global business
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Lecture_week4_GlobalMarketing.pptxGLOBAL BUSINESS unit 6. Global marketing
Professor Meritxell Solé
2019/20 – SUMMER 1
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Nestor Amela Dupre - Copyright
SUPPLY CHAIN MANAGEMENT
marketing – efforts to create, develop, and defend markets that satisfy the needs and wants of individual and business customers
supply chain – flow of products, services, finances, and information that passes through a set of entities from a source to the customer
supply chain management – activities to plan, organize, lead, and control the supply chain
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MARKETING MIX
marketing mix – the four underlying components of marketing: (1) product, (2) price, (3) promotion, and (4) place
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Figure 14.2 The Four Ps of Marketing Mix
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PRODUCT
product – offering that customers purchase
market segmentation – identifying segments of consumers who differ from others in purchasing behavior
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PRICE
price – the expenditures that customers are willing to pay for a product
price elasticity – how demand changes when price changes
total cost of ownership – total cost needed to own a product, consisting of initial purchase cost and follow-up maintenance/service cost
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PROMOTION
promotion – communications that marketers insert into the marketplace
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Table 14.1 Some Blunders in International Marketing
PLACE
place – the location where products and services are provided; often referred to as the distribution channel
distribution channel – the set of firms that facilitates the movement of goods from producers to consumers
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Figure 14.3 Supply Chain Management
TRIPLE As IN SUPPLY CHAIN MANAGEMENT
Agility
Adaptability
Alignment
AGILITY
agility – the ability to react quickly to unexpected shifts in supply and demand
ADAPTABILITY
adaptability – the ability to change supply chain configurations in response to longer-term changes in the environment and technology
make-or-buy decision – decision about whether to produce inhouse (“make”) or to outsource (“buy”)
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ALIGNMENT
alignment – alignment of interests of various players
third-party logistics (3PL) – a neutral, third-party intermediary in the supply chain that provides logistics and other support services
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Figure 14.4 Institutions, Resources, Marketing, and Supply Chain Management
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INSTITUTIONS, MARKETING, AND SUPPLY CHAIN MANAGEMENT
Formal rules of the game have a significant impact on marketing and supply chain management as most countries impose restrictions, such as taboos in advertising
Most marketing blunders happen due to firms’ failure to appreciate the deep underlying differences in cultures, languages, and norms—all part of the informal institutions
RESOURCES, MARKETING, AND SUPPLY CHAIN MANAGEMENT
Managers must assess whether their marketing and supply chain management activities:
Add value
Are rare,
How likely it is for rivals to imitate,
Whether or not the firm is organizationally ready to accomplish its objectives
MANUFACTURING VERSUS SERVICES
This debate deals with the nature of economic activities
“Services” historically lacks prestige when compared to “manufacturing”
Marketing and supply chain management would be regarded as services historically; however, in today’s world, this classification may not matter that much
MARKET ORIENTATION VERSUS RELATIONSHIP ORIENTATION
market orientation – a philosophy or way of thinking that places the highest priority on the creation of superior customer value in the marketplace
relationship orientation – a focus to establish, maintain, and enhance relationships with customers
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MARKET ORIENTATION VERSUS RELATIONSHIP ORIENTATION (cont’d)
Marketers have heavily debated whether a market orientation or a relationship orientation is more effective in global markets
Key to the debate is how firms benefit from market or relationship orientation differently around the world
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Table 14.2 Implications for Action
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Table 14.3 Do’s and Don’ts to Avoid Blunders in International Marketing
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Marketing and the Marketing Concept
Marketing (Kotler 1980): human activity directed at satisfying needs and wants through exchange processes.
Is marketing = selling??
The idea of the marketing concept is to adapt the company’s offering to the needs and wants of the customer.
Marketing and the Marketing Concept
The practice of conducting business according to both local and global considerations.
Glocalization:
https://www.youtube.com/watch?v=AH-wx-Qz52A
https ://www.forbes.com/sites/michaelzakkour/2017/08/24/why-starbucks-succeeded-in-china-a-lesson-for-all-retailers/#10b52b6a7923
Glocalization: Starbucks
Starbucks carefully designs their physical locations to cater to local, cultural nuances.
Starbucks designs stores for the local consumer
Starbucks’ digital strategy is consumer-centric
A seamless transition from online interactions to the offline experience (O2O).
Global brand’s need to dominate local search to ensure their capturing local intent.
Starbucks and Spotify Integration
Location-based Starbucks app tells you what song is playing in the store you’re in, then brings up a Spotify playlist. http://www.androidauthority.com/the-sound-of-starbucks-brings-coffee-lovers-spotify-integration-668427/
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Exchange: An Important Part of Marketing
For exchange to occur, there must be ....
Two parties and each party must ...
have something of value to the other party,
be capable of communication and delivery,
be free to accept/reject the offer, and there must be
an agreement to terms.
Figure 1.1 Social Media Venn Diagram
Communications and Marketing Communications
Communications: the process where individuals share meaning and establish a commonness of thought.
Marketing Communications: the collection of all elements of a firm’s marketing mix that facilitate exchange by establishing shared meaning with the firm’s customers.
Marketing Mix: specific collection of certain levels of elements of a brand’s 4Ps – product, price, place and promotion.
MARKETING MIX
marketing mix – the four underlying components of marketing: (1) product, (2) price, (3) promotion, and (4) place
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Figure 14.2 The Four Ps of Marketing Mix
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PRODUCT
product – offering that customers purchase
market segmentation – identifying segments of consumers who differ from others in purchasing behavior
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PRICE
price – the expenditures that customers are willing to pay for a product
price elasticity – how demand changes when price changes
total cost of ownership – total cost needed to own a product, consisting of initial purchase cost and follow-up maintenance/service cost
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PROMOTION
promotion – communications that marketers insert into the marketplace
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PLACE
place – the location where products and services are provided; often referred to as the distribution channel
distribution channel – the set of firms that facilitates the movement of goods from producers to consumers
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Branding
Brand: A name, term, sign, symbol, or design intended to identify the goods and services of one seller or groups of sellers and differentiate them from those of competition.
Brand equity: The goodwill that an established brand has built up over its existence.
Marketing Communications at the Brand Level
Brand Adoption: Goodwill Boutiques
Marcom and Brand Adoption
Product Adoption
The introduction and acceptance of new ideas, including new brands
Essential to long-term market success
Marketing Communications
Facilitate successful new product introductions
Reduce the product failure rate (potentially 35-45%)
The Adoption Process and Marcom Tools
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Model of the Brand Adoption Process
Advertising Illustrating the Brand Adoption Process
Brand Characteristics That Facilitate Adoption
Relative Advantage
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Global Relative Advantage: Ride Sharing
Compatibility
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Other Brand Characteristics That Facilitate Adoption
Complexity
An innovation’s degree of perceived difficulty
Trialability
The extent to which an innovation can be used on a limited basis prior to making a full-blown commitment
Observability
The degree to which the positive effects of new-product usage can be observed by users and others
Figure 3.4: An Advertisement Illustrating Observability: iPhone Color Options
Table 3.1: Hypothetical Illustration of Quantifying Adoption-Influencing Characteristics
SWOT Analysis
Figure 1.4: Making Brand-Level Marcom Decisions and Achieving Desired Outcomes
Making Fundamental Marcom Decisions
Micromarketing: The customizing of products and communications to smaller segments (e.g., toothpaste).
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Target Market Selection Strategies
1. Undifferentiated Marketing
2. Differentiated Marketing
3. Concentrated Marketing
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Marcom Implementation Decisions
Mixing elements
Creating messages
Selecting media
Establishing momentum
Marcom Outcomes
Some Blunders in International Marketing
Do’s and Don’ts to Avoid Blunders in International Marketing
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