Transcript Il marketing

The scope and challenge of
international marketing
1
Agenda

Domestic marketing: an overview

The definition of international marketing

International strategies

Internationalizing the value chain
2
Domestic marketing: an overview (I)

Marketing is “a social and managerial process by
which individuals and groups obtain what they
need and want through creating and exchanging
products and value with others” (Kotler)

Marketing is the process of planning and
executing the conception, pricing, promotion, and
distribution of ideas, goods, services to create
exchanges
that
satisfy
individual
and
organizational
goals
(American
Marketing
Association)
3
Characteristics of services
INTANGIBILITY
HETEROGENEITY
INSEPARABILITY
PERISHABILITY
Source:
Zeithaml, Parasuraman e Berry (1985);
Edgett e Parkinson (1993)
4
IHIP (intengibility,
heterogeneity,
inseparability,
perishability).
Domestic marketing: an overview (II)
Strategic marketing:

1.
2.
3.
4.
5.
5
Study the competitive environment
Demand measuring and forecasting
Segmentation
Targeting
Positioning
Focus: Positioning (I)
Positioning is defined as the marketer’s effort to
identify a unique selling proposition for the
product.

A good positioning statement answers three
questions:
1. Who are the customers?
2. What is the need that the product fulfills?
3. Why is the product the best option to satisfy those
needs?
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6
Focus: Positioning (II)
Commonly used
statement”.

Our …….
form
for
the
“positioning
(product/brand)
is…….
(single most important claim)
Among all …….. (competitive frame)
Because ………. (single most important support).
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Focus: Positioning (III)
8
Domestic marketing: an overview (III)

Marketing management → “4Ps”

Marketing mix: the set of controllable tactical marketing tools that the
firm blends to produce the response it wants in the target market.
Product
Promotion
Price
Place
Variety
Advertising
List price
Channles
Quality
Promotions
Discounts
Assortments
Design
Personal
selling
Payment
period
Locations
Features
Public
relations
Credit terms
Transport
Brand name
Packaging
Marketing Mix
9
Elements of The Services Marketing Mix:
“7Ps” vs. the Traditional “4Ps”
Rethinking the original 4Ps

Product elements

Place and time
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Promotion and education
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Price and other user outlays
Adding Three New Elements

Physical environment
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Process

People
Transaction marketing vs. relationship
marketing (I)


1.
2.
3.
The American Marketing Association’s definition of marketing,
revised in 2004, indicates that “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” (emphasis added).
3 aspects:
Engagement activities across stages of the relationship.
Relationship target: any constituent (e.g., internal
departments, competitors, customers, suppliers).
does the success of relationship marketing efforts depend
only on the perspective of the implementer (e.g., seller), or
must both parties’ outcomes be evaluated?
11
Transaction marketing vs. relationship
marketing (II)
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The decisions that marketers make

How can we spot and choose the right market segment(s)?

How can we differentiate our offering?
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How should we respond to customers who press for a lower price?

How can we compete against lower-cost, lower-price rivals?
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How far can we go in customizing our offering for each customer?
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How can we grow our business?
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How can we build stronger brands?
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How can we reduce the cost of customer acquisition and keep
customers loyal?
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How can we tell which customers are more important?
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How can we measure the payback from marketing communications?
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How can we improve sales-force productivity?
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How can we manage channel conflict?
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How can we get other departments to be more customer-oriented?
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Agenda

Domestic marketing: an overview

The definition of international marketing

International strategies

Internationalizing the value chain
14
The definition of international
marketing

International marketing (IM) is the performance
of business activities designed to plan, price,
promote and direct the flow of a company’s
goods and services to customers or users in
more than one nation for profit.
15
The international marketing task (1)
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The international marketing task (2)

Case
study:
Mobile
Phones,
Economic
Development and Shrinking the Digital Divide

You have to be able to interpret effectively the
influence and impact of the culture in which
you hope to do business.

Case study: McDonald’s is moving towards a
higher degree of market responsiveness
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Agenda

Domestic marketing: an overview

The definition of international marketing

International orientation

Internationalizing the value chain
18
International orientation

Ethnocentric orientation: the home country is
superior and the need of the home country are
most relevant.

Polycentric (multidomestic) orientation: each
country is unique and therefore should be targeted
in a different way.

Regiocentric orientation: the world consists of
regions (e.g. Europe, Asia, the Middle East).

Geocentric (global) orientation: the world is getting
smaller and smaller.
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Need for Global Integration
International Strategies
High
Global
Strategy
Transnational
Strategy
Multidomestic
Strategy
Low
Low
High
Need for Local Responsiveness
Worldwide geographic divisional structure for
implementing a multidomestic strategy
USA
Asia
Africa
Global Corporate
Headquarters
Latin
America
Middle East
Australia
Worldwide product divisional structure for
implementing a global strategy
Worldwide
Products
Division
Worldwide
Products
Division
Worldwide
Products
Division
Global Corporate
Headquarters
Worldwide
Products
Division
Worldwide
Products
Division
Worldwide
Products
Division
Avon
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Avon is a leading global beauty company, with
$10 billion in annual revenue. Avon markets to
women in more than 100 countries.
“Previously, Avon managers from Poland to
Mexico ran their own plants, developed new
products and created their own ads, often
relying as much on gut as numbers” (Ceo
Andrea Jung, 2007).
However, the firm’s growth came to a
screecching halt in 2006. To come to its
problems, the firm changed to a global strategy
and to a worldwide product divisional
structure.
Avon Worldwide product divisional
structure
Avon Color
Skincare
Fragrance
Global Corporate
Headquarters
Bath& Body
Wellness
Hair Care
Transnational Strategy


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It is an international strategy through which
the firm seeks to achieve both global efficiency
and local responsiveness.
Realizing this goal is really difficult!
Transnational firm is “an integrated network of
distributed and interdependent resources and
capabilities”



For some products it adopts global
standardization (Pringles potato chips);
For some products it allows significant
national
differentiation
(hair
coloring
products).
Across countries, P&G organizes global
product divisions to serve most of the
industrialized world, while for emerging
countries it operates through country
subsidiaries in order to adapt to the
distinctive features of these markets.
Hybrid form of the combination structure for
implementing a transnational strategy
Headquarters
Product Division
A
Geographic area
Division 1
Area 1
Product A
Area 2
Product Division
B
Product B
Geographic area
Division 1
Agenda

Domestic marketing: an overview

The definition of international marketing

International strategies

Internationalizing the value chain
28
Internationalizing the value chain (I)
Support
Activities
Primary Activities
Internationalizing the value chain (II)
Firm Infrastructure
Human Resource Management
Technological Development
Primary Activities
Service
Marketing
& Sales
Outbound
Logistics
Operations
Procurement
Inbound
Logistics
Support
Activities
Internationalizing the value chain (III)
Inbound
Logistics
Operations
Upstream value activities
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Outbound
Logistics
Marketing
and Sales
Service
Downstream value activities
Internationalizing the value chain (IV)

Case study: Pocoyo – upstream-downstream
cooperation about globalization of an animated
preschool series.
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Internationalizing the value chain (V)
Home country
(head office or
third country)
R&D
Production
Centralizing upstream
functions
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Marketing
Services
Country A
Marketing
Services
Country B
Marketing
Services
Country C
Decentralizing downstream
functions