2. Murray Hunter
murrayhunter58@gmail.com
murray@unimap.edu.my
Telephone:
6019 5233801 (Malaysia)
0843 3134105 (Local)
Available Weekends (Most) &
Mondays before & after lectures
3. What We are Going to Cover in this unit
•The Global Environment & International
Marketing Concepts
•International Marketing from the ASEAN region perspective
• The basic tools of marketing redefined in the
international context
•Identifying International Market opportunities and
undertaking market research
•Formulation of market entry strategies
•International new Product Development
•Company readiness for international markets
•International Supply chain approach
•Negotiation and international regulation
•Trends in International Marketing
5. ability to research the
Small Research Thesis dynamics
of the topic and
argue their case
8-12K words
should be commenced
during the first week of class
40%
6. A Case Study
20%
about a product/market in an international setting
The case study will be presented as a written
report and presentation
An allocation of marks will be reserved for
student’s defence of their conclusions
7. the selection of a product and target
international market to undertake a study upon
submission of both a report and formal
presentation
the construction of a general business
model and strategy to successfully
enter the product in the target market
This assignment will involve using all the
tools and skills learnt during the course
This will also be a group assignment. 30%
8. Books/References
Cateora, P., R., and Graham, J.,
International marketing, 13th
Edition, McGraw-Hill, New York, 2007.
11. Anything that can offered to a
market that will satisfy a want or
need.
It includes physical objectives, services,
events, persons, places, organisations, and
ideas.
12. The
The Level of Branding
Competition Paradigm
The
Channel of
Distribution
13. What is a Market?
The set of all actual and
potential buyers of a
product or service
14.
15. Market Segment
A group of consumers who
respond in a similar way to a given
set of marketing efforts
16. Arranging is market positioning? a
What for a product to occupy
clear distinctive and desirable place
relative to competing products in the
minds of target consumers
17. Examples of Market Positioning
1. Line extensions
2. Different Pack Sizes
3. Different
Price/consumer
categories
19. Low End Strategies
• Match Medium End
Quality or lower
Medium End • Compete on Price (?)
Low End
• Incentives to retailers
In this case: Medium end was once the high end, then
company redefined the market by adding an extra premium
product.
Medium End Strategies
Normally medium end product have very limited strategies
• Benchmark Quality
other than price to utilise.
• Price Reference
Australia: very few medium•end products, Malaysia many
Strong General Media
High End Strategies
• High Quality
High End
• Premium Price
• Targeted Niche
• Specialised Media Campaign
28. The Marketing Mix
Product Customer Solution
Customer Cost
Price
Position Convenience
Promotion Communication
29. Product Life Cycle
• Getting shorter • Changing tastes
• 33% sales from • Changing Technology
products less than 5
years old • Product
Evolution
30. First Part of the Product
Development Process
Developing Product
Specifications
Market & Product Concept & Prototype
Planning Generation
Product Packaging Design
Registration
Further Formulation
Development
Continued
31. Cont.
Further Formulation
Development
Manufacturing System
Design
Final Packaging &
Optional Today
Formulation Review
Test Marketing/
Pilot Production
Post Launch Product
Modifications Marketing Review
Refining of Product
Before Major Launch
Major Launch
33. The Creativity
Idea
Summarised
Entrepreneurial
Turn into Opportunity
Process
Innovation Final Commitment
NPD
Start-Up
Strategy
Growth
Sales
Sustainability
38. The Outcomes
(potential targets)
Key internal The process of Key external
influences on the product/market influences on the
Size and depth of change
development development development
Time
process process
The base potential for development
Where the business is
currently performing
Gibb & Scott 1988
39. Profile of business in terms of performance:
Performance
Base • Market trends: current product mix, market mix, competition
• Production trends: Utilisation, efficiency, quality
•Financial and Management: net worth, liquidity, gearing, trends
Key internal
influences on Administrative, marketing, production and Managerial
the resources and capabilities.
development
process
Key external Competition, market restrictions
influences on
the development
process
All influence the type of product and market development
that will take place
40. 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 Products
Objectives Objectives Budgets
Manpower
Finance
Feedback loops
Business Analysis: Strengths and Weaknesses
Product: 4 Ps or 4 customer wants Profit/Cash flow: its sources and uses
People: Management and Skills Facilities: age, technology and utilisation
Burns & Dewhurst 1993
41. Sources of Competitive Advantage
(The reason for any product development in a company)
Importance of price to customers, distributors, the extend of
Costs: demand elasticity
Knowledge: Stage of industry lifecycle, common industry knowledge
verses your own specialised knowledge
Links with customers, suppliers, distributors, relative
Relationships: power
Appropriate organisational structures, Ability to respond
Structure: to market, leadership.
42. Many Factors Change Markets and Give rise to Opportunities
Social
Social and cultural trends
and drivers.
Reviving historical trends
Product
Opportunity
Gap Economic
State of the economy
Technology
Shift in focus on where
State of the art and
to spend money
emerging
Level of disposable
technology income
Re-evaluating
existing technology
Cagan, J. and Vogel, C., M., (2002),
45. Product Life Cycle
• Getting shorter • Changing tastes
• 33% sales from • Changing Technology
products less than 5
years old • Product
Evolution
46. 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
47. Figure 6.7. The Product Life Cycle Has Shortened Dramatically Over the Last 50
Years
Pharmaceuticals
Food Items
Tools
Fifty Years Ago
Toys
Today
Cosmetics
0 10 20 30
Length of Life Cycle (Years)
48. Product Evolution
Pre 1900’s
Laundry Blue
Up to Late 1940’s Solid Soaps &
Powders
Laundry
Detergent Bars
1950’s until present Laundry
Detergents
Powders
Laundry Detergents with
Liquids Special
Detergents Additives
Concentrated
1980’s until present
Laundry
Powders
Laundry
Detergent
Tablets
50. Present
time
The Past A Radical change in
technology
Will radically
This changes the
change the
parallel of the a
timeline into
market gradually
new industry
We know the past The effect of competitor
and present Without any changes our
innovation will bring
timeline will remain
product evolution
relatively unaltered
54. Evolution Verses Revolution
Changing Technology
(slow to Change)
Changing Lifestyles
Cheap Clothes Available
(substitute)
Had to Reinvent the Company due to Slow Product Development
60. Invention
Less than 2% of filed patents are ever commercialised
Does a new invention have consumer benefits or create any
competitive advantage?
Can consumers accept the new invention?
61. New Knowledge Innovation is the
most risky
Better to focus on other sources of innovation: ie,
applications of existing ideas and technologies
as new knowledge technology development is
extremely long term.
Bright ideas are the riskiest source of
innovation and rarely succeed.
Receptability is always the problem
(look at patents files but never
commercialised)
62. Table 6.1. Drucker’s Sources of Innovation
Source Explanation Examples
The unexpected Success of a revolutionary product or the application of •Apple computer
success, failure or technology from one industry to another, sudden or •Rapid decline of Proton’s market
external occurrence unnoticed demographic changes caused by wars, share
insurgencies, migration, etc.
An incongruity A change that is already occurring or can be made to •Sugar free products and sugar
between reality as occur within an industry. It may be visible to those replacements due to concern for health
it actually is and inside the industry, often overlooked or taken for •Increasing demand for travel and
what it ought to be granted. holidays due to increasing incomes and
leisure time
Inadequacy of an An improvement in process that makes consumers •Caffeine free products
existing technology more satisfied based on an improvement or change in •Microwave ovens
or business process technology. •Mobile phones
Changes in industry New ways and means of undertaking business based •Health care industry
or market structure on identified opportunities or gradual shifting of the •Education industry – private education
nature of the industry.
Perceptual changes Changes in peoples awareness founded on new •Leisure and exercise industry aerobics
knowledge and/or values or growing affluence leading & gyms
to new fashions and tastes
Demographic Gradual shift of demographics in population by age, •Establishment of more retirement
changes income groups or ethnic groups, etc homes
New knowledge New knowledge or application of existing theoretical •Video and VCD industry
knowledge into an existing industry that can create •Robotics
new products not previously in existence •Biotechnology
63. Types of Innovation
Type Description Examples
Invention Totally new product Wright Bros – plane
Edison – light bulb
Bell – telephone
Extension New use or different application Kroc – McDonald’s
of an already existing product Bushnell – Atari
Wilson – Holiday Inn
Duplication Creative replication of an Wal Mart – Dept Stores
existing concept Pizza Hut – Pizza restaurant
Synthesis Combination of existing Smith - Fedex
concepts and factors Merryil Lynch – Home equity
into new use Financing
66. “Too much focus on
process, on a static agenda,
while it may get a lot done
initially, will tend to drive
core competencies towards
core rigidity.”
68. Definition:
International Marketing involves
Establishing and Coordinating
Marketing Activities Across National
Boundaries
- Requires a global “mindset”
69. Lecture 1
The Global Environment
& International Marketing Concepts
70. 1. Historical Market Evolution
2. Drivers to International Marketing
3. Our place in the international Market
4. The evolution of the international Marketing
Company
5. The Influence of Technology and Competition
on International Marketing
71. Domestic Market
Competitors
Tastes
Trends
Feed forward
Promotion Competencies
Branding
Channels Chemical Raw
Materials Relative
Style Logistics Competitive
Packaging Advantage
Sourcing
Finance
Company Fit
Manufacturing
Processes Regulation
Feedback Material Technology
Availability
International Markets
84. Cuisines with most potential for growth
North America Europe South America Asia/Pacific
USA Mediterranean Fusion style Fusion style
influence
Asian Influence Thai, Indonesian,
Thai/Chinese
Indian influence Vietnamese influences
Sesame, wasabi, Western/Chinese
ginger, noodle and Middle East influence Contemporary Indonesian/Thai
Asian cabbage cuisine American/Mediterranean
Slow Food
Indian Influence Mediterranean
Italian
influence
Fruit, spice and
toasted nuts, chutney, Exotic combinations French
quince pear, roasted
coriander,
pistaschio,almond &
walnut
Blue and goat cheese
Mexico
Tarmarind, squash
flowers, huitlacoche
(corn mushroom),
portobello mushroom,
duck meat
85. Geography
(Climate, Topography, Flora, Fauna, Microbiology)
Adapted from Cateora & Graham P. 99
History
Adaptation
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
86. Culture
Theories in action Stories, myths, heroes, artifacts, informal
behaviours
verses Espoused
Norms and Productivity & Values
effectiveness Organisational
group behaviour learning (single or
double looped
Leadership
Beliefs
Assumptions
87. Interpersonal Interactions
Networking Team/Individual
Orientation
Sincerity
Warmth Personality
Character Culture
Judgment
Hunter, Baharuddin (OUM) & Rozhan (UIA): Alpha
Model of Innovation
88. FMCG Market Fragmentation/Concentration
Comparison Between Malaysia, Thailand, Hong Kong
and Australia
Outlet Type Malaysia Thailand Hong Kong Australia
Hyper & 20% 68% 91% 85%
Supermarkets
(Chain Owned)
Independent 20% 2% 2% 10%
Hyper &
Supermarkets
Wholesale 57% 10% 2% 3%
Trade – Sundry
& convenience
Stores
Other 3% 20% 5% 2%
Convenience
Chains
89. Malaysian Retail
Manufacturer
Market
Channels & Structure
National
Distributors
Wholesalers
Super- Sundry Convenience Chinese
Hypermarkets markets Stores Stores Medical
Halls
Consumers
96. Fulfillment: (dreams)
Actualisation
(The Artist)
Study after retirement
Self-fulfillment
Fresh vegetables (Organic)
Books
Fine Dining & Processed Foods Aromatherapy products
Luxury cars
Esteem Nutraceuticals & herbs
Travel & Vacations (The Executive)
Achievement, Fine Fragrances
prestige,fulfillment
Car 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
Fresh
Soap Vegetables
Physiological (The Hunter) Rice
Basic Biological Needs – Food, water, air
Staples: based on survival (fear)
98. Geert Hofstede studied 88,000 employees of one MNC over sixty-seven countries to develop a
framework for understanding cultural differences and defined cultural differences along five
dimensions[ii];
• Individual verses collective orientation:
the extent to which people have an individual
orientation, concerned primarily for themselves
and families, verses to the extent that an individual
identifies with a group and feels their interests
are best served in a group context, which they
will give loyalty,
[ii]
Hofstede, G., (1991), Cultures and Organisations: Software of the Mind, Berkshire, McGraw-Hill.
99. • Power-distance relationships:
the extent to which people accept that
power is distributed to individuals and
institutions unequally, thus in high
power-distance relationships there is
more respect for authority, where one
would not be expected to go over their
boss, than in low power-distance cultures
where people would be sensitive to people
showing authority and seek help from those
they believe they could get it from[i],
[i]
Hofstede, G., (1980), Culture’s consequences: International differences in work-related values, Beverly Hills, Sage.
100. •Uncertainty avoidance:
the extent to which people feel
threatened and stressful towards
ambiguity and the importance attached
to rules and procedures, i.e., workers
characterised high on uncertainty avoidance
like in Malaysia would tend to value security
over self actualisation[i],
[i]
Hofstede, G., (1980), ‘Motivation, Leadership and Organization: Do American Theories Apply Abroad?’, Organizational Dynamics, Summer, pp. 42-63.
101. Masculinity:
the nature of dominant values
in the organisation such as assertiveness
and directness,
View of time:
refers to the different time frames
used by people and organisations,
which influences values about certain actions
relating to procedures and
decision making, status and rewards, etc.
102. Trompenaars and Hampden-Turner postulate that culture is an extremely complex
phenomenon which cannot be easily rationalised. Even within a single country a
cultural trait can differ significantly within an ethnically homogeneous population.
Trompenaars and Hampden-Turner surveyed 15,000 managers in 28 countries to
explore the differences in cultures and hypothesised there are seven areas where
diametrically opposed paradoxes occur[i];
Universalism verses Particularism
Universalists (US, Canadians, Australians and
Swiss) tend to follow sets of rules, seek clarity,
and follow logically and systematically, therefore
assuming there is one correct way of doing things.
In contrast particularists (South Koreans, Chinese
and Malaysians) are pragmatic, flexible, make
exceptions according to situations and thus act
more in ambiguity, therefore focus on the peculiar
nature of the situation.
[i]
Trompenaars, F. and Hampden-Turner, C., (1993), Riding the Waves of Culture, London, Nicholas Brealey.
103. Individualism verses Communitarianism
Individualists are orientated towards the self
and family, while communitarialists are
orientated towards a group.
Neutral verses Affective
Neutralists are orientated towards not expressing
opinions and emotions openly, while affectivists
are orientated towards giving opinions and showing
emotion in public.
104. Specific verses Diffuse
Specificists tend to separate relationships between
business and personal lives, where diffusists tend
to blend relationships together.
Achievement verses Ascription
Achievement is orientated towards what one does,
whereas ascription is orientated towards who we are.
105. Sequential verses Synchronic
Sequential view time as separate periods and are
orientated with the present, while synchronic is
orientated to blending in past, present and future
together in ones outlook.
Internal verses External Control
Internal views dominance over nature, while
external views are subservient to nature.
106. Country Cultural Dimensions - Ranking for Selected Countries
Power Individualism Masculinity Uncertainty Long-term
Distance Avoidance Orientation
USA L H H L L
Germany L H H M M
Japan M M H H H
Netherlands L H M M M
Hong Kong H L H L H
Indonesia H L M L L
Malaysia* H M M M M
Thailand M L L M
* Estimated national average L = low M = medium H = high
107. Malaysia: Cultural Dimension Ranking By Race
Overseas Chinese Malays Indians
Power distance H H L
Individualism L M H
Masculinity H M M
Uncertainty Avoidance L H M
Long-term Orientation H L H
Source: Estimates H=High M=Medium L=low
Sayed Mushtaq Hussain, CULTURAL CONSTRAINTS IN LEADING MALAYSIAN SMEs
TO GLOBAL MARKETS, 2ND NATIONAL CONFERENCE ON ENTREPRENEURSHIP AND
SMALL BUSINESS
VISTANA HOTEL, PENANG, DECEMBER 9-10, 2006
108. How are pick ups advertised in Thailand?
http://www.uwsp.edu/geo/courses/geog100/CarCult-Ideol.htm
109. What affect does culture have on consumer tastes and preferences?
What affect does culture have on necessary product form to be successful?
What affect does culture have on forms of distribution, promotion, pricing, etc?
How will culture affect the ways of doing business?
110. A Market Typology
Developed
Market
• Local production following
international trends
•Cooperation with international
firms
•Large customers developing
although market still Developing
fragmented
Market
•Beginning of market
segmentation •Open market to the world
•Own production with
exports
•Markets adequately
• Most Items Imported covered with products
Underdeveloped •Fragmented with few large •Full market segmentation
customers
Market
•Heavy use of intermediaries
•No market segments
Hunter (1993)
111. Still many market gaps Poor Innovation
Large customers developing
bringing more market
concentration
Local firms exporting to
the world Developed
Category management still
in infancy Market
Beginning to rely
on imports again:
Colgate, Unilever
Thailand
Aspect of market Still undeveloped
globalisation Global trends do not necessary follow logistic systems
Developing
Underdeveloped Market
Market
Market segmentation still
weak; along ethnicity lines
only
112. Strategic Decisions Related To Stage of Development
Stages
Strategic Decisions Entry Growth Consolidation
Ambition •Identify opportunities •Gain market share •Achieve long-term goal
•Initiate Investments •Expand aggressively •Make Country/region a
•Develop Partnerships •Reach critical mass major contributor in the
•Start operations •Reach economies of scale corporate portfolio
•Reach break-even point •Produce positive returns
Positioning •Test/Product/Service •Operate out of key •Integrate with global
concept countries network
•Trial and Error •Combine global •Search for
•Start presence in platform standardization and local products/services
countries adaptation optimisation
•Initiate presence in key
countries
Capabilities •Invest in strategic and •Invest in building assets •Rationalization and
marketing intelligence •Acquisitions, JV and specialization of operations
•Look for acquisitions Greenfield operations •Regional logistics
•Negotiate JVs •Invest in distribution, •Regional facilities
•Invest in building contacts branding and human
resources
Organization •Operate out of platform •Local autonomy of •Mosaic of operations
countries (i.e., Singapore, countries subsidiaries •Global/regional integration
Hong Kong) •Regional HQ as with some local autonomy
•Rep offices in key contributor and resource •Regional HQ as
countries provider coordinator
113. Solely Focused on Company covers partial of
Domestic Market complete domestic market.
No or very few export sales.
Company exports Company exports to customers with existing
on an ad-hoc basis products. Tends to be passive marketer
to customers overseas responding to customer inquiries
Company exports A successful product line in the
existing products domestic market is exported to
and lines to a single third countries or a number of
or multiple export
markets countries (with or without some
modification)
Company exports A successful product (range) is exported all
its product range around the world to customers
globally
114. Company The company saves on freight and tariffs through
manufactures manufacturing the product in other markets, either
products in other directly, under contract, license, etc.
markets for
distribution in
those markets
Company sets up
sales & Marketing
operations
regionally, globally
for sales, service to
customers
Company
manufacturers
products in other
markets for export
to third markets in
regional
manufacturing
operations
115. Marketing Company
Manufacture & Market
Manufacture & Market
Manufacture & Market
Marketing Company
Marketing Company
Manufacture & Market
119. Production Layouts Logistics R&D
Economies of scales are not enough: have to be coupled with innovation,
customer service and correct strategies to maintain competitive advantage. Competitive advantage is also a
fluctuating state
Economies of Scale
122. Different types of
Networks
Support Networks
Resource Networks
Regulatory Networks
Development Networks Two elements:
Sales Networks
Technical Know How
Peer Networks
Technical Know Who
140. Figure 9.2. Twenty Largest Patent Filing Countries 2004
Poland
Italy
Argentina
Singapore
Hong Kong (SAR)
Norw ay
Mexico
France
India
Brazil
United Kingdom
Russian Federation
Australia
Canada
Germany
European Patent Office
China
Korea, Rep.
USA
Japan
0 50000 100000 150000 200000 250000 300000 350000 400000 450000
Number of Patent Filings
Resident Patent File Applications
Source: WIPO Statistics Non-Resident Patent File Applications
141. Figure 9.3. Number of Resient Patent Filings per Million Population 2004
M exic o 5
India 7
Turkey 7
Thailand 11
B razil 21
A rgentina 28
B eligium 50
C hina 51
C zec h R epublic 61
P o land 62
S pain 67
Hungary 75
Ukraine 86
B elarus 108
Italy 111
C anada 125
Netherlands 134
S ingapo re 147
Wo rld A verage 148 World Average
R us s ian 160
S witzerland 217
Is rael 227
F ranc e 236
A us tria 275
S weden 308
UK 320
No rway 335
D enmark 347
F inland 385
New Z ealand 402
A us tralia 479
G ermany 587
US A 645
Ko rea, R ep. 2189 2884
J apan
0 500 1000 1500 2000 2500 3000
Number of Resident Patent Filings/Million Population 2004
Source: WIPO Statistics
142. Figure 9.4. International Patents Filed by Residents in Asia-Pacific
Region 2006
Vietnam 9
12
Thailand
Singapore 402
15
Philippines
New Zealand 316
54
Malaysia
5935
Republic Korea
4
Dem. Rep Korea
26906
Japan
India 627
6
Indonesia
3910
China
1
Brunei Darussalam
2139
Australia
0 5000 10000 15000 20000 25000 30000
Number of International Patents Filed by Residents
Source: WIPO Statistices
143. Figure 9.5. Resident Patent Filings per USD 1.0 Million R&D
Expenditure
0.08
Belgium 0.14
Turkey 0.21
Mexico 0.23
Israel 0.23
Canada 0.23
India 0.26
Netherlands 0.27
Spain 0.28
Czech Republic 0.29
Sw eden 0.29
Sw itzerland 0.3
Brazil 0.37
Italy 0.41
France 0.41
Finland 0.43
Austria 0.46
Denm ark 0.51
Thailand 0.54
Hungary 0.56
Norw ay 0.61
Argentina 0.62
UK 0.71
USA 0.78
China 0.81
World Average 0.92
Germ any 0.99
Poland 1.13
Australia 1.18
Singapore 1.46
Russian 1.5
Ukraine 1.67
New Zealand 3.15
Belarus 3.49
Japan 4.6
Korea, Rep.
0 1 2 3 4 5
Number of Resident Patent Filings per USD 1 Million R&D Expenditure
Source: WIPO Statistics
144. Figure 9.6. Major Categories of International Patent Applications 2006
Consumer Goods & Civil Engineering,
Building, Mining Other
Transport Equipment
2% 1% Electrical devices &
3% 5%
electrical engineering
Mechanical Components 6%
3%
Machine Tools, Engines, Audio-Visual
Thermal Process 4%
5%
Telecommunications
Materials Processing, 8%
Textiles & Paper
3% Information Technology
8%
Industrial Processes,
Handling & Printing Semiconductors
7% 3%
Agriculture and Food
Processing Optics
2% 2%
Pharmaceuticals &
Cosmetics Analysis & Medical
Biotechnology Organic,
8% Technology
4% Material & Surface Macromolecular &
13%
Technology Chemical Engineering Polymer Chemistry
Source: WIPO Statistics
5% 2% 7%
145. Electrical devices & 12%
Audio-Visual 9%
Telecommunications 15%
Information 22%
Semiconductors 28%
Optics 16%
Analysis & Medical 8%
Organic, 11%
Chemical 11%
-5%
Material & Surface 17%
Biotechnology
Pharmaceuticals & 21%
Agriculture and Food 8%
Industrial 13%
Materials 13%
Machine Tools, 12%
Figure 9.7. Main Areas of Patent Filing Growth 2006
Mechanical 13%
Transport 8%
Consumer Goods & 13%
Civil Engineering, 11%
0%
5%
-5%
10%
15%
20%
25%
30%
Percentage Growth (%)
Source: WIPO Statistics
146. Figure 9.8. Integration between a Firm’s Core Mission and Intellectual Property
1. Recognition 2. Desirability
To develop public recognition and carry over To enable companies to delivery good products
certain desired values to consumers with superior performance to competitors, new
features, extended product life, etc, so that
Trademarks and certain Copyright products are competitive and desirable.
Information
Patents, Registered Designs and
Proprietary Knowledge
3. Form 4. Emotional Connection
To develop recognisable literary and visual To maximise financial returns for production
forms that add value and assist in creating an undertaken by the company, add to product
inherent desirability to the form of differentiation and develop an emotional
communication between company and connection with consumers.
consumer.
Copyrights and Trademarks Brands and Trademarks
[i]
Stamm, O., A., (1993), ‘Intellectual Property Rights and Competitive Strategy: A Multinational Pharmaceutical Firm’, in
147. Figure 9.9. The General Tools of Intellectual Property in Business Strategy
Influence of
New
Product Development Technology
- Invention (new to the world)
- New to company product Competitors
- New Style, variant or benefits
Patent, Registered
Design, Proprietary Influence of
Knowledge (secrecy and Product
non-disclosure Lifecycle
agreements)
Process Development
(manufacturing)
Patent, Proprietary
Knowledge (secrecy and
non-disclosure
The Market
agreements) The General Business
Market Strategy Place
Strategy
Market parameters (mix) Values
Channels Expectations
Knowledge Emotions
Image & Story (target)
Knowledge, Creativity, Recognition
Branding, Trademarks, Potential
Copyright Emotional
Connections
148. Figure 9.10. IP/market scenarios with competitive advantage in slow and
fast technology emerging industries
Relative Competitive Advant
a. Slow Emerging Technology Market Air Fresheners
Branding
Primary Used IP Protection
age Registered Designs
Liquid Air Fresheners
Patents
Car Air fresheners
Failure to advance IP
and convert into new
products results in
competition in a price
sensitive market where
Gel Air Fresheners
brands don’t attract
consumer recognition
1960s 1970s 1990s Time
Relative Competitive Advant
b. Fast Emerging Technology Market Electronic Media Storage
Primary Used IP Protection
ge
Patents
a
Pen
Drives
Compact Rapid decline of media
Disks use after introduction of
new media until product
ceases to be used
anymore, Companies must
cease operations or switch
Floppy Disks
to new technology
1960s 1970s 1990s Time
149. Innovation is needed to convert any factor
into a source of competitive advantage