5 Key Components to
a successful, comprehensive market
Research Strategy
Market
Assessment
Trend Analysis
Industry monitoring
Market Sizing &
share
Competitive Intelligence
Partnership Evaluation
Customer Knowledge
Segmentation, Targeting
Product Management
Concept Testing
Feature Preferences
Price & Demand
Opportunity Analysis
Post Launch Assessment
Data Insights
Forecasting
Brand
& Marketing Strategy
Loyalty
Brand Positioning
Brand Awareness
Brand Attitude & Uses
Performance drivers
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& Positioning
Customer
Acquisition
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Predictive Analysis
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• Outline business
expansion in a
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Data
Visualization
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new international market from
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Customer
Feedback
Win/Loss Analysis
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Special Insights
Data
Mining
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secondary data analytics and
select 1 country out of 2 in
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different continent
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Business Research Report
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• Prepare a Questionnaire to find
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Consider you as a International Business Development
In charge for New-Market
Assignment: Establishment of
a SBU for
retail market
for your garment
factory, marketing
aspects only
target customer and product
identification
• Considering Data Insights, plan a
go to market, target expansion,
brand establishment
GLOBAL MARKETING STRATEGIES
■ GLOBAL MANAGEMENT: PLANNING & ORGANIZING ■ PRODUCT/SERVICE FOR CONSUMERS/ BUSINESS ■ INTERNATIONAL MARKET DISTRIBUTION CHANNEL ■
PRICING STRATEGY ■
INTEGRATED MARKETING COMMUNICATION
& ADVERTISING STRATEGY ■ IMPLEMENTATION INCLUDING NEGOTIATING WITH
CUSTOMERS/ PARTNERS/ REGULATORS
Global Marketing Management
1970s standardization Vs adaptation
1980s
globalization Vs localization
internet
unprecedented
global reach
dynamism
CUSTOMIZED
1990s
global
integration Vs local responsiveness
CocaCola was a great example of Global brand for marketing worldwide but it also
had to acquire Thumbs up in India; DietCoke to CokeLite in Japan.
Strategy:
• Think & plan long term
Nestle Way: Evolution Not Revolution
Starting in 1866, as a maker of infant
formula, today it sell 8,500 products produced in 489 factories in
193 countries –
infant
formula (lactozen, Cerelac), powder milk (nido, milo), instant coffee (Nascafe), chocolate (kitkat), soups (maggi),
mineral water (purelife), Ice cream (word’s 2nd
biggest), cereal (Kellogg).
• Decentralize
• Stick to
what you know
• Adapt to
local taste
In middle east, it has only 2% of world sell –
so longer terms! Despite regional conflicts,
looking long setup network
of factories in 5:
ice-cream in Dubai, soups & cereal in KSA,
yogurt & bouillon
in Egypt, chocolate
in
Turkey
and Ketchup &
noodle in Syria
IKEA
open outlet in Russia with 40k
customer in
que in 2000.
Government quarters furniture
supply was a massive entry!
iPhone
negotiate with NTT do-co-mo entered
world’s 2nd biggest economy
Japan with a considerable stake
The Planning Process
Phase
I:
Preliminary Analysis
and Screening –
matching
company &
country need Phase II: Defining Market
Segments and adapting
marketing mix
accordingly
Phase III:
Developing the
Marketing Plan
Phase IV:
Implementation &
control Plan
STRATEGIC & TACTICAL PLANNING
Since upper managers generally have a better understanding of the
organization as a
whole than lower level managers do, upper
management generally develops the
strategic
plans and
because
lower level managers generally have better understanding of the day
to day organizational operations, generally the lower level managers
develop the tactical plans.
Because Strategic Planning emphasizes analysing the
future and tactical planning emphasizes analysing the everyday functioning of the
organization, facts on which to base strategic plans
are
usually more
difficult to gather than are facts on
which
to
base tactical plans.
Because strategic
plans are based primarily on a prediction of the future
and
tactical plans on
known circumstances that
exist
within the
organization, strategic plans are
generally less detailed than tactical
plans.
Because strategic planning focuses on the long term and tactical planning on the
short term,
strategic plans
cover
a
relatively long period of time whereas tactical
plans cover a relatively short period
of time.
Despite their differences, tactical and strategic planning are integrally
related. Manager need both tactical and strategic
planning program, and these program must be closely related to be successful.
Organizing/ Alternate market entry strategy
1. Exporting: Visit/Correspondence/Internet (dot com), Exporter – Importer & Distributor, Direct
Sales (big tickets)
2. Contractual agreement: Licensing & franchising
3. Strategic Alliance: SA (One World – AA, CP, BA, JAL, Finn, Quantas vs Star Alliance – United,
Continental,
EK, SinAir, Thai – for mileage & last mile) /Joint venture (between separate entities, share management, equity by each) /Consortia (as JV but with large number participant, operates where none participated before eg
Airbus/ATR vs Boeing/Dash)
4. Direct Foreign Investment/ Ownership
G r e a t e r c o n t r o l & g r e a t e r r i s k
CHINA – Disney rolls the dice again
Open in 1955 at Anaheim, CA – notion of modern theme park – rides, attractions, characters. Tokyo proved to be a success
through licencing as ¾ are repeat visitors
EuroDisney deal structured
differently – kept majority of stake including hotel & restaurant, keeping higher risk. Before opening in 1992, assault on French culture proved to be a mistake of selecting right location like Mediterranean
climate of alternate Barcelona over chilly winter or right language on adventure like Pirates of Caribbean. By summer 1994, managing costly multinational workforce etc, real consideration was given to closing the
park. It required cash injection for twice, with
French CEO, renaming Paris Disneyland it is still riding bumpy.
In 2006 HKG opened its service with 80% of $3b investment by government.
With
option of Cantonese/Mandarin/English performance option, it
could draw 5.2M visitors in
2006
but fall sharply to 4M in
next year – had to do financial remodelling.
HKG still want expansion.
In
2009, China approved new park in Shanghai with a price tag of $4M. In a theme park, beside
entry pass
of $100, visitors spent
equivalent on souvenir, food, hats/t-shirt/glass/swim-gear etc
QUALITY
market perceived
quality
performance quality
customer satisfaction or quality to customer is more than compliance.
eg. Airline business - European/Asian, with same craft but service
Maintaining Quality: Continuity of restaurant food, leaving right quality from factory does not assure maintenance in distribution channel (Mars vs RedOctober in Russia), CRM (Toyota never run away from
problem or pretend
not notice them)
Physical or mandatory requirements and adaption: Pepsi – Leher-Pepsi in India for better communicate, motor-cycle with one-side ladies leg-rest to accommodate sari, economy demand like shampoo sachet/
reduce typical quantity razor, cigarettes, chewing gum etc, taste change (less
sugar Oreo
in China)
Green Marketing Product: Ecology friendly,
recycle/ reuse, green movement are CSR & thus promotion
Product/Service:
A product is more than a
physical item (multi-dimentional) – it’s a bundle of satisfactions (utilities)
that its buyer receive. The utility include: its form, taste (if edible), colour, order, texture, easy functionality, package, label, warranty,
servicing, confidence on brand, reputation of manufacturer, country of origin, any other symbolic add on etc. In other words, a product is a sum of physical and psychological satisfaction provided to its user.
Product & Culture
• Physical attribute of a product offer primary functions but need beyond with culture &
custom – car carrying point A to point B what it has with colour, size, design, brand, price etc.
• Potential customer belief/norm innovated Islami banking for MNC banks or introduction of McArabia Sandwich, Arab Cola, Cola Turka etc;
• Buyers habit/practice - no designated place in kitchen in Japanese household for dishwasher restrained foreign companies till Mitsubishi &
Toto came up with compact design; Another popular example of US bake co’s introduction of ‘sponge cake mix’ over market research on
500 Briton house-wives, could not work as they were habituated with basic ingredient!
• Buyers’ way of taking - despite Japanese
version, Harry Potter sold 20% in English, as for them it was not entertainment only but education.
Innovative Products and Adaption: Foreign market goal should be: Gaining the largest number of consumers
in the market in
the
shortest span of time
and
Assessing probable rate of acceptance
Diffusion of Innovation: Crucial elements in the diffusion of new ideas are: □An Innovation □ communicate
through certain channels □ Overtime □ Among members of
Social system
Production of Innovation: After 100% adoption ie reaching saturation point, we can look
back at the characteristics of Innovation: Relative
advantage, Compatibility, Complexity, Trial-ability, Observability. Inventiveness of
companies and countries, R&D
can lead to production, where new ideas come from
acquisitions & collaborations.
Product Components for ADAPTATION:
Core Components
Product platform
Design Features
Functional features
Packaging Components
Price
Quality
Packaging
Styling
Trademark
Brand name
Support Service Components
Deliveries
Warranty
Spare parts
Repair & maintenance
Installation
Instructions
Other related service
Localization of
core: Nestle reformulated cereals with seaweed, carrots &
zucchini and
coconut & papaya, to
adopt
Japanese breakfast habit with rice & fish
Localization of Pack: language of instruction, country of
origin, pack size customization. Labelling law
(eg
smoking injury, expiry date etc). Whereas price need to be on labels in Venezuela but illegal in
Chile.
Service Opportunities in global market
• Tourism & Transportation
• Tele-communication
• Financial services
• Education
• Healthcare
• Entertainment
• Professional Services like legal, accounts, IT,
archi/engineering, advertise, insurance
etc
US exports equally in 3 categories: durable goods (cars/computers etc), non durable (food/drug/toys), services
(tourism/telecom). Lion
share of BD exports are Garments, Jute/jute-products, leather/leather-products, sea-food
and
direct labour. Having such a demographic dividend service export should
institutionalize a long term sector.
Brand: A brand
is the use of a name, term, sign, symbol, design or combination, intended to identify goods or services of a seller and
differentiate from competitors. This is a very
valuable resource
of
the company and the importance
is unquestionable. Global Brand is the worldwide image of the same. Internet & other technologies accelerate the pace of globalization of brand.
Country of Origin effect is the influence of the country that manufacture,
assembly or design and has consumers’ positive or negative perception of a product. Eg. English tea, French perfume,
Thai silk, Italian leather, Japanese electronics, German engineering etc are Ethnocentrism. Countries
are stereotyped
– industrialized, in process of industrializing, developing. More knowledgeable consumer are more sensitive to the
Measuring Brand Value
• Intangible asset
• Goodwill of co. vs
brand value of
product/ service
• Customers’ Loyalty
• Key personnel/ Skill
set/ scientist
etc
Assess
brand values on
TefhfeectW.
orld's Most Valuable Brands 2016 ranking by 
a variety of issues such
as strategic brand
management,
marketing budget allocation, marketing ROI, portfolio management, brand
extensions, Merger &
Acquisition, balance
sheet recognition,
licensing, transfer pricing and investor relations
International market of
product &
service for BUSINESS:
Technology exports are represented smallest (semi-conductors) to largest (aircrafts) industrial
goods or services but has same inherent
Nature: Intermediary, used in process of creating finished product
Motive: Industrial consumer seek profit whereas ultimate consumer
seek
satisfaction
Some parameters
of B2B:
QUALITY:
Defined by Buyer
STANDARDIZE: Global Standard – ISO 9000
FACTOR: After Sales
Support
PROMOTION: Trade Show, a crucial part of
B2B Marketing + Relationship Marketing
Demand in Global B2B Markets
Shanghai’s30km $1.2b bullet train
=> Sino-German JV mass transit –
longest (1339mile)
&
fastest
(267mph)
with $58b German subsidy
Andy Grove, founder of Intel, Fortune’s cover story as
‘Amazing Profit Machine’, Time’s ‘Man of the Year’ also
seen Bust, also covered up and returned to
lead. CAUSE:
Volatility of Industrial demand in global B2B market
Stages of Economic
Development
Technology & market demand
International
Marketing Channels
Channel of
Distribution Structures:
Distribution structures
in some markets are
multi-layered,
complex, inefficient, even strange, and often
difficult for new marketers and others
with middlemen and yet others with mixture.
Distribution
process
depends on: Physical handling & distribution of goods; The passage of ownership; Marketing strategy.
The structure of passing from producer
to
user is also country specific, with variety of middlemen with customary functions/services, competition,
market characteristics, tradition, economy.
Starbucks Introducing comfortable Sofa was a break
IKEA in China with huge space store
targeted browsers turn eventually into buyers,
overcoming the
challenge of replicas, visiting customers with carpenters!
Walmart & Carrefour entered China in 90s with many flocked to new huge stores just to look & touch. And now
millions shop everyday
In a Chinese Kitchen
market shop it sell duck to dogs, from
scorpion to dried lizard on sticks
Retailers like JCPenney, Walmart, Office Depot are going
global accommodating cultural & business
differences with competitively superior assortment of
product and by developing superior value chain
Import Oriented Distribution Structure: Different functionalities: Importer - wholesaler – marketer (research,
advertise) – warehouse/storage – local transportation – financing. Applicable at unstructured market. Countries
with
economic growth gets structured include defined intermediaries.
Japanese Distribution
Structure: Known as most effective non tariff barrier. Has 4
distinguishing features: i) dominated by many small middlemen dealing with small retailers; ii) channel control by manufacturer; iii) business philosophy
shaped by
unique culture; iv) laws protect the small retailers.
Trends: Traditional to Modern Channel Structure in new forms, new alliances, new processes
come from within or without. Direct marketing, door-to-door selling, hypermarkets, discount houses, shopping malls, catalogue selling, internet sell/dot com, etc are being
introduced for efficient channel.
International
Marketing Channels
Channel
Indirect Channel Direct Channel
Domestic Agent
Distribution
Patterns:
Retail Pattern:
Size pattern
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•
Export Broker
•
Sales Rep
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Domestic Merchant
• Export Merchant
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Foreign Distributor
•
Foreign Retailer
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Direct Marketing
Resistance to Change
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• EMC
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• Export Drop
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• State Control
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• Coop Exporter
•
Buying Agent
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Shipper
•
Export Distributor
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trading company
•
End User
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Alternate Middleman:
Home Country middleman:
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• Resident buyer
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• Trading Company
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Manufacturers’ retail
store
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Choice of Channel:
1. Identify target market
2. Specify market goal: volume, market share, margin etc
3. Specify financial &
personnel commitments
4. Identify control, length of channel, terms of sale and channel
ownership
Channel cost
Capital requirement
Maintenance Cost depending on Control, Coverage, Character, Continuity
Channel Management
Locating Middleman
-
Selecting Middleman –
Motivating
Middleman – Terminating Middleman – Controlling Middleman
Global retailer
Export management co
Trading Co
Manufacturer’s export agent
Foreign Country Middleman
E Vendor: success depends on
Culture
Adaptation
Local Control
Payment
Delivery
Promotion
and
LOGISTICS
International Marketing Communication & Int’l
Advertising
Integrated Marketing Communication (IMC):
Composed of advertising, trade show, personal selling, direct selling and
public relations
Sales Promotion
marketing activities that stimulate
consumer purchases and improve retailer or middlemen
effectiveness and cooperation
Public Relations & Publicity
Promoting product over news
Advertising Strategy and Goals
• Product Attribute and benefit segmentation
• Message: Creative Challenges
• Legal Constrains
• Linguistic limitations & Cultural
Diversity
• Media Limitation
• Newspaper/ Magazine
Barbei dolls customized for markets but LEGO various types
but
of same type globally --- both
could go far with
right communication to the target
Procter
& Gamble in Egypt made Ariel Road Show with ad
Kraft’s Oreo cookies univ survey with
licking ad
Toyota CEO Akio Toyoda’s profuse apologies and calling back
faulty and
praise
by
media promoted the vehicle
International Advertising
In 2008 in US advertisement include P&G $9.7b,
Unilever $5.7b . . . . 20co each $1.5b+
Aggregate category: Automobile
$25.6b, Personal Care $25.4, Food
$11.9b, Drug $10.3b
• Radio/ TV/ Sat
TV
• Direct Mail
Media Planning & Analysis
• Tactical Consideration
• Cost
P&G in Russia $127.7 & in
China
$1.07b also top the list of advertiser
• Internet/ Social
media
• Availability
• Coverage
• Mobile phone
application
International Marketing Personal Selling and Sales Management
Glamorous
International Assignment/ the role of interpersonal selling:
Sales person is the final link between buyer & the product/
service
The effective task of designing, building, training, motivating and compensating sales force can lead to sale. It complete with right CRM (customer relationship management).
Examples of
personal
selling:
Retail
selling,
Field selling,
Telemarketing, Inside selling
Forming Sales force:
Posting compatriot of company or recruiting local national (host country restriction) or relocate 3rd country national. Selection criterion of a sales and marketing personnel may
include – maturity, emotional stability, breadth of knowledge,
positive outlook, flexibility, energetic, enjoy travelling . . .
Training – be a Roman in Rome
Motivating: Job security, Promotion, Merit increase in
pay, Feeling
of worthwhile accomplishment, Social
recognition and personal growth &
development are few.
Compensation: Repatriation
Stages of Personal Sales
Pricing for International Marketing
Full cost vs Variable cost
Skimming vs Penetration pricing
Parallel
Imports:
• Grey market vs exclusive distribution
• Taxes, Tariffs and Administrative costs
• Inflation/ Deflation
• Exchange Rate fluctuation
• Middleman and Transportation cost
• Dumping/ Counter trade
Cost effectiveness/ tactics
• Efficiency innovation
• Free Zone
• Utilization of FDI advantages
• Counter trade (barter between neighbours
Pepsi vs
Vodka between Russia & Romania)
• Government influenced pricing
• Leasing Vs Sales
Price War: P&G
and Kimberley-Clerk
brought Pampers
and Huggies – none can gain over price war.
Price cutting is
like violence: no one wins
Citycell > GP
> BL > AirTel
Negotiating with International Customer, Partners and Regulators
International business
Vs Interpersonal business
Face to face negotiations are an omnipresent activity in
international commerce
International negotiation is a comprehensive affair – not a stereotype like US cowboys, who thinks
that everyone buy them
or nor Japanese Samurai, who study for long before actually start
the
action! Nego
Preliminary: Assessment of
counterpart,
Agenda,
Best
alternate
to negotiated agreement,
Concession strategies, Nego Team assignments
Nego manipulations: Location, Physical arrangements, Number of parties, participations, Audience, Communication channel, Time limited
Pervasive Impact of culture on negotiation behaviour in
• Language and
Non-verbal behaviours,
• Values: Objectivity, Competitiveness, Equality, Punctuality/ time
• Thinking & decision making processes
(one issue at a time/ multiple)
At negotiation
table
• Non-task sounding
• Task related exchange of information
• Persuasion
• Concession &
agreement
Verbal Negotiation tactics
• Promise
• Threat
• Recommendation
• Warning
• Reward & Punishment
• Normative appeal
• Commitment
• Self
disclosure
• Questions
• Command
Non Verbal behaviours
• Use of words like No, You
• Silent periods
• Conversational overlaps
• Interruption to counterpart
• Facial gazing
• Touching
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