Global Marketing PDF

Global Marketing Content of lecture 1. Process of marketing analysis 2. Global marketing strategies 3. Designing the global marketing mix (4P, 4C, Marketing 4.0) 1. Process of marketing analysis Process of marketing analysis 1. Market selection 2. Market segmentation...

Global Marketing Content of lecture 1. Process of marketing analysis 2. Global marketing strategies 3. Designing the global marketing mix (4P, 4C, Marketing 4.0) 1. Process of marketing analysis Process of marketing analysis 1. Market selection 2. Market segmentation 3. Targeting 4. Positioning Process of marketing analysis Market segmentation - a conceptual and analytic process critical for developing and implementing efective market strategies - in this process company group actual and potential customers in a market info various market segment - finally company choose which segments to target for effort Process of marketing analysis Market segmentation Criteria for good segments: identifiable, accessible, measurable, stable The market segmentation process identifies group of customers, when segmentation is done well, customers within a segment have similar needs profile. The market segmentation process may combine creativity and sophisticated data analysis Process of marketing analysis How many market segments are enough? Large number of segments - Managing many segments is a complex challenge – company can earn high customer satisfaction by targeting specialized groups. But product development, marketing costs are high and economy of scale are few. Small number of segments - When company develops fewer segments – customer needs are less granular and more diffuse, cost are also lower and segment management is less difficult. Process of marketing analysis Targeting market segments For each target market segment, the firm should develop a unique offer precisely tailored to needs profile of customers in that segment. Smart targeting helps companies to be more efficient and effective by focusing on the segments that they can satisfy best and most profitably. Process of marketing analysis Targeting market segments „Ad hoc“ – small irregular shippers or occasional buyers „Regular“ – high-volume shippers not requiring supply chain solutions „Advantage“ – shippers that need and want a supply-chain solutions Process of marketing analysis Positioning of product and brand The way the product is defined by consumers on important attributes – the place the product occupies in cunsomers´minds relative to competing product. Process of marketing analysis Position is differentiation from competitors (What do you offer? What do you do?)  How branding works? Brand Apple Disney Ray Ban Tiffany Tesco Dasani Zvolenský  Active creative thinking Brand Imagination Description Apple Disney Ray Ban Tiffany Tesco Dasani Zvolenský Process of marketing analysis How to Create a Brand Positioning Statement Target Customer: What is a concise summary of the attitudinal and demographic description of the target group of customers your brand is attempting to appeal to and attract? Market Definition: What category is your brand competing in and in what context does your brand have relevance to your customers? Brand Promise: What is the most compelling (emotional/rational) benefit to your target customers that your brand can own relative to your competition? Reason to Believe: What is the most compelling evidence that your brand delivers on its brand promise? Process of marketing analysis from Brand Positioning Statement to Tagline Mercedes-Benz: Engineered like no other car in the world BMW: The ultimate driving machine Southwest Airlines: The short-haul, no-frills, and low-priced airline L’Oreal: Because you’re worth it. Walmart: Always low prices. Always. Nike: Just do it Volvo: For life. Critical thinking and dicussion What are the main criteria companies use to define and select their target audience in a competitive market? How can a company effectively adapt its targeting strategies when entering a new international market? 2. Global marketing strategies Global marketing strategies global marketing The company´s commitment to coordinate its marketing activities across national boundaries in order to find and satisfy global consumer needs better than the competition does. Global marketing strategies global marketing – how to do it? GLOBAL LOCAL Standardization versus Differentiation/Adaptation Global marketing strategies Factors favouring standardization (globalization) Economies of scale in R&D, production and marketing Global competition Convergence of tastes and consumer needs Centralized management of international operations A standardized concept is used by competitors High degree of transferability of competitive advantages from market to market Global marketing strategies Factors favouring adaptation/differentiation (localization) Local environment-induced adaptation Local competition Variation in consumer needs Fragmented and decentralized management with independent country subsidiaries An adapted concept is used by competitors Low degree of transferability by competitive advantages from market to market Global marketing strategies Global marketing strategies GLOCALIZATION The development and selling of products and services intended for the global market, but adapted to suit local culture and behavior. Think globally, act locally. A key element of glocalization is knowledge management, which continuous learning from experiences. Discussion How does a glocal marketing strategy balance the need for global consistency with local customization, and can you provide an example of a brand that has successfully implemented this approach? (with a direct focus on marketing – promotion or commercial) Starbucks Logo 3. Designing the global marketing programme Designing global marketing mix Traditional 4P marketing mix Product Place Price Promotion + Kotler: Public opinion and Politics + Booms and Bitner: Participants, Physical evidence, Process Designing global marketing mix Product desicions: Variety Quality Design Package Brand Designing global marketing mix Price Retail Discount Bonuses Payment plans Credit terms Designing global marketing mix Place Distribution Delivery Retail locations Logistics Designing global marketing mix Promotion Advertising Personal selling Sales promotion PR Sponsorship New techniques – social networks, internet, viral videos Designing global marketing mix Extended marketing mix for services + 2P People and Process Extended marketing mix for tourism + 4P People Packaging Programming Partnership Designing global marketing mix Partnership in tourism – clusters Designing global marketing mix Alternate marketing mix – 4C (customer-oriented model) Designing global marketing mix New view on Traditional 4P marketing mix Product - providing customer value Place – delivering customer value Price – getting paid for customer value Promotion – communicating customer value Product and product decisions Product and product decisions - A product is any good, service or idea, that can be offered to the market to satisfy a want or a need - Can be tangible or intangible Product features: - Technical and functional - Esthetic - Symbolic Product and product decisions Product and product decisions Factors affecting product policy Ambient factors – law, customer habits, social-cultural traits, competitors, level of economic development, customers expectations Company factors – corporate strategy, corporate philosophy, costs, profitability, budgeting, limited resources Product factors – technical features, quality, design, price, support services, packaging, life cycle of product, durability Product and product decisions Product innovation The development and market introduction of a new, redesigned or substantially improved good and services. Examples of product innovation may include: a new product´s invention, technical and quality improvements made to a product, inclusion of a new components, materials or desirable function into an existing products Product and product decisions Product and product decisions Designing global marketing mix Product elimination Withdrawal of a product from the normal market place. Why products fail? 50% of new products fail Product and product decisions Why products fail? Failure to understand consumers needs and wants Targeting the wrong market Incorrect pricing or positioning Weak team and internal capabilities Wrong timing Quick response of competitors Inappropriate advertising Why produts fail? HBR: https://hbr.org/2011/04/why-most-product-launches-fail Product and product decisions 1. Brand 2. Quality 3. Packaging 4. Design 5. Support services Designing global marketing mix 1. BRAND a set of marketing and communication methods that help to distinguish a company from competitors and create a lasting impression in the minds of customers name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers Designing global marketing mix Designing global marketing mix A strong brand helps: build customer loyalty promote recognition connect company with customers emotionally provide business value create clarity and stay focused set you apart from the competition provide motivation and direction for your staff customers know what to expect Designing global marketing mix Global brand - Simplicity - Easy to remember - Easy to pronounce - Evoke pleasant associations Designing global marketing mix Logo as a part of a brand - Graphic mark or symbol - Professional logo is timeless, easily recognizable, unique, visually attractive, unforgettable - Can even be a asset for company Designing global marketing mix Designing global marketing mix Designing global marketing mix Designing global marketing mix Designing global marketing mix Designing global marketing mix Designing global marketing mix Designing global marketing mix When logo doesn´t work........... Designing global marketing mix Product and product decisions 1. Brand 2. Quality 3. Packaging 4. Design 5. Support services Designing global marketing mix PACKAGING and DESIGN Packaging is the technology of enclosing or protecting products for distribution, storage, sale, and use. Role of packaging is broadening and may include functions such as to attract attention, assist in promotion, provide machine identification (barcodes, etc.), impart essential or additional information, and help in utilization. Design is about progress. It is the conceptualization and creation of new things: ideas, information, objects, products and services. Designing global marketing mix Designing global marketing mix Designing global marketing mix Designing global marketing mix Designing global marketing mix Designing global marketing mix Price – international pricing strategies Skimming (high price) Market pricing (based on competitive prices) Penetration pricing (low price) Designing global marketing mix Distribution decisions: Decisions concerning structure of the channel Managing and controlling distribution channel Managing logistic (physical movement of goods through the channel systems: order handling, transportation, inventory, storage) Designing global marketing mix Promotion strategies: - Advertising - Public relations - Sales promotion - Direct marketing - Personal selling - Online marketing (viral marketing, social networking) New trends in marketing What is an impact of online world and technologies on the marketing? What kind of trends, brand new marketing tools can we find today? Marketing 4.0 “Marketing 4.0 is a marketing approach that combines online and offline interaction between companies and customers. In the digital economy, digital interaction alone is not sufficient. In fact, in an increasingly online world, offline touch represents a strong differentiation. „Marketing 4.0 also blends style with substance. While it is imperative for brands to be more flexible and adaptive due to rapid technological trends, their authentic characters are more important than ever.” - P. Kotler Case studies Thank you for you attention. Questions?