international marketing for students 1 - wz uw marketing for... · kotler p. marketing management....
TRANSCRIPT
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International Marketing
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Corporate strategic planning
Company's growth strategies
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Agenda
� orientations toward marketplace
� creating the strategy (the procedure, elements and key frameworks)
� intensive growth strategies, integrative growth strategies,diversification strategies
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THE MARKETING CONCEPT
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Defining marketing
� Marketing is a societal process bywhich individuals and groups obtainwhat they need and want throughcreating, offering, and freelyexchanging products and services ofvalue with others.
Marketing Management -1
� Marketing management is art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
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Marketing Management -2
The marketing management - is a delicate balance of creativity and structure/formal procedures.
Principles of Marketing
� Customer needs and wants
� Market information as a basis of decisions
� Integrated marketing activities and tools
� Customer satisfaction creation
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Marketing Mix 7P’s or 7C’s?
Organizational perspective
� product
� price
� place
� promotion
� physical evidence
� people
� process
Customer perspective
• customer value
• cost
• convenience
• communication
• confirmation
• consideration
• co-ordination and
concern
Marketing Management
The marketing management -consists of:
� analyzing market situation
� designing marketing strategies
� implementing and organizing the marketing effort
� controlling marketing performance
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COMPANY’S ORIENTATIONS
TOWARD THE MARKETPLACE
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Company orientations toward the
marketplace - 1
� Production concept
� Product concept
� Selling concept
� Marketing concept
� Customer concept
� Societal marketing concept
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Source: P. Kotler (2003). Marketing Management, 11th, Prentice Hall, Upper
Saddle River, p. 17.
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Company orientations toward the
marketplace – 2
Concepts Starting point Focus Means Ends
Production Factory Widely available and
inexpensive products
High production efficiency
Low cost
Mass distribution
Profits through
volume and low cost
Product Factory Superior products Making superior products
and improving them over
time
Profits through high
quality product
Selling Factory Products Aggressive selling and
promotions
Profits through sales
volume
Marketing Target market Customer needs Integrated marketing Profits through
customer
satisfaction
Customer Individual customer Customer needs and
value
One-to-one marketing
Integration and value chain
Profits through
capturing customer
share, loyalty, and
lifetime value
Societal marketing Best long-run
interests customer
and society
Customer needs,
customer interests, and
long-run societal welfare
Integrated marketing and
education customer
Profits through
customer
satisfaction and
society’s well-being
13Source: own preparation based on: P. Kotler (2003). Marketing Management,
11th, Prentice Hall, Upper Saddle River, p. 17-27.
Corporate Strategic Planning
� defining the corporate mission (vision)
� establishing SBU
� assigning resources to each SBU
� planning new business, downsizing & terminating older businesses
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Mission & Objectives
Mission
� describes the organisation’s basicfunction in society
� explains why the company exists
� provides the commercial logic for thecompany
� needs to be converted into everydayperformance
� is a cultural glue that enables theorganisation to function as a unity
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Corporate Mission - Fundamental
Questions
� What is our business?
� Who is the customer?
� What is of value to our customer?
� What will our business be?
� What should our business be?
Infuences on the mission statement
� company’s history
� preferences, values and expectations ofmanagers & owners
� environmental factors
� available resources
� distinctive competences
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Workable mission
� brief – easy to understand and remember
� flexible – to accomodate change
� distinctive – to make the firm stand out
Mission or/and vision
� vision gives general sense of direction to the company, is the orientation point thatguides the company
� vision ignores real. practical problems, vision can degenerate to wishful thinking
� mission is about here and now, visionrefers to the future,
� mission is designed to motivate, vision –not!
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Objectives
S Specific - descriptive, succinct and provide claritythroughout the organization as to what is to beachieved
M Measurable - clearly state tangible targets that can bemeasured in the future
A Aspirational - challenging but achievable, motivational
R Realistic - based on sound market analysis, financial,human & physical resources should underpin theobjectives
T Timebound - a timescale should be set against theachievment of each objective in order for performancemeasurement to be undertaken
Objectives hierarchy
Corporate objectives – increase profits
Productionobjectives– cut costs
Personnelobjectives– reduce
headcount
Marketing obejctives – increase revenue
Objectives for the mix
Product(10% of
revenue )
Price(skimming)
Promotion(recall)
Place (coverage)
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Marketing Objectives e.g.
� rate of return on investment
� net profits
� cash flow
� total sales revenue
� sales volume
� market share
� consumer awareness
� number of distribution outlets
� average realized price
SBU Defining
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SBU - Main Characteristics
� SBU is a pasrt of the company that for allintents and purposes has its own distinctproducts, markets and assets
� single business (or collection of relatedbusinesses) that can be planned separatelyfrom the rest of company
� has its own competitors
� has its own manager.......
Analysing the Product Portfolio
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Portfolio Evaluation Frameworks
� BCG’s Growth Share Matrix
� GE Multifactor Matrix
� Shell Directional Policy Matrix
-----------------------------------------------------
� Abell & Hammond’s Investment Opportunity Matrix
� Arthur D. Little Strategic Condition Matrix
BCG’s Growth Share Matrix
(traditional approach)
Market
growth
rate
Relative market share
Stars Question marks
Cash cows Dogs
0 xO,5 x1 x
0 %
10 %
100 %
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Taking a Portfolio Approach
� analysis based around evaluating SBU activities
� models help you think strategically about the business and its resources and provide analytical frameworks. But:
� they are over-simplified
� cannot incorporate ‘risk’
� often offer misleading representations of strategic options
� use over generous measures
� assume market leadership = benefit
� ignores market ‘inching’
� ignores competitive strategic factors
Determinants of market attractiveness
� Market factors (eg size, growth)
� Competitors
� Investment factors
� Technological change
� Other factors
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BCG’s Growth Share Matrix
(practical approach)
Market
attractiveness
Competitive position
Question marks Stars
Dogs Cash cows
100500
0
50
100
References
� Armstrong G., P. Kotler: Marketing.Wprowadzenie, Wolters Kluwer, Warszawa2012
� Gilian C., R. Wilson, Strategic MarketingManagement. Planning, impementatiom andcontrol, Butterworth Heinemann, 1999
� Kotler P. Marketing Management. EleventhEd., Prentice-Hall, Englewood Cliffs, 2003
� Porter M., Competitive Advantage, 1998
� Strategic Marketing Management: Planningand Control, BPP Professional Education, 2003
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Gap Analysis
� Diagrammatical approach to viewing the difference between:
� Where we are going? (in the currentway)
� Where we want to be? (targets for achievement)
Gap Analysis
Time
Sales
Desired sales
Current portfolio
Diversification growth
Integrative growth
Intensive growth
The planning
gap
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Intensive Growth
Ansoff’s Product - Market Matrix
Product
Current New
Current
New
Market
Market penetration strategy
Market development strategy
Product development strategy
(diversification strategy)
Intensive Growth Strategies
� market penetration strategy
� market development strategy
� product development strategy
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Market penetration strategy
� more purchasing and usage form existing customers
� gain customers form competitors
� convert non-users into users
Market development strategy
� new market segments
� new distributiob chanells
� new geographic areas
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Product development strategy
� product modifications via newfeatures
� different quality levels
� ‘new’ product
Integrative Growth Strategies
� Vertical integration (VMS)
- backward
- forward
� Horizontal integration (HMS)
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Diversification Growth Strategies
� concentric diversification
� horizontal diversification
� conglomerate (lateral) diversification
Consolidation strategies
� Deinwestment
� De(z)integration
� Prunning
� Reduction
� Harvesting