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Seminar “The role of marketing in exports”
Karavasilis DimitrisThessaloniki , 23 September 2014
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Table of contents
What is International Marketing Approach1.
Common difficulties in International Marketing2.
Elements of successful export capacity3.
Nation Branding
5.
4.
Exploitation of the marketing gap by identifying the market paradox
6. Know how to create an added value for the product
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What is International Marketing approach1.
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What is International Marketing Approach
International Marketing is the multi-national process of
planning and executing the conception, prices, promotion
and distribution of ideal goods and services to create
exchanges that satisfy the individual and organizational
objectives.(American Marketing Association, 2011)
Businesses engage in International Marketing for 2 main reasons:
(1) to achieve further growth, (2) to survive.
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What is International Marketing Approach?
The tactical and strategic decisions of Marketing are much more complex at the international level, rather than at domestic level, because:
– uncontrolled external environment factors of a market differ significantly from one country to another
– controlled variables (ie. Product, promotion, pricing, distribution) often have to adapt to conditions of each international target market
Marketing to International Markets
Dos & Don’ts of Export Marketing
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1.
2. Common difficulties in International Marketing
2.
3.
The profile of an exporting firm in the Southern -Eastern Mediterranean
The pitfalls of Greek SMEs in developing export activity
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Dos & Don’ts of Export Marketing
Exports are like a ship And ship is made for sailing and discovering
new lands!
What is export?
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Dos & Don’ts of Export Marketing
Vs
International sales Exports
Low price Added value –
Duration
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Dos & Don’ts of Export Marketing
ü Define your objectivesü Analyze your productü Identify your main selling value
points- USP replaced by UVPü Establish your ratesü Target your marketü Ask and listenü Consider your audienceü Tailor your marketing
campaign (country-specific marketing campaign
ü Hire an insider if necessary
Χ Don’t enter foreign markets without long-term commitment and exit strategy
Χ Don’t be adamant about what you consider your best feature to be
Χ Don’t put all your marketing eggs in one basket
Χ Don’t push a product that won’t sell
Χ Don’t panic if nothing happens in the first 2 years
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Dos & Don’ts of Export Marketing
q Improvisation without plan and without any help from experts
q Incomplete engagement and disposition of the company heads to
allocate the necessary funds to overcome the initial difficulties
q Ineffective selection of central distribution channel and distribution
center
q Dispersion of orders worldwide
q Downgrade a market just when another ( usually local ) increases
q Discrimination between domestic and foreign customers
q Reluctance to modify the product to meet local particularities
q Unable to offer additional services before or after sale
The most common mistakes in export marketing
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The profile of an exporting firm in the Southern - Eastern Mediterranean
Ø Lack of well organized and regulated International Marketing
Management
Ø Development of export activity without a plan, based on
random orders from foreign markets
Ø Almost no conduction of prior market research
Ø Inadequate knowledge of the State’s Export Policy
Ø Inadequate knowledge of the PEST environment of the
countries – target markets
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The pitfalls of Greek SMEs in developing export activity
Ø Search of an international clientele
Ø Lack of financial resources
Ø Lack of skilled personnel
Ø Inability to attract commercial representatives
Ø Inability to control operations abroad
Ø High adjustment costs and costs of ensuring international
quality standards (eg ISO, British Standards)
Ø State bureaucracy
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The pitfalls of Greek SMEs in developing export activity
New problems are not treated with old solutions!Ø The core problem of Greek enterprises is competitiveness, which is not only the
fault of their management Boards, but also the institutional framework in which they operate.
Ø Not sales and financial results, but customer satisfaction and loyalty, build the long term survival of a company
Product profitability Customer profitability
Current sales Customer lifetime value
Brand equity Customer equity
Market share Customer equity share
Old approach New approach
Source: Kotler et al., 2012
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Elements of successful export capacity3.
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Elements of successful export activity
ü Government support mainly at sectorial and nation
branding
ü Good level of innovation and research
ü Quality of product
ü Production capacity
ü Product differentiation / corporate image / marketing
approach
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Elements of successful export activity
All international marketing needs …
• Method• Consistency• Continuity• Synergies
What is nation branding
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1.
4. Nation Branding
2.
3.
Cases of strong nation/country brands
The Greek case
4. Tips for successful nation branding
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What is nation branding
It is the process of applying corporate branding techniques topromote countries, with the aim of building and managing theiridentity and image
Ø Countries are struggling to gain share of the world’s consumers, tourists,businesses, investment, capital, respect and attention
In a world of ever increasing competition brand reputation has become a crucial differentiator!
Country’s identity
and reputation
Value system
Quality of Life
Business Potential
Heritage and
Culture
Tourism
“Made in” label
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What is nation branding
Nation Brand
Tourism
Exports
Governance
Investment &
Immigration
Culture &
Heritage
People
The Nation Brand Hexagon (© 2000 Simon Anholt)
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Cases of strong nation/country brands
Germany is famous for its:
Automotive industry
Organizational culture
High quality public health and social security systems
Modern Educational system
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Cases of strong nation/country brands
Italy has a strong brand name for:
Food Olive oil
Cars Fashion/Style
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Cases of strong nation/country brands
Spain is known for:
Gastronomy Olive oil
TourismCulture
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Cases of strong nation/country brands
GERM
ANY
FRAN
CE
UK
CAN
ADA
JAPA
N
ITAL
Y
US
SWIT
ZERL
AND
AUST
RALI
A
SWED
EN
2008 1 2 3 4 5 6 7 8 9 10
2009 3 2 4 7 5 6 1 8 9 10
2010 2 3 4 6 5 7 1 8 9 10
2011 2 4 3 6 5 7 1 9 8 10
2012 2 4 3 5 6 7 1 8 9 10
2013 2 4 3 5 6 7 1 8 9 10
2014 1 4 3 5 6 7 2 8 9 10
Top-10 nation brands for 2008-2014
Source: The Anholt-GfK Roper Nation Brands Index℠
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Cases of strong nation/country brands
Top 15 country brands for 2010-2014GE
RMAN
Y
FRAN
CE
UK
CAN
ADA
JAPA
N
ITAL
Y
US
SWIT
ZERL
AND
AUST
RALI
A
SWED
EN
SPAI
N
FIN
LAN
D
NEW
ZE
ALAN
D
NO
RWAY
GREE
CE
2010 11 7 9 1 6 12 4 5 2 10 14 8 3 13 22
2012 7 13 11 2 3 15 8 1 6 4 19 9 5 10 /
2014 3 17 12 5 1 18 7 2 8 4 13 11 6 /
Source: Future Brand
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The Greek case
Ø The country has strong reputation for its heritage and culture
What about Greece?
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The Greek case
Ø However, the country’s identity is mostly perceived as negative due largely to the Greek financial crisis and the consequent stereotypes associated to its people
Ø In fact, in 2011 Greece was one of the worst performing nation brands, losing 40% of its brand value
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The Greek case
The evolution of the brand value of Greece for 2008-2011
Source: Brand Finance plc, 2011
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The Greek case
How can Greece improve its nation brand?
Promoting a new brand name and emblem-Breaking away from the “bad past” -Synonymous to Quality and Balanced Life
Exporting its gastronomy-Positioning of the emblem in every single product packaging
Applying the new brand name everywhere (ex. national ID cards, government websites, quality control certificates)
-Signs of modernization and consistency
The key is to create an image of trustworthiness /reliability both internally and externally by:ü Implementing an integrated nation branding
strategy/programü Promoting partnership and coordination at higher levelü Delivering a quality product/service consistently over timeü Encouraging entrepreneurship and innovationü Putting forward administrative simplification and regulatory
reformsü Fostering transparencyü Positivizing the negative qualities/characteristics and
mainstreaming the positive ones
Tips for successful nation branding
Ø When it comes to nation brands, it is clearly what you do, ratherthan what you say that counts” (Daryl Copeland, Public Diplomacy,Branding and the Image of Nations)
Case study “the red wine”
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1.
5. Exploitation of the marketing gap by identifying the market paradox
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Case study “the red wine”
Market gap definition
An unmet consumer need or a group of potential
customers that are not yet purchasing a good /
service. Gaps in the market represent opportunities for
companies to expand their customer base by
increasing awareness and creating targeted offerings
to reach the untapped market.
Identification of gaps in the market is an important step
in increasing market penetration.
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Case study “the red wine case”
It is very important to bear in mind the Marketing "paradox" & the country-specific branding in marketing strategy.
8-40 $
4-25 $
2-15 $
“Red wine" case
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Know how to create an addedvalue for the product6.
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Know how to create an added value for the product
How to add value to a product?1. Benefits: people perceive value in a product that is multi-purposed.
2. Testimonials: Choose credible sources and vary testimonials to cover the
different benefits of your product.
3. Brand: create a strong brand image for your product. People perceive
more value in branded products
4. Packaging: shape, size, color, label, everything matters! Proper technical
packaging specifications matter even more!
5. Price: people associates higher-priced products with better quality
6. Guarantees: A strong guarantee such as 100% satisfaction guarantee
increases the perceived value of your product
7. After-sales service: People perceive value in excellent customer support
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Conclusion
Companies need to follow both individually and collectively an integrated marketing strategy/plan which focuses on:
• Product differentiation
• Delivering added value to the consumer
In this way they will:
ü successfully export their products and gain market shares
ü contribute to the creation of a strong nation brand name which will function as an “umbrella” for other national products leading overall to increased exports
“In unity we stand strong”!
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