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BORDERLESS
                MARKETING

             Zaini Ithnin Hj. A. Rajak



                  Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                           1
                          & Antarabangsa
Marketing concept
                      Target market
             Necessity, Needs & Availability
                    Offered products
                   Value & Satisfaction
              Exchange (Sale and Purchase)
             Communication and Networking
                    Marketing channel
                      Supply chain
                      Competitions
                     Environments Pasaran Tempatan
                          Sistem Maklumat
MTIB, KPPK                                           2
                                 & Antarabangsa
Marketing
             Clients

                       Marketing
                          mix

                                                             Place
  Product


                                                   Comfortability
 Needs
                  Price             Promotion


                  Cost        Communication
                          Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                                           3
                                  & Antarabangsa
Products
         •   Differences in customer needs :-
         •   Identity and design
         •   Standards
         •   Size specification & materials
         •   Quality standard & finishing
         •   Packaging & delivery
         •   Export procedure
         •   Payment terms
                          Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                                   4
                                  & Antarabangsa
Marketing segment
         •   European market
         •   American market
         •   Japanese market
         •   Middle East market
         •   (Non- Traditional Mkt.) India, Africa,
             Russia, Latin America

          Difference in size, standards, finishing,
          packaging, payment terms, export
          procedures etc.
                             Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                                      5
                                     & Antarabangsa
Product positioning
         •   Low End
         •   Low-Medium End
         •   Medium End
         •   Medium High End
         •   High End

          Difference in
           quality and prices

                          Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                                   6
                                  & Antarabangsa
Price
         Factory price Vs Retail price

         Material cost + labor cost + overhead cost +
          margin (price) + capital imbedded cost +
          marketing related cost = PRICE

         Pricing approach:
         - Target price – target cost
         - Value added products - niche market

                          Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                                   7
                                  & Antarabangsa
PROMOTIONS
         • Advertisements: Printed
             – Magazines, phone directory, newspaper
             – Pamphlets, brochure
         • Electronic media (tv, radio, e-
           mail, websites, CDi)
         • Furniture fairs, expo, shows
         • Showrooms


                          Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                                   8
                                  & Antarabangsa
International Furniture Fairs
         • New market explorations
             – Introducing company and products
             – Understand the buyer requirements
             – Investigate market and competitors
             – Keep abreast with current trend
             – Taking trial order




                           Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                                    9
                                   & Antarabangsa
International furniture fairs
         • Preparation
             –   Complete products
             –   Catalog / picture of products
             –   Price lists - FOB,CIF
             –   Packing List
             –   Minimum order quantity
             –   Delivery lead-time
             –   Term of payments

             > Closed deal during fairs


                                Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                                         10
                                        & Antarabangsa
Marketing segment
         • Choices on company preparation
           and factory ability
             – Component supplier
             – Component buyer:
               assembly, finishing, packaging
             – Export via buyers’ agent
             – Appointing agent / distributors
             – OEM manufacturing (underlicence)
             – Export to retailers
             – Own design / brand (ODM/OBM)
                          Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                                   11
                                  & Antarabangsa
Production orientation
         • Production concept
             – mass production: mass market and aggressive
               marketing (Mass Market)
             – Batch production
             – Special production
         • Product concept
             – Management pushing to produce high quality,
               high performance, innovative concept - Niche
               Market.
         • Marketing concept
             – Management satisfying the needs of certain
               market and more competitive then others -
               Selective Market Maklumat Pasaran Tempatan
                              Sistem
MTIB, KPPK                                                    12
                                  & Antarabangsa
Following up
         • Responsive and committed
             – Attending the inquiry within 24 hours -
               fax, e-mail, phone call.
             – Quotation: 2-3 days
             – Sample: 1 week
             – Product development: 4 weeks
             – Trial order: 6-8 weeks



                            Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                                     13
                                    & Antarabangsa
Marketing plan
         1. Mission and Vision
            VISION : Long term goal – company
            direction & destination.
            MISION : Plans / activities of programs
            arranged to achieve the vision.

         2. Current market environment
            Investigate the current domestic and
            international markets, either
            recommended and project the future
            market.
                          Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                                   14
                                  & Antarabangsa
Marketing plan
      3. Opportunity and threat analysis
         (SWOT ANALYSIS)
      • Strengths: Identify company’s
         advantages
      • Weaknesses: identify organization’s
         handicaps
      • Opportunities: rooms for development
      • Threats: change them into prospects
       Knowledge about the industry status is
         needed

                       Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                                15
                               & Antarabangsa
Marketing plan
         4. Analysis of competitiveness
             – To study the company’s
               ability, competitiveness and status in
               specific market as compared to its’
               competitors.
             – In international market, manufacturers
               from one country will compete
               competitors from other countries.
             – Search for new approach to be more
               competitive
                           Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                                    16
                                   & Antarabangsa
Marketing plan
         5. Objectives
         • Business objectives must be devised and
           SMART
             Specific
             Measurable
             Achievable
             Realistic
             Timely
         • Yearly sales increment: 10%
         • Profit increment for 2004: 5%
                          Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                                   17
                                  & Antarabangsa
Marketing plan
         6. Strategic planning
         • Product positioning
         • Promotional approach / methods
         • Pricing policy

         7. Follow up actions
             (Monthly, quarterly, half year)
         • Product development
         • Human resource development
         • Marketing programs
                                   Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                                            18
                                           & Antarabangsa
Global market environment
             World economic environment
         • Capacity and productivity between producing and
           buying countries: competitive levels
         • Human resource and technology
         • Trade agreement; trade barriers
         • AFTA, NAFTA, EU, WTO etc.
             Financial environments
         • Financial crisis, inflation
         • Currency exchange
         • Financial system, banking & payment methods


                            Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                                     19
                                    & Antarabangsa
GLOBAL market environment
         3. Social environment
         • Language, social interaction
         • Design perception, product quality
         • Religion, education level

         4. Political & regulation
           environment
         • Government’s laws and policies
         • Differences in ideology and political
           system
         • International laws and agreements
                          Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                                   20
                                  & Antarabangsa
STEPS
         • Understand the export procedures, terms
           and methods
         • Payment choices: letter of credit, payment
           documentation, telegraphic transfer,
           acceptance documentation
         • Managing bill of lading, insurance,
           certificates
         • Participating in marketing promotional
           activities
         • Applying marketing grants, relaxations


                          Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                                   21
                                  & Antarabangsa
Conclusions
         • Globalization effects the international and
           domestic market
         • Success is determine by competitiveness,
           resiliency & progressiveness
         • Suggested approach:
          Adaptation of new technology, methods
          Improving designs, quality and productivity
          Certification: ISO, CE marking, product standard
          QC qualification, quality assurance
          Latest marketing technique


                             Sistem Maklumat Pasaran Tempatan
MTIB, KPPK                                                      22
                                     & Antarabangsa

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Marketing technic

  • 1. BORDERLESS MARKETING Zaini Ithnin Hj. A. Rajak Sistem Maklumat Pasaran Tempatan MTIB, KPPK 1 & Antarabangsa
  • 2. Marketing concept Target market Necessity, Needs & Availability Offered products Value & Satisfaction Exchange (Sale and Purchase) Communication and Networking Marketing channel Supply chain Competitions Environments Pasaran Tempatan Sistem Maklumat MTIB, KPPK 2 & Antarabangsa
  • 3. Marketing Clients Marketing mix Place Product Comfortability Needs Price Promotion Cost Communication Sistem Maklumat Pasaran Tempatan MTIB, KPPK 3 & Antarabangsa
  • 4. Products • Differences in customer needs :- • Identity and design • Standards • Size specification & materials • Quality standard & finishing • Packaging & delivery • Export procedure • Payment terms Sistem Maklumat Pasaran Tempatan MTIB, KPPK 4 & Antarabangsa
  • 5. Marketing segment • European market • American market • Japanese market • Middle East market • (Non- Traditional Mkt.) India, Africa, Russia, Latin America  Difference in size, standards, finishing, packaging, payment terms, export procedures etc. Sistem Maklumat Pasaran Tempatan MTIB, KPPK 5 & Antarabangsa
  • 6. Product positioning • Low End • Low-Medium End • Medium End • Medium High End • High End  Difference in quality and prices Sistem Maklumat Pasaran Tempatan MTIB, KPPK 6 & Antarabangsa
  • 7. Price Factory price Vs Retail price Material cost + labor cost + overhead cost + margin (price) + capital imbedded cost + marketing related cost = PRICE Pricing approach: - Target price – target cost - Value added products - niche market Sistem Maklumat Pasaran Tempatan MTIB, KPPK 7 & Antarabangsa
  • 8. PROMOTIONS • Advertisements: Printed – Magazines, phone directory, newspaper – Pamphlets, brochure • Electronic media (tv, radio, e- mail, websites, CDi) • Furniture fairs, expo, shows • Showrooms Sistem Maklumat Pasaran Tempatan MTIB, KPPK 8 & Antarabangsa
  • 9. International Furniture Fairs • New market explorations – Introducing company and products – Understand the buyer requirements – Investigate market and competitors – Keep abreast with current trend – Taking trial order Sistem Maklumat Pasaran Tempatan MTIB, KPPK 9 & Antarabangsa
  • 10. International furniture fairs • Preparation – Complete products – Catalog / picture of products – Price lists - FOB,CIF – Packing List – Minimum order quantity – Delivery lead-time – Term of payments > Closed deal during fairs Sistem Maklumat Pasaran Tempatan MTIB, KPPK 10 & Antarabangsa
  • 11. Marketing segment • Choices on company preparation and factory ability – Component supplier – Component buyer: assembly, finishing, packaging – Export via buyers’ agent – Appointing agent / distributors – OEM manufacturing (underlicence) – Export to retailers – Own design / brand (ODM/OBM) Sistem Maklumat Pasaran Tempatan MTIB, KPPK 11 & Antarabangsa
  • 12. Production orientation • Production concept – mass production: mass market and aggressive marketing (Mass Market) – Batch production – Special production • Product concept – Management pushing to produce high quality, high performance, innovative concept - Niche Market. • Marketing concept – Management satisfying the needs of certain market and more competitive then others - Selective Market Maklumat Pasaran Tempatan Sistem MTIB, KPPK 12 & Antarabangsa
  • 13. Following up • Responsive and committed – Attending the inquiry within 24 hours - fax, e-mail, phone call. – Quotation: 2-3 days – Sample: 1 week – Product development: 4 weeks – Trial order: 6-8 weeks Sistem Maklumat Pasaran Tempatan MTIB, KPPK 13 & Antarabangsa
  • 14. Marketing plan 1. Mission and Vision VISION : Long term goal – company direction & destination. MISION : Plans / activities of programs arranged to achieve the vision. 2. Current market environment Investigate the current domestic and international markets, either recommended and project the future market. Sistem Maklumat Pasaran Tempatan MTIB, KPPK 14 & Antarabangsa
  • 15. Marketing plan 3. Opportunity and threat analysis (SWOT ANALYSIS) • Strengths: Identify company’s advantages • Weaknesses: identify organization’s handicaps • Opportunities: rooms for development • Threats: change them into prospects  Knowledge about the industry status is needed Sistem Maklumat Pasaran Tempatan MTIB, KPPK 15 & Antarabangsa
  • 16. Marketing plan 4. Analysis of competitiveness – To study the company’s ability, competitiveness and status in specific market as compared to its’ competitors. – In international market, manufacturers from one country will compete competitors from other countries. – Search for new approach to be more competitive Sistem Maklumat Pasaran Tempatan MTIB, KPPK 16 & Antarabangsa
  • 17. Marketing plan 5. Objectives • Business objectives must be devised and SMART Specific Measurable Achievable Realistic Timely • Yearly sales increment: 10% • Profit increment for 2004: 5% Sistem Maklumat Pasaran Tempatan MTIB, KPPK 17 & Antarabangsa
  • 18. Marketing plan 6. Strategic planning • Product positioning • Promotional approach / methods • Pricing policy 7. Follow up actions (Monthly, quarterly, half year) • Product development • Human resource development • Marketing programs Sistem Maklumat Pasaran Tempatan MTIB, KPPK 18 & Antarabangsa
  • 19. Global market environment World economic environment • Capacity and productivity between producing and buying countries: competitive levels • Human resource and technology • Trade agreement; trade barriers • AFTA, NAFTA, EU, WTO etc. Financial environments • Financial crisis, inflation • Currency exchange • Financial system, banking & payment methods Sistem Maklumat Pasaran Tempatan MTIB, KPPK 19 & Antarabangsa
  • 20. GLOBAL market environment 3. Social environment • Language, social interaction • Design perception, product quality • Religion, education level 4. Political & regulation environment • Government’s laws and policies • Differences in ideology and political system • International laws and agreements Sistem Maklumat Pasaran Tempatan MTIB, KPPK 20 & Antarabangsa
  • 21. STEPS • Understand the export procedures, terms and methods • Payment choices: letter of credit, payment documentation, telegraphic transfer, acceptance documentation • Managing bill of lading, insurance, certificates • Participating in marketing promotional activities • Applying marketing grants, relaxations Sistem Maklumat Pasaran Tempatan MTIB, KPPK 21 & Antarabangsa
  • 22. Conclusions • Globalization effects the international and domestic market • Success is determine by competitiveness, resiliency & progressiveness • Suggested approach:  Adaptation of new technology, methods  Improving designs, quality and productivity  Certification: ISO, CE marking, product standard  QC qualification, quality assurance  Latest marketing technique Sistem Maklumat Pasaran Tempatan MTIB, KPPK 22 & Antarabangsa