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Chapter 11 - OverviewChapter 11 - Overview
11.1 International Marketing 11.1 International Marketing 11.2 Global Marketing11.2 Global Marketing 11.3 International Marketing Mix11.3 International Marketing Mix Trading Partners - SpainTrading Partners - Spain
11.1 International Marketing11.1 International Marketing
Marketing: : All activities involved in planning, All activities involved in planning,
pricing, distributing and selling of a pricing, distributing and selling of a product or serviceproduct or service
4Ps – Product, Price, Place, Promotion4Ps – Product, Price, Place, Promotion Designed to fulfill human wants and Designed to fulfill human wants and
needsneeds
Marketing StrategiesMarketing Strategies
Centralized or Decentralized Centralized or Decentralized
Push or PullPush or Pull
Brand Acquisition or DevelopmentBrand Acquisition or Development
Centralized Marketing StrategyCentralized Marketing Strategy
Production and sale from one central Production and sale from one central location - exports to other marketslocation - exports to other markets
Several marketing divisions – focus Several marketing divisions – focus on particular export areason particular export areas
Common marketing themesCommon marketing themes Still considers cultural differencesStill considers cultural differences Ex: Coca Cola – global brand, Ex: Coca Cola – global brand,
consistent packaging / productconsistent packaging / product
Advantages of CentralizedAdvantages of Centralized Brand BuildingBrand Building – create international – create international
brand equity – worldwide recognitionbrand equity – worldwide recognition SynergySynergy – extra positive benefits – extra positive benefits
from larger marketing group vs. from larger marketing group vs. smaller local groups working alonesmaller local groups working alone
Cost BenefitsCost Benefits – – Economy of ScaleEconomy of Scale – – avoids duplication (R&D, advertising) avoids duplication (R&D, advertising) of efforts – centralized expert focus of efforts – centralized expert focus saves time and moneysaves time and money
Centralized OrganizationCentralized Organization
Coca ColaHead Office
South America Asia Pacific North America European Union
Decentralized StrategyDecentralized Strategy
Think Global – Act LocalThink Global – Act Local Local facilities – local decisionsLocal facilities – local decisions ‘‘Glocal’ – global firm / local focusGlocal’ – global firm / local focus AdvantagesAdvantages
– Proximity (closeness) to marketsProximity (closeness) to markets– Flexibility – spot trends quicklyFlexibility – spot trends quickly– Culturally sensitive – more knowledge of Culturally sensitive – more knowledge of
local customs and preferenceslocal customs and preferences
Marketing StrategiesMarketing Strategies
Distribution StrategiesDistribution Strategies Focus on the best way to deliver a Focus on the best way to deliver a
product or service to the target marketproduct or service to the target market 3 ways to achieve distribution goals3 ways to achieve distribution goals
1.1. Push StrategyPush Strategy
2.2. Pull StrategyPull Strategy
3.3. Combination of Combination of
Push and Pull StrategyPush and Pull Strategy
International OrganizationInternational Organization
Marketing and distribution centers Marketing and distribution centers are set up in foreign marketsare set up in foreign markets
Buying habits and customer values Buying habits and customer values are taken into account when are taken into account when responding to differencesresponding to differences
Example: AutomakersExample: Automakers Honda CanadaHonda Canada Honda USAHonda USA
Brand OrganizationBrand Organization
A company may have different A company may have different brands which are sold to diverse brands which are sold to diverse marketsmarkets
Used greatly by companies with a Used greatly by companies with a large variety of productslarge variety of products
Example: Cadbury & Procter and Example: Cadbury & Procter and Gamble p.13Gamble p.13
Distribution OrganizationDistribution Organization
Under this structure, marketing Under this structure, marketing activities are organized around the activities are organized around the ways the product or service will be ways the product or service will be delivered to the customer delivered to the customer
Example: A soft drink companyExample: A soft drink company
Distribution OrganizationDistribution Organization
Company D
Restaurants Hotels Retail Stores Vending Machines
Research
Packaging
Product Development
Pricing
Branding
Sales
Physical Distribution
Inventory Management
Promotion
Storage
Marketing ActivitiesMarketing Activities
Marketing ActivitiesMarketing Activities
Nonprofit organizations do not seek profit organizations do not seek profit as primary motive but raise funds for a as primary motive but raise funds for a specific goal.specific goal.
Ex: Canadian Breast Cancer FoundationEx: Canadian Breast Cancer Foundation
Not-for-profit Not-for-profit organizations, such as housing or child care cooperatives also do not seek profit. Extra funds are used to improve services offered to members
Consumer and Competitive Consumer and Competitive MarketsMarkets
Markets are composed of 2 parts:Markets are composed of 2 parts:1.1. Consumer MarketsConsumer Markets2.2. Competitive MarketsCompetitive Markets Consumer MarketsConsumer Markets: All consumers : All consumers
who are or may become interested who are or may become interested in the product or service and whom in the product or service and whom have the means to purchase ithave the means to purchase it
Includes current and future Includes current and future potential consumerspotential consumers
Consumer and Competitive Consumer and Competitive MarketsMarkets
2.2. Competitive MarketCompetitive Market: Comprises of : Comprises of all of the products or services all of the products or services (within a specific category) that (within a specific category) that competes for the consumers moneycompetes for the consumers money
Ex: Toyota Corolla, Honda Civic, Ex: Toyota Corolla, Honda Civic, Hyundai Elantra, Chevy ColbaltHyundai Elantra, Chevy Colbalt
Consumer and Competitive Consumer and Competitive Markets Markets
Target MarketTarget Market: All marketing efforts : All marketing efforts directed at a specific group of directed at a specific group of consumers that the marketer wants consumers that the marketer wants to attract (and ultimately sell their to attract (and ultimately sell their product or service to)product or service to)
If the market is everybody, then it is If the market is everybody, then it is called the called the Aggregate MarketAggregate Market
Consumer and Competitive Consumer and Competitive MarketsMarkets
Differentiated MarketsDifferentiated Markets: These : These markets are characterized in a markets are characterized in a specific way such as age, income, specific way such as age, income, gender, personal values and/or gender, personal values and/or geographical locationgeographical location
The Marketing Mix (4 P’s)The Marketing Mix (4 P’s)
Promotion Mix
Pricing Mix
Place Mix (Distribution)
Product Mix
The marketing mix is usually divided The marketing mix is usually divided into 4 categories known as the 4 P’s: into 4 categories known as the 4 P’s: Product, Price, Promotion and Place Product, Price, Promotion and Place (distribution)(distribution)
Some marketers include 2 C’s: Some marketers include 2 C’s: Customer and CompetitionCustomer and Competition
The effectiveness of the mix of these The effectiveness of the mix of these activities can make or break a activities can make or break a marketing campaignmarketing campaign
The Marketing MixThe Marketing Mix
The Marketing Mix (4 P’s & 2 C’s)The Marketing Mix (4 P’s & 2 C’s)
Promotion Mix
Pricing Mix
Competition
Customer
Place Mix (Distribution)
Product Mix
Marketing StrategiesMarketing Strategies
Components of the Marketing PlanComponents of the Marketing Plan1.1. Marketing goalsMarketing goals2.2. Identification of the target marketIdentification of the target market3.3. Identification of competitorsIdentification of competitors4.4. Research sectionResearch section5.5. Positioning of the product in the marketplacePositioning of the product in the marketplace6.6. Pricing strategyPricing strategy7.7. Channels of distribution Channels of distribution 8.8. Promotional strategy/AdvertisingPromotional strategy/Advertising9.9. Sales forecast (based on new marketing plan)Sales forecast (based on new marketing plan)10.10. Process of monitoring plans successProcess of monitoring plans success
Marketing StrategiesMarketing Strategies
Definition of a BrandDefinition of a Brand
A name, term, sign, symbol or design A name, term, sign, symbol or design or a combination of any of these or a combination of any of these intended to identify the goods or intended to identify the goods or services of a seller/sellers and to services of a seller/sellers and to differentiate them from their differentiate them from their competitors.competitors.
Marketing StrategiesMarketing Strategies
2 Types of Marketing Strategies2 Types of Marketing Strategies
1.1. Brand StrategiesBrand Strategies
2.2. Distribution StrategiesDistribution Strategies
Marketing StrategiesMarketing Strategies
1.1. Brand StrategiesBrand Strategies Primary goal is to communicate value of the Primary goal is to communicate value of the
good/service to the customergood/service to the customer Brand strategies develop and communicate the Brand strategies develop and communicate the
benefits associated with the brandbenefits associated with the brand Brand strategies minimize costs and encourage Brand strategies minimize costs and encourage
the customer to set up a positive value equationthe customer to set up a positive value equation Brand strategy attempts to POSITION the Brand strategy attempts to POSITION the
product or service (which means marketers try product or service (which means marketers try to create a value equation for the product in the to create a value equation for the product in the consumers mind)consumers mind)
Marketing StrategiesMarketing Strategies
How do we define value?How do we define value? Value is the difference between the perceived Value is the difference between the perceived
cost of the product and the perceived cost of the product and the perceived satisfaction derived from the productsatisfaction derived from the product
Costs are monetary but can expressed in terms Costs are monetary but can expressed in terms of time spent looking for the product, energy of time spent looking for the product, energy spent setting it up, personal costs (prestige, spent setting it up, personal costs (prestige, status, reputation, etc)status, reputation, etc)
To establish the value equation, the brand uses To establish the value equation, the brand uses packaging, brand names, slogans, and packaging, brand names, slogans, and trademarks to develop a positive and and trademarks to develop a positive and and identifiable image for each product or serviceidentifiable image for each product or service
Marketing StrategiesMarketing Strategies
Value EquationValue Equation: fig. 1.21 (next slide) : fig. 1.21 (next slide)
Trip to Barbados exampleTrip to Barbados example
Adds together all of the benefits of a Adds together all of the benefits of a product (both real and imagined) and product (both real and imagined) and subtracts the costs in obtaining the subtracts the costs in obtaining the productproduct
Marketing StrategiesMarketing Strategies
Distribution StrategiesDistribution Strategies Focus on the best way to deliver a Focus on the best way to deliver a
product or service to the target marketproduct or service to the target market 3 ways to achieve distribution goals3 ways to achieve distribution goals
1.1. Push StrategyPush Strategy
2.2. Pull StrategyPull Strategy
3.3. Combination of Combination of
Push and Pull StrategyPush and Pull Strategy
Marketing StrategiesMarketing Strategies
1.1. Push StrategyPush Strategy Push the product or service to the Push the product or service to the
customercustomer Push strategy sells the product to Push strategy sells the product to
retailers, wholesalers or importers and retailers, wholesalers or importers and not directly to the end consumernot directly to the end consumer
Reason: if the product is out there where Reason: if the product is out there where consumers can see it, they will buy it.consumers can see it, they will buy it.
Marketing StrategiesMarketing Strategies
2.2. Pull StrategyPull Strategy Pull or attract the consumer to the product or Pull or attract the consumer to the product or
serviceservice This is what most people think of when they This is what most people think of when they
think of marketingthink of marketing Attempts to increase the consumer demand Attempts to increase the consumer demand
directly instead of relying on retailers to sell the directly instead of relying on retailers to sell the product to consumersproduct to consumers
Manufacturers and importers try to convince Manufacturers and importers try to convince consumers that they need the product and consumers that they need the product and should look for the product when they are should look for the product when they are shoppingshopping
Marketing StrategiesMarketing Strategies
3.3. Combination of Push and PullCombination of Push and Pull Use combination push and pullUse combination push and pull Pull strategy is difficult to use alone as it Pull strategy is difficult to use alone as it
requires distribution partnersrequires distribution partners Push strategy needs no partners, Push strategy needs no partners,
requires consumer awarenessrequires consumer awareness The push strategy needs to combine with The push strategy needs to combine with
the pull strategy to optimize the pull strategy to optimize effectiveness; however, the push effectiveness; however, the push strategy can stand alonestrategy can stand alone
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