International Marketing Lecture 3


Published on

International marketing Lecture 3 - The Marketing Mix CRM
2. Analytical Tools
3. Consumer Behaviour Models
4. Channels
5. Consumer, B2B, Direct, Retail Marketing, etc
A revisit to the basic tools of
marketing in the international context

1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

International Marketing Lecture 3

  1. 1. International Marketing 463-441 Lecture 3The Basic Tools of Marketing Redefined in the International Context
  2. 2. 1. The Marketing Mix CRM 2. Analytical Tools 3. Consumer Behaviour Models 4. Channels5. Consumer, B2B, Direct, Retail Marketing, etc A revisit to the basic tools of marketing in the international context
  3. 3. The International Marketing Toolkit
  4. 4. An Overall View
  5. 5. Domestic Market Competitors Tastes Trends Feed forward Promotion Competencies BrandingChannels Chemical Raw Materials Relative Style Logistics Competitive Packaging Advantage Sourcing Finance Company Fit Manufacturing Processes RegulationFeedback Material Technology Availability International Markets
  6. 6. PEST Analysis• Political Analysis • Economic Analysisb) Political stability b) Type of economic system in country of operationc) Risk of military intervention c) Government intervention in free marketc) Legal framework for contract enforcement d) Comparative advantages of host countryd) Intellectual property protection e) Exchange rates & stability of host country currencye) Trade regulations and tariffs f) Infrastructure qualityf) Favoured trading partners g) Skill level of workforceg) Anti-trust laws h) Labour costsh) Pricing regulations ix) Business cycle stagei) Taxation – tax rates and incentives j) Economic growth ratej) Wage legislation k) Discretionary incomek) Work week l) Unemployment rateL) Mandatory worker benefits m) Inflation rateM) Industrial safety regulations n) Interest ratesN) Product labeling requirements o) Income distribution p) Poverty rate• Social Analysis • Technology Analysis b) Recent technology developmentsb) Demographies c) Technology impact on product offeringc) Class structure d) Impact on cost structured) Education e) Impact on value chain structuree) Culture f) Rate of technology diffusionf) Entrepreneurialism g) R&D activityg) Attitudesh) Leisure interest
  7. 7. Major PEST Trends in Asia• Political factorsb) Growing acceptance of the benefits of free trade and foreign investmentc) Increasing resistance by non-government organisations to ‘globalisation’d) General reduction of political riskse) Major regional and other free trade agreementsf) Government protection of domestic firms and industries decreasing and becoming less effective• Economic factorsb) Fewer barriers to trade, investments and financial flowsc) Increased trade and investment flowsd) Improved institutional frameworks for business, trade and investmente) Continued growth of China, the emergence of Indiaf) Growing risk of contagion within and across regions during economic and financial crisis
  8. 8. Major PEST Trends in Asia• Social Factorsb) Increasingly educated, trained and competetent consumers and populationsc) Continuing convergence in consumer needs, desires and wantsd) Grow of disposable income in East Asiae) Easier and greater movement of skilled manpower within and outside Asiaf) Emerging pressures on corporate social responsibilityg) Long term trend of aging populations in some countriesh) Higher proportion of female graduates than males• Technological Factorsb) More rapid and disruptive changes in technologyc) Greater ability of emerging economies to utilise and absorb technologyd) Widespread diffusion of information and transport technologye) Changing ‘make or buy’ decisions and less defined firm boundaries
  9. 9. An Analysis of Culture and Change
  10. 10. Geography (Climate, Topography, Flora, Fauna, Microbiology) Adapted from Cateora & Graham P. 99 HistoryAdaptation Technology and Political Economy Social Institutions Socialisation (Family, Religion, School, Media, Government, Corporations) Application Imitation Elements of Culture Peers (Values, rituals, symbols, beliefs, though processes Consequences Consumption decisions Market and behaviours Management Styles Structure
  11. 11. The Forces of PrimaryChange in the Technology In Business sp n ira Landscape a tio Digitization t io re n C n Ac io co ct ru m st m on Destruction Adoption od ec at io D n Political Coordination Social legal Cultural Economy (Central) Globalization Immediate Incremental Acceleration Rationalization Re n tio de Realization Formation ap f in Ad itio n R Prosperity n eg Peace tio ul (Economic People Futurization a at (Regional uc io integration and (Human and social Ed Peace andn development๗ cooperation) Market security) Ultimate Kotler, et. Al., Think ASEAN
  12. 12. Value Migrator Change Certain/Uncertain Technology Important/Unimportant Political Legal Economy Social-Cultural Market Value Supplier Value Determiner Competitor Customer TOWS Examination Winner, Loser, Committed, Lost, New Emerging Value Decider Company Existing competence, Risk, Attitude, Stretch PossibilityThe Diamond 4C Sub-Model Choice Go invest No-Go/Hold Harvest Divest Kotler, et. al, Think ASEAN P. 6
  13. 13. Strategic Opportunity to Exploitation
  14. 14. Ideas Opportunities Solutions Realisation Performance Management Capability Spots Evaluates Selects TargetsCreativity Innovation Strategic Thinking Differentiation Competitive Capabilities Governing Competitive Advantage Scope Costs: to customers Knowledge: Industry/market/technical/p Competencies rocess Entrepreneurial, Opportunity Relationships: Identification, Network, Conceptual, Customers/suppliers/distri Organisational, Strategic, Commitment, butors/relative power Resources Structure: Ability
  15. 15. The Outcomes (potential targets) Key internal The process of Key external influences on the product/market influences on theSize and depth of change development development development Time process process The base potential for development Where the business is currently performing Gibb & Scott 1988
  16. 16. Potential Product Lifecycle IP Value &Profitability Novelty IP Va lue Competitive Concept Risk Taking Risk Taking it of Pr Pioneers Early Early Late Late followers Majority Followers Time Majority
  17. 17. Profile of business in terms of performance:PerformanceBase • Market trends: current product mix, market mix, competition • Production trends: Utilisation, efficiency, quality •Financial and Management: net worth, liquidity, gearing, trendsKey internalinfluences on Administrative, marketing, production and Managerialthe resources and capabilities.developmentprocessKey external Competition, market restrictionsinfluences onthe developmentprocess All influence the type of product and market development that will take place
  18. 18. Environmental Analysis: Threats and Opportunities Market: product position and prospects Competition: Traditional, new firms, new industries, profits Technology: Changes and developments The Economy: Growth, inflation, Law Operating Needs Personal Business Strategies Operating & Tactics ProductsObjectives Objectives Budgets Manpower Finance Feedback loops Business Analysis: Strengths and WeaknessesProduct: 4 Ps or 4 customer wants Profit/Cash flow: its sources and usesPeople: Management and Skills Facilities: age, technology and utilisation Burns & Dewhurst 1993
  19. 19. Potential Strategies Identified through SWOT Analysis Strengths Weaknesses S W SO Strategies WO Strategies Use strengths to take Take advantage ofOpportunities advantage of opportunities opportunities by overcoming weaknesses or O making them irrelevant Threats ST Strategies WT Strategies Use strengths to avoid Minimize weaknesses and T threats avoid threats
  20. 20. Sources of Competitive Advantage (The reason for any product development in a company) Importance of price to customers, distributors, the extend ofCosts: demand elasticityKnowledge: Stage of industry lifecycle, common industry knowledge verses your own specialised knowledge Links with customers, suppliers, distributors, relativeRelationships: power Appropriate organisational structures, Ability to respondStructure: to market, leadership.
  21. 21. Regulation SCCP placed lemongrass oil under scrutiny as a cosmetic Trends & Technology ingredient in EU.Alternative technologies to Trends & Technologysteam distillation (CO2) Substitutescan make much smoother Citral (main constituents) can Regulationoil but will increase capital be produced from a number ofneeds greatly. chemical feed stocks.Natural, exotic, organic, Alternative oils (litsea cubeba)FAIRTRADE could cost much less to produce.increase oils popularity (?) Lemon myrtle oil muchif seen as exotic. smoother and acceptable to end users Many alternatives to lemongrass in product formulations. Substitutes Industry Competitors Bargaining Bargaining power of power of buyers suppliers Intensity of Rivalry Competitive Rivalries Bargaining Power of Buyers Currently small item of trade in flavour industry, strong relationships with established producers. Bargaining Power of Suppliers Collecting the most suitable Competitive Rivalries planting material require effort. Lemongrass quick yield and Extraction and straightforward to cultivate and distil harvest .technology needs to be – expect high elasticity of supply acquired or developed from both existing and new Analytical equipment or service producers. maybe expensive/remote. Producers of substitutes very aggressive
  22. 22. Fulfillment: (dreams) Actualisation (The Artist) Study after retirement Self-fulfillment Fresh vegetables (Organic) BooksFine Dining & Processed Foods Aromatherapy products Luxury cars Esteem Nutraceuticals & herbs Travel & Vacations (The Executive) Achievement, Fine Fragrances prestige,fulfillmentCar Air Fresheners Responsibility: (hope) Fashion Clothes (e.g. Social (Worker) Jeans) Chewing Gum Family, relationships, workgroups Community: (acceptance) Most Water Household Safety (The Farmer) Purifiers Cleaning Home, Security and stability Necessities: based on what is good (existence) Products FreshSoap Vegetables Physiological (The Hunter) Rice Basic Biological Needs – Food, water, air Staples: based on survival (fear)
  23. 23.
  24. 24. Decision Framework
  25. 25. Free Trade Investigate PotentialArrangements Market Competitive Further Advantage Political &Legal Situation Firm Capabilities Market & Partners & Competition Channels
  26. 26. Yes Yes Access to Potential to Continue channels?Networks and Partners? Yes Yes Capabilities? Sustainable Market Size? Yes Yes Yes Competitive Market Product Concepts Advantage? Access? Acceptable?
  27. 27. Distant Geographic Market Close Existing Product Market New Early Timing of Entry LateDependent Entry Mode Independent
  28. 28. Overseas Manufacturer Importer/and or Agent Master Distributor Regional Distributor Local Distributor Wholesaler Retailer Consumer Channel Depth Australia Malaysia Japan/Korea Hong Kong
  29. 29. Stakeholders
  30. 30. Product/Channel/Market Models
  31. 31. TheThe Level of BrandingCompetition Paradigm The Channel of Distribution
  32. 32. Market Targeting Market PositioningMarket Segmentation Develop Measure of Develop positioning Identify bases for segment attractiveness for market segments segmenting the market Select target segment Develop a marketing mixDevelop segment Profiles for each segment Major Segment Variables for Consumer Markets Geographic Variables World Region and/or country City and/or region Density Climate Demographic Age, gender, family size, family life cycle, income, occupations, education, religion, race, generation, nationality Psychographic Social class, lifestyle, personality Behavioural Types of occasions and festivals, existing market cultures, user status, loyalty status, concept readiness stage, attitude towards products
  33. 33. Price More The Same Less More for the More More for More same More for LessBenefits The Same The same for Less Less Less for much Less Possible Value Propositions