2014-03-07
International Marketing
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1. Corporate strategic planning Company's growth strategies
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Agenda orientations toward marketplace creating the strategy (the procedure, elements and key frameworks) intensive growth strategies, integrative growth strategies, diversification strategies
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THE MARKETING CONCEPT
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Defining marketing
Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.
Marketing Management -1
Marketing management is art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
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Marketing Management -2 The marketing management - is a delicate balance of creativity and structure/formal procedures.
Principles of Marketing
Customer needs and wants Market information as a basis of decisions Integrated marketing activities and tools Customer satisfaction creation
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Marketing Mix 7P’s or 7C’s? Organizational perspective product price place promotion physical evidence people process
Customer perspective • customer value • cost • convenience • communication • confirmation • consideration • co-ordination and concern
Marketing Management The marketing management consists of:
analyzing market situation designing marketing strategies implementing and organizing the marketing effort controlling marketing performance
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COMPANY’S ORIENTATIONS TOWARD THE MARKETPLACE 11
Company orientations toward the marketplace - 1
Production concept Product concept Selling concept Marketing concept Customer concept Societal marketing concept
Source: P. Kotler (2003). Marketing Management, 11th, Prentice Hall, Upper Saddle River, p. 17.
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Company orientations toward the marketplace – 2 Concepts
Starting point
Focus
Means
Ends
Production
Factory
Widely available and inexpensive products
High production efficiency Low cost Mass distribution
Profits through volume and low cost
Product
Factory
Superior products
Making superior products and improving them over time
Profits through high quality product
Selling
Factory
Products
Aggressive selling and promotions
Profits through sales volume
Marketing
Target market
Customer needs
Integrated marketing
Profits through customer satisfaction
Customer
Individual customer
Customer needs and value
One-to-one marketing Integration and value chain
Profits through capturing customer share, loyalty, and lifetime value
Societal marketing
Best long-run interests customer and society
Customer needs, customer interests, and long-run societal welfare
Integrated marketing and education customer
Profits through customer satisfaction and society’s well-being
Source: own preparation based on: P. Kotler (2003). Marketing Management, 11th, Prentice Hall, Upper Saddle River, p. 17-27.
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Corporate Strategic Planning
defining the corporate mission (vision)
establishing SBU
assigning resources to each SBU
planning new business, downsizing & terminating older businesses
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Mission & Objectives
Mission
describes the organisation’s basic function in society explains why the company exists provides the commercial logic for the company needs to be converted into everyday performance is a cultural glue that enables the organisation to function as a unity
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Corporate Mission - Fundamental Questions
What is our business?
Who is the customer?
What is of value to our customer?
What will our business be?
What should our business be?
Infuences on the mission statement
company’s history
preferences, values and expectations of managers & owners
environmental factors
available resources
distinctive competences
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Workable mission
brief – easy to understand and remember
flexible – to accomodate change
distinctive – to make the firm stand out
Mission or/and vision
vision gives general sense of direction to the company, is the orientation point that guides the company vision ignores real. practical problems, vision can degenerate to wishful thinking mission is about here and now, vision refers to the future, mission is designed to motivate, vision – not!
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Objectives S Specific - descriptive, succinct and provide clarity throughout the organization as to what is to be achieved M Measurable - clearly state tangible targets that can be measured in the future A Aspirational - challenging but achievable, motivational R Realistic - based on sound market analysis, financial, human & physical resources should underpin the objectives T Timebound - a timescale should be set against the achievment of each objective in order for performance measurement to be undertaken
Objectives hierarchy Corporate objectives – increase profits Production objectives – cut costs
Personnel objectives – reduce headcount
Marketing obejctives – increase revenue
Objectives for the mix
Product (10% of revenue )
Price (skimming)
Promotion (recall)
Place (coverage)
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Marketing Objectives e.g.
rate of return on investment net profits cash flow total sales revenue sales volume market share consumer awareness number of distribution outlets average realized price
SBU Defining
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SBU - Main Characteristics
SBU is a pasrt of the company that for all intents and purposes has its own distinct products, markets and assets
single business (or collection of related businesses) that can be planned separately from the rest of company
has its own competitors
has its own manager.......
Analysing the Product Portfolio
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Portfolio Evaluation Frameworks
BCG’s Growth Share Matrix
GE Multifactor Matrix
Shell Directional Policy Matrix
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Abell & Hammond’s Investment Opportunity Matrix
Arthur D. Little Strategic Condition Matrix
BCG’s Growth Share Matrix (traditional approach) 100 % Question marks
Stars
Market growth 10 % rate Cash cows 0% 1x
Dogs
O,5 x
0x
Relative market share
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Taking a Portfolio Approach
analysis based around evaluating SBU activities
models help you think strategically about the business and its resources and provide analytical frameworks. But:
they are over-simplified cannot incorporate ‘risk’ often offer misleading representations of strategic options use over generous measures assume market leadership = benefit ignores market ‘inching’ ignores competitive strategic factors
Determinants of market attractiveness
Market factors (eg size, growth)
Competitors
Investment factors
Technological change
Other factors
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BCG’s Growth Share Matrix (practical approach) 100 Question marks
Stars
Dogs
Cash cows
Market 50 attractiveness
0 0
50
100
Competitive position
References
Armstrong G., P. Kotler: Marketing. Wprowadzenie, Wolters Kluwer, Warszawa 2012 Gilian C., R. Wilson, Strategic Marketing Management. Planning, impementatiom and control, Butterworth Heinemann, 1999 Kotler P. Marketing Management. Eleventh Ed., Prentice-Hall, Englewood Cliffs, 2003 Porter M., Competitive Advantage, 1998 Strategic Marketing Management: Planning and Control, BPP Professional Education, 2003
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Gap Analysis
Diagrammatical approach to viewing the difference between:
Where we are going? (in the current way)
Where we want to be? (targets for achievement)
Gap Analysis Desired sales Diversification growth Integrative growth Sales
The planning gap
Intensive growth
Current portfolio
Time
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Intensive Growth Ansoff’s Product - Market Matrix Product Current
Current
Market penetration strategy
New
Product development strategy
Market
Market development strategy
New
(diversification strategy)
Intensive Growth Strategies
market penetration strategy
market development strategy
product development strategy
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Market penetration strategy
more purchasing and usage form existing customers
gain customers form competitors
convert non-users into users
Market development strategy
new market segments
new distributiob chanells
new geographic areas
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Product development strategy
product modifications via new features
different quality levels
‘new’ product
Integrative Growth Strategies
Vertical integration (VMS) - backward - forward
Horizontal integration (HMS)
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Diversification Growth Strategies
concentric diversification
horizontal diversification
conglomerate (lateral) diversification
Consolidation strategies
Deinwestment
De(z)integration
Prunning
Reduction
Harvesting
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References
Armstrong G., P. Kotler: Marketing. Wprowadzenie, Wolters Kluwer, Warszawa 2012 Kotler P. Marketing Management. Eleventh Ed., Prentice-Hall, Englewood Cliffs, 2003 Strategic Marketing Management: Planning and Control, BPP Professional Education, 2003
Case study
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