Introduction 2009

MARKETING IN LATIN AMERICA 1. Introduction 18/02/2009 Lic. Natalia Ceruti - nceruti@uade.edu.ar

Agenda • Introduction • Main Objectives • Methodology • Expectations • Evaluation • Brainstorming Lic. Natalia Ceruti - nceruti@uade.edu.ar

Introduction • Name (Nickname?) • Age • Occupation (Work?) • Studies (MKTG?) • Expectations from this Course Lic. Natalia Ceruti - nceruti@uade.edu.ar

Main Objectives • Introduce Latin American Market & Marketing Context • Understand the Latin American Consumer and Trends • Identify Windows of Oportunity Learn some Winning Strategies!!! Lic. Natalia Ceruti - nceruti@uade.edu.ar

Methodology Acquire theory from Bibliography and Readings and use it to evaluate/learn/solve Cases and Everyday Observations Lic. Natalia Ceruti - nceruti@uade.edu.ar

Bibliography • Kerin, Hartley and Rudelius • Marketing “The Core”, 2nd Edition, Mc Graw Hill, 2007. • Kotler and Keller • Marketing Management, 13th Edition, Pearson, 2009. • F. Robles, F. Simon, J. Haar • Winning Strategies for the new Latin Markets, Pearson, 2003. • M. Marinov • Marketing in the Emerging Markets of Latin America, Palgrave Macmillan, 2005. Lic. Natalia Ceruti - nceruti@uade.edu.ar

Methodology: Our Schedule Nº Date Day Subject Bibliography Readings 1 18/02/09 W Presentation. Introduction. Methodology. Kerin 1, 2 2 25/02/09 W The Latin American Environment (Context) Kerin 3, Marinov, 1 Emerging Giants What Executives are Asking about 3 04/03/09 W The Latin Market Competitive Landscape Kerin 3, Robles, 3 Latin America 4 11/03/09 W Latin American Consumers Kerin 5, 6, Marinov, 2 5 18/03/09 W Holiday 6 Truths about Emerging-Market 6 25/03/09 W Latin American Consumers Kerin 5, 6, Robles, 5 Consumers 7 30/03/09 Monday EXAM Case: Unilever in Brazil 8 01/04/09 W Dealing with Products and Brands in LA Kerin, 10, 11 Brand building in Emerging Markets 9 06/04/09 Monday Dealing with Pricing in Latin America Kerin, 12 Case: Tapsin, Building a Brand in Chile Case: Tata Consulting Services 10 08/04/09 W Dealing with Supply Chain in Latin America Kerin, 13 Iberoamerica 11 13/04/09 Monday Dealing with Promotion in Latin America Kerin, 16 12 15/04/08 W Group Presentations 13 13/05/08 W Closure & Final Reflections 14 20/05/08 Holiday Lic. Natalia Ceruti - nceruti@uade.edu.ar

What are you expected to do? • First Part: • Read Bibliography and Extra Readings in advance • Actively participate in Class • Study for Written Exam • Second Part: • Prepare Cases for Class Discussion • Develop Field Teamwork • Prepare Group Presentations Lic. Natalia Ceruti - nceruti@uade.edu.ar

Main Expectation OPEN YOUR EYES!!!! Everyday Experience in Argentina: •What´s Shocking? •What´s New? •What´s Different? •What´s Awkward? •What´s Good? •What´s Wrong? Lic. Natalia Ceruti - nceruti@uade.edu.ar

Evaluation • A. 40% Exam • B. 30% Individual Class Participation • C. 30% Group Presentations • Class assistance requirement: • 75% minimum (10 classes) Lic. Natalia Ceruti - nceruti@uade.edu.ar

A. Written Exam: 30/03/09 • Mind Map including all subjects seen (2 points) • 1 Question based on Bibliography (2 points) • 1 Question based on Extra Readings (2 points) • 1 Question based on Everyday Observations shared in Class (2 points) • 1 Action Plan on a Specific Given Problem (2 points) Lic. Natalia Ceruti - nceruti@uade.edu.ar

B. Individual Class Participation • Actively participate • Listen respectfully to everybody else • Bring up data from Everyday Experience to illustrate theorical concepts • Be receptive and willing to modify your point of view Lic. Natalia Ceruti - nceruti@uade.edu.ar

C. Group Presentation: 15/04/09 • Research and Inform on: 1. Product that does not exist in Argentina 2. Brand that does not exist in Argentina 3. Differences between Product existing in both Countries 4. Differences between Brand existing in both Countries 5. Product/Brand not existing in Finland • Blog or FB businesslike support • Periodically posted (at least once a week) • Application of concepts learnt in class + everyday observations • Intellectual Honesty • All group participants must be able to answer questions about the group´s work Lic. Natalia Ceruti - nceruti@uade.edu.ar

Brainstorming What do you know about LA? What do you think about LA? Lic. Natalia Ceruti - nceruti@uade.edu.ar

Latin America Overview Lic. Natalia Ceruti - nceruti@uade.edu.ar

Geographical Location and Features • Latin America • South America • Central America • Caribbean Islands • Mexico • US Southwest? Lic. Natalia Ceruti - nceruti@uade.edu.ar

Geographical Location and Features http://www.iadb.org/countries/index.cfm?language=English Source: Inter American Development Bank - http://www.iadb.org Lic. Natalia Ceruti - nceruti@uade.edu.ar

Geographical Location and Features Lic. Natalia Ceruti - nceruti@uade.edu.ar

Latin America as a whole http://www.prb.org/Datafinder/Geography/SelectRegion.aspx Source: Population Reference Bureau - http://www.prb.org Lic. Natalia Ceruti - nceruti@uade.edu.ar

Brief historical background • Foundations: ancient Indian civilizations • Incas of Perú • Mayas of Guatemala and Mexico • Aztecs of Mexico • Advanced social, scientific and economic organizations • Late 1.400 Colonization by Spain and Portugal • First 1.800 Independence after Revolutions • Attemps to establish a US Style administration • Obstacles: vast size, poor infrastructure, socioethnic problems, lack of democratic traditions, opposition of powerful Catholic Church Lic. Natalia Ceruti - nceruti@uade.edu.ar

Brief historical background • 1500 to 1800: Spain and Portugal had major influence in political and economical development • After Independence: struggle for power and military conflicts • War of Triple Alliance (Paraguay against Argentina, Brazil and Uruguay) • Disaster to Paraguay Dates of Independance Lic. Natalia Ceruti - nceruti@uade.edu.ar

Brief historical background • 1850: United States interest in LA • Supported Cuba´s bid for independence • Political control over Puerto Rico • Military intervention in Mexico and Nicaragua • 1890 to 1930 US was the region´s largest • Foreign investor First European • Provider of military aid Inmigration • Trading partner • 1930 to 1960 US administration Second European • Policy of non-interference Inmigration • Neglected economics relations • 1960 Soviet Union: ideological and political influence so US gained interest again Lic. Natalia Ceruti - nceruti@uade.edu.ar

Brief historical background • 1960 and 1970 • Economic growth averaged 6% • Population increased rapidly • Authoritarian military regimes • Bureaucratic mesures • Technocratic and Represive • Political parties declared illegal • Trade unions repressed • Political opponents killed Lic. Natalia Ceruti - nceruti@uade.edu.ar

Brief historical background • 1980s Military regimes replaced by Civilian Govenments • Failure of regime´s economic policies • Strong US backing (Carter and Reagan) • Democracy • Severe politic and economical problems • Investment fell • Inflation ran out of control • Unemployment rose • Foreign debt skyrocketed • Economic volatility and social tension • 1990s Adjust to economic reality • Transform bureaucreacy into efficiency Lic. Natalia Ceruti - nceruti@uade.edu.ar

Marketing Lic. Natalia Ceruti - nceruti@uade.edu.ar

Our Mission: Strategic Planning Process Source: Kerin - Chapter 2 Lic. Natalia Ceruti - nceruti@uade.edu.ar

What is Marketing? Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Lic. Natalia Ceruti - nceruti@uade.edu.ar

Marketing Environment Lic. Natalia Ceruti - nceruti@uade.edu.ar

What is Marketed? Product: Goods Something that can be acquired Services via exchange to satisfy a need or Events & Experiences a want Persons Places & Properties Organizations Information Ideas Lic. Natalia Ceruti - nceruti@uade.edu.ar

Understanding the Marketplace and Customer Needs Customer Needs, Wants, and Demands • Needs are states of deprivation • Physical—food, clothing, warmth, safety • Social—belonging and affection • Individual—knowledge and self-expression • Wants are the form that needs take as they are shaped by culture and individual personality • Demands are wants backed by buying power Lic. Natalia Ceruti - nceruti@uade.edu.ar

MKTG´s First Task Discovering Consumer needs Lic. Natalia Ceruti - nceruti@uade.edu.ar

MKTG´s Second Task Satisfying Consumer needs Lic. Natalia Ceruti - nceruti@uade.edu.ar

Value Delivery Double mission Value for Value for Customer Shareholder VALUE FOR MONEY MONEY FOR MONEY Lic. Natalia Ceruti - nceruti@uade.edu.ar

Customer: Value for Money Double mission Value for Value for Customer Shareholder VALUE FOR MONEY MONEY FOR MONEY Lic. Natalia Ceruti - nceruti@uade.edu.ar

Value for Customer Sacrifice Perceived Benefit •Price (Money) •Product or Service •Time •Additional Services •Effort •Personal Value •Psichologycal Cost •Image Lic. Natalia Ceruti - nceruti@uade.edu.ar

4Ps ≈ 4Cs Product Customer solution Price Customer cost Place Convenience Promotion Communication Lic. Natalia Ceruti - nceruti@uade.edu.ar

Shareholder: Money for Money Double mission Value for Value for Customer Shareholder VALUE FOR MONEY MONEY FOR MONEY Lic. Natalia Ceruti - nceruti@uade.edu.ar

Value Delivery Double mission Value for Value for Customer Shareholder VALUE FOR MONEY MONEY FOR MONEY Value Demand Economical Value Value Offer Financial Value Diferenciation Competitive Advantage Lic. Natalia Ceruti - nceruti@uade.edu.ar

What we can Handle: The Four P’s Lic. Natalia Ceruti - nceruti@uade.edu.ar

Factors that affect an organization’s marketing program Lic. Natalia Ceruti - nceruti@uade.edu.ar

So what do you think now? Source: Kerin - Chapter 2 Lic. Natalia Ceruti - nceruti@uade.edu.ar

Marketing in Latin America nceruti@uade.edu.ar Lic. Natalia Ceruti - nceruti@uade.edu.ar

Introduction 2009

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