International marketing, global marketing.

INTERNATIONAL MARKETING

Introduction

International marketing =/= Global marketing

• IM = detailed, requires adaptation to a culturally different country

Marketing decisions are made in the individual countries, with staff who is the most knowledgeable about the target markets.

• GM = more global, less nuanced, usually for big enterprises

Since the whole world is ne, product creation will only require weeks to fit into any regional marketplace.

• Global marketing is defined as the firm’s commitment to coordinate its marketing activities across national boundaries in order to find and satisfy global customer needs better than the competition.

• Ethnocentric, polycentric, regiocentric & geocentric approaches

Going international varies on the size of the company, if it is or a niche market or no.

Cost effect – having a specific manufacturing branch in/for a country sometimes allows to decrease costs

“Network” effect – counting on existing clients/partners to develop the market

Learning effect – idk…

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Small companies who want to go global can adapt their product with quite a lot of flexibility.

If you have money and want to go abroad, it might be easier to buy a company abroad.

The importance is to know what the company is and where it stands on the market (then follow the opportunity windows in the chart).

Back to Fundamentals of marketing

The marketing mix of 4Ps : a set of controllable variables that the firm can use to influence buyer response.

• Product : quality, special features, brand, product range/mix, service, durability, packaging, warranty etc.
• Price : exchange criteria, credit, discounts, financial services, trade-ins, pricing strategy etc
• Promotion : advertising, personal selling, merchandising, sales promotion, direct marketing, PR etc.
• Place : channel strategy, outlets, stock, logistics, documentation, freight, insurance

+ 3Ps (the extended marketing mix)

• People : interaction, appearance, service, quality circles, training, recruiting, motivating, rewarding
• Physical evidence : buildings, equipment, facilities, location, brochures, paperwork
• Process : manner in which service is delivered, sequence of activities, customer involvement

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It is key to manage demand :

• Negative demand
• No demand
• Latent demand : Latent demand is, as the name suggests, a demand which the customer realizes later. The best example of latent demand are normal phones vs smart phones. A marketing managers job is to find out the features which people might be looking for later and market them to the customer in such a manner that he immediately wants them.
• Declining demand :  A marketers job in such a case to think ways to revive the product so that the demand is not declining.
• Irregular demand : The best example of irregular demand is seasonal products like umbrellas, air conditioners or resorts. These products sell irregularly and sell more during peak season whereas their demand is very low during non seasons. The best way to counter irregular demand is to introduce incentives for the customer to buy the product.
• Full demand : Full demand means that the demand is meeting the supply potential of the company. The marketing challenge in this type of demand is to maintain the same level of interest in the product and the company.
• Overfull demand : Overfull demands happen when the companies manufacturing capacity is limited but the demand is more than the supply. This might happen when the company keeps marketing, but it is not able to supply the material, then the company might suffer badly in brand equity.

Purpose of marketing is to attract and retain customers at a “profit”. This implies:

• Central role in organizational performance
• Selective pursuit of customers
• Relationship building & customer retention
• Monitor, understand &outperform competitors

Branding  : a successful brand is a name, a symbol, design or some product of some particular organization as having sustainable competitive advantage ( Doyle, 1996)

Meaning of a brand : Attributes Benefits Values Culture Personality User

• Brand equity

• Customer will change brands especially for price reasons, no brand loyalty
• Customer is satisfied. No reason to change the brand
• Customer is satisfied and could incur costs changing brand
• Customer values brand and sees it as a friend
• Customer is devoted to the brand

• Reasons for branding

• De-randomize product selection
• Assists consumer quality evaluation
• Symbolizes quality levels
• Reduces buyers risk
• Psychological reward of ownership

Product mix consistency

Selling products that belong more or less to the same market, same customers, same lines of product etc

• The benefits include promoting a consistent company image in the eyes of the consumer

• McDonald’s – a glocal approach

The Bottom of the Pyramid approach

Think BOP

• La base de la pyramide : 2,1MM d’individus qui subsistent avec moins de 2 dollars par jour -> comme les approcher et les transformer en tant que consommateurs potentiels ?
• Stratégie BOP complètement différent de la RSE et de la philanthropie
• Objectif : transformer le BOP (marché latent) en marché actif

Logique BOP VS logique dominante

• Requiert une nouvelle philosophie d’innovation -> nécessité de retravailler sur la chaine de valeur
• Proposer des produits adaptés à ces populations
• Modèle qui tendent vers la préservation des ressources pour réduire au max les coûts et pouvoir offrir un produit en phase avec le niveau de vie des consommateurs ciblés

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