Blog

www.derby.ac.uk/businessSensitivity: InternalMarketing across CulturesWeek 2 – Marketing and International Marketing:an overview of the key issueswww.derby.ac.uk/businessSensitivity: InternalSo what actually is “Marketing?”Marketing Defined……www.derby.ac.uk/businessSensitivity: Internal“the management process responsible for…• identifying• anticipating and…• satisfying…• customer requirements…..….profitably!”Marketing Defined……(CIM 1984, 2001)www.derby.ac.uk/businessSensitivity: Internal“the process of planning and executing the….• conception• pricing• promotion, and…• distribution of…• ideas, goods and services…• to create exchange and…• satisfy individual and organisational objectives”Marketing Defined……(AMA 1985)www.derby.ac.uk/businessSensitivity: Internal“Marketing is to establish, maintain and enhancerelationships with customers and otherpartners…at a profit…so that the objectives of the parties are met and…is achieved by mutual exchange and fulfilment ofpromises”Marketing’s goal……(Christian Gronroos 1997)www.derby.ac.uk/businessSensitivity: Internal•The Marketing department?•The HR department?•The Finance department?•The Production department?•The Purchasing and Supply Chaindepartment?•The R&D/NPD department?So who’s job is “Marketing?”www.derby.ac.uk/businessSensitivity: InternalMarketing is about giving customers what they want:•Should be the focus of ALL marketing activities i.e. towardsthe customer or end-consumer of the product or service•If customers do not get what they want/need, marketinghas failed both the customer AND the organisationSo why is it everyone’s?www.derby.ac.uk/businessSensitivity: InternalMarketing should identify and anticipate customerrequirements:•CIM definition suggests the need for marketing research, i.e.the marketer creates some sort of product/service offeringonly after researching the market and pinpointing what thecustomer wants•AMA definition implies that it all begins with the “planning”process, which may or may not be done with reference to thecustomerSo why is it everyone’s?www.derby.ac.uk/businessSensitivity: InternalMarketing should fulfil customer requirements –profitably:•Warns the marketer that you can’t please all of thepeople all of the time!•Compromises are sometimes necessary!•The need to work within (finite) resources, budgets etc.•Short term losses for long term strategic goals?•Marketing has a responsibility to ultimately increase andsustain profitsSo why is it everyone’s?www.derby.ac.uk/businessSensitivity: InternalPerhaps a revised CMI definition should be…..?“the management process responsible for…• identifying• anticipating and…• satisfying…• customer, stakeholder and societyrequirements…..ethically, ecologically and….profitably!”www.derby.ac.uk/businessSensitivity: InternalThe Evolution of the Business Orientation of Marketing:The Development of Marketing in Business OrientationFocusUSA eraW. EuropeeraE. Europe eraProductionManufactureTo 1940sTo 1950sLate 1980sProductGoodsTo 1940sTo 1960sLargely omittedSalesSeller needs1940s-1950s1950s-1960sEarly 1990sMarketingBuyer needs1960s+1970s+Mid-1990s+Ethics/sustainablemarketingBuyer needsfor society andenvironmentMid-1990s+Mid-1990s+Late-1990s+ www.derby.ac.uk/businessSensitivity: InternalThe Marketing Environmentwww.derby.ac.uk/businessSensitivity: InternalThe macro environmentThe micro environmentcustomerscompetitorsintermediariesotherstakeholdersThe internalenvironmentProductionFinanceR&DHR etc.PoliticallegalforcesTechnologicalforcesEconomicforcesSocialculturalforcessuppliersP ET Swww.derby.ac.uk/businessSensitivity: InternalPrice•Costs•Profitability•Value for money•Competitiveness•IncentivesProduct•NPD•Product Management•Features & Benefits•Branding•Packaging•After-sales servicePlace•Access to target market•Channel structure•Channel management•Retailer image•LogisticsPromotion•Communications mix•Advertising•Sales promotion•Sales and PR•Direct marketingwww.derby.ac.uk/businessSensitivity: Internal+ 3 more Ps: (Booms and Bitner 1981)• People• Physical Evidence• Processeswww.derby.ac.uk/businessSensitivity: Internal4/7P’s….. or the 4C

’s??Bob Lauterborn (adapted from Advertising Age 1990)• Product becomes Customer wants and needs• Price becomes Cost to the consumer, customer,stakeholder• Place becomes Convenience for the customer• Promotion becomes Communication (dialogue)www.derby.ac.uk/businessSensitivity: Internal…or even….www.derby.ac.uk/businessSensitivity: Internal18Developing a marketing strategy:– SWOT analysis– Porters 5 Forces– Porters Generic Strategies– The Ansoff matrix– The Product Life Cycle– The BCG Matrixwww.derby.ac.uk/businessSensitivity: Internal19REMEMBER:all aspects of this marketing “refresher” haveDIRECT RELEVANCE toInternational Marketing and Marketing AcrossCultures just as much as Domestic Marketingwww.derby.ac.uk/businessSensitivity: Internal20Key Factors for Marketing across Cultures:www.derby.ac.uk/businessSensitivity: Internal“methods by which international marketers cancompare and contrast consumer, market and buyerbehaviour across cultures and countries”The Cross-Cultural AnalysisHall and Hall (1987)Hofstede (1984,1994)Wills et al (1991)Trompenaars (1993)Lewis (1992)www.derby.ac.uk/businessSensitivity: InternalA Cultural Framework (Terpstra, Foley and Sarathy, 2012)culturereligionvaluesattitudeseducationsocialorganisationstechnology &material culturelaw & politicsaestheticslanguagewww.derby.ac.uk/businessSensitivity: InternalCommunicating with Customers, ChannelMembers and other StakeholdersStakeholders have very different interests andtherefore require different messages andforms of communication:• Push strategy• Pull strategy• Profile strategywww.derby.ac.uk/businessSensitivity: InternalPush Strategies• A push strategy is targeted at thetrade/channel members• The strategy is designed to “push” productsthrough the channel towards the end userwww.derby.ac.uk/businessSensitivity: InternalPull Strategies• Targeted at the end user• The strategy seeks to create demand from thetarget market• Aims to encourage intermediaries to stockproduct due to end user demandwww.derby.ac.uk/businessSensitivity: InternalProfile Strategies• The organisation’s corporatecommunication objectives• Communicating about the organisation as acomplete entity to its stakeholders• Focuses on the development of corporateimage and reputationwww.derby.ac.uk/businessSensitivity: InternalContinuum of StandardisationPricingDistributionSales ForceSalesPromotionProductImageObjectivesStrategyDifferentiation(adaptation)Standardisationwww.derby.ac.uk/businessSensitivity: InternalFunctional features, Perceived valuePerformance, Image, TechnologyDesign Brand name Price, Quality,Variants, Staff attitudes, Packaging,Country of originDelivery, installation, guaranteesAfter-sales service – repair, maintenancesparesLowHighCore productbenefitsproductattributessupportservicesThe Components of the International ProductOfferStandardisationpossibilitywww.derby.ac.uk/businessSensitivity: InternalWhat level of involvement do we (or they) want?How much control over the international business?What level of risk are we prepared to take?What cost can we afford to bear?Market Entry Strategy…. key decision issueswww.derby.ac.uk/businessSensitivity: InternalWholly owned subsidiaryCompany acquisitionAssembly operationsJoint ventureStrategic allianceLicensingContract manufactureDirect marketingFranchisingDistributors/agentsSales forceTrading companiesExport management companiesPiggyback operationsDomestic purchasingMarket EntryStrategy….levels ofinvolvementwww.derby.ac.uk/businessSensitivity: InternalManufacturingOwn subsidiaryCompany acquisitionAssembly operationsMarket Entry Strategy…. risk andcontrolIndirect exportingPiggyback operationsTrading companiesExport management companies DomesticpurchasingRisk Cooperation strategyJoint ventureStrategic allianceDirect exportingDistributors/agentsDirect marketingFranchisingControl www.derby.ac.uk/businessSensitivity: InternalThe firm:SizeExperienceResourcesMarket Entry Strategy… summary ofconsiderationsThe market:•Competition•Demographics•LocationThe host:•Politics•Economics•Social-cultural•Technologywww.derby.ac.uk/businessSensitivity: InternalMarketing across CulturesNext week: Global Cultures and Buyer Behaviour