mrk session
TRANSCRIPT
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Concepts and Principles of
International Management
Yasser Iqbal
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What is Marketing?Activity:
In groups of 2/3 discuss what do you think marketing
means?
Think of some examples of marketing from your own
experiences
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Is This Marketing?A retail bank offering new customers a bonus interest
rate for an introductory period if they open an account.
A grocery chain rewarding customers with points and
money off vouchers for repeat purchasing over a
period of 3 months.
A limited edition product.
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Is this Marketing?A landscape gardener receiving year-on-year repeat
business from an established customer base which
grows only through word-of-mouth from satisfied
customers.
A charity producing a newsletter for its volunteers.
A law firm sending one of its staff to work in a
museum for one day every week.
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What is your worst ever experience of
marketing?
What was the product?
How was it promoted?How was it distributed? Where did you receive it?
How easy was it to access/obtain?
Did you complain? If so, what was their response?
Did you/would you repeat purchase?
How many people have you told about this?
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Chartered Institute of Marketing
Management process
Giving customers what they want
Identifies and anticipates customer requirements
Fulfils customers requirements profitably
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Marketing rules of thumbLife time valuehow much we spend over a period of time.
Economically, it is less costly to retain a customer than to find a new one.
Pareto 80/20 Rule1 unhappy customer tells 8 to 10 others of their negative experience
For every one complaint we receive there are tenothers we do not receive
Mass mail and media advertising is economically inefficient (high costs, low
response rates typically 2%)
(Gray and Byun, 2003)
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The Marketing ConceptTo anticipate customers needs and solve their
problems profitablyBlythe (2009, p.193)
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The Brand An important concept in marketing
A bundle of values associated with a product or service
A successful brand is an identifiable product, service, person or place, augmentedin such a way that the buyer or user perceives relevant, unique added values
which match their needs most closely. Furthermore, its success results from
being able to sustain those added values.
(DeChernatony and McDonald, 1998)
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BrandingThe process of developing a specific set of identifying marks, symbols and
perceptions to distinguish one product from competing products in the same
market.
Communicating the essence of your business.
(Blythe, 2009, p.163)
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The Marketing MixThe Marketing mix is the group of activities undertaken by
marketers to create and encourage exchanges with
customers and consumers.Jim Blythe (2009).
The basis of the concept is that marketers have various tools
at their disposal for encouraging exchanges: these tools can
be combined to create an overall mix that targets
consumers efficiently and effectively.
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The 7 Ps1. Product
2. Price
3. Place4. Promotion
5. People
6. Process7. Physical Evidence
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The 7 PsProduct- The product or service offered.Price- The cost to the customer adopting the product.
Place- The physical location where exchange takes place and the related
distribution network of getting the product or service to the location.
Promotion- The marketing communication package used to generateawareness of the product or service.
People - Human resources participating in marketing activities. Full-time
and Part-time.
Process- The activities involved in getting the product from supplier to the
customer. In service the activities such as ordering, receiving and returns.Physical Evidence - Related to the collection of evidence captured as a
result of the transaction taken place. Servicescapethe environment
where the service is assembled.
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1. The Product(or service)
The bundle of benefits that the seller offers and the
customer receives. The particular set of benefits on offer
will appeal to a specific group of customers
(Blythe,2009 pg 130)
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Products, products everywhere.
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INSTALLATION
DELIVERY&
CREDIT
WARRANTY
AFTER-SALE
SERVICE
AUGMENTED PRODUCT
ACTUAL PRODUCT
STYLING
QUALITY
BRAND
NAME
FEATURES
PACKAGING
ACTUAL PRODUCT
STYLING
QUALITY
BRAND
NAME
FEATURES
PACKAGING
CORE PRODUCT
CORE
BENEFIT
OR
SERVICE
Product levels
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Tangible (Actual)
Product
Style
MINI brand
Alloys
Aircon
Bonnet stripes
Colour
Upholstery
Core Product
Personal
transportation
Fashionable / iconic
Augmented
product
MINI TLC
MINI finance
MINI insurance
After-sales care
Warranty
MINI passport
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The Business Product lifecycleIllustrates the changes that may take place during the
time that a product is on the market.
(Jobber and Fahy)
Research & Development
Introduction
Growth
Maturity
Decline
Termination
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The Business Product lifecycle
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The Business Product lifecycleResearch & Development: exploring customers needs,
market niches, innovative ideas.
Introduction: new product, new market. Creating
awareness and product trials.
Growth: Increasing market share, developing brandpreference.
Maturity: Sales will eventually peak and stabilise,
similar/improved competitor products. Retain market
position through marketing communication, refreshing
product.Decline: Product demand fallsnew technology, change in
consumer trends. Little or no investment.
Termination: Production being terminated.
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The Business Product lifecycle
Try and think of examples of Products that are in:
GrowthMaturing
Declining
Terminated
Coca cola exercise.
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Globalisation
Globalization:Trend toward greater economic,
cultural, political and technological
interdependence among national institutions
and economies. The trend is a result of nationalboundaries becoming less relevant
(denationalization) and different entities
cooperating more actively across nationalboundaries (internationalization).
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I t ti l M k ti
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International Marketing
The export, franchising, joint venture or full direct
entry of a marketing organization into another
country.
Exporting a company's product into another location,
entry through a joint venture with another firm in
the target country.
Gl b l M k i
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Global Marketing
Global Marketing involves marketing activities by firms that do each of the following:
Standardize their marketing programs:Allow marketing efforts to seamlessly operate
across country borders. Standardization ensures products, promotions, price and
channel structure cooperate together to increase opportunity and effectively meet the
needs of global customers.
Coordinate across markets:Businesses eliminate cost inefficiencies and reduce
duplicate business efforts of their national/regional divisions.
Practice Global Integration:This involves playing a role in many different world
markets that are relevant to the business. Integrating firm operations means some
markets use the resources of others to achieve success and vice-versa. It also
involves balancing responses to competitive attacks in all areas.
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Why should I, or my business
care?
Marketing is the balance between customers and competitors. In
todays age, that balance exists on a MUCH bigger scale, hence the
increasing popularity of global marketing.
Think about the number of businesses, brands that have entered
the developing economies in the last 5-10 years
Th M k ti Mi i Gl b l C t t
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The Marketing Mix in a Global Context
PRODUCT
Specifications
Size/Packaging
Product Launch
Standardization/Adaptation
Waterfall/Sprinkle
POSITIONING
Target Segments
Value Proposition
High End/Low end
Same across the world/Country segment specific
BRAND
Name
Image
Advertising
Global Brands/Local Brands
Communication messages
Single/multiple agencies
PRICE Global Pricing/multiple
DISTRIBUTION
High End/Low end
Same across the world/Country segment specific
Target Segments
Value Proposition
SERVICES
Call Centres
After Sales
Centralized/Decentralized
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Product
Positioning
BrandnameCore Product
Ingredients
Advertising TV
ConceptExecution
Advertising Print
Concept
Execution
Sales Promotion
Pricing
Public Relations
Distribution
= Global standardization
Packaging
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Launch
In Country of
Origin
Launch in
Countries ,Region A
Launch in
Countries,
Region B
Launch in
Countries ,
Region C
Time
Launch
In Country of
Origin
Launch in
Countries ,
Region A
Launch in
Countries ,
Region B
Launch in
Countries ,
Region C
SprinkleWaterfall
Product Launch
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What Determines the Choice?
Market Segmentation Across Countries
Existence of a Significant Global segment
across Countries
Market Segmentation Within Countries
Existence Significant Differentiated within
countries
DemandSupply
Costs (Economies of Scale)
Competition
Companies Capabilities
Companies Identity andbrand integrity
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Cokes 232 Brands
South
Afr ica
Germany
Mexico
El Salvado r
Ecuador
ChileJapanArgent ina
Japan
India
China
Taiwan
Phi l ipp ines
Brazil
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Global Brands
Advantages Disadvantages
Con centrat ion of Resou rces
Targetted Impact
Cross border Learn ing
Motivat ion for Recru i tment
Qual ity Management
Over Standardization
Ignorance of level ofmarket development
Skimm ing the sur face
Rigid imp lementat ion