persons/km2
– Sex structure: male/female is 0.99
• Number of ethnics: more than 100
– Laos (55%), Khmou (11%), Hmong (8%), and
more than 100 ethnic minorities (26%).
• Religions
– Buddhism (67%)
– Others (33%, of which Catholic is 1.5%)
• Language
– Official language: Laos
– Languages in high lands
– English: Vientiane and some big cities

Hồ sơ thị trường của Cục Xúc tiến thương mại Việt Nam
(Vietrade): http://www.vietrade.gov.vn

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 Viettel and Laos market

• Mode of entry: joint venture with Laos Asia Telecom

• Telecommunication network: Unitel
• Distribution policy: door to door (tới tận cửa tận cửa
nhà
khách hàng)
• Communication channels: come to each village at local
events/ceremonies
• Social community programs

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 Macroenvironment: PESTLE

Economic
Natural
(affect consumer
Political Technological Cultural (inputs to
buying power
business
and spending
activities)
patterns)
Government
Income interference to
business Customers’ views of
Income distribution model Innovation, Creativity
Regulations on the world Shortage of raw
Saving
competition, monopoly Technology changes
Credits Society’ s core values material
Changes in interest R&D expenses
Credit card usage Religions, languages, Climate change
Interest rates groups (public Internet evolution
Group culture
Cost of living investment projects)
Political conflicts

Choices of customers
The Company Power structure Activities of suppliers
Demand
Suppliers between company Customers Opinions and voices of
Power of marketing and government
intermediaries Customers suppliers Competitive positions
Voices of citizen-
Suppliers. Competitors Competitive action publics
capabilities of
company

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Macroenvironment: International institutions and
bilateral/multilateral agreements
• International institutions and bilateral/multilateral
agreements
– WTO
– EU, NAFTA, APEC, ASEAN
• How do they affect the actors in the
microenvironment?
– Policies on trade, investment, competition, intellectual
property rights, anti-corruption, anti-monopoly.
• Affected actors
– Suppliers
– Marketing intermediaries
– The Company
– Competitors
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Petro Vietnam Exploration Production Company
(PVEP)
• Contracts in exploration and production with:
– Russia, Malaysia, Indonesia, Algérie, Venezuela,
Iraq, Nicaragua, Bolivia, Argentina, Kazakstan,
Mozambique, Angola and Sudan
• Common characteristics
– Advantages in political relations with Vietnam
• Political risks
– Disadvantages to the company’s activities
– Advantages to competitors in international
markets
• Monitoring
– Maritime border conflicts between Peru
and
Chile in the Pacific ocean
– Conflicts between Peru and Ecuador
– Political unstability in Venezuela (demonstration,
violence) 30
 Topics 5 & 6

1. Introduction of the company.

2. Discuss elements of its macroenvironment.
3. Discuss the importance of each element to the company. Give 2 examples in 2
selected countries.
4. What macro factors affected the recent launch of a company’s product? How
well has the company dealt with these factors?
5. Evaluate the company’s marketing strategy so far. What has the company
done
well? What not? How might it improve its strategy?

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