UNIVERSITY OF GUYANA MARKETING 2204 ……INTERNATIONAL MARKETING STRATEGIES

ERIC M. PHILLIPS (MBA, CTP, BSc. Eng.)

APRIL 15, 2013

THE 5 CORE ELEMENTS OF THE MARKETING CONCEPT

THE 5 CORE ELEMENTS: EXPANDED

INTERNATIONAL MARKETING International Marketing is the performance of business activities

designed to plan, price, promote, and direct the flow of a company’s goods & services to consumers or users in more

than one nation for a profit.

STRATEGIC PLANNING AND THE MARKETING PROCESS

The Marketing Environment and Competitor Analysis

SWOT

analysis PEST analysis Five forces analysis

SWOT ANALYSIS?

Factors Influencing Company Marketing Strategy Marketing Intermediaries

Economic / demographic

Technologicalnatural environment

environment

Product

Suppliers

Place

TARGET CONSUMERS

Price

Publics

Promotion

Politicallegal environment

Competitors

Socialcultural environment

Strategic Planning 

The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.



It involves defining a clear company mission, setting supporting objectives, designing a sound business portfolio, and coordinating functional strategies.



“If you fail to plan, you are planning to fail.”



The annual and long-range plans deal with the company’s current businesses and how to keep them going.

What is a Mission? 

Mission statement are enduring statements of purpose that distinguish one business from other similar firms.



A clear mission statement acts as an “invisible hand” that guides people in the organization.



It identifies the scope of a firm’s operation in product and market terms.



It promotes a sense of shared expectations in employees and communicates a public image to important stakeholder groups in the company’s task environment.

Objectives Vs Goals 

Objectives are the end results of planned activity.



They states what is to be accomplished by when and should be quantified if possible.



The achievement of corporate objectives should result in the fulfillment of the corporation’s mission.



In contrast to objectives, a goal is an open-ended statement of what one wishes to accomplish with no quantification of what is to be achieved and no time frame for completion.

Designing the Business Portfolio 

Business portfolio – the collection of businesses and products that make up the company.



Portfolio analysis – a tool by which management identifies and evaluates the various businesses making up the company.



SBU – a unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses.



The company must 1) Analyze its current business portfolio and decide which businesses should receive more, less, or no investment. 2) Develop growth strategies for adding new products or businesses to the portfolio.

The Boston Consulting Group Approach 

A portfolio-planning method that evaluate a company’s SBUs in term of their market growth rate and relative market share.



SBUs are classified as stars, cash cows, question marks, or dogs.



One of the four strategies can be pursued for each SBUs.  Invest more in the SBU in order to build its share.  Invest just enough to hold the SBU’s share at its current level.  It can harvest the SBU, milking its short-term cash flow regardless of the long-term effect.  The company can divest the SBU by selling it or phasing it out and using the resources elsewhere.

THE BOSTON MATRIX Market Growth High Problem Children

Dogs

Low

Stars

Cash Cows

Market Share High

THE BOSTON MATRIX 

Problem Child:

-

Products having a low market share in a high growth market

-

Need money spent to develop them

-

May produce negative cash flow

-

Potential for the future?

Problem children – worth spending good money on?

THE BOSTON MATRIX 

Dogs: –

Products in a low growth market

–

Have low or declining market share (decline stage of PLC)

–

Associated with negative cash flow

–

May require large sums of money to support

Is your product starting to embarrass your company?

THE 3 STEPS IN MARKET SEGMENTATION, TARGETING, AND POSITIONING

Market Segmentation 1. Identify segmentation variables and segment the market 2. Develop profiles of resulting segments

Market Targeting 3. Evaluate attractiveness of each segment 4. Select the target segment(s)

Market Positioning 5. Identify possible positioning concepts for each target segment 6. Select, develop, and communicate the chosen positioning concept

SEGMENTATION, TARGETING AND POSITIONING

STEPS IN MARKET SEGMENTATION, TARGETING, AND POSITIONING

6. Develop marketing mix for each target segment

Market Positioning

5. Develop positioning for each Target segment 4. Select the target segments 3. Develop measures of Segment attractiveness 2. Develop profiles of resulting segments 1.Identify bases for segmenting the market

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Market Targeting

Market Segmentation

BASES FOR SEGMENTING CONSUMER MARKETS Geographic Region, City or Metro Size, Density, Climate, Nations, counties, villages

Demographic Age, Gender, Family size , Life cycle, Race, Occupation, Income , Religion, Education, Nationality.

Psychographic Lifestyle or Personality Behavioral Occasions, Benefits, Uses, or Attitudes

Effective Segmentation Measurable

• Size, purchasing power, profiles of segments can be measured.

Substantial

• Segments must be large or profitable enough to serve.

Accessible

• Segments can be effectively reached and served.

Differential

• Segments must respond differently to different marketing mix elements & actions.

Actionable

• Must be able to attract and serve the segments.

FIVE PATTERNS OF TARGET MARKET SELECTION Single-segment concentration

Selective specialization

Product specialization

M1 M2 M3

M1 M2 M3

M1 M2 M3

P1

P1

P1

P2

P2

P2

P3

P3

P3

Market specialization

Full market coverage

M1 M2 M3 P = Product M = Market

M1 M2 M3

P1

P1

P2

P2

P3

P3

PORSHE VERSUS LEXUS

Porsche is positioned on the basis of performance and freedom.

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DIFFERENTIATION AND POSITIONING

Positioning maps show consumer perceptions of their brands versus competing products on important buying dimensions

POSITIONING?

PORTER’S 3 GENERIC STRATEGIES?

Boston Consulting Group

Developing Growth Strategies Existing products Existing markets New markets

New products

Market Penetration

Product Development

Market Development

Diversification

PRODUCT PORTFOLIO MATRIX

ANSOFF MATRIX

GOING

GLOBAL

The International Marketing Mix Foreign environment (uncontrollable)

1

Political/legal forces

7 Cultural forces

Domestic environment (uncontrollable)

Political/ legal forces

(controllable)

Price Promotion

6 Geography and Infrastructure

Economic forces

2

Competitive structure Competitive Forces

Product Channels of distribution

7

Level of Technology

Economic climate

5

4 Structure of distribution

3

Environmental uncontrollables country market A Environmental uncontrollables country market B Environmental uncontrollables country market C

MARKETING MIX ADAPTATION

In India, McDonald’s serves chicken, fish, and vegetable burgers, and the Maharaja Mac—two all-mutton patties, special sauce, lettuce, cheese, pickles, onions, on a sesame-seed bun.

What is product management?

Who does product management?

What do product managers do?

.