UNIVERSITY OF GUYANA MARKETING 2204 ……INTERNATIONAL

MARKETING STRATEGIES

ERIC M. PHILLIPS (MBA,

CTP, BSc. Eng.)

APRIL 15, 2013

THE 5 CORE ELEMENTS OF THE MARKETING CONCEPT

THE 5 CORE ELEMENTS: EXPANDED

INTERNATIONAL MARKETING

International Marketing is the performance of business activities

designed to plan, price, promote, and direct the flow of a

company’s goods & services to consumers or users in more

than one nation for

a profit.

STRATEGIC PLANNING AND THE

MARKETING PROCESS

The Marketing Environment and Competitor Analysis

SWOT analysis

PEST analysis

Five forces analysis

SWOT ANALYSIS?

Factors Influencing Company Marketing Strategy

TARGET

CONSUMERS

Product

Price

Promotion

Place Suppliers

Marketing

Intermediaries

Publics

Competitors

Economic /

demographic

environment

Technological-

natural

environment

Social-

cultural

environment

Political-

legal

environment

Strategic Planning

The process of developing and maintaining a strategic

fit between the organization’s goals and capabilities

and its changing marketing opportunities.

It involves defining a clear company mission, setting

supporting objectives, designing a sound business

portfolio, and coordinating functional strategies.

“If you fail to plan, you are planning to fail.”

The annual and long-range plans deal with the

company’s current businesses and how to keep them

going.

What is a Mission?

Mission statement are enduring statements of purpose

that distinguish one business from other similar firms.

A clear mission statement acts as an “invisible hand” that

guides people in the organization.

It identifies the scope of a firm’s operation in product and

market terms.

It promotes a sense of shared expectations in employees

and communicates a public image to important

stakeholder groups in the company’s task environment.

Objectives Vs Goals

Objectives are the end results of planned activity.

They states what is to be accomplished by when and

should be quantified if possible.

The achievement of corporate objectives should result in

the fulfillment of the corporation’s mission.

In contrast to objectives, a goal is an open-ended

statement of what one wishes to accomplish with no

quantification of what is to be achieved and no time frame

for completion.

Designing the Business Portfolio

Business portfolio – the collection of businesses and products that make up the company.

Portfolio analysis – a tool by which management identifies and evaluates the various businesses making up the company.

SBU – a unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses.

The company must

1) Analyze its current business portfolio and decide which businesses should receive more, less, or no investment.

2) Develop growth strategies for adding new products or businesses to the portfolio.

The Boston Consulting Group Approach

A portfolio-planning method that evaluate a company’s SBUs in term of their

market growth rate and relative market share.

SBUs are classified as stars, cash cows, question marks, or dogs.

One of the four strategies can be pursued for each SBUs.

Invest more in the SBU in order to build its share.

Invest just enough to hold the SBU’s share at its current level.

It can harvest the SBU, milking its short-term cash flow regardless of the

long-term effect.

The company can divest the SBU by selling it or phasing it out and using

the resources elsewhere.

THE BOSTON MATRIX

Problem Children Stars

Dogs Cash Cows

Market Growth

Market Share

High

Low High

THE BOSTON MATRIX

Problem Child:

- Products having a low market share in a

high growth market

- Need money spent to develop them

- May produce negative cash flow

- Potential for the future?

Problem children – worth spending

good money on?

THE BOSTON MATRIX

Dogs: – Products in a low growth market

– Have low or declining market share

(decline stage of PLC)

– Associated with negative cash flow

– May require large sums of money

to support

Is your product starting to

embarrass your company?

THE 3 STEPS IN MARKET SEGMENTATION, TARGETING, AND POSITIONING

1. Identify

segmentation

variables and

segment the

market

2. Develop

profiles of

resulting

segments

Market Segmentation

3. Evaluate

attractiveness

of each

segment

4. Select the

target

segment(s)

Market Targeting

5. Identify possible

positioning concepts for each target

segment

6. Select, develop, and communicate

the chosen positioning

concept

Market Positioning

SEGMENTATION, TARGETING AND POSITIONING

19

STEPS IN MARKET SEGMENTATION, TARGETING, AND POSITIONING

1.Identify bases for segmenting

the market

2. Develop profiles of

resulting segments

3. Develop measures of

Segment attractiveness

4. Select the target

segments

5. Develop positioning for each

Target segment

6. Develop marketing mix

for each target segment

Market Segmentation

Market Targeting

Market Positioning

BASES FOR SEGMENTING CONSUMER MARKETS

Occasions, Benefits, Uses, or Attitudes

Behavioral

Geographic

Region, City or Metro Size, Density, Climate,

Nations, counties, villages

Demographic

Age, Gender, Family size , Life cycle, Race, Occupation, Income , Religion, Education, Nationality.

Lifestyle or Personality

Psychographic

Measurable

Accessible

Substantial

Differential

• Segments must be large or profitable enough to serve.

• Segments can be effectively reached and served.

Actionable

• Size, purchasing power, profiles of segments can be measured.

• Segments must respond differently to different

marketing mix elements & actions.

• Must be able to attract and serve the segments.

Effective Segmentation

FIVE PATTERNS OF TARGET MARKET SELECTION

Single-segment concentration

Product specialization

M1 M2 M3

P1

P2

P3

Selective specialization M1 M2 M3

P1

P2

P3

M1 M2 M3

Full market coverage

P1

P2

P3

Market specialization

M1 M2 M3

P1

P2

P3

P1

P2

P3

M1 M2 M3

P = Product M = Market

7 - 23

Porsche is positioned on the basis of

performance and freedom.

PORSHE VERSUS LEXUS

DIFFERENTIATION AND POSITIONING

Positioning maps

show consumer

perceptions of

their brands

versus competing

products on

important buying

dimensions

POSITIONING?

PORTER’S 3 GENERIC STRATEGIES?

Boston Consulting Group

Developing Growth Strategies

Existing New

products products

Existing

markets

New

markets

Market

Penetration

Market

Development Diversification

Product

Development

PRODUCT PORTFOLIO MATRIX

ANSOFF MATRIX

GOING GLOBAL

7

The International Marketing Mix

Political/legal forces

Economic forces

1

2

Environmental uncontrollables country market A

Environmental uncontrollables country market B

Environmental uncontrollables country market C

Competitive structure Competitive

Forces

Level of Technology

Price Product

Promotion Channels of

distribution

Geography and

Infrastructure

Foreign environment (uncontrollable)

Structure of distribution

Economic climate

Cultural forces

3

4 5

6

7 Political/

legal forces

Domestic environment (uncontrollable)

(controllable)

MARKETING MIX ADAPTATION

In India, McDonald’s serves chicken, fish, and vegetable burgers, and the

Maharaja Mac—two all-mutton patties, special sauce, lettuce, cheese, pickles,

onions, on a sesame-seed bun.

What is product management?

Who does product management?

What do product managers do?

.