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International And Global

Marketing
International/global marketing mix

Suhard Amit
MBA RMIT ( Aus )
Dip Business Management ( Aus )
Dip in Marketing
A state of felt deprivation of some basic
satisfaction is termed a Need
Being the best you can be

Developed by Psychologist
Abraham Maslow

Needs are pursued in a


Truth, Wisdom, Self fulfillment hierarchical order

Human behavior is driven by


Self respect, Prestige, Recognition, Reputation needs

Friends, Belonging, Love, Intimacy

Home, Job, Medical, Financial

Survival Needs, Water, Food,O2, Reproduction


Marketing Concept..

Marketing concept

Coordinated
marketing
Target market Customer Profitability
needs A coordinated
Where the effort to meet Final outcome
marketing effort the for the
is directed Activities start requirements of organization
towards a with customer the customer would be profits
chosen sector needs in mind or surplus
The Marketing
Mix
Mix management of a pen manufacture

Target Market School children Senior executive


Product Colored ball point Gold fountain pens
pens
Price At a low price At a high price,
including insurance
against loss
Place Selling through Selling them through
newsagents and specialist outlets and
stationers jewelry stores
Promotion Promoting them Promoting them in
through point of sales glossy magazines and
material Sunday supplements
Elements of the STP-Concept

S T P MI Target
Segmentati Targetin Positionin X Group
on g g

Develop alternative positionings and


choose best positioning for market
segment.
Evaluate the segments and
select the most attractive.

Define criterias for attractive


market segments,
analyse specifics of segments and
describe the segments.

According to Kotler 2003


Segmentation : How can we select attractive
segments?

Focus on the most attractive


segments and their specific
needs

Segmentation is the process of dividing the overall market into


groups of people with similar needs
Which requirements are necessary for effective
segmentation?

Measurable Size
Purchasing power
Characteristics of the segment

Accessible Segments can be effectively reached and served

Differentiable Segments are conceptually distinguishable and


respond differently to marketing-mixes

Substantial Large and profitable segments


The largest possible homogenous group

Actionable Must be able to attract and serve the segment


Methods for Market Segmentation
Market Segmentation Mobile phones

Total Market 5.85 Billion LKR


Mkt Size 1B LKR 3B LKR 9B LKR 12B LKR 20B LKR
100%
Infortainers
10% Infortainer Business
25% 20% Business
30%
Business
80%
40%
The Stylist
30%

Infortainer
60% 35%

The Stylist
65% Infortainer
50% Infortainer
40% 50%
Tweens
60%

The Stylist
20% 45%

The Stylist
20% The Stylist
Tweens
10% 10%
0%
Users 14-20 Users 21-25 Users 26-30 Users 30 -35 Above 36

Business Infortainer The Stylist Tweens

Source : TRC Data


9
Targeting : Which is our target market ?

Target the most attractive


segments and their specific
needs

Target market selection is the process of deciding


which market segments the company should actively
pursue to generate sales
Targeting - Selecting attractive segments

Targeting means choosing the most attractive segments


What is attractive depends on the corporate strategy and the
purpose
Commonly used targeting criteria:

Size - Volume, turnover


Profitability - Commercial margin
Growth potential - Future relevance
Strategic fit - Match with product / service portfolio

Resources and efforts are focused on the selected target segments


Target MarketMobile phones

Total Market 5.85 Billion LKR


Mkt Size 1B LKR 3B LKR 9B LKR 12B LKR 20B LKR
100%
Infortainers
10% Infortainer Business
25% 20% Business
30%
Business
80%
40%
The Stylist
30%

Infortainer
60% 35%

The Stylist
65% Infortainer
50% Infortainer
40% 50%
Tweens
60%

The Stylist
20% 45%

The Stylist
20% The Stylist
Tweens
10% 10%
0%
Users 14-20 Users 21-25 Users 26-30 Users 30 -35 Above 36

Business Infortainer The Stylist Tweens

Source : TRC Data


Example from motor vehicle industry

Product Categories Market Segments Possible Positions

Commercial
Vehicles

Family
Cars

Landowners Practical,
Sports Farmers Reliable,
Total Cars Comfortable,
Motor
Reasonably
Vehicle
priced
Market Off road Recreational Rugged,
Cars Drivers; Climbers, Powerful,
Mountaineers Capacious for
equipment
Economy Fashionable City Powerful,
Cars dwellers Comfortable,
smart looking
and solid
Luxury Target Market
Cars
Target Market description..

Target Market Profile

Young Executives
Newly joined the Corporate world
Aspires to get a job in a blue chip
company however currently happy in
working for a SME
Age 23-30 years
Lives in Urban and Suburbs
Aspires to be in middle management
in the next 5 years
Single / Newly married
Wants to be connected to social media
and Up to date with what's happening
around the world
Positioning theory..

According to: Kuss/Tomczak

Price-/volume- Stuck in the middle Preference-


strategy strategy

Purchase, because No purchase, because Purchase, because


it's cheaper! It's neither cheaper it's better
nor better!

Efficiency
(ROI,
Cash flow)

Performance advantage

Price advantage

Positioning: The process of communicating the brand to the target


customers in such way that they can easily recognize where it fits with
competing products
Options in positioning..

More for more: Premium strategy: more value for higher price

More for the same: A broader product- or service offering to a


given price

The same for less: A comparable product offered for a lower price

Less for much less: Lower quality for a much lower price

More for less: Broader service or product range by offering a


lower price

How would you position the brand based on the selected target
market
Group Discussion

Select a product of your choice and discuss the current segmentation, Target
market and positioning strategy applied by the organization
The Marketing Mix

Value of product
Marketing-
Mix
Value through
Products/ service
Services Value
Value through image

Value through
Pricing channel etc.
Added
Customer
Monetary costs
Value
Promotion
Time spending
efforts
Costs
Costs for energy
Place
Physical effort

According to Kotler 1999


An effective marketing mix should..

Match Customer Needs

Creates a Well
competitive Balanced
advantage

Matches corporate
resources
If done properly, what will we get?
Where does the Marketing mix fit in the marketing planning process

Setting of corporate objectives


These are the overall strategic objectives set by the top management

Marketing audit
A snapshot of current situation; where the company is now!

Setting business and marketing objectives


Breaks down the overall objectives into areas each department can handle

Marketing strategies
How to get to the objectives!

Marketing tactics/mix decisions


Choosing the combination of marketing tools to achieve the overall
strategic objectives

Implementation
Putting the plan into action

Monitoring and control


Systems to check whether on course, feedback systems to make
adjustments
Marketing Mix
Product
Products & Services..
Product

A product is anything that can be offered to a market to satisfy a want or need

Physical Products
Services
Persons
Places
Events
Organizations
Combination of above
Products & Services..
Service

Any act that one party can offer to another that is essentially intangible and does not result
in the
ownership of anything. May or may not be tied to a physical product

Intangibility Cant be seen, Tasted, Felt, Heard or


Smelled before purchase

Inseparability Cant be separated from service provider

Variability Quality depends on who provides


them and when, Where and how

Perishability Cant be stored for later sale or


use
Elements of Product Design - Hotel

Potential Product core product Benefit:


Rest & Sleep
Augmented Product

Special Dining
Actual Product:
Experience
Actual Product Hotel room, Bed, Bathroom, Towels
Rooms

Food
Core product /
Benefit Loyalty Augmented product
Best Service
The add ons or extras / Value additions in
Service
Brand Name
Hotel Industry

Environment Potential product


Potential for what the product could
be in the future
Free WIFI
Product Classes Help Plan Marketing Strategy

Understanding product Classes help in


planning marketing mix needed

Customers views products differently

Example

Consumer products Consumers shop for household brands


that have a good brand name,
Economical price, Easy to use

B2B Customers not only require the


product performance but also require
technical expertise, Long term
partnerships and good trading terms

Industrial products
Product Differentiation techniques

Product formsize, shape, or


physical structure
Featuressupplement basic
functions
Customizationindividual versus
mass
Performancelevel at which the
products primary characteristics
operate
Durabilityproducts operating
life
Reliabilityprobability that a
product will not malfunction or fail
Repairabilitythe ease of fixing
a product when it malfunction or
fails
Styleproducts look and feel to
the buyer.
Service Differentiation techniques

Ordering easehow easy to place an


order
Deliveryhow well (e.g., speed,
accuracy, and care) product or service
is brought to the customer
Installationwork done to make a
product operational
Customer trainingtraining the
customers employees to operate the
vendors equipment properly and
efficiently
Customer consultingdata,
information, systems, and advice that
the seller offers to buyers
Maintenance and repairservice
programs for helping customers keep
purchased products in good working
order
Returns
Product Systems and Mixes

Product systemgroup
of diverse but related
items (e.g., Mobile phone,
Head set, Charger

Product mix or
assortmentvarious
product lines (e.g.,
Samsung consumer
Appliance Division
refrigerators, TV washing
machines, etc.)

Product Linesvariants
of each product (e.g.,
Coke, Diet Coke, Coke 0)
Group Discussion

Discuss product differentiation techniques for a consumer and industrial


product. Are they the same or different techniques need to be adopted ?
Break 15 Min
At the heart of a great brand is a great
product

12-32
What is a Brand ?

Brand logo
Brand design
Brand tagline
Brand advertising
33
A promise delivered
In B2B a Solution Delivered
Suhard Amit 2014 & ICBT
come in and find out

Challenge:
Behavioral Branding affects verbal and non-verbal interaction
Co-branding
Ingredient Branding
Packaging
Packaging, sometimes called
The 5th P, is all the activities of
designing and producing
the container for a product.

Identifies the brand

Convey descriptive and


persuasive information

Facilitate product
transportation and
protection

Assist at-home storage

Aid product consumption


12-39
Product adoption process
Five-stage mental process all prospective customers go through from
learning of a new product to becoming loyal customers or rejecting it.

A. Awareness: prospects come to know about a product but lack


sufficient information about it.
B. Interest: they try to get more information.
C. Evaluation: they consider whether the product is beneficial.
D. Trial: they make the first purchase to determine its worth or
usefulness.
E. Adoption/Rejection: they decide to adopt it, or look for something
else.
Behavioral or
Cognitive state Emotional state
Conative state
(being aware (liking and
(deciding and
and informed) preference)
purchasing)

Adoption
process
Adoption of Innovation
Innovators

These people like to be the first to


own or try out a product.

Early adopters

Eager to adopt but will do so once


the product is in the market for
some time.

Early majority

They like to wait till the teething


problems are addressed.

Late majority

They buy only after a majority has


used the product.

Laggards

Reluctant to buy anything new; will


do so only if forced.
Product life cycle
Group Discussion

Discuss the product life cycle.


State 03 advantages and 03 disadvantages of the model.
Marketing Mix
Promotion
Promotion
The 4th P that takes the message to the potential
customer!
This includes all of the tools available to the marketer for
'marketing communication'

The key elements of the


promotions mix are:

1. Advertising.
2. Sales Promotion.
3. Personal Selling.
4. Public Relations.

Also, further elements


include
. Direct Mail.
. Trade Fairs and
Exhibitions.
. Sponsorship
Promotional Mix
Advertising

A 'paid form' of communication.

Used to develop attitudes, create awareness, and transmit


information
in order to gain a response from the target market.

Many advertising 'media' such as newspapers (local, national,


free,
trade), magazines and journals, television (local, national,
terrestrial,
satellite) cinema, outdoor advertising (such as posters, bus
sides).
Promotional Mix
Sales promotion

All promotions apart from advertising, personal selling, and public


relations.

BOGOF promotion, or Buy One Get One Free.

Couponing, money-off promotions, competitions, free accessories (such


as free
blades with a new razor)
Introductory offers (such as buy digital TV and get free installation)

Each sales promotion should be carefully coasted and compared with


the next
best alternative.
Promotional Mix
Personal Selling

An effective way to manage personal customer relationships.

The sales person acts on behalf of the organization.

They tend to be well trained in the approaches and techniques of persona


selling.

However sales people are very expensive and should only be used where
there is
a genuine return on investment. For example salesmen are often used to
sell cars
or home improvements where the margin is high. Or it would be based on
the
nature of the product.
Promotional Mix

Public Relations

Public Relations is defined as 'the deliberate, planned and sustained effort to


establish and
maintain mutual understanding between an organization and its publics' (Institute of
Public Relations).

It is relatively cheap, but certainly not cheap.

Successful strategies tend to be long-term and plan for all eventualities.

e.g.; All airlines exploit PR; just watch what happens when there is a disaster. The pre-planned
PR machine clicks in very quickly with a very effective rehearsed plan.
Promotional Mix new additions

Direct Marketing methods

Ambient Advertising This is advertising which becomes part of the physical


environment. Has novelty value and can create word of mouth
Promotional Mix new additions

Direct Marketing

Websites Interactive websites


Promotional Mix new additions

Direct Marketing

Word of Mouth The most powerful promotional medium available. Likely to be believed and
acted upon
Communications between friends and family members on products that are experienced, used or
rejected
Promotional Mix new additions

Direct Marketing

Word of Mouse The online version of word of mouth and is also called viral marketing. FB,
Youtube, Twitter
Promotional Mix new additions

Direct Marketing

Product Placements Supplying products to film and TV companies to be used in the shows
Promotional Mix new additions

Trade Fairs and Exhibitions

Such approaches are very good for making new contacts and renewing old ones.

The purpose is to increase awareness and to encourage trial.

They offer the opportunity for companies to meet with both the trade and the
consumer.
Promotional Mix new additions

Sponsorship.

Sponsorship is where an organization pays to be associated with a particular event, cause


or image.

Companies will sponsor sports events such as the Olympics or Formula One.

The attributes of the event are then associated with the sponsoring organization.
Media decisions
The choice of medium is important!
This would depend on several factors

1. Target segment
2. Required reach

?
3. Required frequency
4. Cost
5. image

Key media

Television
Radio
Press mass and target media
Billboards best for localised campaigns
Web (digital) advertising
Cinema
Measuring the success of promotional activities
This is not easy as most marketing activities are around
customer attitudes and mindset changes!

However, these need to be assessed in order to evaluate the


effectivity, therefore need to set measurement parameters.

Budget measurement
Objectives achieved
Sales revenue, profits/losses measurement
Efficiency and effectiveness
Defects or returns
Customer service complaints
Increased brand awareness
Changing attitudes
Repeat purchases and loyalty