Transcript Marketing Sales

Global Business #9
June 25, 2012
Dept of Technology Management for Innovation (TMI),
Graduate School of Engineering
Professor Kazuyuki Motohashi
工学系研究科 技術経営戦略学専攻教授
元橋一之
http://www.mo.t.u-tokyo.ac.jp
Today’s Class
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•
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What is marketing, why important?
Marketing strategy planning steps
4P: Product, Price, Place and Promotion
Marketing for emerging economies: China,
India
• Bottom of the Pyramid (BOP) Business
Marketing and Sales
Marketing
Sales
New customers, potential
customer needs
Forward looking (for new
product, services)
Market analysis for value
creation
Involves whole process of
marketing strategy
Existing customers
Existing products
Actions (Eigyo), and sales
force management
Focus on “Promotion” in
marketing 4P
Strategic Marketing Planning
Market Analysis and Identifying
Opportunities (SWOT analysis)
Market Segmentation
Identifying target market and
product (service) positioning
Marketing Mix (4P) and Execution
Ansoff’s Product and Market
Growth Matrix
Global Business Context: CAGE and AAA framework
Example of Market Segmentation
Target Segment Identification
Marketing’s 4P
Product
Price
To what extent you can be a price setter, instead of price taker ?
Place (Channel)
Promotion (AIDMA)
Changing to AISAS in
Internet Era
Promotion tools (in detail)
Promotion in global business
Some caveats
• Regulations over promotion activities: such
as whether you can do “comparative
advertising”
• Terminology in foreign language
• Brand creation (difference in customer’s
perception)
• Importance of local ad agency
• Lack of product knowledge at local
distributors
Marketing mix by product life cycle
Market potential of China and India
Middle Class
= Volume zone
• Profit=gross margin * sales volume (size of market and
competition)
• Difference between durable and consumption goods, customer
preference?
Average household income by decile
(2010, US$)
Premium
Market
Another concept of price: PPP
• Concept of PPP（Purchasing Power Parity)
• Big Mac price by Economist magazine
US: 4.07 $, China: 14.7 RMB=2.27 US$ (▲44%)
2005
China
India
Japan
USA
PPP
42
33
118
100
2010
/US$
8.19
44.1
110
1
PPP
53
44
144
100
/US$
6.71
44.7
80.5
1
Premium or good enough?
Relevance for premium
market (enough volume,
brand image, quality
requirement by
customers ….)
Good enough products
and services are OK
(saturated value
proposition curve,
commoditization …)
Strong competitive
position against local
competitors
Stay-in and focus on
premium market
Risk of innovator’s
dilemma, prepare for
good enough market
strategy, local partnership
(but risk of
cannibalization)
Local competitors’
catching up
Further development and
product differentiation by
non-technical factors such
as investing-in brand,
safety and eco-friendly
Give up this market and
go another place? Local
partnership with local
autonomous management
(a kind of portfolio
investment)
Adapted from “The Battle for China’s Good-Enough Market”
by Gadiesh, Leung and Vestring, HBR September 2007
Destructive Innovation
Technology Speed＞Customer’s Requirement Speed
20
Knowing local market:
two way interactions
• Sensor function at local (B to C): Panasonic’s life
style research institute in China and India
(understand consumer’s life-style in less
developed area)
• Local partnership as a door to new customer (B to
B, B to G): Hitachi’s joint venture with LG group
for water business
• “Finding great ideas in emerging market”: finding
unforseeable use, arbitrage strategy for ideas:
Intel’s emerging market project (use of PC for
social tool-> netbook (ultra) book concept)
• More to be discussed in the global R&D session!
BOP(Bottom of the Pyramid)
Over 20,000 US$
75 mil. -100 mil.
150 mil.-1,750 mil.
1500～20,000 US$
1500US$ and under
4,000 mil.
（出典）The fortune at the bottom of the pyramid (C.K. Praharad)
BOP’s Business Chance
（出典）The fortune at the bottom of the pyramid (C.K. Praharad)
Example: ICICI’s micro payment
（出典）The fortune at the bottom of the pyramid (C.K. Praharad)
Next Class: Shiseido Case
• Is China is important for Shiseido? Evaluate based on
Shiseido’s domestic and global operation statistics
• List merits and demerits of operating in China, as
compared to operations in US and Europe
• Characterize Shiseido’s marketing strategy in China.
Take Urara as an example, and discuss its targeted
customer and marketing 4P. Do they have a
consistent story?
• Compare Shiseido’s marketing in China with those of
US and European mega players such as l’Oreal and
P&G. It is better to keep such strategy, when Shiseido
competes with them in Chinese market?