Global Marketing

1
Global Marketing

• F. Michael Sisavic, Ph. D.
• Portland State University
• CIMBA Program - Asolo
• February/March 2000

2
Objectives - Chapter 3

• Corporate and division strategic planing
• Business unit planning
• The marketing process
• Product level planning
• The marketing plan

3
Good Mission Statements
4
Oregon Business Bank Mission
To provide the traditional style of locally
owned personal services tailored to the
successful business and professional community.
5
Oregon Business Bank Mission
To provide superior personal banking services to
meet the needs of the successful business and
professional community.
6
The Boston Consulting Groups Growth-Share Matrix
7
Market Attractiveness Competitive- Position
Portfolio Classification
8
Three Intensive Growth Strategies Ansoffs
Product/Market Expansion Grid
4. Diversification
9
Opportunity Matrix
Success Probability
Opportunities
High
Low

• 1. Company develops a more powerful lighting
  system
• 2. Company develops a device for measuring the
  energy efficiency of any lighting system
• 3. Company develops a device for measuring
  illumination level
• 4. Company develops a software program to teach
  lighting fundamentals to TV studio personnel

1
2
High
Attractiveness
4
3
Low
10
Threat Matrix
Threats
Probability of Occurrence
High
Low

• 1. Competitor develops a superior lighting system
• 2. Major prolonged economic depression
• 3. Higher costs
• 4. Legislation to reduce number of TV studio
  licenses

1
2
High
Seriousness
4
3
Low
11
Elements of the Marketing Program
Exhibit 2-9
2-13
12
The Marketing Plan
Executive Summary Table of Contents
Current Marketing Situation
Opportunity Issue Analysis
Objectives
Marketing Strategy
Action Programs
Projected Profit-and-loss
Controls
13
Marketing Strategy Planning Process
Exhibit 3-1
3-3
14
Factors Influencing Company
Marketing
Strategy
Target customers
15
(No Transcript)
16
Objectives - Chapter 9

• Identifying Market Segments
• Choosing Target Markets

17
Steps in Market Segmentation, Targeting,and
Positioning
18
Segmentation Dimensions
Exhibit 3-11
3-13
19
Bases for Segmenting Consumer Markets
20
Toothpaste Market Segment Description
21
Bases for Segmenting Business Markets

• Demographic
• Operating Variables
• Purchasing Approaches
• Situational Factors
• Personal Characteristics

22
Effective Segmentation
Measurable
Substantial
Accessible
Differential
Actionable
23
Five Patterns of Target Market Selection
24
(No Transcript)
25
Objectives - Chapter 10

• Identify Differentiating Attributes
• Choosing Communicating Effective Positioning
• Marketing Strategies Along the Product Life Cycle
• Marketing Strategy Market Evolution

26
Product Differentiation
Form
Fea- tures
Perfor- mance
Quality
Conform- ance Quality
Dura- bility
Relia- bility
Repair- ability
Style
Design
27
Services Differentiation
Ordering Ease
Installation
Customer Consulting
Delivery
Maintenance Repair
Customer Training
28
Positioning of Different Bar Soaps
High moisturizing

• Tone

• Zest

7
4

• Lever 2000

• Dove

2
5

• Safeguard

• Lux

8
Nondeodorant
Deodorant
3
1

• Lava

• Dial

Product Space Representing Consumers
Perception for Different Brands of Bar Soap

• Lifebuoy

6
Low moisturizing
Exhibit 3-12
3-14
29
Positioning is the act of designing the companys
offering and image to occupy a distinctive place
in the the target markets mind. P 298
30
Sales Profit Life Cycles
31
Four IntroductoryMarketing Strategies
Rapid- skimming strategy
Slow- skimming strategy
Rapid- penetration strategy
Slow- penetration strategy
32
Maturity Stage

• Market Modification
• Product Modification
• Marketing-Mix Modification

33
Decline Stage

• Increase investment
• Resolve uncertainties - stable investment
• Selective niches
• Harvesting
• Divesting

34
Brand Equity
Devoted to Brand
Values the Brand (brand as friend)
Satisfied Switching Cost
Satisfied Customer (no reason to change)
No Brand Loyalty (customer will change)
35
An Overview ofBranding Decisions
36
Good Brand Names
Distinctive
Lack Poor Foreign Language Meanings
Suggest Product Benefits
Suggest Product Qualities
Easy to Pronounce Recognize Remember
37
Objectives - Chapter 14

• Service Definitions Classifications
• How Services Differ Goods
• Improving Service Differentiation, Quality,
  Productivity
• Improving Customer Support Services

38
Categories of Service Mix
Tangible Good w/ Services
Major Service w/ Goods
Hybrid
39
Four Service Characteristics
Services
40
Overcoming Service Challenges
Services
41
Service Differentiation
42
Determinants of Service Quality

• Reliability
• Responsiveness
• Assurance
• Empathy
• Tangibles

43
Objectives - Chapter 15

• Setting the Price
• Adapting the Price
• Initiating Responding to Price Changes

44
Setting Pricing Policy
1. Selecting the pricing objective
45
Types of Costs
Fixed Costs (Overhead) Costs that dont vary
with sales or production levels. Executive
Salaries Rent
Variable Costs Costs that do vary directly with
the level of production. Raw materials

• Total Costs
• Sum of the Fixed and Variable Costs for a Given
• Level of Production

46
The Three Cs Modelfor Price Setting
Costs
Competitors prices and prices of substitutes
Customers assessment of unique product features
47
Pricing Methods

• Markup Pricing
• Target Return Pricing
• Perceived Value Pricing
• Value Pricing
• Going-Rate Pricing
• Sealed-Bid Pricing

48
Some important pricing definitions

• Utility The attribute that makes it capable of
  want satisfaction
• Value The worth in terms of other products
• Price The monetary medium of exchange.

• Value Example Caterpillar
• Tractor is 100,000 vs. Market 90,000
• 90,000 if equal
• 7,000 extra durable
• 6,000 reliability
• 5,000 service
• 2,000 warranty
• 110,000 in benefits - 10,000 discount!

49
Promotional Pricing

• Loss-leader pricing
• Special-event pricing
• Cash rebates
• Low-interest financing
• Longer payment terms
• Warranties service contracts
• Psychological discounting

50
Psychological Pricing

• Most Attractive?
• Better Value?
• Psychological reason to price this way?

Assume Equal Quality
51
Discriminatory Pricing
52
Price-Reaction Program for Meeting a Competitors
Price Cut
Has competitor cut his price?
53
(No Transcript)
54
(No Transcript)
55
Objectives - Chapter 16

• Work Performed by Marketing Channels
• Channel-Design Decisions
• Channel-Management Decisions
• Channel Dynamics

56
Distribution Channel Functions
Information
Transfer
Communication
Payments
Negotiation
Physical Distribution
Ordering
Risk Taking
Financing
57
Consumer Marketing Channels
58
Industrial Marketing Channels
59
Customers Desired Service Levels

• Lot size
• Waiting time
• Spatial convenience
• Product variety
• Service backup

60
(No Transcript)
61
Objectives - Chapter 17

• Retailing
• Wholesaling
• Market Logistics

62
Retail Positioning Map
Bloomingdales
Wal-Mart
Kinney Shoe
Tiffany
63
Wheel of Retailing
Mid Price Mid Status Mid Margin
Low Price Low Status Low Margin
High Price High Status High Margin
New Entrants
64
Why are Wholesalers Used?
Management Services Advice
Selling and Promoting
Market Information
Buying and Assortment Building
Bulk Breaking
Risk Bearing
Financing
Warehousing
Transporting
65
Logistics Systems
Order Processing Submitted Processed Shipped
Costs Minimize Costs of Attaining
Logistics Objectives
Logistics Functions
Warehousing Storage Distribution
Inventory When to order How much to
order Just-in-time
66
Transportation Modes
67
Objectives - Chapter 18

• The Communications Process
• Developing Effective Communications
• Deciding on the Marketing Communications Mix
• Managing and Coordinating Integrated Marketing
  Communications

68
The Marketing Communications Mix
Advertising
Personal Selling
69
Effective Communications
Step 1. Identifying the Target Audience
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
70
Step 3. Designing the Message
Message Content Rational Appeals Emotional
Appeals Moral Appeals
Message Structure Draw Conclusions Argument
Type Argument Order
Message Format Layout, Words, Sounds, Body
Language
Message Source Expertise, Trustworthiness, Cong
ruity
71
Step 4. Select Communications Channel
Personal Communication Channels
Nonpersonal Communication Channels
72
Step 5. Establish the Budget
Affordable
Of Sales
Competitive Parity
Objective Task
73
Step 6. Decide on Communications Mix
Advertising Public, Pervasive, Expressive,
Impersonal
Sales Promotion Communication, Incentive,
Invitation
Public Relations Publicity Credibility,
Surprise, Dramatization
Personal Selling Personal Confrontation,
Cultivation, Response
Direct Marketing Nonpublic, Customized,
Up-to-Date, Interactive
74
Step 7. Measure Results
Step 8. Manage the IMC Process
75
Push Versus Pull Strategy
Producer
Push Strategy
Producer
Pull Strategy
76
Objectives - Chapter 19

• Developing Managing an Advertising Program
• Deciding on Media Measuring Effectiveness
• Sales Promotion
• Public Relations

77
Objectives Setting
Major Decisions in Advertising
78
Advertising Objectives

• Specific Communication Task
• Accomplished with a Specific Target Audience
• During a Specific Period of Time

Informative Advertising Build Primary Demand
Persuasive Advertising Build Selective Demand
Reminder Advertising Keeps Consumers
Thinking About a Product.
Comparison Advertising Compares One Brand to
Another
79
Profiles of Major Media Types
Newspapers Advantages Flexibility, timeliness
good local market coverage broad acceptance,
high believability Limitations Short life poor
reproduction quality small pass-along audience
Television Advantages Combines sight, sound,
motion high attention
high reach appealing to senses Limitations Hi
gh absolute costs high clutter fleeting
exposure less audience selectivity
Direct Mail Advantages Audience selectivity
flexibility, no ad compe- tition within same
medium allows personalization Limitations Relat
ive high cost junk mail image
80
Profiles of Major Media Types
Radio Advantages Mass use high geographic and
demographic selectivity low cost Limitations
Audio only fleeting exposure lower attention
nonstandardized rates
fragmented audiences
Magazines Advantages High geographic and
demographic selectivity credibility and
prestige high-quality reproduction long life
good pass-along readership Limitations Long ad
purchase lead time waste circulation
no guarantee of position
Outdoor Advantages Flexibility high repeat
exposure low cost low
message competition Limitations Little audience
selectivity creative limitations
81
Why the increase in Sales Promotion?

• Growing retailer power
• Declining brand loyalty
• Increased promotional sensitivity
• Brand proliferation
• Fragmentation of consumer market
• Short-term focus
• Increased managerial accountability
• Competition
• Clutter

82
Consumer Promotion
Consumer-Promotion Objectives
Consumer-Promotion Tools
Entice Consumers to Try a New Product
Lure Customers Away From Competitors Products
Get Consumers to Load Up on a Mature Product
Hold Reward Loyal Customers
Consumer Relationship Building
83
Trade Promotions
Trade-Promotion Tools
Trade-Promotion Objectives
Persuade Retailers or Wholesalers to Carry a
Brand
Give a Brand Shelf Space
Promote a Brand in Advertising
Push a Brand to Consumers
84
Business-to-Business Promotion
Business-Promotion Objectives
Business-Promotion Tools
Generate Business Leads
Stimulate Purchases
Reward Customers
Motivate Salespeople
85
Major Public Relations Tools
Web Site
News
Public Service Activities
Speeches
Corporate Identity Materials
Special Events
Audiovisual Materials
Written Materials
86
(No Transcript)
87
(No Transcript)
88
Objectives - Chapter 20

• Designing a Sales Force
• Managing the Sales Force
• Principles of Personal Selling

89
When might you decide to use Personal Selling?

• Tight budget (straight commission)
• Concentrated Market
• Few buyers
• High value product
• Product must be customized
• Personal contact important
• Must demonstrate product
• Product involves trade-in/up

90
Designing the Sales Force
Sales force objectives
91
Sales Force Structures
92
Workload Approach to Sales Force Size

• Classify customers by size
• Determine desirable call frequencies
• Determine total sales calls needed per year
• Determine average number of sales calls per sales
  representative per year
• Divide total by number per rep

93
Sales Force Compensation

• Fixed
• Variable
• Expense Allowances
• Benefits

94
Recruiting selecting sales representatives
Managing the Sales Force
95
Evaluating Salespeople
Call Reports
Work Plan
Sources of Information
Annual Territory Marketing Plan
96
Training in sales techniques professionalism
Improving Sales Force Effectiveness
97
Performance Evaluation

• Current-to-Past
• Customer Satisfaction
• Qualitative Evaluation

98
Step 1. Prospecting and Qualifying
Steps in the Selling Process
Step 2. Pre-approach
Step 3. Approach
Step 4. Presentation/ Demonstration
99
Step 5. Handling Objections
Steps in the Selling Process
Step 6. Closing
Step 7. Follow-Up
100
Objectives - Chapter 21

• Growth Benefits of Direct Marketing
• Customer Databases Direct Marketing
• Major Channels for Direct Marketing
• Marketing in the 21st Century Electronic
  Commerce
• Public Ethical Issues in Direct Marketing

101
Why Growth in Direct Marketing

• Market Demassification
• Effort of Traditional Shopping
• Continuous Access
• Next-day Delivery
• Specialty Items
• Increase in Computer Power

102
Benefits of Direct Marketing
Fun, Convenient Hassle-Free
Mailing Lists for Almost Any Market
Saves Time
Customized Offers
Larger Merchandise Selection
Ongoing Relationships with Customers
Timed to Achieve Higher Readership Response
Comparison Shopping
Alternative Media/Message Testing
Order Products for Themselves or Others
Privacy
Measurable Response
103
Uses for Databases
1. Identify Prospects
2. Match Customers Offers
3. Deepen Customer Loyalty
4. Reactivate Customers
104
Direct Marketing Channels
Face-to-Face Selling
Direct-Mail Marketing
Online Marketing
Catalog Marketing
Kiosk Marketing
Telemarketing
Direct-Response TV Marketing
105
Benefits of Online Marketing
Consumers
Companies
106
Online Marketing Channels
Electronic Presence Corporate Website Marketing
Website
Advertising Online Place Ads in Special Sections
of Online Services Place Ads in Certain Internet
Newsgroups Buy Online Ads That Pop Up While
Consumers are Surfing
Participating in Forums, Newsgroups Web
Communities Forums Discussion Groups on
Commercial Online Services Newsgroups Internet
Version of Forums Web Communities Sites Where
Members Exchange Views Online
Using E-Mail and Webcasting Customers Send
Questions, Suggestions Complaints Via
E-Mail Webcasting Automatic Downloading of
Information to PCs
107
Challenges of Online Marketers

• Limited Consumer Exposure Buying
• Skewed User Demographics Psychographics
• Chaos Clutter
• Security

108
Public Ethical Issues in Direct Marketing
109
Objectives - Chapter 22

• Company Organization Trends
• The Marketing Sales Organization
• The Marketing Departments Relation to Other
  Departments
• Building a Customer-Focused Culture
• Improving Marketing Implementation
• The Marketing Audit

110
(a) Stage 1Simple Sales Department
President
111
(a) Stage 2Sales Department w/ Ancillary
Marketing Functions
Marketing Director Other marketing
functions (internal staff and external support)
112
(a) Stage 3Separate Marketing Department
President
Sales force
Other marketing functions
113
(a) Stage 4 and 5Modern/Effective Marketing
Company
President
Executive VP of Marketing Sales
Sales VP
Sales VP
Sales force
Other marketing functions
114
Organizing the Marketing Department

• Functional Organization
• Geographic Organization
• Product- or Brand-Management Organization