Market Shaping Strategies Class 4 - KEDGE Business School - 2024-2025 PDF

MARKET SHAPING STRATEGIES 3rd year Bachelors Teacher: Yannick Plé Class 5 [email protected] 2024-2025 https://hbr.org/video/5012643403001/the-explainer-reverse-innovation https://oxford-review.com/oxford-review-encyclopaedia-terms/f...

MARKET SHAPING STRATEGIES 3rd year Bachelors Teacher: Yannick Plé Class 5 [email protected] 2024-2025 https://hbr.org/video/5012643403001/the-explainer-reverse-innovation https://oxford-review.com/oxford-review-encyclopaedia-terms/frugal-innovation/ MARKET SHAPING STRATEGIES Teacher : Yannick Plé 3rd year Bachelors [email protected] Class 4 2024-2025 MAD MEN CREATE A SENTIMENTAL BOND WITH THE PRODUCT https://www.youtube.com/watch?v=suRDUFpsHus https://www.youtube.com/wat ch?v=1AJGGv078r0&t=1s https://www.youtube.com/wa tch?v=_VCy9oExE-0 MARKET SHAPING STRATEGIES Teacher : Yannick Plé 3rd year Bachelors [email protected] Class 3 2024-2025  Is marketing an art or a science? Personally, I associate the world of marketing with clever and well-founded advertisements, spectacular posters and creative hooks. It is therefore not illogical that marketing and advertising are an art compared to creativity and expression. But when you remember that the demographic analysis, market research and sales and trend forecasting done by marketing and advertising professionals, you begin to think it's a science.  Is marketing an art or a science? Look around you and think of advertising strategies or campaigns that have caught your attention. You will probably be struck by the fact that they are based on information gathered from hard figures and data. Then the creative imagination was used to establish an emotional connection with the audience. This is what makes marketing so unique and challenging - the elegant proximity of analysis and creativity.  Is marketing an art or a science? Let's say you have a travel portal. If you choose to drive traffic to your portal from a social media site such as Instagram or Facebook, you will start with budgeting and audience targeting – which is science and numbers.  Is marketing an art or a science? Then you need an ad creative. What title, image or video will interest your target audience? How can you motivate them to click through to your site and remember your brand? What should your ad contain to stand out from the competition? These are tough questions that require creative answers, or let's just say, making great ad creatives is an art.  Is marketing an art or a science? Once your ad is running, you need to monitor stats, such as how many people engaged with your ad and what your ROI was, so we come back to science. What does marketing really have in common with art? Art has the ability to create an emotional response in the viewer and can make us think or even act in a certain way. Tibits Vegetarian restaurant Adidas Petr Cech  WHAT IS CULTURE? Set of values, beliefs, rules, and institutions held by a specific group of people Ethnocentricity Cultural literacy Belief that one’s own Detailed knowledge of a ethnic group or culture culture that enables a is superior to that of person to function X √ others effectively within it “Global mindset is being comfortable with being uncomfortable in uncomfortable places.” Dr. Mansour Javidan  Components of Culture Aesthetics Physical Values & environments attitudes Manners & Education Culture customs Personal Social communication structure Religion  STANDARDIZATION VERSUS ADAPTATION – INTERNATIONAL MARKETING STRATEGIES  DIFFERENT TYPES OF ENVIRONMENTS VERSUS MARKET STUDY CONTEXT ▪We have three types of environments characterizing the markets - countries and indirectly the markets - products. They are contrasted according to their stage of economic development (life cycle). Underdeveloped market Developing market Mature market Market context Underdeveloped Developing Mature Life cycle Introduction / growth Growth / maturity Maturity / innovation Tarifs barriers Strong Strong / medium Weak Non-tariff barriers Strong Strong Medium Political risks Medium / strong Medium Weak Legal risks Strong Strong / medium Medium Cultural risks Very strong Very strong Medium Market Context Underdevelopping Developing Mature Competition Local Weak Growing Saturated International Growing Strong Strong Marketing Study Infrastructures of market Embryonic Medium / strong Saturated studies (sources, data, local institution) Principal objectif of Needs and faisability Aspiration and rentability Satisfaction and studies segmentation Titre du document - page 18 Context Underdeveloping Developing Mature Marketing study Segmentation Revenue Demographics Life style Reliability of information Weak Weak / medium Strong Need for methodological Weak Weak / medium Strong adaptations Titre du document - page 19  MARKET SEGMENTATION - REMINDER ▪Segmentation consists of identifying a group of customers who display similar behaviors with respect to a product/service ▪Four segmentation strategies are possible: Geographic (country, region) Socio-demographic (age, professional category, gender, income...) Psychographic (personality, values, opinions, lifestyle) Behavioral (quantities purchased, place of purchase...)  WHAT ROLE DOES THE CULTURAL DIMENSION PLAY IN SEGMENTATION? ▪The cultural dimension can have an impact on the different factors of segmentation: ▪Geographic - attractiveness of certain countries ▪Lifestyle of consumers ▪Purchasing behaviors It’s the ability to use standard marketing internationally; it's the ability for a company to use the same marketing strategy from one country to the next, and across various cultures. WHAT IS A GLOBAL STANDARDIZATION  PROS AND CONS OF STANDARDIZATION (+) Costs - a company does not have to pay for special marketing for each market. One marketing strategy can be used in multiple areas of the world, therefore cutting the cost of having to develop several marketing strategies. (+) Brand - a strong brand can have the same effect in different areas around the world. What makes a strong presence in one country, can have the same effect in other countries. (-) Sensitivity - while some countries may appreciate and accept a product, others may not agree or have a different opinion about that product. These differences in perspective could force a company to develop a more customizable market strategy for different areas of the world. ❑ ARGUMENTS FOR STANDARDIZATION 1. The consumer’s segments are homogeneous. 2. We can apply the same marketing strategy internationally – luxury or mass market products.  ADAPTATION STRATEGY ▪Brand Adaptation; retooling any number of the visual, typographical or messaging elements of a brand. ✔Can reposition a brand to convince those in a different market or market segment of the brand’s relevance.  CONSIDERATIONS IN ADAPTATION STRATEGY Full adaptation strategies often prove cost prohibitive. Repositioning can result in substantial short- or long-term loss of market share if the strategy drives off existing customers without replacing them with new customers.  ❑ ADAPTATION OF PRODUCT POSITIONING 1. Product positioning: 1) The same positioning on different markets – luxury brands. 2) Different types of positioning depending on the type of market.  2. Pricing on different markets: ❑ IMPACT OF ✔International currency ADAPTATION fluctuations ✔Price escalations due to tariffs ✔Price controls, transfer pricing regulations ✔Different forms of payment methods across the world  PRICING STRATEGIES ON DIFFERENT MARKETS 1. The entry market positioning strategy. 2. The demand – cultural differences towards the price. 3. Competitors. 4. The level of pricing control according to the entry market strategy – direct versus indirect export.  ADAPTED STANDARDIZATION OR « GLOCALIZATION »… How to merge two models ? 1) respond to cultural differences with certain modifications 2) keep the standardizations policies of the multinational brand. MARKET SHAPING STRATEGIES 3rd year Bachelors Professor : Yannick Plé Class # 2 [email protected] 2024-2025  1. Key topics. What is international marketing about ? Key challenges of international marketing in today’s context. 1. The impact of culture on international marketing. 2. Branding for generation Z: what is changing in international marketing strategies? 3. How to gain the competitive advantage internationally ? Market driven or driving market approach. 4. New forms of innovation in international product branding; reverse and frugal innovation. 5. Digitalization and international marketing ; opportunities and challenges. 6. How sustainability shapes marketing strategies : challenges and opportunities (part 1) 7. How sustainability shapes marketing strategies ; challenges and opportunities (part 2) 8. Your final group project presentations.  01/10/243 Lecture Tuesday 08/10/24 Lecture Tuesday Presentations : Group nr 1, Group 16/10/24 nr 2 Wednesday Group nr 3 21/10/24 Monday 22/10/24 Group nr 4 Tuesday 29/10/24 Group nr 5 Tuesday 05/11/24 Group nr 6 Tuesday 12/11/24 Workshop on your final project Tuesday 19/11/24 Final group presentations Tuesday  Session 1 Marketing international in its new context What are the key differences between domestic and international marketing ? What are the main challenges facing international marketing ? Practical workshop in the class 4  What are the key similarities between domestic and international marketing ? ▪ Both aim to satisfy customer needs ▪ Both use elements of the marketing mix ▪ Both rely on market research ▪ Both focus on relationship building: with customers, suppliers, distributors and other stakeholders ▪ Both require adaptation to local conditions: To be successful, both domestic and international marketing must adapt to local conditions, such as language, culture, legal and regulatory requirements, and economic factors. 5 Domestic Marketing International Marketing International marketing requires more Domestic marketing requires less investment investment as compared to domestic as compared to international marketing. marketing. Mostly there is stable business environment. Mostly there is unstable business environment. It relatively deals with homogeneous market. It relatively deals with diverse market. In domestic marketing competitors behavior is In international marketing competitors easy to predict. behavior is difficult to predict. High level of research is required because of Research is required, but not to a great extent. the involved overseas markets. The company requires different tactics and The same policies and tactics can be opted by policies for advertising the products to their the company in domestic marketing. customers. 6 Domestic Marketing International Marketing Domestic marketing refers to carrying out International marketing refers to carrying out marketing activities within the national marketing activities outside the national boundaries. boundaries also. It refers to doing marketing in local market and It refers to doing marketing in global market its scope is limited. and its scope is wide. There is one nation, same language and one There are many nations, many languages and culture. culture. In domestic marketing only one currency is In international marketing different currencies used. are used. Controlling domestic marketing activities is Controlling international marketing is difficult easy as compared to international marketing. as compared to domestic marketing. Lack of familiarity with global or foreign Well familiarity with domestic or local market. market. 7 And even more …  Advantages of IM Disadvantages of IM Enables companies to access new and Cultural differences: International broader markets, which can translate marketing requires an understanding into increased growth opportunities. of different cultures and customs, which can be difficult. Diversification: International marketing Legal and regulatory challenges: enables companies to diversify their International marketing involves sources of revenue and reduce their navigating different legal and dependence on a single market. regulatory environments, which can be complex and time-consuming. Higher profit potential: International Higher costs: International marketing marketing can lead to higher profit often involves higher costs, such as potential, as companies can take customs duties and shipping costs, advantage of price differences in which can have an impact on a different markets. company's profitability. 9  VIDEO WORKSHOP https://www.youtube.com/watch?v=lTY6LH9WdZ4  Answer both question 1 and 2 1- Is marketing an art or a science? 2- Do you consider that McDonald’s is greenwashing? Why? Justify your choice. Each group will have 3 students speaking for a total of 5 min.  Is marketing an art or a science? Personally, I associate the world of marketing with clever and well-founded advertisements, spectacular posters and creative hooks. It is therefore not illogical that marketing and advertising are an art compared to creativity and expression. But when you remember that the demographic analysis, market research and sales and trend forecasting done by marketing and advertising professionals, you begin to think it's a science.  Is marketing an art or a science? Look around you and think of advertising strategies or campaigns that have caught your attention. You will probably be struck by the fact that they are based on information gathered from hard figures and data. Then the creative imagination was used to establish an emotional connection with the audience. This is what makes marketing so unique and challenging - the elegant proximity of analysis and creativity.  Is marketing an art or a science? Let's say you have a travel portal. If you choose to drive traffic to your portal from a social media site such as Instagram you will start with budgeting and audience targeting – which is science and numbers.  Is marketing an art or a science? Then you need an ad creative. What title, image or video will interest your target audience? How can you motivate them to click through to your site and remember your brand? What should your ad contain to stand out from the competition? These are tough questions that require creative answers, or let's just say, making great ad creatives is an art. Is marketing an art or a science? Once your ad is running, you need to monitor stats, such as how many people engaged with your ad and what your ROI was, so we come back to science. What does marketing really have in common with art? Art has the ability to create an emotional response in the viewer and can make us think or even act in a certain way.  Case study workshop « Why It Took Starbucks 47 Years To Open A Store In Italy”?  Group workshop – each team works on 2 questions (30 min preparation & 5 min feedback) 1. Explain, what were the major cultural barriers between US and Italy – use the Hofstede country comparison tool and try to analyze the major differences between 6 cultural dimensions of those two countries. How do you think those differences might affect the Starbuck marketing strategy ? 2. Find an example of an international brand that tried to enter your home country and did not adapt properly their marketing strategy to your local culture. Explain to the class what where the initial failure factors and what did the company adapt to match better to your local market? 3. How would you classify Starbuck marketing strategy ? As standardization, adaptation, glocalization…? What are your arguments? Do you find this strategy successful or not ? 4. Imagine that Starbuck’s is entering your home country market. What recommendations would you give to a brand, in terms of marketing strategy (think about 5P) in order to adapt to your cultural environment.