mrk session

8/12/2019 Mrk Session

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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

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