MARKETING IN EUROPE

1
MARKETING IN EUROPE
PRAGUE 3-06-03

• Opportunities and challenges

Louis Delcart European Marketing
Confederation www.emc.be
2
TABLE OF CONTENT

• HOW IS IT NOW AND WHY?
• A SWOT ANALYSIS
• WHAT STRATEGIES ARE RELEVANT FOR CANDIDATE
  COUNTRIES?
• WHAT MARKETING METHODS ARE HOT IN EUROPE-15?
• MARKETING IN EUROPE THE ADDED VALUE OF EMC

3
DESK RESEARCH ABOUT CANDIDATE COUNTRIES

• GDP COMPARED WITH EU-15
• GDP PER INHABITANT
• GDP DEVELOPMENT
• EXPORT-IMPORT
• FOREIGN DIRECT INVESTMENTS (FDI)
• NUMBER OF COMPANIES
• TURNOVER OF COMPANIES
• ENTREPRENEURIAL ACTIVITY

4
Source Statistics in Focus 41/2002
5
Source Statistics in Focus 41/2002
6
Source Statistics in Focus 41/2002
7
Source Statistics in Focus, 41/2002
8
Inward FDI flows to CCs
Source Statistics in focus 55/2002
9
Source Statistics in focus 55/2002
10
(No Transcript)
11
(No Transcript)
12
GLOBAL ENTREPRENEURIAL ACTIVITY
13
NECESSITY-BASED ENTREPRENEURIAL ACTIVITY
14
OPPORTUNITY BASED ENTREPRENEURIAL ACTIVITY
15
CHARACTERISTICS OF CZECH ECONOMY I

• Some sectors were traditional exporters to EU and
  lost their situation (or maintained it)

16
Source Eurostat, Comext
17
Source Eurostat, Comext
18
Source Eurostat, Comext
19
CHARACTERISTICS OF CZECH ECONOMY I

• Some sectors were traditional exporters to EU and
  lost their situation (or maintained it)
• Some sectors are now exporter to EU and replace
  other countries because of
• Closer-by
• Improving quality of products
• Perspective of become EU-member

20
Source Eurostat, Comext
21
Source Eurostat, Comext
22
Source Eurostat, Comext
23
Source Eurostat, Comext
24
Source Eurostat, Comext
25
Source Eurostat, Comext
26
Source Eurostat, Comext
27
CHARACTERISTICS OF CZECH ECONOMY II

• MUCH B2B TRADE
• SUPPLIERS NO BRAND AWARENESS
• PRODUCT AWARENESS COMES BEFORE BRAND PREFERENCE

Brans Bohemia v.o.s.
28
Source Eurostat, Comext
29
Source Eurostat, Comext
30
(No Transcript)
31
STRENGTHS WEAKNESSES OF CANDIDATE COUNTRIES

• STRENGTHS
• Traditional already demanded products
• Cheap labour cost
• Good educational system
• Ambitious population
• Not behind in new sectors such as ICT mobile
  phones
• Investments in newest systems (banking)

• WEAKNESSES
• Not familiar with market-driven economy
• New legal system
• Lack of investment funds
• Few well-known national brands
• Marketing craft still growing

32
OPPORTUNITIES THREATS OF NEW MARKETS

• OPPORTUNITIES I
• Growing middle-class ? more consumption ? growing
  market
• Need for cheap suppliers in EU
• Large demand for specific products know-how
• Open market of 350 mln inhabitants

• THREATS I
• Demanding disloyal consumers (learn from
  travelling, more educated, compare, presence of
  foreign companies,)
• Danger when cheaper suppliers are found
• Non uniform market ? requires market knowledge
• Not yet resolved items (Green Paper of
  Entrepreneurship)

33
DG ENTERPRISE THE ITEMS NOT YET RESOLVED

• Well-functioning internal market
• Simplifying and improving regulatory environment
• Better regulation
• Industrial competitiveness
• Promoting entrepreneurship and small firms
• Harnessing innovation and promoting research

34
DG ENTERPRISE THE ITEMS NOT YET RESOLVED

• Still existing barriers to trade
• Potential procurement markets
• Integrated energy, telecommunications and
  transport networks

35
OPPORTUNITIES THREATS OF NEW MARKETS II

• OPPORTUNITIES II
• Access to EU-programs (e.g. Fashion-me
  e-tailor, e-government)

36
eEurope

• Its key objectives are bringing every citizen,
  home and school, every business and
  administration, into the digital age and online
  creating a digitally literate Europe, supported
  by an entrepreneurial culture ready to finance
  and develop new ideas ensuring the whole process
  is socially inclusive, builds consumer trust and
  strengthens social cohesion.

37
OPPORTUNITIES THREATS OF NEW MARKETS II

• OPPORTUNITIES II
• Access to EU-programs (e.g. Fashion-me
  e-tailor, e-government)
• Access to EU-institutions (Euro-InfoCenters,
  Innovation Relay Centres)

• THREATS II
• Mature market IN B2C ? requires innovative
  approach
• Rapidly changing market
• Demanding market in B2B (JIT, 0-default, payment
  delays, customer relationship management, )
• European directives force to increase costs
  (e.g.Equipment Directive)

38
MARKETING STRATEGIES IN CANDIDATE COUNTRIES

• MARKETING RESEARCH Listen to the customer
• DESK RESEARCH more reliable data through sector
  federations (too many!) list brokers follow the
  market
• SEGMENTATION OF CUSTOMER GROUPS (socio-economic
  psychological, profitability)
• SALES PRO-ACTIVE SELLING in stead of REACTIVE
  SELLING
• STRATEGIC APPROACH CUSTOMER EXTENSION COMES
  BEFORE CUSTOMER RETENTION
• TOTAL QUALITY MANAGEMENT FORCED BY EUROPE-15
  CUSTOMERS OR INVESTORS

39
HOT TOPICS IN MARKETING IN  OLD EUROPE 
40
HOT TOPICS IN MARKETING IN  OLD EUROPE 
MARKET
PRESENT
NEW
PRODUCT
Evolution towards new market segments Geographical
evolution
Market share increase, range increase, enlarge
commercial capacities of sales force and
distribution channels
1
PRESENT
2
Search for specific advantages of products and
services for new applications
Search of unsatisfied needs in the markets
3
Search for new distribution types for products
New product or services proposals Modification of
products and services New products and services
NEW
4
Search of bank advantages in terms of technology,
image, distribution
41
HOT TOPICS IN MARKETING IN  OLD EUROPE 

• BRANDS
• CUSTOMER RELATIONSHIP MANAGEMENT
• NEW MARKETS
• INNOVATION

42
ROLE OF

• DOME ORGANISATION WITH REPRESENTATION IN ALL
  EUROPEAN COUNTRIES
• THE EUROPEAN HUB FOR MARKETING DATA KNOWLEDGE
• METANETWORK OF CONSULTANTS

43
THANK YOU FOR YOUR ATTENTION
www.proximedia.com/web/cardone.html
My own website