International and Strategic Marketing
Communication through brandingValue network managementBuilding a competitor
intelligence system
Branding
Brands used to be about trust – the quality of a product etc (Marks and Spencer St Michael quality brand)
Nowadays brands must be real - use real people - in real situations - offer real benefits
If they are to connect with REAL people
Elements in the Communications Process
Sender Message Receiver Response Feedback Noise
Steps in Developing Effective Communications
Identify target audience
Determine objectives
Design communications
Select channels
Establish budget
Decide on media mix
Manage integrated communications
Image
The set of beliefs, ideas, and impressionsa person holds regarding an object.
Designing the Communications strategy
Message strategy Creative strategy Message source Personal communication channels Non-personal communication channels Integration
Creative Strategy
Informational and transformational appeals Positive and negative appeals
Fear Guilt Shame Humor Love Pride Joy
The Importance of taglines
Ad Tagline
I’m lovin’ it Every little helps?
Beanz meanz Heinz
THINK OF SOME OTHERS!
Message Source
Celebrity Characteristics Expertise Trustworthiness Likeability
- Kerry Catona – Iceland - Take That – Marks and Spencer
Setting objectives Establish the market share goal. Determine the % of market/s that should be reached. Determine the percentage of aware prospects that
should be persuaded to try the brand Determine the number of people seeing the
advertisement Determine the % increase in sales as a result of the
advertisement Determine the necessary advertising budget
What does branding do?
Branding strikes a balance between aspiration (“I want to be part of that club”) and identification (“this is for me”).
Branding is more effective if it uses ‘real’ people
Emotional ties
Quality is now often taken for granted. Brands attempt an emotional connection with consumers;
They are customer based as opposed to
Function based
Stay with me ….
Brands now need to make sure that customers stay with them
Defection and switching is growing in consumer markets as people become more price sensitive
Value chain management
Michael Porter’s value chain is a well established concept for considering key activities that an organisation can perform or manage with the intention of adding value for the customer.
Why a chain?
Because the value is added as products and services move from conception to delivery to the customer (Porter 1980). The value chain model simply describes different value-adding activities that connect a company’s supply side with its demand side.
What is value?
Value = (benefit of each value chain
activity minus - its cost)
+ (benefit of each interface between
value chain activities minus – its
cost)
Internal and external value chain
Internal – activities carried out within the boundaries of the organisation
External – activities carried out external to the organisation by partners.
By analysing different parts of the value chain managers can redesign internal and external processes to improve their efficiency and effectiveness.
Restructuring the internal value chain
The traditional model has been re-evaluated in the light of global, electronic communications.
Weaknesses of traditional model include: It is more applicable to manufacturing as
opposed to services It is a one way chain pushing products to the
customer and ignoring customer needs
Value networks
Reduced time to market and increased customer responsiveness can be achieved through reviewing the efficiency of internal processes and how information systems are deployed.
What sort of partners?
Supply side partners - suppliers Partners who fulfil primary or core value-
chain activities – eg inbound logistics Sell-side partners – B-2-B exchanges,
wholesalers Value-chain partners such as a partner
who provides the electronic infrastructure for a company – eg website providers
Five Forces Determining Segment Structural Attractiveness
Competitive Forces
Threat of:Threat of:1.1. intense segment intense segment
rivalryrivalry
2.2. new entrantsnew entrants
3.3. substitute productssubstitute products buyers’ growing buyers’ growing
bargaining powerbargaining power suppliers’ growing suppliers’ growing
bargaining bargaining powerpower
Based on Porter’s Five Forces
Identifying Competitors
Concept of CompetitionNumber of Sellers and
Degree of Differentiation Does the market consist of:
Pure Monopoly Oligopoly Pure competition
Identifying Competitors
Market Concept of Competition
are there: Entry barriers Mobility barriers Exit barriers
Degree of Globalisation Costs Laws
Designing Competitive Strategies
Market-Leader Strategies Expanding the Total Market
New Users Market-penetration strategy New-market segment strategy Geographical-expansion strategy
New Uses More Usage
Defending Market Share
Designing Competitive Strategies
Brand-extension strategy Multibrand strategy Heavy advertising and
media pioneer Aggressive sales force Effective sales promotion Competitive toughness Manufacturing efficiency
and cost cutting Brand-management system
Designing Competitive Strategies
Choosing a Specific Attack Strategy
Price-discount Lower price goods Prestige goods Product proliferation Product innovation Improved services Distribution innovation Manufacturing cost reduction Intensive advertising promotion
Designing The Competitive Intelligence System
Four Main Steps
Setting up the system
Collecting the data
Evaluating and analysing the
Data
Disseminating information
and responding
Designing The Competitive Intelligence System
Major Steps in Customer Value Analysis:1. Identify the major attributes customers value.2. Assess the quantitative importance of the different attributes of each segment3. Assess the companies’ and competitors’ performances on the different customer values against their rated importance.4. Examine how customers in a specific segment rate the company’s performance against a specific major competitor on an attribute-by-attribute basis.5. Monitor customer values over time.
Competitive advantage
What strategies do your industry plan for in order to achieve a competitive advantage?
Branding? Pricing? Promotion? Quality? Market leader? We will review strategies next week –
last teaching week!
Assignment tutorials
In weeks 1st and 8th December I will be undertaking assignment tutorials. (Remember I won’t be around on 15th December due to a hospital appointment so I am making up the time beforehand).
Please make a mutually convenient appointment with me.