Global Marketing Principles 02102006
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Transcript of Global Marketing Principles 02102006
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Global Marketing:Global Marketing:
Principles,Principles,
InsightsInsights
&&ChallengesChallenges
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InsightsInsightsIn Hong Kong, a German businesspersonis driving a Lexus; hes wearing BrunoMagli shoes, Irish cashmere socks, CalvinKlein underwear, an Armani suit, with aGucci belt. He has a Mont Blanc pen, in
his Italian shirt. Hes going to meet an
American investor at a KFC restaurant, fora Coke. After lunch, they stop for aBaskins-Robbins (actually a foreign firm)
ice cream sundae. --- OK, that
s a stretch.When he gets home, sitting on anottoman, he has an Absolut vodkanightcap, while listening to Americancountry western music.
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ChallengesChallenges Huge Foreign indebtedness
Unstable governments
Foreign-exchange problems
Foreign entry and governmentbureaucracy
Tariffs and other trade barriers
Corruption
E-commerce---doesnt offer complete
solutions
Technological pirating
High cost of product and communication
adaptations
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Global MarketingGlobal Marketing Marketing has become more complex.
Increases in new products, product
extensions, high cost of distribution andshelf space.
Expansion of retailer control and power,changing media habits, overload of
information, and array of communicationchoices.
Ultimate goal of programs
Timing goals
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Global Integration ForcesGlobal Integration ForcesDriving ForcesDriving Forces
Technology
Culture Market Needs
Costs
Free Markets
Economic Integration
Peace
Strategic Intent
Management Vision, Strategy and Action
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Global Integration ForcesGlobal Integration ForcesRestraining ForcesRestraining Forces
Culture
Market Differences Costs
National Controls
Nationalism
Peace vs. War/ Stability
Management Myopia
Organization History
Domestic Focus
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ChallengesChallenges Markets can present higher profit
opportunities than present markets.
Markets can offer size but not profits.
Company needs a larger customerbase for economies of scale.
Present customers are needingservice and products as they gointernational.
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Major DecisionsMajor Decisions Deciding to go abroad
Deciding which markets
Deciding how to enter markets
Deciding on marketing programs
Deciding on marketing organization
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Global MarketingGlobal Marketing Denotes the use of advertising and
marketing on a global basis.
Marketing is at the threshold of a new andexciting era: e-business, e-commerce ande-marketing
Business has two basic functions:
marketing and innovation (Drucker) New era of competition, demanding
customers
More stakeholders (customers,
employees, media).
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Global MarketingGlobal Marketing Companies need new set of guidelines,
values and insight
Marketing is a Strategic Business Concept
Marketing is too important to be left to the
Marketing Department. (David Packard)
Formulated, integrated, long-term Hold to the responsibilities of customers,
employees, investors
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Global MarketingGlobal Marketing Advantages, especially if the companies
emphasize selection, availability, quality,
reliability and lower prices. Economies of scale.
Lower marketing and advertising costs inplanning and control. Lower advertising
production costs. Exploiting your best ideas on a worldwide
basis.
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Global MarketingGlobal MarketingDeciding How to Enter a Market
Indirect Export-Thru export and thru
others.
Direct Export-Handle own exports.
Licensing-License a foreign company to
use trademark, manufacturing process,
trade secret, or other item for a fee orroyalty.
Joint Ventures- Join with local investors
Direct Investment- Direct ownership.
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Global MarketingGlobal Marketing
Joint Ventures-- Join with localinvestors to create venture. Coca-Cola and Nestle joined forces inready to drink
coffee and tea.
P&G with rival, Fater, in Italy andGreat Britain.
Whirlpool formed venture with Dutchelectronic group Philips on white-goods business to leapfrog intoEuropean market.
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Global MarketingGlobal MarketingDirect Investment--Ultimate form is
direct ownership of foreign-based
assembly or manufacturing facilities.
Can buy part or full interest in a local
company.
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Global MarketingGlobal MarketingPrinciple of Research
Understand the consumer-behavior
perspectives. Be sure you are asking right questions.
Use appropriate research techniques andcontrols.
Present clear, comprehensive andactionable results.
We study people using geographics,demographics, psychographics, lifestyles,
and behaviors.
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Global MarketingGlobal Marketing
Bodily adornment, cooking, courtship, foodtaboos, gift giving, language, marriage,status, sex, and superstitions, in allsocieties, although each society attaches
different values and traditions.
The world, countries, regions, andsubcultures.
Different groups of people sharesubcultures---values, customs, andtraditions.
Geomarketing uses these differences infoods, terminology, subculture identities.
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Global MarketingGlobal Marketing Example: Global youth are notorious for
challenging norms and defying labels. A
study of 27K teenagers in 44 countries.Insights and motivations.
Six different segments.
But remember that even in a specific
country the teenagers are nothomogeneous.
Six segments in a Teen World valuesresearch study.
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Global MarketingGlobal Marketing Thrills and Chills. Driving principles---fun,
excitement, irreverence and friends.Expect everything in life. Make it a goal toget as much and as many good times.
Popular kids in schools. Brand loyal.Mostly in Germany, England, Greece,South Africa, Netherlands, US, Belgiumand Canada. 18%
Resigned: Fun, Friends and Lowexpectations. Little discretionary income.Cynical. Denmark, Sweden, Korea,Norway, Germany, Belgium, Argentina,
Canada and Turkey 14%
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Global MarketingGlobal Marketing World Savers. Defining principles: Fun,
Humanism, and friends. Models of whatgives hope to next generation. Good kids,who care. Technologically advanced.Motivated by new and exciting. Attracted
by honest and sincere messages.Sophisticated, sense of humor. Hungary,Philippines, Venezuela, Brazil, Spain,Argentina, Russia, France, Poland. 12%
Quiet Achievers. Success, quiet, anti-indi-vidualism, social optimism. Have deter-mination and restraint. Study hard. Do wellin school. Limit outside activities.Thailand, China, Hong Kong, Korea,Russia, Peru. 15%
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Global MarketingGlobal Marketing
Bootstrappers. Defining principles:Achievement, Individualism, optimism,determination, power. Try hard to pleaseparents. Determined to succeed. Positive
values. One in four in US; 14% overall.Nigeria, Mexico, US, India, Chile, PuertoRico, Peru and Venezuela.
Upholders. Family, tradition, respect for
individuals. Dreamy. Quiet. Good teens.Follow their parents. Dont like risks. Useproven products. Vietnam, Indonesia,Taiwan, China, Italy, Peru, India, 16%
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Global MarketingGlobal MarketingPrinciple of Integrated Marketing:
Marketing is everyones business.
Marketing Community
Examples:
Coca-Cola, Merrill Lynch, Xerox,American Express, British Airways,Gillette.
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Global MarketingGlobal Marketing When all of the departments work together
to serve the customers interests.
Works on two different levels: All of thevarious marketing functions work
together: sales force, sales promotion,
advertising, PR, Product development,
Marketing research
Plus all of the departments work together.
They must Think Customer.
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Global MarketingGlobal Marketing
Global Standardization or Adaptation
Toyota built the Corolla on a worldplatform. Ford with its Focus. McDonaldsuses chili sauce (salsa) on its hamburgersin Mexico. Coca-Cola is can be sweeter, orless carbonated.
Adaptation elements: Product features,brand name, labeling, packaging, colors,
materials, prices, sales promotion,advertising themes, media, execution.
Marketing programs do work best whenthey are tailored to each target group.
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Global MarketingGlobal MarketingAn endless process or principle:
Customer attraction
Customer satisfaction
Customer retention.
CEO is also the Chief MarketingOfficer.
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Global MarketingGlobal MarketingPrinciple of Competition: Value War
Create long-tern customer value.
Continuously and consistently cratedcustomer value.
Look at total customer benefits vs.customer expenses
Ultimate goal of project Relationship to other projects
High-level timing goals
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Global MarketingGlobal MarketingPrinciple of Customer Satisfaction and
Retention
Look at overall satisfaction andcustomer loyalty
Easier to retain a customer than to
gain or win a new one. Consistently improve customer value
to win the marketing war.
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Global MarketingGlobal MarketingPrinciple of Integration:
Learn about the needs and wants.
There are no average customers.
Concentrate on the individual
differences while looking at
segmentation, targeting and
positioning.
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Global MarketingGlobal MarketingMore on Integration:
Plan for and review differences in
culture, markets, economic
development, consumer differing
needs, usage patterns, media
availability and legal restrictions.
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Global MarketingGlobal MarketingPrinciple of Anticipation and Being
Proactive. Not Reactive.
Are you ready for change? Being adaptiveto the marketplace.
Macroenvironment Changes. The highincome growth country has shifted from
Japan to US. Low to medium has beenconcentrated in Southeast Asia andsouthern Asia with China as a unique,high-growth, large country in the regionand the world. Also look at Singapore,
Taiwan and South Korea.
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Global MarketingGlobal MarketingPrinciple of the Growth of Internet andInformation Technology.
Principles of:
Marketing Planning
Marketing Mix
7Ps
Controls.
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Global MarketingGlobal Marketing The old trade model is just old.
It stated that as a product matures,
production would shift to low-wagecountries.
Today, must look at transportation costs,availability of skilled labor, market
responsiveness, market access andinnovation in product design andmanufacturing. Especially of productswith less than 15% of labor in total cost.
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Global MarketingGlobal Marketing
Principle of Branding: The umbrella. Determines price and value.
Be more than a commodity.
A brand is a name, term, sign, symbol, or
design or a combination of them toidentify the goods and services of a sellerand to differentiate them from thecompetitors.
Identifies seller or maker. We see a hugeincrease in the global brands for autos,food, clothing, electronics and more.
Increasing number of cross-border
marketing alliances.
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Global MarketingGlobal MarketingPrinciple of Service:
Service before, during and after sale.
Create long-term value and connect
with customer.
Both products and services. Its
creating more value.
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Global MarketingGlobal Marketing
Principle of Process:
Commands the company to be the captainof its supply-chain. It should manage fromraw materials to finish goods. Enhance
value-creating activities. Look at Strategic Alliances/Partners .
Can be suppliers, customers and evenparts of competitors. Benchmarking,
reengineering, outsourcing, mergers,and acquisitions are examples.
Brand, service and process are threevalue-creating principles and drivers to
win customers and deliver market share.
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Global MarketingGlobal MarketingPrinciples of STP:
Segmentation, Targeting and
Positioning Process of segmenting. Look at
demographics, geographics,
psychographics and behaviorvariables.
Look for market opportunities.
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Global MarketingGlobal MarketingPrinciple ofDifferentiation:
Dont be different just to be different.
Design and plan for meaningful
differences versus the competitors.
Design truly different and unique
products for customers.
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Global MarketingGlobal MarketingPrinciple of Marketing Mix:
Integrate 4Ps and 7Ps.
Offer, Logistics and Competition.
The whole marketing concept.
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Global MarketingGlobal MarketingPrinciple of Selling:
Integrate Company, Customers and
Relationships/Partnerships. Create long-term relationships with
customers.
More than personal selling.
Features and benefits of the product. AIDA: Awareness-Interest-Desire-Action.
Manage communication.
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Global MarketingGlobal Marketing
Principle of Balance:
After focusing on the elements of
marketing---segmentation, targeting,positioning (STP), differentiation,marketing mix, selling, branding, serviceand process, you need to balance thestrategies, tactics and implementation.
Share of Heart and Mind. Share of Voice.
Dynamic environment. Timing.
High-level timing goals
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Global MarketingGlobal Marketing
Principle of Positioning:
The act of designing the product or
service (companys offering andimage) to occupy a distinctive placein the target markets mind.
Ultimate goal of product.Differentiation
Relationship to other products.
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Global MarketingGlobal Marketing
Principle of Future:
Manage todays products by
managing a profit and by servicing
customers of today and tomorrow.
Develop tomorrows products.
Look at Marketing Myopia.
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Global MarketingGlobal Marketing
Principle of Global Experience
Counts for companies
Counts in the job market for
employees.
Marketing Audits.
Marketing is not a destination, or a
goal. Its a process. A moving target.
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WrapWrap--up on Globalup on Global
Marketing PrinciplesMarketing Principles
Companies cannot stay domestic
and expect to maintain their markets. Companies need to define their
global policies and objectives.
Companies need to decide on howmuch to adapt marketing mix.
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WrapWrap--up on Globalup on Global
Marketing PrinciplesMarketing Principles Market entry and market control
costs can be high.
Product and communicationadaptation costs can be high.
Dominant foreign firms can establishhigh barriers of entry.
Which types of markets andcountries?
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Global MarketingGlobal Marketing
Ultimate goal of project
Relationship to other projects
High-level timing goals Attractiveness influenced by the
product, geography, income,
population, political climate andmore factors.
Review Forces:---Driving and Restraining