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Introductory Session on International Marketing

Nov 14, 2014



My usual first session on International Marketing

  • 1. I woke up this morning and fixed myself a cup of coffee made by aSwisscompany taking milk from aKoreanfridge. I watched the news briefly on aBritishchannel on aJapaneseTV set. I shaved with anAmericanshaving gel and splashed on an after shave made inFrance , distributed by anAmericancompany under the license of anotherSwisscompany. I also shampooed my hairusing a shampoo made inThailand . I then checked for messages on my phone (made inChinafor aCanadiancompany). Before leaving for here, I quickly paid my satellite TV subscription (of partlyAustralianorigin) with a credit card of aDutch bank on anAmericanlaptop. I drove to work in a car made inKorealistening to music from aJamaican . Welcome to Global Marketing

2. Two centuries of sweeping changes

  • In the 1800s , all products used were manufactured within a few miles
  • Great Britain actively involved in international trade in the mid 19 th century
  • Since,WWII rapid expansion into global markets
  • Why Global? Realize their commercial potential
  • Why Global? Survival..

3. Global Marketing

  • Is it different from regular marketing?
  • Marketing : Series of Activities leading to an exchange
  • Organizations efforts to satisfy customer wants and needs with products and services with competitive value
  • Marketing Mix: Marketers primary tools
  • Marketing is an universal discipline

4. Global Marketing

  • Focus on Global markets and opportunities
  • Scope of activities is different
  • Universal marketing guidelines should be combined with specific concepts,considerations and strategies to ensure success

5. MarketingAn Universal Discipline

  • Marketing: Focusing on resources and objectives of an organization on environemental opportunities and threats
  • Set of concepts,tools, theories,practices and procedures, and experiences
  • Teachable and Learnable body of knowledge
  • Marketing practice varies from country to country

6. The Marketing Concept

  • Shift of focus from the product to the consumer in the 60s
  • The strategic Concept of Marketing evolved in the 1990s
  • Knowing the customer in a context
  • From profits to stakeholders benefits
  • From profit maximization to managing strategic relationships
  • Positioning the firm in the value chain

7. The Infosys Sustainability Report 2008

  • Communication channels with key stakeholders
  • Customers: Customer Satisfaction Surveys
  • Annual Customer Leadership Meets
  • Employees: Employee Satisfacion Surveys
  • Inclusivity Survey
  • Infosys Women Inclusivity Councils
  • CEO-Employee Column
  • Local Communities: Site Visits
  • Interactions with NGOs
  • Investors: Annual meets
  • Suppliers: Vendor Surveys
  • Government: Membership in key Government bodies
  • Education: Global Internship Programs/Fellowships

8. Boundaryless Marketing Marketing Customer Needs and Wants R & D Engineering Mfg CV 9. Three Principles of Marketing

  • Customer Value
  • Competitive or Differential Advantage
  • Focus

10. Customer Value

  • Value(V)= B(Benefits)/P(Price)
  • Taskis to create better customer value than competitors
  • Cos with cost advatage: Price competitive weapon
  • Knowledge of Customer+ Innovation & Creativiity can lead to offerings of superior customer value

11. SAP empowers midisized cos deliver superior CV

  • SAP Business All-in-One Solution adds new CRM functionality
  • Delivers key CRM capabilties to marketing sales and services with ability to analyze results
  • Enables companies to generate more sales leads,close more deals and provide better service and support

12. Competitive or Differential Advantage

  • CA: Total offer that is is more attractive to customers vis--vis competitors
  • Could come from any element of the offer
  • Product
  • Price
  • Promotion
  • Distribution

13. Designa competitive advantage

  • Unicorn Industrial Sewing Machines Company in China
  • Makes Sewing Machines for Consumers and Industrial Users

14. Design..a competitive advantage

  • Industrial sewing machines can have over 1000 precision parts and assemblies
  • Uses Autodesk Invention software to make product desgn more efficientand reduce design cycle time and potential errors
  • Makes it possible even for new engineers to design in a third of the time

15. Focus

  • Required to succeed in the task of creating Customer Valueat a competitive advantage
  • Concentrating resources or efforts on consumer needs and wants
  • How to deliver a product that will meet those needs and wants

16. Global Marketing: What it is and what it is not?

  • Markets and customers are different from country to country
  • Marketing practices must vary
  • Experiences not directly applicable from country to country
  • Kellogg Breakfast cereals

17. The Global Marketing Controversy

  • Prof. Theodore Levitt in HBR 1983 Globalization of Markets
  • Homogenous Global Village
  • High Quality, worldproducts
  • Market around world using standardized advetising,pricing and distribution
  • Major failures

18. Coca Cola.A major global Marketing Success

  • Success not based on standardization of marketing mix elements
  • Global Localization
  • Think Global, Act Local
  • Combination of standard(actual product itself) and nonstandard( distribution or packaging)

19. Group DanoneA truly Global company

  • Revenues of Euro 15.22 Billion in 2008
  • Worlds No. 1 in Fresh Dairy Products
  • Worlds No. 2 in Bottled Water
  • Worlds No. 2 in Biscuits

20. Group Danone

  • Presence in 120 countries
  • 40% Revenues from outside Europe
  • Key to Danones success: extensive knowledge of local market
  • Focus: Innovation and local market autonomy
  • Groups Identity Worldwide business with local presence

21. Group Danone

  • Priority: Develop a strong brand that reflect consumer needs in that market as closely as possible
  • Danone: seen as French in France
  • Spanish in Spain
  • Mexican in Mexico
  • Dannon in America
  • In Argentina, fresh dairy brand Le Serenissiree 65% market share

22. Group Danone

  • Most new product ideas come from specific needs in a country
  • Usually tested in the country
  • Drinking yoghurt Actimel first tested in Belgium
  • Juice brand Dano first tested in France
  • If product works,local office takes and adapts it
  • Role of HQ: For each pdt, the pureness of the concept

23. Group Danone

  • Local office: can adaptto individual markets,encouraged to
  • Some change advertising,some change name
  • Some opt for sweeter tasting yoghurt,some will have simpler packagings

24. Global Marketing

  • No imposition of a standardised approach
  • Does not mean entering every market in the world
  • Means widening business horizons to encompass the world when scanning for opportunities and threats
  • Decision to enter markets will depend on several factors like resources,managerial mind-set and nature of opportunities and threats

25. Nokia-A Global marketing success

  • Worlds largest handset manufacturer
  • In 2005, Nokia was loosing market share and share price was dipping
  • Missed the mobile-as-fashion statement trend
  • Slow to take advantage of this trend in developed world
  • Concentrated on building business in developing world(India,China,Indonesia)
  • Different requirement:Basic,reliable hardware

26. Nokia-A Global Marketing Success

  • Global Market share jumped to 40% in 2007
  • China market share: 35%
  • Trusted,but not trendy in the USA
  • US Cellphone market difficult to grow
  • Driven by cell-service carriers,like Verizon,AT & T
  • Phones sold at subsidized rates,works only with their service

27. Nokia-A Global Marketing success

  • Europe: Nokia leader
  • USA leaders: Samsung, Motorola and Palm
  • USA: consumers driven by emerging technology
  • No right products
  • Corrected by launch of two new products: E Series and N Series