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1. What is the satisfier concept and how to apply to a brand (he
will give the brand)?
Satisfier concept: a consumer buys a product because it allow
him/her to get rid of previous
unsatisfied needs (the purchase = satisfaction). THE CONSUMER
BUY SATISFACTION/Solution.
WHICH SATISFACTION ARE WE PROPOSING ?THE SATISFACTOR IS THE SET
OF ATTRIBUTES OF THE
PRODUCT THAT ARE PERCEIVED AS THE SATISFACTION BY THE
CONSUMER.THE CONSUMER IDENTIFY
ITSELF WITH ITS BUYS
2 types of needs to the satisfier concept:
1) TANGIBLE: Solution, Value, Accessibility, Communication (=
4Ps)
2) INTANGIBLE:
Base = functionality, security, quality, honesty, continuity,
social conformity = what is needed
to enter into the considerations of the consumer, can lead to
reject if not satisfied, changes over time,
establishes the basic norm, relative concept = fundamental
Dynamic = homo economicus(10-15%), internal/external social
service(30-40%), prestige(5%),
fashion/aesthetic(10-15%), performance(1%), tradition(5-10%) =
what can differentiate your product
from the one of the competition, get you selected by the
consumer. Moreover, it can give your product
an added value and be considered as basis for segmentation or
positioning = depends on the selected
market segment. Basis for differenciation, selection, added
value, basis from segmentation and
Positioning. After the basic need come desire- if your basic
needs are satisfied you are controlled by
desire.
2. What are the key categories of actors in a market place &
how do they take their decisions?
Market is Group of persons/organizations that shares similar
needs, that are economically
accessible and that are ready to enter in an exchange.
CUSTOMER DYNAMICS IN FUNCTION OF THE BUYING
PARTY-INTERNATIONAL
ORGANISATION,GOVERNMENT-ADMINISTRATION, INSTITUTION, AD HOC OR
STRUCTURED GROU,
MULTINATIONAL COMPANY, SMALL AND MEDIUM COMPANY, PRIVATE
INDIVIDUAL
The marketing concept evolution has 4
stages-production-sales-marketing and finally satisfaction
of needs.
Management to markets seeks for resource optimization, demand
analysis. Markets to product
seeks for solution and needs. Product to management innovation,
R/D and adaptation.
What is strategic marketing?
AdministratorHighlight
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Allocates and coordinates marketing resources and activities
effectively to accomplish the firms
objectives within a specific product-market. Therefore, the
critical issue concerning the scope of a
marketing strategy is specifying the target market(s) for a
particular product line). Than firms seek
competitive advantage and synergy through a well-integrated
program of marketing mix elements
tailored to the needs & wants of potential customers in that
target market.
From 4P to 4C-the 4Cs have been developed from the customer
point of view in contrast with the
4Ps developed from the producer point of view. And it means
Customer
Solution/Product(VarietyQualityDesignFeaturesBrand
namePackagingWarrantiesServicesSizes),
Customer Value/Price(List Price,Discounts, Allowance, Payment
period, Credit terms),
Convenience/Place(ChannelsCoverageAssortmentsLocationsInventoryTransport),
Communication/Promotion(Sales PromotionsAdvertisingPublic
RelationsEducationDirect
MarketingSales Force).And how the market looks like in the
producers point of view-
product,price,place,promotion-4Ps
Marketing Means anticipating needs before competitors. There are
many different ways customers
can satisfy their needs. In trying to meet those needs, each
company is in competition with others
you must offer something different and better. Customers must
find your offering preferable to
anyone elses. It is called a Competitive Differential Advantage.
There is no marketing without
common sense, coherence and permanent learning.
Strategy and Marketing means that strategy is the creation of a
unique and valuable position,
involving a set of activities, with a sense of purpose that
adequately matches the core resources of
the company with the opportunities of its environment. It is
ultimately a conversation, an ongoing
dialogue that identifies the actions crucial to delivering the
value our customers want and the
profits our shareholders demand. There are 3 main processes.
Marketing Programs and implementation:
Customer Solution (Product)
Customer Value (Price)
Communication (Promotion)
Convenience (Place)
Organization Change
Strategy Development:
Where to compete
How to compete
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Whento compete
Situation Analysis:
Industry analysis
Customer analysis
Company analysis
Competitor analysis
What are the actors of the market?
Government, competitors (direct-indirect), customers, lobbies
and private groups other industry
players. In reality there are spies as well- Chine has a lot of
spies here in Brussels in order to be
updated with the latest legislation and political mood in
advance. At all players decision making is
happening on different level and in most cases the buyer, the
user and the payer are different
persons. There are influencers, experts, specialized magazines
and sites and etc.Commercial
relationships and strategies differ according to the target. The
essence of a commercial relationship
is always to match requirements and/or needs with an adapted
service or product offering.
However different type of customers dont have the same
definition of value and companies have
to adapt their approach when dealing with kinds of commercial
relaonships.
Business to consumer - sale of goods and services from
individuals or businesses to endusers
(personal individual). B2C marketing is mainly based on
advertising in TV ads, Newspapers, Poster
campaigns, online advertising.
The word of mouth method is also very important to broaden the
consumer awareness.
Business to business - commercial transactions between
businesses. B2B marketing is mainly based
on networking. Successful salespeople in the B2B arena are often
the ones that have the best
connections with their peers in the industry.Brand image and
recognized capability to offer quality
products are also very important criteria.
Business to Government - Sale of products and services to
various government levels -including
federal, state and local. B2G marketing is closed to the B2B
marketing. Beyond recognized
capabilities and a good network, B2G marketers must also take
care of the perceived company
citizenship.
Examples of industry focused on a single commercial relation are
many. Consulting companies are
mainly focused on the B2B business but also play in the B2G
arena.
They sell High value added services to their customers that are
looking for quality and value before
price. Retailers are the perfect example of B2C pure players.
They sell massive amounts of goods to
end consumers with a specific focus on price and customer
service. Infrastructure builders have a
strong interest in B2G relationships.
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For them, public tenders are huge businesses bringing activity
for several years. They are used to
the RFI, RFQ process where every aspect of the product/service
offerings are checked. In many
industries business is not B2C, B2B or B2G exclusive The Auto
Industry example
Direct car sales to customers repair centers, insurance,
financing, parts sales to wholesalers,
commercial vehicle sales to companies needing working tools or
vehicle sales for public fleets
public transportation Police departments.
Whatever the commercial relationship, it will always occur
between two people. One can then talk
of a universal H2H relationship where B2C principle are
relevant.With the emergence of digital
media and the big data phenomenon, B2C as well as B2B marketers
are provided with very
powerful tools ( such as CRMs). It allow them to better
understand their customer behaviors and
hence to offer always more relevant services/products. More and
more companies are trying to
diversify their commercial relationship in order to edge the
risk of a specific business downturn.
However, to be able to be competitive and perceived as
trustworthy in every arena, these
companies have to set-up complex communication strategies.
Buyer, Payer and User are different in most of the cases. We
have to understand their behaviour
and to know the decision making process in order to sell and
influence
Households
Definition-Households are the basic unit of buying and
consumption in a society. A household is a
consumption unit of one or more persons identified by a common
location with an address. Family
household is a group of persons related by blood and/or
marriage. Four types are most common:
Married couples alone
Married couples with children
A single parent with children
Extended family, which may include parents, childrens
spouses,
and/or grandchildren, and occasionally cousins
There are Nonfamily household:
A household that does not contain a family
A single person living alone in a dwelling unit
Roommates
Boarding houses
The same family member may not have all roles (advisor, decision
maker).A single role may be
jointly held by more than one individual.
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Steps in family buying decisions:
1) Initiation of the purchase decision
2) Gathering and sharing of information
3) Evaluating and deciding
4) Shopping and buying
5) Conflict management
Five patterns of relative influence are possible:
Autonomous decision by the husband only
Husband-dominated decision
Syncratic decisions
Wife-dominated decision
Autonomous decision by the wife
It is very important to know that the wife and the husband think
different- the price for the wife is
the final consideration, but the first for the man. Factors
influencing the choice could be -Gender-
role orientation, Wifes employment status, Stage in family life
cycle, Time pressure could be very
powerful decision maker, Socioeconomic development of the
population. Parents tend to have less
children. Childrens Influence on Family Decision Making on three
ways- Children express
individualistic preferences for products paid for and bought by
parents. Children in their teen years
begin to have their own money and become their own payers and
buyers of items of self-use. They
influence their parents choice of products that are meant for
shared consumption. This depends
on whether the family has a social or a concept orientation.
Another way of classifying families is by
how authority is exercised in the family- if the authority is
high the children influence is low at any
levels either for products for personal or shared use. Kids are
usually better informed about
products form internet and they tend to have moderate to high
influence.
There a factors like Consumer socialization occurs when one or
more of the
following are learned or acquired by children:
Preferences among alternative brands and products
Knowledge about product features and the functioning of the
marketplace
Skills in making smart decisions
Other factors could be Intergenerational Influence-the
transmission of values, attitudes, and
behaviors from one generation to the other. It could be Forward
IGI from parents to children and
Reverse IGI from children to parents (Democratic justice).There
are conflicts as well in families for
instance buying a new house or something important. If the
purchase is daily consumed - no
conflicts. There might be a persuasion in a case of
conflict.
Businesses
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Definition-A business is a licensed entity engaged in the
activity of making, buying, or selling
products and services for profit or non-profit objectives.
This behaviour is moderately to very specialized, slightly
formal (small businesses) to formal (large
businesses). Strict measures, operational and strategic
complexity. Business asks who are you and
are you going to survive the next 5 years-continuity. They want
to know about the service that
comes after the purchase. Here we have procurement system
Nature of the purchase
Organizational characteristics
Buying center
Rules and procedures
A decision process
In this case perceived risk refers to the expected probability
that the purchase may not produce a
satisfactory outcome. It is a product of 2 factors:
-The degree of uncertainty that a choice may be wrong
-The amount at stake should a wrong choice occur
The importance of purchase is a combination of the amount at
stake and the extent to which the
product plays a strategic role in the organization. The higher
the amount at stake the more
strategic the products purchase is. Complexity refers to the
extensiveness of effort it takes to
comprehend and manage the product during its acquisition.
Complexity has two dimensions:
The number of performance dimensions
The technical and specialist knowledge required to understand
those dimensions
Time pressure refers to how urgently the item is needed. When
the item is needed urgently the
purchase decision will short-circuit the usual process.
Four organizational characteristics of the customer firm
affect
buying behavior:
Size
Structure
Purchase resources
Purchase orientation
Business buying decisions comprise the following stages:
Need assessment
Developing choice criteria
Request for proposals (RFPs)
Supplier evaluation
Supplier selection
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Fulfillment and monitoring
In this process there a lot of influencers and decision makers.
Players like USER GATEKEEPER
INFLUENCER ANALYZER DECIDER BUYER. Here we have a lot of details
taken into account like price,
paperwork cost, storage cost, training cost, quality control,
user labor cost, taxes and insurance,
product longevity, internal handling costs, disposal costs. The
decision-making process is primarily
driven by two psychological processes occurring in the decision
makers - their expectation and their
perceptual distortions. In general the decision depends on the
organization characteristics, nature
of purchase and the information sources.
They take their decisions in function of the buying task
(straight rebuy, modified rebuy, new
rebuy), perceived risk (= expected probability that the purchase
may not produce a satisfactory
outcome = degree of uncertainty + amount at stake), the
importance of the purchase (=amount at
stake + extent to which the PR plays a strategic role in the
organization) + the complexity of the
purchase + the time pressure + organizational characteristics
(size, structure, purchase resources
& purchase orientation) + the buying centres.
Government
Definition-In every country, the government buys a lot of
products and services; sometimes it is
likely to be the biggest single buyer. They are administrators
but lowers as well- regulations.
Government buys in two basic ways
Direct purchase
Request for proposal (RFP)
or Competitive procurement
Invitation for bid (IFB)
Request for proposal (RFP)
All government procurement has to comply with FARs
The bid document will refer to particular regulation numbers
The bidder must become aware of what these specific regulations
are
A BID-A method of government procurement wherein the government
specifies the item being
sought exactly and invites sealed bids. For products and
services that are needed repeatedly, the
government has established standard specifications
Federal specifications
Commercial item descriptions (CIDs)
Military specifications
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The contracts have special format and form for instance -
Solicitation/Contract Form, Supplies or
Services and Price/Costs Description/Specifications/Statement or
Work, Packaging and Marking,
Inspection and Acceptance, Deliveries or Performance, Contract
Administration Data, Special
Contract Requirements. Other requirements like :
Requires federal contractors to comply with (1) the wage and
hours requirements for its workers on the contract and (2)
the
health and safety regulations of the state or labor standards
(wages and hours) for labor working
on federal construction projects.
Buy American Act Requires that preference be given to domestic
suppliers.
The government sets up an acquisition team, to prepare the bid
document. There is a designated
contact person to clarify any queries the bidder may have. The
proposal may be Technical proposal
and Price proposal. The vendor awarded is generally, the vendor
with the lowest cost whose
product would meet the agencys need is awarded the contract
Contracts are awarded in two
forms:
Annual purchasing agreements
Maintenance/labor agreements
State governments are responsible for a huge procurement budget.
Each state has its own
guidelines for doing business. Many states now have vendor
information available on their Internet
web site.The GOV customers differ from the regular business in
some cases like:
Size of the average purchase and standardization
Legal restrictions and compliance reviews
Solicitation of sellers
Open-access information
Diffusion of authority
Procedural detail and paperwork
Although there is room for reform in government procurement,
there are unique benefits of doing
business with government-Stability, Security, Size, Breakthrough
R&D work, Challenge
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3. What are the different elements of culture? The Actors and
their Behaviors
What is Culture?
Culture is an integrated system of learned behavior patterns
that are characteristic of the members
of any given society. Culture is the total way of life of
particular groups of people and it could mean
everything that the group THINKS, SAYS, DOES and MAKES. Culture
is learned, not inherited.
Culture is very stable. Culture hides more than what it reveals,
and strangely enough, what it
hides, it hides most effectively from its own participants. It
consist not just behaviours but beliefs,
customs, values and assumptions. Culture affects: The way we
live, we die, we organize, we
perceive, we consume. It is full of symbols, rituals, values and
heroes. Problems of Encountering
new cultures:
Ethnocentric judgment/ Stereotypes
Culture shock
Technologies are often not culturally neutral
There are lot of stereotypes for all cultures.This is form of
categorization that organizes our experience and
guides our behaviour toward various groups within society.
Stereotypes never accurately describe
individual behaviour rather they describe the behavioural norm
for members of a particular group.
The communications process from culture to culture is different-
starts from
Contents
-Words, Symbolics, Form,
-Oral-Accent,Loudness
-Visual-Written, Shapes, Colours, Movements
-Smell
And it has to be decoded- to the Right public? Right
Understanding? Right action? Because there
are Cross-Cultural Misperception and we can learn to avoid them.
We have to be prepared.
Perception is selective
Perceptual patterns are learned
Perception is culturally determined
Perception is consistent
Perception is inaccurate
Culture is complex -National culture system (different
attitudes, beliefs, values, behaviors). There
might have Subculture (differential identification with social
class ethnic group, or region) like in
India. We have to take into account all PERSONAL
DIFFERENCES-Personality (differential
internalization of culture norms).
Misunderstandings vs Disagreements
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Cross cultural communication creates more misunderstandings than
disagreements. The problem
is that it is easier to identify the disagreements than the
misunderstandings. Differences are
Normal-It is normal to be different. Differences and diversity
rejuvenate and enrich cultures, Cross
Cultural contacts widen the horizons of humanity and Integration
is not mimetism.
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1) Relationships (language, hierarchy (=power distance),
individualism/collectivism, neutrality/affectivity,
manners, etc) Individualism-People are supposed to look after
themselves and their immediate family
(West).Collectivism-People belong to in-groups or collectivities
which are supposed to look after them in
exchange for loyalty(China). We have aspects of Neutrality-We
have to control the expression of our
emotions in order to consider things in an objective manner
(Chinese). Affectivity - to be able to express
openly and freely what we think and what we feel
(Westerner).
Manners-Protocol, Greetings, Table manners, Parties (small talk,
personal space, leaving,),Gifts giving,
Taboos (forbidden practices).For instance if you going to
negotiate in China you should rise your price with
40 %-they will test you straight and power to negotiate. Red in
China means luck and age is very important
due to respect the elders. Avoid touching and physical
contact.
2) Attitudes toward action (mastery of nature vs subjugation to
nature, uncertainty avoidance, ideologism
vs pragmatism, consumption patterns, etc). Uncertainty
Avoidance- The extent to which people feel
threatened by ambiguous situations and have created beliefs and
institutions that try to avoid these.
Consumption - Dress and appearance, Food and feeding habits,
Lifestyle (leisure, working habits), Material
culture.
3) Organization (time, space, social
organizations/institutions). Time in America is different than time
in
China or Japan. Space Relationship is different and means other
things. What is the use & the meaning of
space? What is the private territory and what can be considered
as public? Is the distance used as a sign of
power? Social organization is an extension of the form and
nature of social groups, constituted to
concretize the individual and social values. Men organize their
activities and social links in accordance to
these values.
In groups / Out groups
Social Structure / stratification
Family and clans
Education
Political system
Legislative system
4) Context
Context is the interrelated environmental, social and cultural
conditions in which individuals, organizations
and communities exist. Cultures are located on a continuum of
high to low context (implicit vs explicit).
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Implicit culture high context -Information is expressed by the
situation itself, Use of the network to get
information , Information is fluent is fast transmitted ,
Language used is more informal .
Explicit culture low context - Information is given by messages,
in an explicit way, Need for systematic &
detailed information, Segmentation of the information, Language
used is specific and formal.
Guanxi Networks are not just commercial, but also social,
involving the exchange both of favour and
affection-Chinese people.
5) Values, norms & beliefs
Values-Broad preferences for one state of affairs over others to
which strong emotions are attached. (The
good and the bad).Norms-Collective definition of what is
suitable and what is not. (The law expresses the
norms). Deals with the notion of the valuable or the good in the
widest sense not only morally good but
the beautiful and the true. Norms and values in harmony - source
of energy and change.
6) Conceptual framework
Universalism - Apply rules and procedures that insure equity and
permanence. Tend to be abstract, rule-
based, resist exceptions that might weaken the rule.
Particularism - Favour flexibility by adaptation to local
situations. Tend to see people not as citizens but
friends, brothers, close relatives, those with claims on my love
or hatred. Tend to focus on the exceptional
nature of present circumstances. Dialogue- oriented, data-
oriented cultures-Latin America tend to dialog
and the Swiss/Germans to data.
Cross cultural Effectiveness can be achieved by Learn about
others cultural specificities, Allow sufficient
time for relationship building with foreign nations, Listen
carefully to the others, Observe non-verbal
communication, Be alert to signals, Try to understand the other,
Seek the reasons/patterns behind
things that are strange or different, Do not criticize
systematically the other, Give empathetic feedback,
Manage stress and cultural shock. You as a manager need global
awareness you need to know history.
Profile of the Effective European Manager is to be Multilingual
(4 languages at least),Qualified, Leadership
skills, Internationally minded, Cross cultural communication,
High mobility, Vision, Time Management,
Ambition, Good cultural level.
4. What are the key factors to analyse a new market?Focus On
emerging markets.
Globalization is entering a new phase, with emerging-market
companies now competing strongly
against richer countries. Emerging Markets growth is a fact -
Emerging Markets and developing
countries represented in 2010 around 85% of the worlds
populationand 50% of the worlds GDP.
-
Countries/regions that have begun toindustrialize and adopted
market capitalism. Economy
transition phase between developing and developed (mature)
status. That means:
great promise & good place to invest.
potential for a high return in a relatively short period of
time
employees work long hours for low wages initially
Emerging Markets in financial terms are with greater volatility
and higher risk than established
Markets, unexpected political and economic upheavals and the
value of stocks, bonds, and
currencies can change drastically and suddenly. Where to find
the investors of tomorrow? The
answer is China or India.
Emerging Economies and hotspots for trade growth
Page 147.
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Emerging Companies in the current global supply chain
landscape?
New companies are now competing with the biggest like WalMart -
Royal Dutch Shell, Japan Post
Holdings, Saudi Aramco, Sinopec, Vitol. Expanding footprint of
emerging companies are changing
supply chain flows- companies from the west established presence
in Asia, but companies form
Asia did it as well- Huawai, Samsung, LG.Companies from
developed and emerging economies will
-
face different challenges in this environment. They will have to
produce there,to operate there and
to compete as well-different territory.
The implication of this Changing Environment to the way we do
business?
Our Industry faces tough balancing act between demand and
supply. Customs & administrative
processes are playing catch up to the growing trade demands- in
Asia 15 of the supply chain cost
are for administration procedures without duty. For EU between
members is just 3 %.This is a
barrier. Supply Chain network need to be constantly realigned
with the changes in the global supply
chain flows. Where to have a hub or a satellite? How to optimize
costs and inventory handling
costs? Air or Sea? Sustainable Supply Chain is becoming more and
more important and the Logistics
industry is the main contributor for CO2 emissions- 14 % of all
is form transport.
The market needs Frugal solutions- low cost adopted products for
the emerging markets, new
productions capacities and economies of scale. The example is
Tata Nano in India- cheap, but not
applicable in EU-no safty. Cheap mobile phones as well.
5. Analyzing the International Market Structures- Analysis of
the Market Potential
within an International Perspective.
MARKET ACTRACTIVENESS:
SIZE?
ACCESS?
GROWTH?
WHATDOES THE MARKET BUY? HOW DOES THE MARKET BUY? We have to
know theoretical
potential and accessibility (addressable market).
What is the actual market (serviceable market) and what is the
accessible Market (real market)?
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The new thing here is that people are moving to the cities-
Continuous growth of emerging cities
(particularly in China), which exhibit high demand for consumer
goods, but with immature logistics
practices.3 of 5 will be living in cities by 2030.You have to
realise the market and to have an idea-
the Real market experiences. Potential is nothing as long as you
can not realize it. Get a clear
picture of the real market before developing a strategy and
believe only in words when they tend
to be followed by acts. The general questions are
Who is the real customer?
What are his real needs?
How do we address these needs and create value?
How big is the real market?
How do we capture value?
You have to be familiar with MARKET & COMPANY DYNAMICS and
catch the trend and Market
Coverage like:
Geographical Coverage
Channel coverage
How are you going to do Market Penetration
Presence
Share
3. Market Effectiveness
Marketing Efficiency = Mkt potential x MKT coverage x Mkt
penetration
Market potential analysis is very important-you have to assess
the risk before going abroad. You
need to know information like DEMAND NOT SATISFIED, NEWCOMERS,
COMEPTITIVE MARKET
GROWTH in country A,B,C for instance. You have to be very aware
of product lifecycle and that
product will be marketable in one country and in another
not-plastic bottles case or frugal
solutions.
COMPETITIVE ENVIRONMENT is very vital-the power of supplier,
buyer is important. Competitors
landscape is main reason how to act. You need competitive
strategy like differentiation, low-cost
lidership or market segmentation (combo of both).What
product/solution you will be offering?
CONSUMER DYNAMICS IN FUNCTION OF THE
SOLUTION
END PRODUCT
INDUSTRIAL PRODUCT
SERVICES
-
SOCIETAL (SOCIAL ISSUES)
6. What is Market Segmentation?
We need it to be able to address the customer and to provide
higher satisfaction and value. It
works like DEMAND-SEGMENTATION-DIFFERENT SATISFACTORS. Market
segment is a group of
potential buyers with the same needs and expectations. Multi
segment marketing approach is
possible as well and very applicable. It means using the
segments knowledge to adapt customer
solutions, customer value, customer communication and
convenience / channel strategies. It allows
a company to emphasise on a different set of product benefits,
services and values to specific
groups of customers.Segmentation-Definition: Segmenting a market
means to organise all potential
customers into groups according to how they make their buying
decision. Condition: in order to
segment the market, we have to take tangible as well as
intangible elements into account. Major
advantage: These groups of customers present similar needs so
that selective investment can be
made to achieve competitive advantage.
Segmentation helps you understand:
which customer to pursue
how to find them
what benefits they want
which customers you cannot serve profitably
Why do we adopt a multi segments approach? The major objective
is to tend to a one-to-one/
customized approach towards customers in order to improve the
customer satisfaction and
Develop & sustain competitive advantages. For instance
Differences between regular & luxury
goods. The segmentation process is the first step in approaching
a market. We develop market
segmentation for our business by answering three questions,
selecting the most helpful descriptors
(form the many which could be included), for each element- Who
buys, What do they buy?
(including where? When? How?) or Why do they buy?
Either by analysis of transactions & research data or by the
insightful interpretation of
market knowledge, a segmentation framework (step 5) is
established which covers the
whole market. Preliminary target segments are then selected
& validated. The segmentation could
be based on Demographics, Socio-economic, Industry type,
Behavioral or Illustrations of multi-
variable segmentation schemes.You have the answer of the
questions like - Are needs within the
segments homogeneous? Are needs across the segments
heterogeneous? Are the segments
identifiable and accessible?
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7.DEMAND ANALYSIS PRIZM EFFECT.
Everybody see it the same way but the prism effect in economy is
the difference of the perception,
impression, feelings- people will have in front of the produ:
you sell beer in Belgium and want to go in iran
and the Netherlands. In Iran, the popular religion, do not
alloid the consumption of beers so peple will be
"afraid" of your product, their reaction will not be so positive
and if they are not Muslim they do not drink
many beer so do not know the product well and would be
suspicious. on the contrary in The Netherlands if
you re a big brewer some people know you already and their
opinion on a beer is likely to be more
positive. The idea people have of beer in the Netherland is very
different of the one of the Iranian. So you
have to take into account the perseption of different cultures
to your product.You may need to adapt it or
to avoid the particular market. If you want to export your
product abroad, you take a consumer solution, a
country of origin and a company and you check if the image of
your product in that country is positive,
negative or neutral.
8. Market Selection.
The two powerful tools are required PESTEL analysis and CAGE
(Cultural Distance, Administrative
and political distance, Geographic distance, Economic/ wealth).
This analyses are used It is mainly
when a company is becoming a player on the international
field.
Country attractiveness consist in Benefits-Size of
Economy/Likely Economic Growth+ Costs
Corruption/Lack of Infrastructure/Legal Costs+ Risks-Political
Risks, Anti-Business Trends
Economic Risks, Legal Risks, Safeguard Property Right
9. International Market Channel Management & Market entry
Approaches
Exporting
Advantages-No need for operational facilities in host country,
Economies of scale
Internet facilitates exporting opportunities
Disadvantages-Lost location advantages, Dependence on export
intermediaries, Exposure to trade
barriers, Transportation costs
Joint Ventures and Alliances
Advantages- Shared investment risk, Complementary resources, May
be required for market entry
Disadvantages-Difficult to find good partner, Relationship
management, Loss of competitive
advantage, Difficult to integrate and coordinate
-
Licensing
Advantages-Contractual source of income, Limited economic and
financial exposure
Disadvantages-Difficult to identify good partner, Loss of
competitive advantage, Limited benefits
from host nation
Foreign Direct Investment
Advantages- Full control, Integration and coordination possible,
Rapid market entry through
Acquisitions, Greenfield investments
Disadvantages-Substantial investment and commitment,
Acquisitions may create integration/
coordination issues, Greenfield investments are time consuming
and unpredictable
What is CRM?
CRM is software, system, technology, data storage and analysis,
a change in corporate culture from
a transaction focus to a customer centric one. CRM is managing
demand, strategy cycle focusing on
customers. To identify and establish, maintain and enhance and,
when necessary, terminate relationships
with customers and other stakeholders, at a profit so that the
objectives of all parties involved are met;
and this is done by mutual exchange and fulfillment of
promises.
10. Explain the Loyalty Ladder
It is about suspects and prospects or disqualified prospects.
The chain is First-time customers, repeat
customers, clients, advocates and partners. This is how you
build your relationship with customers and
how they stay loyal.
11. Baseline Definition of e-Marketing
is identifying, understanding, collaboratively creating, and
meeting a segment of human and social needs,
wants, desires, wishes digitally. Now customer is integrated in
the whole process. Marketing plan e-
Marketing plan. Most organizations have no Marketing strategy,
Marketing plan, e-Marketing plan
Good news: The Internet keeps on growing. In 2007, Currently
about 1.2 billion and projected to grow to >
2 billionby 2012. We can capture a lot of advantages from this
like: Democratization of advertising,
Collapsing barriers of time & space, Lower risk of product /
services innovation, Lower cost / higher ROI,
Digitization of all information, Virtual supply chains, Virtual
markets, Virtual real-time interaction with
-
customers & suppliers, Ability to reach increasingly
fragmented markets.
-
Strategic Advantages
Create new sources of competitive advantage,More direct
distribution model
Reengineer the supply chain
Invent new business models
Target underserved segments
Lower price barrier
New delivery methods to reduce capital expenditure and
pricing
Create more efficient marketplace
Create a virtuous cycle
Benefit of Creating a Virtuous Cycle-Reduce the risk of guessing
by letting the community define the
need, want, problem, and value proposition, Speed development
cycles, Create precise features / value,
Create brand advocates, Community endorsement.
There is a new big change in supply chain through e-Business.
Some players will disappear and other will
capture their margin and speed up the whole process in terms of
production, cost and quality as a source
of competitive advantage. Leverage business models or
disintermediate to capture sources of competitive
advantage. ASP, On Demand, or B2B relationships to capture cost
savings and revenue sharing. Every
step along the way (middleman or channel) is a cost point. Each
step that can be optimized means a cost
savings thatcan contribute to more competitive offering. Choose
an E-commerce plan.The old 4C paradigm
will be replaced. Almost no feedback loop. Higher risk of
innovation and guessing market. Democratization
of 4Ps paradigm-4Cs-5Cs of Marketing
Citizen branding
Collective collaboration
Collective risk sharing
Collective product innovation
Collective IP ownership
New Paradigm - collaborative Open Innovation. Capturing customer
interaction creates tremendous value
and reduces risk.
92% PREFER WOM RECOMMENDATION and 91% LIKELY TO BUY ON
RECOMMENDATION. 75% of your
audience uses a search engine to find you. Get used to it. All
the banners and 'viral' marketing on earth
won't come close to results produced by a top 5 ranking for a
relevant phrase. But, a broad base is better.
Don't rely on just one marketing vehicle. Build a complete
internet marketing strategy that includes, at a
minimum, paid search, organic search, e-mail and online PR.
Never underestimate the power of an angry
-
customer or happy customer. Karma exists. Treat customers and
prospective customers with respect, and
they'll reciprocate. Spam them, annoy them, and lie to them, and
they'll retaliate. A web site does not
equal an internet marketing strategy. Plan, but adapt. Don't be
stubborn. Listen to what your customers
tell you in their response.