Welcome



Marketing 571, Class 4
    August / July 2009
     Lawrence Linn
video
Housekeeping


• Group assignment
• Sliderocket
• Road trip!
Concept Review
HOW TO BRIDGE
  THE DISTANCE
    BETWEEN
BUSINESS STRATEGY
   AND DESIGN
So   what exactly
                                is a brand?




NEUTRONLLC.COM
A BRAND IS A PERSON’S
                 GUT FEELING ABOUT
                 A PRODUCT, SERVICE,
                 OR ORGANIZA...
IT’S NOT WHAT YOU SAY IT IS.




NEUTRONLLC.COM
IT’S WHAT THEY SAY IT IS.



NEUTRONLLC.COM
Seth Godin
Seth Godin
Topic
 New Product Development
=;>3"7H383"79;B3<558"3553?76E3@K:"=<87"569=8"4<G"E63G"A9<BC?7"B3E3@<A=347"
L0MN";8";4"34BD7<D34B"A9<?388"7H;7"B9;G8"<4"=;9...
Simplicity Sells
...but not too simple
New frontiers in product development
interact
New frontiers in product development
Topic
 Entering foreign markets
Red Bull Marketing Campaign, 2009
video
Red Bull Marketing Campaign, 2009
ile
al-                Deciding whether
he                   to go abroad


ee
   8
                                      ...
products and services and its attractiveness as a market to foreign firms depend o
                                       ...
products and services and its attractiveness as a market to foreign firms depend o
                                       ...
products and services and its attractiveness as a market to foreign firms depend o
                                       ...
products and services and its attractiveness as a market to foreign firms depend o
                                       ...
MARKETING INSIGHT                                                          GLOBAL STANDARDIZATION OR ADAPTATION?


       ...
Topic
  Channel Strategies
What is your companies
 distribution channel?
interact
 What is your companies
  distribution channel?
pany’s recycling center in California.9



FIGURE 13.3        Consumer and Industrial Marketing Channels


               ...
248       Part V Delivering Value

  FIGURE 13.4                            The Value-Adds Versus Costs of Different Chann...
Topic
 Take home tip of the week
Topic
   Road Trip!
video
Trader Joe’s Visit

• Stay out of the way of customers!
• No pictures
• Stay close - so we don’t have to shout
• Ask quest...
Trader Joe’s Visit
Mkt571.Augsep09.4
Mkt571.Augsep09.4
Mkt571.Augsep09.4
Mkt571.Augsep09.4
Mkt571.Augsep09.4
Mkt571.Augsep09.4
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Mkt571.Augsep09.4
Mkt571.Augsep09.4
Mkt571.Augsep09.4
Mkt571.Augsep09.4
Mkt571.Augsep09.4
Mkt571.Augsep09.4
Mkt571.Augsep09.4
Mkt571.Augsep09.4
Mkt571.Augsep09.4
Mkt571.Augsep09.4
Mkt571.Augsep09.4
Mkt571.Augsep09.4
Mkt571.Augsep09.4
Mkt571.Augsep09.4
Mkt571.Augsep09.4
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marketing 571 class presentation Summer/Fall 2009

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  • France - &amp;#x201C;MacDo&amp;#x201D;
  • France - &amp;#x201C;MacDo&amp;#x201D;
  • France - &amp;#x201C;MacDo&amp;#x201D;
  • France - &amp;#x201C;MacDo&amp;#x201D;
  • France - &amp;#x201C;MacDo&amp;#x201D;
  • Mkt571.Augsep09.4

    1. 1. Welcome Marketing 571, Class 4 August / July 2009 Lawrence Linn
    2. 2. video
    3. 3. Housekeeping • Group assignment • Sliderocket • Road trip!
    4. 4. Concept Review
    5. 5. HOW TO BRIDGE THE DISTANCE BETWEEN BUSINESS STRATEGY AND DESIGN
    6. 6. So what exactly is a brand? NEUTRONLLC.COM
    7. 7. A BRAND IS A PERSON’S GUT FEELING ABOUT A PRODUCT, SERVICE, OR ORGANIZATION. NEUTRONLLC.COM
    8. 8. IT’S NOT WHAT YOU SAY IT IS. NEUTRONLLC.COM
    9. 9. IT’S WHAT THEY SAY IT IS. NEUTRONLLC.COM
    10. 10. Seth Godin
    11. 11. Seth Godin
    12. 12. Topic New Product Development
    13. 13. =;>3"7H383"79;B3<558"3553?76E3@K:"=<87"569=8"4<G"E63G"A9<BC?7"B3E3@<A=347" L0MN";8";4"34BD7<D34B"A9<?388"7H;7"B9;G8"<4"=;9>3764I:"34I6433964I:"=;4C5;?D 7C964I:";4B"<9I;46J;76<4;@"B3E3@<A=347"7H9<CIH<C7"7H3"A9<BC?7"B3E3@<A=347"?KD ?@31"" 5,4(6'10 3#'.,"%4 8,4%('6 9/&'.: 7'6(',,$ 01*+,/12,',$/%(#' *+,'%(-(./%(#' !""#$%&'(%) ! !"#$%&'()''*%+,$-.'/&0&1+23&4.'!$44&1' " $H3"0M"?K?@3"68"B3A6?73B"64"O6IC93"P";8";"5C443@1""$H3"5C443@"93A9383478" Hauser, John R. (2008), “Note on Product Development” 7H3"79;B676<4;@"E63G"7H;7"0M"A9<?33B8"64"87;I38";8"=;4K"6B3;8";93"G644<G3B";4B"
    14. 14. Simplicity Sells
    15. 15. ...but not too simple
    16. 16. New frontiers in product development
    17. 17. interact New frontiers in product development
    18. 18. Topic Entering foreign markets
    19. 19. Red Bull Marketing Campaign, 2009
    20. 20. video Red Bull Marketing Campaign, 2009
    21. 21. ile al- Deciding whether he to go abroad ee 8 • Why market internationally? nd Deciding which er- markets to ed enter • How do you decide where? ms Deciding how ad to enter the ry market in re Deciding on the marketing program ge r- Deciding on s- the marketing organization re es | FIG. 21.1 | Major Decisions in International Marketing tic
    22. 22. products and services and its attractiveness as a market to foreign firms depend o Direct nomic, political-legal, and cultural environments. investment Suppose a company has assembled a list of potential markets to enter. How does • Somebody explain this to me among them? Many companies prefer to sell to neighboring countries because the stand these countries better and can control their costs more effectively. It is not s that the two largest U.S. export markets are Canada and Mexico, or that Swedish co first sold to their Scandinavian neighbors. As growing numbers of U.S. companie Joint • Can we have some examples? abroad, many are deciding the best place to start is next door. Commitment, Risk, Control, and Profit Potential ventures At other times, psychic proximity determines choices. Many U.S. firms prefer Canada, England, and Australia—rather than in larger markets such as Germany and because they feel more comfortable with the language, laws, and culture. Compani be careful, however, in choosing markets according to cultural distance. Besides the potentially better markets may be overlooked, it also may result in a superficial an Licensing some very real differences among the countries. It may also lead to predictable m actions that would be a disadvantage from a competitive standpoint.24 Regardless of how chosen, it often makes sense to operate in fewer countrie deeper commitment and penetration in each. In general, a company prefers to en Direct tries (1) that rank high on market attractiveness, (2) that are low in market risk, a exporting which it possesses a competitive advantage. Here is how Bechtel Corporation, the c tion giant, goes about evaluating overseas markets. B E C H T E L C O R P O R AT I O N Indirect Bechtel provides premier technical, management, and directly related services to develop, manage exporting build, and operate installations for customers in nearly 60 countries worldwide. Before Bechtel ventur markets, the company starts with a detailed strategic market analysis. It looks at its markets and trie mine where it should be in four or five years’ time. A management team does a cost-benefit analys | FIG. 21.2 | tors in the position of competitors, infrastructure, regulatory and trade barriers, and the tax situation porate and individual). Ideally, the new market should be a country with an untapped need for its p Five Modes of Entry into Foreign services; a quality, skilled labor pool capable of manufacturing the product; and a welcoming environ Markets ernmental and physical).
    23. 23. products and services and its attractiveness as a market to foreign firms depend o Direct nomic, political-legal, and cultural environments. investment Suppose a company has assembled a list of potential markets to enter. How does • Somebody explain this to me among them? Many companies prefer to sell to neighboring countries because the stand these countries better and can control their costs more effectively. It is not s that the two largest U.S. export markets are Canada and Mexico, or that Swedish co first sold to their Scandinavian neighbors. As growing numbers of U.S. companie Joint • Can we have some examples? abroad, many are deciding the best place to start is next door. Commitment, Risk, Control, and Profit Potential ventures At other times, psychic proximity determines choices. Many U.S. firms prefer Canada, England, and Australia—rather than in larger markets such as Germany and because they feel more comfortable with the language, laws, and culture. Compani be careful, however, in choosing markets according to cultural distance. Besides the potentially better markets may be overlooked, it also may result in a superficial an Licensing some very real differences among the countries. It may also lead to predictable m actions that would be a disadvantage from a competitive standpoint.24 Regardless of how chosen, it often makes sense to operate in fewer countrie deeper commitment and penetration in each. In general, a company prefers to en Direct tries (1) that rank high on market attractiveness, (2) that are low in market risk, a exporting which it possesses a competitive advantage. Here is how Bechtel Corporation, the c tion giant, goes about evaluating overseas markets. B E C H T E L C O R P O R AT I O N Indirect Bechtel provides premier technical, management, and directly related services to develop, manage exporting build, and operate installations for customers in nearly 60 countries worldwide. Before Bechtel ventur markets, the company starts with a detailed strategic market analysis. It looks at its markets and trie mine where it should be in four or five years’ time. A management team does a cost-benefit analys | FIG. 21.2 | tors in the position of competitors, infrastructure, regulatory and trade barriers, and the tax situation porate and individual). Ideally, the new market should be a country with an untapped need for its p Five Modes of Entry into Foreign services; a quality, skilled labor pool capable of manufacturing the product; and a welcoming environ Markets ernmental and physical).
    24. 24. products and services and its attractiveness as a market to foreign firms depend o Direct nomic, political-legal, and cultural environments. investment Suppose a company has assembled a list of potential markets to enter. How does • Somebody explain this to me among them? Many companies prefer to sell to neighboring countries because the stand these countries better and can control their costs more effectively. It is not s that the two largest U.S. export markets are Canada and Mexico, or that Swedish co first sold to their Scandinavian neighbors. As growing numbers of U.S. companie Joint • Can we have some examples? abroad, many are deciding the best place to start is next door. Commitment, Risk, Control, and Profit Potential ventures At other times, psychic proximity determines choices. Many U.S. firms prefer Canada, England, and Australia—rather than in larger markets such as Germany and because they feel more comfortable with the language, laws, and culture. Compani be careful, however, in choosing markets according to cultural distance. Besides the potentially better markets may be overlooked, it also may result in a superficial an Licensing some very real differences among the countries. It may also lead to predictable m actions that would be a disadvantage from a competitive standpoint.24 Regardless of how chosen, it often makes sense to operate in fewer countrie deeper commitment and penetration in each. In general, a company prefers to en Direct tries (1) that rank high on market attractiveness, (2) that are low in market risk, a exporting which it possesses a competitive advantage. Here is how Bechtel Corporation, the c tion giant, goes about evaluating overseas markets. B E C H T E L C O R P O R AT I O N Indirect Bechtel provides premier technical, management, and directly related services to develop, manage exporting build, and operate installations for customers in nearly 60 countries worldwide. Before Bechtel ventur markets, the company starts with a detailed strategic market analysis. It looks at its markets and trie mine where it should be in four or five years’ time. A management team does a cost-benefit analys | FIG. 21.2 | tors in the position of competitors, infrastructure, regulatory and trade barriers, and the tax situation porate and individual). Ideally, the new market should be a country with an untapped need for its p Five Modes of Entry into Foreign services; a quality, skilled labor pool capable of manufacturing the product; and a welcoming environ Markets ernmental and physical).
    25. 25. products and services and its attractiveness as a market to foreign firms depend o Direct nomic, political-legal, and cultural environments. investment Suppose a company has assembled a list of potential markets to enter. How does • Somebody explain this to me among them? Many companies prefer to sell to neighboring countries because the stand these countries better and can control their costs more effectively. It is not s that the two largest U.S. export markets are Canada and Mexico, or that Swedish co first sold to their Scandinavian neighbors. As growing numbers of U.S. companie Joint • Can we have some examples? abroad, many are deciding the best place to start is next door. Commitment, Risk, Control, and Profit Potential ventures At other times, psychic proximity determines choices. Many U.S. firms prefer Canada, England, and Australia—rather than in larger markets such as Germany and because they feel more comfortable with the language, laws, and culture. Compani be careful, however, in choosing markets according to cultural distance. Besides the potentially better markets may be overlooked, it also may result in a superficial an Licensing some very real differences among the countries. It may also lead to predictable m actions that would be a disadvantage from a competitive standpoint.24 Regardless of how chosen, it often makes sense to operate in fewer countrie deeper commitment and penetration in each. In general, a company prefers to en Direct tries (1) that rank high on market attractiveness, (2) that are low in market risk, a exporting which it possesses a competitive advantage. Here is how Bechtel Corporation, the c tion giant, goes about evaluating overseas markets. B E C H T E L C O R P O R AT I O N Indirect Bechtel provides premier technical, management, and directly related services to develop, manage exporting build, and operate installations for customers in nearly 60 countries worldwide. Before Bechtel ventur markets, the company starts with a detailed strategic market analysis. It looks at its markets and trie mine where it should be in four or five years’ time. A management team does a cost-benefit analys | FIG. 21.2 | tors in the position of competitors, infrastructure, regulatory and trade barriers, and the tax situation porate and individual). Ideally, the new market should be a country with an untapped need for its p Five Modes of Entry into Foreign services; a quality, skilled labor pool capable of manufacturing the product; and a welcoming environ Markets ernmental and physical).
    26. 26. MARKETING INSIGHT GLOBAL STANDARDIZATION OR ADAPTATION? The marketing concept holds that consumer needs vary and that following elements and determine which would add more revenue marketing programs will be more effective when they are tailored to than cost: each target group. This also applies to foreign markets. Yet in 1983, in a groundbreaking article in the Harvard Business Review, Harvard I Product features Professor Theodore Levitt challenged this view and supplied the intel- I Brand name lectual rationale for global standardization: “The world is becoming a I Labeling common marketplace in which people—no matter where they live— I Packaging desire the same products and lifestyles.” The development of the Web, the rapid spread of cable and satel- I Colors lite TV around the world, and the global linking of telecommunications I Advertising execution networks have led to a convergence of lifestyles. The convergence of I Materials needs and wants has created global markets for standardized prod- I Prices ucts, particularly among the young middle class. Levitt favors global corporations that try to sell the same product I Sales promotion the same way to all consumers. They focus on similarities across I Advertising themes world markets and “sensibly force suitably standardized products and I Advertising media services on the entire globe.” These global marketers achieve economies through standardization of production, distribution, mar- Consumer behavior can dramatically differ across markets. Take keting, and management. They translate their efficiency into greater annual beverage consumption. One of the highest per capita con- value for consumers by offering high-quality and more reliable prod- sumers of carbonated soft drinks is the United States, with 203.9 ucts at lower prices. liters per capita consumption; Italy is among the lowest. But Italy is Coca-Cola, McDonald’s, Marlboro, Nike, the NBA, and Gillette are one of the highest per capita drinkers of bottled water with 164.4 among the companies that have successfully marketed global prod- liters, whereas the United Kingdom is only 20 liters. When it comes to ucts. Consider Gillette: Some 1.2 billion people use at least one beer, Ireland and the Czech Republic lead the pack, with over 150 Gillette product daily, according to the company’s estimates. Gillette liters per capita, with France among the lowest at 35.9 liters. enjoys huge economies of scale by selling a few types of razor blades Besides demand-side differences, other types of supply-side dif- in every single market. ferences can also prevail. Levitt’s critics pointed out that flexible Many companies have tried to launch their version of a world manufacturing techniques made it easier to produce many different product. Yet, most products require some adaptation. Toyota’s Corolla product versions, tailored to particular countries. One study showed will exhibit some differences in styling. McDonald’s offers a ham and that companies made one or more marketing-mix adaptations in 80 cheese “Croque McDo” in France, a variation of the French favorite percent of their foreign products and that the average number of croque monsieur. Coca-Cola is sweeter or less carbonated in certain adapted elements was four. So perhaps Levitt’s globalization dictum countries. Rather than assuming that its domestic product can be should be rephrased. Global marketing, yes; global standardization, introduced “as is” in another country, the company should review the not necessarily. Sources: Theodore Levitt, “The Globalization of Markets,” Harvard Business Review (May–June 1983): 92–102; Bernard Wysocki Jr., “The Global Mall: In Developing Nations, Many Youths Splurge, Mainly on U.S. Goods,” Wall Street Journal, June 26, 1997, p. A1; “What Makes a Company Great?” Fortune, October 26, 1998, pp. 218–226; David M. Szymanski, Sundar G. Bharadwaj, and P. Rajan Varadarajan, “Standardization versus Adaptation of International Marketing Strategy: An Empirical Investigation,” Journal of Marketing (October 1993): 1–17; “Burgers and Fries a la Francaise,” The Economist, April 17, 2004, pp. 60–61; Johny K. Johansson, “Global Marketing: Research on Foreign Entry, Local Marketing, Global Management,” in Handbook of Marketing, edited by Bart Weitz and Robin Wensley (London: Sage Publications, 2002), pp. 457–483.
    27. 27. Topic Channel Strategies
    28. 28. What is your companies distribution channel?
    29. 29. interact What is your companies distribution channel?
    30. 30. pany’s recycling center in California.9 FIGURE 13.3 Consumer and Industrial Marketing Channels (a) Consumer marketing channels (b) Industrial marketing channels 0-level 1-level 2-level 3-level 0-level 1-level 2-level 3-level Manufacturer Manufacturer Manufacturer Manufacturer Manufacturer Manufacturer Manufacturer Manufacturer Manufacturer's Manufacturer's Wholesaler Wholesaler representative sales branch Jobber Industrial Retailer Retailer Retailer distributors Industrial Industrial Industrial Industrial Consumer Consumer Consumer Consumer customer customer customer customer
    31. 31. 248 Part V Delivering Value FIGURE 13.4 The Value-Adds Versus Costs of Different Channels High Sales force Value-added partners Value-Add of Sale Direct sales Distributors channels Retail stores Telemarketing "Indirect" channels Internet Direct marketing channels Low Low High Cost per Transaction Source: Oxford Associates, adapted from Dr. Rowland T. Moriarty, Cubex Corp. CHANNEL-MANAGEMENT DECISIONS
    32. 32. Topic Take home tip of the week
    33. 33. Topic Road Trip!
    34. 34. video
    35. 35. Trader Joe’s Visit • Stay out of the way of customers! • No pictures • Stay close - so we don’t have to shout • Ask questions
    36. 36. Trader Joe’s Visit

    ×