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Perspectives of Innovations, Economics & Business, Volume 4, Issue 1, 2010 www.pieb.cz

International Cross-Industry Journal

ENTERPRISE: PERFORMANCE AND BUSINESS PROCESSES

MODELLING OF MARKETING STRATEGIES FOR THE SINGLE MARKETS VS MARKETING STRATEGY FOR THE GLOBAL MARKET: CASE STUDY MOBIEXPLORE

NEVEN SERIC, PH.D., MALJIC VINKO, MATE PERISIC Faculty of Economics University of Split, Croatia

JEL Classifications: L86, M30

Key words: Marketing, strategies, product, tourism, mobiExplore.

Abstract: A successful treating of a single, national, market through new challenges of marketing management is notably different than treating of the global market. The paper provides the case study of Gideon Multimedia, IT firm from Croatia. The company’s main product is mobiExplore, touristic guide platform for mobile phones. The application could be adapted to different marketplaces - global and national, for different countries. Because of different dynamic of the growth of national mobile markets even the global marketing strategy for the mobiExplore applications needs to be adapted to each national case. Establishing of the national strategy needs to be adapted through market research of the local market. The paper argues that customized for UK market mobiExplore solutions has proved correct and intdicate on advantages of the company’s marketing strategies for singl market.

ISSN: 1804-0527 (online) 1804-0519 (print) PP. 63-65

Introduction

Treating of a single market Vs. treating of a global market. A successful treating of a single, national, market through new challenges of marketing management is notably different from a treating of the global market (Kerin andPeterson, 2004). Some changes on the global market occur after adequate happenings in the field of global macroeconomics. Changes on the each single market depend on happenings in the field of local national economy (Peter and Donnelly, 2004). Toward that, different approach in marketing management for the single market could result in better or worse operative solutions (Kerin andPeterson, 2004). For such reason main focus of this paper will be directed toward differences between platforms for the marketing strategies on the global market, and tactics of choosing strategy on the single markets.

Treating of a single market Vs. treating of a global market through IT product. The review will be shown through research of the case study of Gideon Multimedia, IT firm from Split, Croatia. Its main product is a mobiExplore, commercial platform for the mobile phones. Gideon Multimedia is present on the global market with three national mobiExplore applications: mobiExplore Croatia, mobiExplore Italia, and mobiExplore United Kingdom. Gideon Multimedia has the main corporate marketing strategy for the mobiExplore, but also some different marketing management approaches to commercialization of each one national mobiExplore application. Different approach through marketing management of the IT product is even evident in the promotion of the UK national companies. Some companies from other countries are also interested to be included in such national application as for the UK market.

Some of the targeted customers are part of the global market, but even they could be better communicating through the adapted marketing management approach for single market.

mobiExplore marketing strategy for the global market

Market research. Mobile services (excluding voice and text messaging) are forecasted to reach 92 billion Euro by 2010, up from 27 billion Euro in 2005. When it comes to mobile advertising, predictions vary, but they all agree on the fact that the market for mobile advertising is growing rapidly. Global mobile marketing and advertising is estimated to reach 3 billion USD by the end of 2007, and will increase six fold to 19 billion USD by 2011 (ABI, 2008). Informa Telecoms & Media predicts worldwide mobile advertising spending will be 11.35 billion USD by 2010 (Informa, 2008). In such condition each IT product needs different approach in the strategy of marketing management. Soon could be seen some main attractions for potential customers after the global commercialization of a new IT product. There is an evident growth of the mobile services on the global market. Because of that reason Gideon Multimedia has started with developing of the mobile IT products. Nowadays the mobiExplore is the main product because it could be adapted to different businesses in different countries as a mobile guide for products and services promotion.

Because of different growth dynamics of national mobile markets even the global strategy of marketing management for the mobiExplore applications needs to be adapted to each national case. In such condition each national mobiExplore application needs different approach in the marketing management strategy.

Perspectives of Innovations, Economics & Business, Volume 4, Issue 1, 2010 www.pieb.cz

International Cross-Industry Journal

Source: Seric (2009)

Establishing of the national marketing management strategy needs to be adapted through market research of the local market. Conservative and standardized solutions work better only for some markets. Even the way of the market research needs to be different (Aaker, 2001). For some national markets with high market growth it is useful to go through the exploratory research assuming the shorter period for collecting useful data.

Marketing strategy for the mobiExplore on the global market. Gideon’s sales and marketing strategy seeks to build on the company’s previous experience and strengths and to consider its current weaknesses. Specifically, Gideon has proven over the years that it can sell development services to companies and institutions. Playing up to Gideon’s strengths and experience is one of the reasons that primary sales focus in the global market is on customized mobiExplore editions for similar businesses in different countries. For the needs of commercialization of global mobiExplore issues, bottom-up model of forming the strategies is being practiced. Starting point is a genesis of a certain need that potential mobiExplore advertisers seek to satisfy with their products and services. Understanding the cause of the need offers useful insights into suitable ways and models of satisfying that products and services offer. Tactics and operational tactical programs eventually form the exact strategy for the global level. Model is shown in a Figure 1.

mobiExplore marketing strategy for the UK market

Market research. Preliminary surveys of UK market have shown high sensitivity of potential mobile advertisers of products and services to suggestions of national institutions in charge of improving the management of certain economic resources.* High growth of mobile device users market and efforts to support competition by additional educational and entertaining contents that are being installed on them resulted by decisions that are made based on exploratory research. Same has been conducted during the winter 2007/spring 2008. Research has shown that in the segment of choosing the services of advertising touristic subjects, suggestions of VisitBritain, institution that defines national strategy of tourism, were accepted. The mobiExplore is practical in the aim of strengthening of the national tourism image. A research showed that VisitBritain is an exact example of systematic leadership of national policy in touristic promotion of the country. Plans and strategic and tactical aims of touristic development can be seen in the studies of VisitBritain. Professional approach, based on interdisciplinary collaboration of experts in different fields, in the end suggests to the touristic institutions in UK the specified practical solutions how to advance communication with target

* www.gideon.hr

FIGURE 1. THE MODELLING OF THE GLOBAL MARKETING STRATEGY FOR THE MOBIEXPLORE

1. TECHNOLOGY 2. GLOBAL REGULATIONS

3. GLOBAL MARKET TRENDS

1. SWOT ANALYSIS

2. BENCHMARKING

1. GLOBAL NEEDS 2. CHALLENGE 3. GLOBAL OPPORTUNITIES

1. GLOBAL ECONOMY

2. POSITION OF THE IT PRODUCTS ON THE GLOBAL

MARKET

PLANNING AND SELECTING THE

GENERAL MARKETING STRATEGY

FOR THE mobiEXPLORE

mobiEXPLORE AS A RESULT

OF THE DEVELOPMENT OF

THE INFORMATIC

TECHNOLOGIES

T A C T I C S

GLOBAL mobiEXPLORE MARKETING STRATEGY

FIGURE 2. THE MODELLING OF THE MARKETING STRATEGY FOR THE SINGLE MARKET

1. NATIONAL TECHNOLOGICAL

RESOURCES (CONDITIONS)

2. GOVERNMENT REGULATIONS

3. EXACT MARKET TRENDS

1. SWOT ANALYSIS vs SIMILAR

PRODUCTS ON THE MARKET

2. GENERIC ENCHMARKING

1. NEEDS 2. OPPORTUNITY 3. CHALLENGE 4. MARKETING

1.GENERAL MARKET’S ACCEPTATION OF THE IT PRODUCTS

2. HISTORICAL (& DINAMICAL) DEVELOPMENT OF THE

NATIONAL MARKET

PLANNING

AND SELECTING

TACTIC PROGRAMS

mobiEXPLORE

APPLICATION

ADAPTED TO THE

NATIONAL MARKET

C S

DEVELOP MENT OFTHE STRATEGY FOR THE NATIONAL

mobiEXPLORE APPLICATION

Perspectives of Innovations, Economics & Business, Volume 4, Issue 1, 2010 www.pieb.cz

International Cross-Industry Journal

segments on the market. Such a communication with global market ensures effective management of national touristic resources, more detailed planning of private and national incomes from tourism and strength the image of UK tourism brand on a global market. VisitBritain represents flywheel of UK tourism development thanks to professional experts who deal with evaluation of optional solutions. Special attention during the last years is paid to IT products facilitating communication with touristic clients. On the basis of all this knowledge, a marketing model mobiExplore UK is defined. This model might be represented as marketing strategy model for a single market (Figure 2).

Main marketing strategy for the mobiExplore UK as a single market. Gideon’s marketing management seeks to build on the company's previous experience and strengths and to adapt to its current weaknesses. Specifically, Gideon has proven over the years that it can sell development services to companies and institutions. Playing up to Gideon’s strengths and experience is one of the reasons that primary sales focus in the UK market is on customized mobiExplore editions, heavily utilizing its partnership with Visit Britain to promote customized editions for the local and regional tourism organizations in the UK. VisitBritain has strong business reputation among tourism companies in the UK. VisitBritain has its own expert team. They are looking for the new promotional IT products, and evaluate them. After analyses VisitBritain suggests some ways for tourism management through the concrete IT product. For such reasons the main Gideon Multimedia marketing strategy for the mobiExplore UK is co-branding with VisitBritain. The first signed agreement in the UK was the one with VisitBritain in December 2008. From than VisitBritain is informing all its members about possibilities of the UK tourism promotion through the mobiExplore UK continuously.

Conclusion

From the reviewed case it is evident that successful treating of a single market through marketing management is notably different than usual treating of the global market. Changes on the each single market depend on happenings in the field of local national economy, as custom coordination between institutional and business subjects.

In the presented case of mobiExplore, IT product from Gideon Multimedia, there were presented two ways of building marketing strategies for the product’s commercialization. Because of different growth dynamics of national mobile markets even the global strategy of marketing management for the mobiExplore applications needs to be adapted to each national case. In such condition each national mobiExplore product needs different approach. Establishing a national marketing management strategy needs to be adapted through market research of a local market.

For the needs of commercialization of global mobiExplore issues Gideon Multimedia practices bottom–up model of forming the marketing strategy. Starting point is genesis of the need that should be satisfied through mobiExplore issue promoted product or service. Such an approach is predicted for global market. In approaching national market, especially in a situation when on this market there is a subject denoting

national business policy regarding a certain economical resources, Gideon Multimedia practices the specified marketing strategy for the mobiExplore issue adapted to a model that such a national subject practices. Such an example is mobiExplore UK which has commercialization and marketing strategy defined in conjunction and coordination with the VisitBritain’s tourism promotion policy. Such strategic approach has proved correct as accepting the VisitBritain’s guidelines for the final concept of mobiExplore UK resulted in accepting that IT product as a media of communication by the target segments, visitors and potential visitors of UK.

References

Aaker, D., 2001. Strategic market management, 6th ed., John Wiley & Sons, Inc. New

ABI, 2008. Research for partners, Gideon & Medijska Osobnost d.o.o., Split, Agency for market research.

Doyle, P., 2002. Marketing management and strategy, 3rd edition, Pearson Education Ltd., London

Gideon Multimedia, 2007/2008. Exploratory research by Gideon & Medijska Osobnost d.o.o., Split, Agency for market research.

Informa Telecoms & Media predicts. 2008. Research for Gideon partners by Gideon & Medijska Osobnost d.o.o., Split, Agency for market research

Kerin, A., Peterson, A., 2004. Strategic marketing problems, Pearson Prentice Hall, New Jersey.

Peter, J., Donnelly, J., 2004., Marketing management: Knowledge and skills, 7th Ed, Irwin, Burr Ridge.

Šerić, N., 2003. Importance of remodeling of marketing strategies for the market in the countries in transition, 5th International Conference Enterprise in transition, Ekonomski fakultet Split, Working Paper.

Šerić, N., 2009. The role of product management in the global crisis - case study in domestic appliance industry, 3rd Marketing Theory challenge in transitional societies 24th-25th of September 2009. Maribor, Slovenia, Conference proceedings ISBN 978-961-6354- 95-0

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