Marketing strategy

Fare comparazione di un grou facendo l’analisi con il marketing strategy nel paese di origine e con un altro paese. 2 paesi lontani.  SWOT ANALISIS

• Nestlé

1 OTTOBRE MARKETING STRATEGY

DRIVING FORCES :

• Internet
• Technology
• Comunication

AMAZON 🡪 biggest market in the world thanks to the technology

Culture can be a driving force 🡪

Marketing can be different bw countries. costs 🡪 u need to cover costs and maximize profit

Culture as a restraining force 🡪 alcohol and beef, coffee vs starbuck (only in milan, which is more international) .

National controls 🡪 protectionism

War 🡪 ex. Venezuela

Management myopia 🡪 u see ur business without seeing long term, with no prospective

Organisation history 🡪 company can decide that it will never be global

Domestic focus 🡪 world is changing, is more global. Being domestic is a restrain

GLOBAL MARKETING

Coca cola is everywhere, it produces everywhere. Global industry not only concern the fact that u find the finished product all over the world but also you produce it and have suppliers all over the world

• semiglobalization  🡪  focalised only in a certain part of the world
• standardization 🡪 going to sell the same product everywhere
• Localisation 🡪 I’m gonna to adapt my product everywhere
• Glocalization 🡪 think global and act local 🡪 u want to be everywhere, but u adapt ur product to the local

• VS think local and act global 🡪  ur product is local and all over the world
• Nestlé and Nescafé 🡪  in Vietnam doesn’t work but with coffee tracks it does

Internet economy 🡪 very fav to standardization

Marketers must be trend trackers and opportunity keepers

The marketing environment:

• The macroenvironment  🡪 larger societal forces that
• Microenvironment

GLOBAL ECONOMIC ENVIRONMENT

Global business, global development 🡪 u need to know the actors

The global economic environment:

1. The world economy
2. Economic systems
3. Stages of market development
4. Balance of payments
5. Trade in merchandise & services

World economy:

• Deep evolution since WWII
• One of the deepest changes 🡪 emergence of global markets
• Today global integration is over 50% vs 10% at the beginning of the 20th century

New realities to focus for managers

• Main driving force of economy 🡪 capital movements instead of trade
• Production is not coupled anymore with employment 🡪 machines, robots. Generate a lot of R without employing
• other people.
• Dominance of the world economy vs subordinate role dedicated to individual countries ( ex: EU)
• Struggle bw capitalism and socialism
• Developments of ecommerce / reduction of national barriers and need for new business models  🡪 major revolution. it has changed the R-S with products and clients.

NEW REALITIES

Economic systems:

• Market capitalism
• Centrally planned socialism  🡪 China switched to capitalism.
• Centrally planned capitalism & market socialism

Stages of Market Development

1. Low income countries 🡪 1000 $/year

• EX. Bangladesh, south of Sahara
• GNI ( gross national income) of 1005 $ or less capita
• +limited industrialization/ high % of population employed in agriculture
• Hight birth/ short life expectancy
• Low literacy rates
• Heavy reliance on foreign aid
• Political instability and unrest

1. Lower middle-income countries 🡪  around 4000 $/year

• Good point 🡪 rapidly expanding consumer markets
• Highly motivated & relatively cheap labour force
• Major competitive advantage 🡪 mature, standardized, labor intensive light industry secitìrt
• Main activities 🡪 footwater, textiles

1. Upper middle-income countries 🡪 around 12 000 $/year

•  Sharp drop of the % of population employed in agriculture
• Increasing wages but  wages in advanced countries
• Presence of local innovative and export driven companies
• Es. Chile, Malaysia, Mexico, Venezuela
• Brics 🡪 brazil, Russia, China & India are currently entering into this category
• South Africa

1. High income countries  🡪 >  12000 $/year

• Also known as advanced, developed, industrialized or post industrial countries
• The service sector > ½ of national output
• Increasingly important exchange of info/ considered as a key strategic resource as well as technology
• Society demonstrates an orientation towards the future
• Product& market opportunities based on new products & innovations

1. International groups of countries.

INTERNATIONAL GROUPS OF COUNTRIES

• G7 🡪 USA, Japan, Canada, Germany, Britain, France and Italy
• G8 🡪 Russia
• CREATED in 1999

TRADE IN MERCHANDISE AND SERVICES

• International finance / foreign exchange

•  It involves financial risks, decisions and activities that differ from the domestic market

• Economic exposure

• it reflects the impact of currency fluctuation on company’s financial performance

• Managing exchange rate exposure is critical 4 global companies that may be present on various continents and economic areas

BALANCE OF PAYMENTS

• Definition 🡪 it is the record of all economic transactions bw the residents of a country and the rest of the world
• Divided into current and capital accounts
• Current account  🡪 merchandise trade and service trade
• Trade deficit occurs when the balance

2/GLOBAL TRADE ENVIORONEMENT

• GATT 🡪 1947 and substituted by WTO in 1995
• WTO:

• Promotes free trade on a global basis
• Provides neutral trade experts used as mediators …

PREFERETIAL TRADE AGREEMENTS

• Common market

• Next level of economic  ….

• Economic union 🡪 seeks to coordinate and harmonize economic and social policies
• Aim 🡪 facilitate free flow of capital , labor, goods ,and services from country to country

MARKETING ISSUES WITH TRADE AGREEMENTS

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