Summary of International, Global, and Local Marketing Concepts PDF

Theme 1 International, Global and Local Marketing International Marketing 1. Definition: o Focuses on tailoring marketing strategies to specific national markets. o Strategies and tactics are adapted to fit the unique cultural, linguistic, and market dyna...

Theme 1 International, Global and Local Marketing International Marketing 1. Definition: o Focuses on tailoring marketing strategies to specific national markets. o Strategies and tactics are adapted to fit the unique cultural, linguistic, and market dynamics of each country. 2. Key Features: o High degree of localization. o Marketing activities are often decentralized and implemented by local teams. o Relies on knowledge of specific regional or national marketers to adjust campaigns accordingly. Global Marketing 1. Definition: o Treats the entire world as a single market. o Marketing efforts, products, and services are standardized across all regions to achieve consistency. 2. Key Features: o Marketing messages are created centrally and disseminated globally with minimal variation. o Particularly effective for products/services with universal appeal. o Reduces costs through economies of scale. Differences Between Global and International Marketing Approach:  o Global Marketing: Unified strategy for the entire world, with little to no adaptation. o International Marketing: Adapted strategies for different countries, recognizing unique market characteristics. Coordination: o Global Marketing: Centralized. o International Marketing: Decentralized. Local Marketing 1. Definition: o Focuses on addressing the needs of customers within a specific location or community. 2. Key Features: o High customization to meet local preferences. o Often emphasizes cultural relevance in branding, messaging, and product offerings. o Example: McDonald’s offering localized menus in different regions. Theme 2. Glocalization Definition and Concept 1. Glocalization combines the words "globalization" and "localization." o It represents the strategy of "Think Global, Act Local", where businesses adopt a global strategy while allowing for local adaptations to meet the needs of specific markets 2. Framework:  o Glocalization focuses on standardized global strategies with flexibility for local customization. o This approach allows for the transfer of knowledge between markets while adapting to cultural and market-specific differences. Key Examples 1. Persil Detergent: o The same core product is marketed differently in various regions: ▪ "Persil Abaya" for the Gulf countries, targeting traditional black clothing. ▪ "Persil Black" in DACH (Germany, Austria, Switzerland) regions for dark clothing care 2. McDonald’s Localized Menus: o McDonald’s adapts its menu to align with local cultural preferences: ▪ E.g., McAloo Tikki Burger in India and Bulgogi Burger in South Korea. o Core branding remains consistent globally while accommodating regional tastes Advantages of Glocalization 1. Efficiency with Local Flexibility: o Achieves cost savings through standardization while ensuring relevance through customization. 2. Market Responsiveness: o Enhances customer satisfaction and market penetration by adapting to local tastes and cultural needs. 3. Knowledge Transfer: o Allows businesses to learn from one market and apply insights to other markets for improvement【122:0†source】【122:1†source】.  Why do companies do Glocalization? Global Identity and Local Adaptation: Maintains a global brand identity while addressing regional cultures and needs. Customer Satisfaction and Market Expansion: Localization enhances customer loyalty and enables effective entry into new markets. Cost Savings and Efficiency: Standardization reduces costs while local adaptation ensures market relevance. Innovation and Knowledge Transfer: Applies successful strategies and technologies across markets to drive continuous innovation. Theme 3. Jagermeister Possible Exam Content Summary in English Jägermeister Case Study: Motives and Approach to Internationalization Product Origins: Developed in 1934 by Curt Mast in Germany, Jägermeister is a herbal liqueur made from 56 herbs, blossoms, roots, and fruits. Global Expansion: Starting from the 1960s, Jägermeister expanded exports to Scandinavia, Austria, the Benelux region, and the US. By 2017, it operated in over 135 countries, with 80% of sales outside Germany. Top Markets: The US remains the largest market, where Jägermeister is the top- selling imported liqueur. Strategies for International Growth 1. Product and Branding o Maintains consistent green bottle and logo across markets to emphasize brand identity. o Adapted brand perception based on local preferences (e.g., digestif in Europe vs. cocktail shot in the US).  2. Sponsorship-Based Marketing o Focus on experiential marketing and sponsorship over mass advertising. o In Europe, leveraged motorsports and football sponsorships for brand visibility. o In the UK, aligned with rock music events and festivals. o In the US, gained popularity through partnerships with heavy metal bands and the Jägermeister Music Tour. 3. Localized Adaptation o Collaborated with local distributors to tailor marketing strategies to cultural and market-specific conditions. o Expanded target demographics to include older consumers alongside its core 20–30-year-old audience. Key Takeaway: Jägermeister successfully navigated international markets through a combination of brand consistency, cultural adaptation, and targeted experiential marketing efforts. Theme 4. Apple, Dyson Apple Case Summary Apple’s success is discussed in relation to international competitiveness and customer value proposition. The case highlights the following aspects: 1. Ecosystem Integration: Seamless integration between iPhone, MacBook, iPad, and Apple Watch creates a cohesive ecosystem that is hard to replicate. 2. iOS Stability: Apple’s proprietary operating system offers unmatched optimization, regular updates, and security. 3. Design and Quality: Premium materials and sleek designs enhance the brand image and appeal.  4. Privacy and Security: Advanced features like Face ID and end-to-end encryption ensure strong data protection. 5. Customer Loyalty: High customer satisfaction and loyalty drive frequent upgrades to the latest products. Related Concepts International Competitiveness: Apple leverages brand loyalty and technological superiority to maintain a competitive edge globally. Customer Value Creation: Apple delivers exceptional value through ease of use, security, and design differentiation. Dyson Case Summary Dyson’s case is linked to innovation and customer-perceived value, focusing on the following: 1. Innovative Technology: Cyclonic separation technology enables powerful suction and efficient dust removal. 2. Cordless Convenience: Dyson’s V-series cordless vacuums offer strong performance with lightweight, hassle-free designs. 3. Premium Design: Dyson combines high performance with stylish aesthetics, appealing to customers seeking both utility and elegance. 4. Brand Reputation: Consistent investment in R&D and innovation has established Dyson as a trusted and respected brand. Related Concepts Innovation: Dyson’s advancements in technology create superior products and open new market opportunities. Customer Value Proposition: Dyson delivers functional, economic, and emotional value through its premium and innovative products. Summary Both cases demonstrate how brands achieve international competitiveness by focusing on technological innovation and customer-centric value propositions. Apple excels through ecosystem integration and data security. Dyson succeeds with innovative technologies and premium design. Theme 4. Why Would a Company Go International? Key Takeaway for the Exam A company goes international to: 1. Expand market reach and increase revenue potential. 2. Diversify risks and ensure stable growth. 3. Access resources and reduce costs. 4. Gain competitive advantages in the global marketplace. 5. Drive innovation by learning from diverse consumer needs. Explain the definition of the Value Chain and how it helps secure international competitiveness. o Answer Example: The Value Chain identifies areas where companies can optimize processes to deliver higher customer value, thus improving competitiveness in global markets. 2. Discuss the impact of CSR on the Value Chain with examples. o Answer Example: CSR initiatives enhance brand trust and align corporate strategies with social goals. For instance, Unilever’s hygiene campaigns improved public health while strengthening brand loyalty.  3. Using Apple and Dyson as examples, discuss the significance of the Value Chain. o Answer Example: Apple uses its global supply chain to optimize costs and ensure high-quality products, while Dyson leverages technological innovation to enhance customer satisfaction and maintain its competitive edge. Theme 5. Blue Ocean Strategy 1. Definition of Blue Ocean Strategy Definition: Blue Ocean Strategy refers to creating uncontested market spaces (Blue Oceans) where competition is irrelevant, instead of competing in saturated markets (Red Oceans). It seeks to achieve both differentiation and cost reduction simultaneously. Key Points: o Breaks the traditional value-cost trade-off. o Creates new demand by establishing markets where competition does not exist【5†source】. 2. Core Principles of Blue Ocean Strategy 1. Reconstruct Market Boundaries: o Look beyond existing industries, strategic groups, buyer groups, and product/service offerings to identify new opportunities. 2. Focus on the Big Picture, Not the Numbers: o Use a Strategy Canvas to visualize the current market and identify new market spaces. 3. Reach Beyond Existing Demand:  o Target non-customers to expand the market. 4. Get the Strategic Sequence Right: o Ensure high product utility, strategic pricing, cost structure, and reduced market entry barriers【5†source】. 3. Key Elements of Blue Ocean Strategy Value Innovation: o The cornerstone of Blue Ocean Strategy, simultaneously pursuing differentiation and cost savings. Uncontested Market Space: o Creating markets that make existing competition irrelevant. Execution Principles: o Products must offer exceptional utility, and pricing should be accessible to customers while maintaining profitability【5†source】. 4. Successful Examples of Blue Ocean Strategy 1. Cirque du Soleil: o Created a new form of entertainment by combining elements of traditional circus and theater. o Differentiated itself by eliminating animal acts and focusing on premium performances. 2. Nintendo Wii: o Shifted focus from hardcore gamers to non-gamers by offering family- friendly motion-controlled gaming. o Created a new market with intuitive controls and affordable pricing 【5†source】. 5. Advantages and Disadvantages of Blue Ocean Strategy Advantages: Avoids competition by creating monopolistic markets. Expands the customer base and generates new demand. Enables innovation without being constrained by existing industry norms. Disadvantages: High initial investment and risk in creating new markets. Competitors may quickly imitate, making it difficult to sustain differentiation. 6. Potential Exam Questions 1. Define Blue Ocean Strategy and explain its core principles. o Example Answer: Blue Ocean Strategy is about creating uncontested markets to achieve differentiation and cost reduction simultaneously. Core principles include reconstructing market boundaries, targeting non- customers, and aligning product utility and pricing. 2. Explain the concept of Blue Ocean Strategy using Cirque du Soleil or Nintendo Wii as an example. o Example Answer: Cirque du Soleil eliminated traditional circus elements like animal acts and incorporated theatrical storytelling to create a new market space. This demonstrates how Blue Ocean Strategy generates demand in uncontested markets. 3. Discuss the advantages and disadvantages of Blue Ocean Strategy. o Example Answer: Advantages include avoiding competition and expanding markets. However, challenges include high initial costs and the risk of imitation by competitors. 7. Exam Preparation Summary Key Concepts:  o Blue Ocean vs. Red Ocean. o Value Innovation. o Targeting Non-Customers. Essential Examples: o Cirque du Soleil: Redefined entertainment through theatrical and premium performances. o Nintendo Wii: Created new demand with intuitive controls and a focus on non-gamers. Exam Strategy: o Structure your answers with: Definition → Principles → Examples → Pros and Cons. o Tie theory to examples to provide clear, specific responses for maximum points. Module 2 Key Exam Content on Blue Ocean Strategy Below is a detailed summary of Blue Ocean Strategy based on the materials, focusing on likely exam content. 1. Definition of Blue Ocean Strategy Definition: Blue Ocean Strategy refers to creating uncontested market spaces (Blue Oceans) where competition is irrelevant, instead of competing in saturated markets (Red Oceans). It seeks to achieve both differentiation and cost reduction simultaneously. Key Points: o Breaks the traditional value-cost trade-off. o Creates new demand by establishing markets where competition does not exist【5†source】. 2. Core Principles of Blue Ocean Strategy 1. Reconstruct Market Boundaries: o Look beyond existing industries, strategic groups, buyer groups, and product/service offerings to identify new opportunities. 2. Focus on the Big Picture, Not the Numbers: o Use a Strategy Canvas to visualize the current market and identify new market spaces. 3. Reach Beyond Existing Demand: o Target non-customers to expand the market. 4. Get the Strategic Sequence Right: o Ensure high product utility, strategic pricing, cost structure, and reduced market entry barriers【5†source】. 3. Key Elements of Blue Ocean Strategy Value Innovation: o The cornerstone of Blue Ocean Strategy, simultaneously pursuing differentiation and cost savings. Uncontested Market Space: o Creating markets that make existing competition irrelevant. Execution Principles: o Products must offer exceptional utility, and pricing should be accessible to customers while maintaining profitability【5†source】. 4. Successful Examples of Blue Ocean Strategy 1. Cirque du Soleil: o Created a new form of entertainment by combining elements of traditional circus and theater. o Differentiated itself by eliminating animal acts and focusing on premium performances. 2. Nintendo Wii: o Shifted focus from hardcore gamers to non-gamers by offering family- friendly motion-controlled gaming. o Created a new market with intuitive controls and affordable pricing 【5†source】. 5. Advantages and Disadvantages of Blue Ocean Strategy Advantages: Avoids competition by creating monopolistic markets. Expands the customer base and generates new demand.  Enables innovation without being constrained by existing industry norms. Disadvantages: High initial investment and risk in creating new markets. Competitors may quickly imitate, making it difficult to sustain differentiation. 6. Potential Exam Questions 1. Define Blue Ocean Strategy and explain its core principles. o Example Answer: Blue Ocean Strategy is about creating uncontested markets to achieve differentiation and cost reduction simultaneously. Core principles include reconstructing market boundaries, targeting non- customers, and aligning product utility and pricing. 2. Explain the concept of Blue Ocean Strategy using Cirque du Soleil or Nintendo Wii as an example. o Example Answer: Cirque du Soleil eliminated traditional circus elements like animal acts and incorporated theatrical storytelling to create a new market space. This demonstrates how Blue Ocean Strategy generates demand in uncontested markets. 3. Discuss the advantages and disadvantages of Blue Ocean Strategy. o Example Answer: Advantages include avoiding competition and expanding markets. However, challenges include high initial costs and the risk of imitation by competitors. 7. Exam Preparation Summary Key Concepts: o Blue Ocean vs. Red Ocean. o Value Innovation. o Targeting Non-Customers. Essential Examples:  o Cirque du Soleil: Redefined entertainment through theatrical and premium performances. o Nintendo Wii: Created new demand with intuitive controls and a focus on non-gamers. Exam Strategy: o Structure your answers with: Definition → Principles → Examples → Pros and Cons. o Tie theory to examples to provide clear, specific responses for maximum points. Key Exam Content: Decision on Which Market Here’s a concise selection of the most likely exam-relevant points based on the provided content: 1. Importance of International Market Selection Choosing the right international market is critical as it relies on a company’s resources, capabilities, and market potential. Key Point: Poor market selection can lead to wasted resources and failure, emphasizing the need for a systematic approach. 2. International Market Selection Process Step 1: Segmentation Objective: Segment global markets to define target markets. Criteria: o Measurability: Can the size and purchasing power of the segment be measured? o Accessibility: Can the company effectively reach the segment?  o Substantiality: Is the segment large and profitable enough? o Actionability: Can the company effectively serve the segment with its resources? Step 2: Market Evaluation and Screening 1. Preliminary Screening: o Evaluate external factors like: ▪ Population size. ▪ GDP. ▪ Internet penetration. ▪ Smartphone adoption. ▪ Political stability (e.g., BERI Index). 2. Fine-Grained Screening: o Assess market attractiveness based on the company’s competencies and unique capabilities using tools like the Market Attractiveness/Competitive Strength Matrix. Step 3: Microsegmentation Analyze smaller segments within the target market using consumer behavior, psychological factors, and purchase motivations. Example: Segmenting Western Europe markets by cultural preferences. Step 4: Market Prioritization Rank markets based on market attractiveness and company competitiveness. Consider entry timing and sequence: o Waterfall Strategy: Gradual entry into one market followed by expansion. o Sprinkler Strategy: Simultaneous entry into multiple markets for faster global presence. 3. Factors Influencing Market Choice Political and Economic Environment: Political stability, trade barriers, tax policies, and legal regulations. Example: Free trade agreements (e.g., NAFTA, EU) make operations easier for businesses. Sociocultural Environment: Demographics, education levels, and cultural differences. Example: Japanese consumers prefer traditional breakfast products, which requires market-specific product adaptation. Technological Environment: ICT investment levels and R&D intensity in the target market. Environmental and Legal Factors: Eco-friendly consumer behavior, recycling regulations, and labeling requirements. 4. Exam Questions 1. Explain the steps in the International Market Selection Process. o Example Answer: The process includes segmentation, preliminary screening, fine-grained screening, and microsegmentation. These steps assess market attractiveness and competitive strength to prioritize market entry. 2. What factors influence the choice of an international market? o Example Answer: Key factors include political stability, economic potential (e.g., GDP), cultural preferences, technological readiness, and legal regulations. 3. Compare Waterfall and Sprinkler strategies in market entry. o Example Answer: The Waterfall Strategy involves gradual entry into one market at a time, allowing companies to gather experience before expanding. The Sprinkler Strategy, on the other hand, involves entering multiple markets simultaneously for faster global reach. 5. Relevant Case Studies Burberry: Focused on BRICS markets (Brazil, Russia, India, China, South Africa) by operating independent stores and targeting luxury product sales. Jägermeister: Started with smaller markets like Scandinavia and Austria before expanding globally. Apple: Entered global markets by leveraging technology trends and consumer preferences. Exam Prep Summary Master the 4-step market selection process and its practical applications. Understand the impact of political, economic, sociocultural, and technological factors on market evaluation. Be able to clearly explain and compare Waterfall and Sprinkler strategies. Use case studies like Burberry, Jägermeister, and Apple to connect theory with real-world applications. By focusing on these points, you’ll be well-prepared to address any exam question related to international market selection. Module 3 Exam Preparation Based on Entry Strategies and Timing of Entry Here’s a detailed summary addressing the questions based on the materials. Q1. How to Enter? (3 Different Multiple Entry Models) 1. Exporting Definition: Selling products directly to a foreign market without significant local presence. Types: o Direct Exporting: Directly to customers or distributors in the foreign market. o Indirect Exporting: Through intermediaries like export management companies or agents. Advantages: o Low initial investment and risk. o Simple way to test market demand. Disadvantages: o Limited control over marketing and customer relationships. o High transportation and tariff costs. 2. Licensing/Franchising Definition: Granting rights to local companies to produce or sell the product under the company’s brand or technology. Advantages: o Low cost and low risk for market entry. o Useful when local knowledge and networks are required. Disadvantages:  o Loss of control over quality and operations. o Risk of creating future competitors. 3. Foreign Direct Investment (FDI) Definition: Establishing a physical presence in the foreign market, either through a joint venture or a wholly owned subsidiary. Advantages: o Full control over operations and customer relationships. o Direct access to the market and customer insights. Disadvantages: o High costs and risks. o Requires strong local knowledge and management expertise. Q2. Why Does an Owned Subsidiary Carry Higher Risk? Higher Risk Factors: 1. High Initial Investment: Setting up a subsidiary involves significant capital for infrastructure, hiring, and compliance. 2. Market Uncertainty: Unfamiliarity with local market dynamics, customer preferences, and competition increases risk. 3. Political and Legal Risks: Regulatory changes, political instability, or unfavorable tax policies may affect operations. 4. Operational Complexity: Managing operations, compliance, and local talent requires extensive resources. Advantages of an Owned Subsidiary: 1. Full Control: Offers complete control over branding, operations, and marketing strategies. 2. Customer Proximity: Direct interaction with customers improves understanding  of local needs. 3. Market Commitment: Demonstrates long-term commitment to the market, which can build trust with customers and partners. 4. Profit Retention: All profits remain within the company without sharing with local partners. Q3. Starting with a Distributor Definition of a Distributor: A distributor acts as an intermediary, purchasing goods from the company and selling them within the local market. Why Start with a Distributor?: o Low Risk: No need for direct investment in local infrastructure. o Market Knowledge: Distributors provide local expertise, networks, and customer relationships. o Quick Market Access: Reduces time to market compared to setting up a subsidiary. Limitations: o Loss of direct control over pricing and customer interactions. o Risk of dependency on the distributor’s performance. Q4. How Do You Decide When to Enter? (Timing of Entry) Entry Timing Strategies: 1. First-Mover Advantage: o Definition: Entering a market before competitors. o Advantages: ▪ Establish brand loyalty and market dominance. ▪ Capture untapped demand.  o Disadvantages: ▪ Higher risk due to uncertainty about market conditions. ▪ Significant costs for market creation and customer education. 2. Follower Strategy: o Definition: Entering after competitors have established the market. o Advantages: ▪ Lower risk as market potential and challenges are already understood. ▪ Can learn from competitors’ successes and failures. o Disadvantages: ▪ May face higher competition. ▪ Difficulty in gaining market share if competitors are well- established. Q5. Factors Influencing Timing of Entry Key Factors: 1. Market Readiness: o Availability of infrastructure, customer demand, and favorable regulations. o Example: High smartphone penetration may favor tech companies entering a market. 2. Competitive Landscape: o First-mover advantage vs. following competitors to minimize risks. 3. Economic Environment: o Favorable GDP growth, rising middle-class income, and stable currency. 4. Cultural Fit: o Understanding local customer behavior and preferences.  5. Political and Legal Stability: o Reduced risk in stable, transparent regulatory environments. Exam Prep Summary 1. Entry Models: o Exporting, Licensing/Franchising, and FDI with a focus on their advantages and disadvantages. 2. Owned Subsidiary: o High risk due to costs and complexity, but offers control and profit retention. 3. Starting with a Distributor: o Low-risk entry strategy leveraging local expertise and networks. 4. Timing of Entry: o First-mover vs. follower strategies, weighing risks and benefits. 5. Factors for Timing: o Consider market readiness, competition, economy, cultural fit, and political stability. This framework ensures a structured and well-prepared response to exam questions. Module 4 Exam Preparation: Key Topics Based on Provided Questions Here is a structured response to the topics emphasized by the professor, with answers based solely on relevant material. 1. Brand Decisions Why Is Branding Important? Definition of Branding: Branding is the process of creating a unique identity for a product or company to differentiate it from competitors. Importance: o Builds customer loyalty and trust. o Creates emotional connections with customers. o Enhances market recognition and competitive advantage. o Example: Apple uses branding to create a premium image and foster customer loyalty. Two Sides of Branding: 1. Functional Benefits: The tangible, performance-based value a product provides. o Example: A smartphone’s battery life or camera quality. 2. Emotional Benefits: The feelings or psychological satisfaction a brand evokes. o Example: Owning a luxury car reflects status and pride. 2. Communication Decision Traditional Media vs. Social Media: 1. Traditional Media: o Includes TV, radio, newspapers, and magazines. o Advantages:  ▪ Broad reach and credibility. ▪ Effective for targeting older demographics. o Disadvantages: ▪ Expensive and difficult to measure impact (e.g., TV ads). ▪ Limited interactivity with customers. 2. Social Media: o Platforms like Instagram, Facebook, and TikTok. o Advantages: ▪ Cost-effective and highly targeted campaigns. ▪ Real-time interaction with customers. ▪ Easy to track ROI through KPIs (e.g., engagement rates, impressions). o Disadvantages: ▪ Requires continuous updates and responsiveness. ▪ Risk of negative feedback going viral. Exam Tip: Compare traditional media and social media in terms of cost, reach, interactivity, and measurability. 3. Product Decision Importance of Product Lifecycle (PLC) in Product Development: 1. Why is PLC Important? o Helps companies plan marketing strategies based on the product’s stage (introduction, growth, maturity, decline). o Guides budget allocation and resource planning. o Identifies when to innovate or discontinue a product. 2. Why Does PLC Vary by Country?  o Different consumer behaviors, cultural preferences, and economic conditions influence product lifecycles. o Example: A product in its maturity stage in Europe may still be in the introduction stage in developing markets like Indonesia. 3. Cost Implications: o New product development increases costs, making it essential to track PLC to maximize profits during peak demand and minimize losses during the decline phase. 4. Distribution (유통사) Role of Distributors: Definition: Distributors act as intermediaries that purchase products from manufacturers and sell them to retailers or directly to customers. Importance: o Provide local market knowledge and access. o Reduce logistical and operational burdens for manufacturers. o Enable faster market entry without setting up physical operations. Challenges with Distributors: Risk of dependency on distributor performance. Potential loss of control over pricing and branding. 5. 4P/7P Framework 4P (Product, Price, Place, Promotion): 1. Product: Focuses on features, quality, and packaging. 2. Price: Involves pricing strategy, discounts, and perceived value. 3. Place: Ensures product availability in the right location. 4. Promotion: Includes advertising, public relations, and campaigns. Why Extend to 7P (Services Marketing)? Services require three additional Ps: 1. People: Employees and their interactions with customers. 2. Process: The systems and workflows delivering the service. 3. Physical Evidence: Tangible elements like ambiance or design. Product vs. Service Extension: Products expand to meet functional needs (e.g., new features). Services expand to enhance customer experience (e.g., personalization). 6. Tight Marketing Budgets How to Handle Tight Marketing Budgets: 1. Prioritize high-ROI channels, such as social media and email marketing. 2. Use data-driven strategies to focus on the most profitable customer segments. 3. Leverage partnerships or collaborations to share costs (e.g., co-branding campaigns). 4. Monitor KPIs closely to ensure efficient allocation of resources. 7. Volvic Case (Budget Example) Volvic’s Marketing Strategy: o Operates with a relatively tight marketing budget. o Focuses on targeted campaigns in specific regions rather than global- scale advertising. o Emphasizes brand identity as a premium water brand while avoiding overspending. 8. Why is Standardization Difficult? Challenges with Standardization: Cultural Differences: Local tastes and preferences require customized products. o Example: McDonald’s adapts menus in India (e.g., McVeggie Burger). Regulatory Issues: Varying laws and compliance standards across countries. Economic Diversity: Different income levels affect pricing and affordability. 9. New Product Development and Cost Implications Why Is PLC Critical in Cost Management? New product development involves high costs for R&D, production, and marketing. PLC helps optimize spending by: o Maximizing revenue during the growth and maturity stages. o Reducing costs during the decline stage by phasing out unprofitable products. 10. KPI (Key Performance Indicators) Definition: KPIs are measurable metrics used to evaluate the effectiveness of marketing strategies. Examples of Marketing KPIs: 1. Social Media: o Engagement rate (likes, comments, shares). o Impressions and reach. 2. Sales Performance: o Revenue growth. o Conversion rates.  3. Customer Metrics: o Customer retention rates. o Net Promoter Score (NPS). Exam Prep Summary Key Focus Areas: 1. Brand Decisions: o Importance of branding (functional vs. emotional benefits). 2. Communication: o Traditional vs. social media comparison, with focus on KPIs. 3. Product Lifecycle: o Importance of lifecycle management and cost implications. 4. Distribution: o Role and challenges of distributors in market entry. 5. Standardization: o Why standardization is challenging with examples like McDonald’s. 6. 4P/7P: o Expanded Ps for services and why they are critical. By mastering these topics with real-world examples and theoretical insights, you’ll be well-prepared for exam questions. 1. Expansion from 4P to 7P Reason for Expansion: The traditional 4P framework (Product, Price, Place, Promotion) does not adequately address the intangibility and variability of services. To better cater to the unique requirements of service industries, Booms and Bitner (1981)  expanded the model to 7P. Three additional elements were introduced to meet the specific demands of service marketing: 1. People: ▪ Refers to everyone involved in the delivery of the service (e.g., employees, customer service representatives). ▪ Plays a critical role in customer experience and satisfaction. ▪ Example: The attitude and professionalism of frontline staff in retail stores. 2. Process: ▪ Encompasses the procedures and systems used to deliver services. ▪ Ensures efficiency, consistency, and builds customer trust. ▪ Example: Reservation systems in hotels, order processing procedures in e-commerce. 3. Physical Evidence: ▪ Tangible elements that customers use to evaluate the service. ▪ Example: Clean waiting rooms in hospitals, luxurious lobby designs in high-end hotels. Exam Preparation Summary: Understand the reasons for expanding from 4P to 7P and be familiar with the meaning and examples of each element.