VILNIUS GEDIMINAS TECHNICAL UNIVERSITY FACULTY OF BUSINESS MANAGEMENT DEPARTMENT OF INTERNATIONAL ECONOMICS AND BUSINESS MANAGEMENT Kęstutis Poviliūnas INTERNATIONAL MARKETING IN DEVELOPING PRODUCTION AND TRADE OF CONSTRUCTION PRODUCTS TARPTAUTINIS MARKETINGAS PLĖTOJANT STATYBINIŲ PRODUKTŲ GAMYBĄ IR PREKYBĄ Final Master Thesis Business management study programme, state code 62403S121 International business specialization Management and business administration Vilnius 2009 VILNIAUS GEDIMINO TECHNIKOS UNIVERSITETAS VERSLO VADYBOS FAKULTETAS TARPTAUTINĖS EKONOMIKOS IR VADYBOS KATEDRA TVIRTINU Katedros vedėjas ______________________ (Parašas) ____________________ (Vardas, pavardė) ______________________ (Data) Kęstutis Poviliūnas INTERNATIONAL MARKETING IN DEVELOPING PRODUCTION AND TRADE OF CONSTRUCTION PRODUCTS TARPTAUTINIS MARKETINGAS PLĖTOJANT STATYBINIŲ PRODUKTŲ GAMYBĄ IR PREKYBĄ Baigiamasis magistro darbas Verslo vadybos studijų programa, valstybinis kodas 62403S121 Tarptautinio verslo specializacija Vadybos ir verslo administravimo mokslo kryptis Vadovas ___________________ __________ __________ (Moksl. laipsnis, vardas, pavardė) (Parašas) (Data) Konsultantas___________________ __________ __________ (Moksl. laipsnis, vardas, pavardė) (Parašas) (Data) Konsultantas____________________ __________ _________ (Moksl. laipsnis, vardas, pavardė) (Parašas) (Data) Vilnius, 2009 2 3 Vilnius Gediminas Technical University ISBN ISSN Faculty of Business Management Copies No. 2 Department of International Economics Date 2009-05-19 The final work of Business Management MSc. program International marketing in developing production and trade of construction products Author: Kęstutis Poviliūnas Academic supervisor: prof. Borisas Melnikas Thesis language Lithuanian X Foreign (English) Annotation The objective of this work is to answer a question - how the international marketing in developing production and trade of construction products can overcome factors that do not allow achieving a competitive advantage in international markets. The final master thesis represents analysis of existing modern international marketing theoretical models and analysis of opportunity to develop international construction business in various countries using mathematical forecasting techniques. It provides a complex analysis of Lithuanian construction sector and its potential to develop international business relations. Qualitative study of key aspects of Lithuanian construction market is made in order to develop international production and trade of construction products. Finally, strategic solutions for international marketing development are given. Structure: introduction, problematic part, theoretical part, analytical part, suggestions and conclusions, references. Thesis consists of: 88 p. texts without appendixes, 15 figures, 13 tables, 60 bibliographical entries. Appendixes included. Keywords: international marketing, international marketing strategies, international construction business, construction products. 4 Vilniaus Gedimino technikos universitetas ISBN ISSN Verslo vadybos fakultetas Egz. sk. 2 Tarptautinės ekonomikos ir vadybos katedra Data 2009-05-19 Verslo vadybos studijų programos baigiamasis magistro darbas Tarptautinis marketingas plėtojant statybinių produktų gamybą ir prekybą Autorius: Kęstutis Poviliūnas Vadovas: prof. Borisas Melnikass Kalba lietuvių užsienio (anglų) X Anotacija Pagrindinis šio baigiamojo magistro darbo tikslas yra atsakyti į klausimą – kaip tarptautinio marketingo, plėtojant statybinių produktų gamybą ir prekybą, vystymas gali padidinti statybinių kompanijų konkurencingumą ir padėti joms įsitvirtinti tarptautinėje rinkoje. Darbe nagrinėjama tarptautinio marketingo samprata, egzistuojantys modernūs tarptautinio marketingo modeliai, pagrindžiama rinkodaros svarba bei įtaka įmonių veiklos efektyvumui. Naudojant matematinius modelius, analizuojama galimybė vystyti tarptautinį statybų verslą įvairiose šalyse. Pateikiama kompleksinė Lietuvos statybų sektoriaus analizė ir išryškinamas sektoriaus potencialas vystyti tarptautinį verslą. Atlikta Lietuvos statybų rinkos pagrindinių aspektų kokybinė analizė, siekiant plėtoti statybinių produktų gamybą ir prekybą pasitelkiant tarptautinį marketingą kaip kritinį sėkmės faktorių. Pateikiami strateginiai siūlymai tarptautinio marketingo tobulinimui. Darbą sudaro šios dalys: įvadas, probleminė dalis, teorinė dalis, tyrimai, išvados ir siūlymai, literatūros sąrašas. Darbo apimtis – 88 p. teksto be priedų, 15 iliustr., 13 lent., 60 bibliografiniai šaltiniai. Atskirai pridedami darbo priedai. Prasminiai žodžiai: tarptautinis marketingas, tarptautinio marketingo strategijos, tarptautinis statybų verslas, statybiniai produktai. 5 LIST OF FIGURES Figure 1. The exchange process. .................................................................................................................. 22 Figure 2. The marketing cycle. .................................................................................................................... 23 Figure 3. Customer analysis ......................................................................................................................... 26 Figure 4. Comparing relationship marketing to transactional marketing .................................................... 30 Figure 5. Alternative approaches to inter-organizational interaction: ―bow tie‖ and ―diamond‖ models. .. 31 Figure 6. The product life cycle ................................................................................................................... 34 Figure 7. The global marketing environment ............................................................................................... 40 Figure 8. The marketing system ................................................................................................................... 42 Figure 9. Strategic marketing planning ....................................................................................................... 44 Figure 10. Dependence on country‘s GDP .................................................................................................. 67 Figure 11. Dependence on number of employees in the industry ................................................................ 68 Figure 12. Construction work carried out in Lithuania ................................................................................ 71 Figure 13. Construction work carried outside Lithuania ............................................................................. 71 Figure 14. Key methods in selecting suppliers ............................................................................................ 76 Figure 15. Main criteria in selecting suppliers ............................................................................................. 77 LIST OF TABLES Table 1. Components of a product or service .............................................................................................. 32 Table 2. Criteria for standardization and adaptation in international markets ............................................. 32 Table 3. A classification of marketing strategies ......................................................................................... 49 Table 4. Specific international market entry modes .................................................................................... 54 Table 5. Sample indicators for assessing risks and opportunities ................................................................ 59 Table 6. Tactical international marketing decisions requiring international marketing research ................ 60 Table 7. Construction industry volume and other variables by countries .................................................... 64 Table 8. The working data completed in Excel worksheet. ......................................................................... 64 Table 9. Calculations of mean, dispersion, correlation coefficient r, t statistical and critical t score. ......... 65 Table 10. Linear regression coefficients. ..................................................................................................... 67 Table 11. Table of calculations completed in Excel worksheet. .................................................................. 67 Table 12. Calculations of S residual, ratio of dispersions F and tabulated value of F. ................................ 68 Table 13. Construction work carried out within the country at current prices ............................................ 70 6 TABLE OF CONTENTS INTRODUCTION ......................................................................................................................................... 8 1. DEVELOPMENT OF INTERNATIONAL MARKETING AS PREREQUISITE TO EVOLVE INTERNATIONAL CONSTRUCTION BUSINESS ................................................................................. 10 1.1. CONCEPTION OF INTERNATIONAL CONSTRUCTION BUSINESS AND ITS ROLE IN SUSTAINABLE DEVELOPMENT OF MODERN ECONOMY .......................................................... 10 1.2. DEVELOPMENT OF INTERNATIONAL MARKETING AS A CRITICAL FACTOR OF SUCCESS IN PRODUCTION AND TRADE OF CONSTRUCTION PRODUCTS ............................. 15 2. THEORETICAL MODELS AND RESEARCH METHODOLOGY FOR DEVELOPING INTERNATIONAL MARKETING IN PRODUCTION AND TRADE OF CONSTRUCTION PRODUCTS ................................................................................................................................................. 18 2.1. MARKETING THEORY AND