Marketing ManagementOf International Trade

October - December 2011

Ing. Ilona Bergquist, MBA

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LESSON 4: MARKETING RESEARCH; LEVERAGING KNOWLEDGE

Unit 1: International Marketing (cont’d)

– Distribution

– Communication Mix

Unit 2: Marketing Research

– Role of marketing research

– Types of marketing research

– Qualitative and quantitative research techniques

– Trends in mktg research

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LESSON 3: INTERNATIONAL MARKETING

DISTRIBUTION (cont’d):

Trend 1: Internationalization and concentration of retailers

– Top retailers gaining more power (WM, Carrefour, Metro, Tesco)

– Growth of discount retailers (Schwarz, Costco) and Russian / Chinese firms

Trend 2: Effort to be the dominant power in global markets

– Strong negotiating power of large retailers

– Markets where retailers have small share create too high cost –> leaving

Trend 3: Diversification strategies of retailers

– More than one store concept

– Diversification of their private label brands

– Private label share on store sales: Schwarz 60%Tesco 50%WM 40%

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LESSON 3: INTERNATIONAL MARKETING

DISTRIBUTION (cont’d):

Trend 4: Growing cooperation between retailer and supplier (mnfg company)

– Trade marketing dept – responsible for distribution, pricing, shelving, merchandising

– Key account manager on the side of manufacturing company

– Shopper marketing importance growing

Trend 5: Use of modern information technology

– RFID – on pallets, on products, smart chip on carts and in the shopping area (possible to identify most attractive section of store)

– Loyalty cards (consumer and retailer benefits)

– Future Store – Metro Germany

http://www.bbc.co.uk/news/business-12310810

Future Store's app lets you scan barcodes of items as you pick them off the shelves. When you finish shopping, the app generates a final bar code displayed on your phone, which you then scan at a self-service checkout.

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LESSON 3: INTERNATIONAL MARKETING

DISTRIBUTION (cont’d):

Trend 5: Use of modern information technology

– Stop & Shop in 117 stores, in the CT/NY/NJ

– Swipe your loyalty card, pick up personal scanner and start…. Scan an item and put it in the cart or the bag!

– Personal scanner gives you running total of purchases - > saves you time

– http://newyork.cbslocal.com/2011/06/27/scan-it-shopping-device-helps-clifton-grocery-shoppers-save-time-and-money/

Trend 6: Internet shopping

– Boom since 1995 (Amazon)

– Pure internet firms

– Internet auctions

– Internet as complementary to brick & mortar stores

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LESSON 3: INTERNATIONAL MARKETING

COMMUNICATION:

Strategies need to consider the development level of the country (availabilities of media, large ad agencies, media regulation) and socio-culture environment

Global communication strategy – same global ad, concept, slogan – Local company only translates and uses appropriate media– Local company can request in the development phase certain scenes,

claims etc.– Appropriate for standardized products or when we want to emphasize

foreign image

Local communication strategy – developed locally, typical for decentralized companies, also when products are only available in that 1 market

Product adv. vs. Corporate adv.

– Corp. ads can show positive financial performance or environmental programs or sponsorships – goal to create positive image among consumers and employees

Determining the budget

– Depends on: Life stage, priority of the product in the portfolio, innovation news

P&L - > typically 20 – 30% of turnover

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LESSON 3: INTERNATIONAL MARKETING

COMMUNICATION:

Advertising Sales support PR Direct mktg

TV POS material PR articles, Personal sales

Print Gift packages EventsPress conferences

Showing of products in people’s homes

Radio Exhibitions, booths Sponsorships Exhibitions

Outdoor / Indoor Samples, tastings Webpages Catalog sales

Internet Sweepstakes Presentation in media

Telemarketing/shopping

Cinema ads Coupons, discounts Presence on conferences

Direct mail

Additional ways of communication: Guerilla marketing, Teasing, Viral marketing

http://www.oldspice.com/videos/video/22/the-man-your-man-could-smell-like/

http://www.youtube.com/watch?v=iYhCn0jf46U

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LESSON 3: INTERNATIONAL MARKETING

COMMUNICATION:

Within advertising, TV still the dominant medium (37% of global ad expenditures), followed by daily papers, magazines and radio.

Advantages vs. Disadvantages for each medium

– Kagome test market – radio campaign

For 2012, forecasted growth of 5,3 %. Fastest growing will be internet.

PRICE DERIVED FROM:

TV: GRPs

Radio: listening level

Print: circulation mostly

Outdoor: size and location

Internet: page views, pay per click

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LESSON 3: INTERNATIONAL MARKETING

COMMUNICATION STRATEGY BRIEF:

Business SituationBrand AssetsTarget consumer, InsightsCampaign Initiatives

•Why do we want a new advertising? •What is the situation of the brand on the market? Market size and trends.

•Brand Footprint – benefits, RTB, essence, personality•Who is the target audience (quant and qual. criteria)? What is their behavior? What are they interested in?

•For what products / variants is the new campaign?

Marketing ObjectivesCommunication Objectives

•What is the marketing goal(s)?•What is the key message to convey?•What is the goal for the advertising? How do we want the target group to behave after seeing the ad?

•What other communication support do we have?•Can also have info on previous campaigns and results.

Content and MediaKey Metrics (KPI)

•Specific requirements for the campaign.• Impressions / reach in target group, cost / % reached, penetrace, trial, registration, etc.

Timing / Budget • Key milestones (first creative, pre-test, live, post-test…)• Available budget.

Additional information on brand, past research, about competition activities is also useful.

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LESSON 3: INTERNATIONAL MARKETING

MARKETING CALENDAR:

Tactic May June July Aug Sep Oct Nov Dec Jan Feb March April

TV BistroTV KnB Base

FSI Bistro 5/15 7/17 1/8 2/5

FSI KnB Base 9/25

Catalina - Bistro 5/16 - 6/12 9/6 - 10/3 1/25 - 2/21

Shopper Mktg - Bistro

Online program - Bistro

Cross-Ruff - Bistro

PR activity - Bistro

Bis tro

FY' 2012 Kibbles 'n Bits Bistro Meals Consumer Marketing Calendar

Base Base

Bis tro

Activities are planned according to the target groups: example End consumer Professional support Customer (pharmacies) Trade support

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LESSON 3: INTERNATIONAL MARKETING

Digital media growing on importance – using internet and social networks

Factors of successful digital marketing

– Engage: be relevant, interesting and entertaining (news, sweepstakes, ..)

– Be visual: use video when possible

– Inform and Listen and React

– Be part of discussion, but don’t control it

– Integrate with other media

– Build brand community

– Measure – Reach, Engagement, Quality

(Source: CPG Digital Creative Best Practices, 2010. Ipsos Open Thinking Exchange in conjunction with Yahoo!)

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LESSON 4: MARKETING RESEARCH

Unit 1: International Marketing (cont’d)

– Distribution

– Communication Mix

Unit 2: Marketing Research

– Role of marketing research

– Types of marketing research

– Qualitative and quantitative research techniques

– Trends in mktg research

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LESSON 4: MARKETING RESEARCH

Role of marketing research: provide companies / managers with information for better decision making and reducing risks

1. Research of target country environment (STEEP analysis) Helps to answer whether to enter foreign market and how/mode of entry

Socio-demographic / ethical

TechnologyEconomy

EcologyPolitical

Cultural values, education levels, population growth/ structure (age, ethnics), regional split….Science research expend., communication technol. dev., e penetrationGDP, inflation, Avg. HH income, banking structure, HH debt level, initiating business, capital / financing sourcesEnvironmental protection, using renewable sources of energy, … Tariffs, taxes, consumer protection laws, hygienic cond. In food mnfg…

2. Research of market dynamics Helps to answer business potential and provide benchmarking

Category

Competition

Supplier / retailer

Customer / consumer

Size, growth, seasonality, promo volumes, prices, segments, trendsShare, growth, innovation, strengths/weakness, target segments, pricing strategyStability of suppliers, retailer structure/distrib.channels, margins, pricesConsumer needs, expectations, motivations, attitudes and behaviors

3. Marketing strategy/communication effectiveness research Helps to increase the success of our new product and communication

AdvertisingInnovation Brand

Pre-test, Post-test, Creative Idea testingConcept, product, package, price testingImage, Attitudes, satisfaction, loyalty

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LESSON 4: MARKETING RESEARCH

Research methods:

– Secondary (desk) research

– Primary research

Primary Research

Continuous research (typically syndicated)

– Retail audit and retail panels

– HH panels (2 – 10 000 households), People meters

– Omnibus research (various topics)

Ad hoc research

Marketing research agency divisions (example Ipsos):

Innovation & BrandResearch

Innovation & BrandResearch

AdvertisingResearch

AdvertisingResearch

Media, Technology

Media, Technology

Customer &Employee

Loyalty

Public AffairsPublic Affairs

incl. ShopperB2B

Pharma

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LESSON 4: MARKETING RESEARCH

Methods of marketing research:

1. Qualitative Tools:

– Focus Groups (consumers, opinion leaders, BA, industry experts), workshops

– IDI (in-depth interviews)

– Ethnographies

– Online blogs, FG, mobile research

– Neuroscience

– Key goals of qual. research:

Evaluation of Innovation

Understanding Shopping Behavior

Optimalizing Communicationor Brand

Understanding Customers & Brand perceptions

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LESSON 4: MARKETING RESEARCH

Methods of marketing research:

2. Quantitative Tools:

– Sample sizes of min. 120 respondents (homogenic group)

– Face to face

– CAPI

– CATI

– Online research (panel of respondents or separately recruited respondents)

– CLT

– In-home tests

– Retail Lab

– Exit surveys or in-store tests (assisted shoppings or hot spots analysis)

– Mystery shopping/calling

– Social Listening

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• Ipsos technical & human resources

LESSON 4: MARKETING RESEARCH

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LESSON 4: MARKETING RESEARCH

Marketing research areas:

ASI tools help you improve return on advertising investment by maximizing the effect of your communication strategy.

– Can cover the whole advertising development process and offer a comprehensive portfolio from copy testing to brand audits.

– Key measures: Recall, Pursuation, Intention to buy, + diagnostics

Innovation & Brand research solutions to help you identify strong new opportunities and allow you to develop your product idea for a successful launch.– Understanding markets, identifying opportunities for brand positioning

– Identifying and optimizing best ideas / development opportunities

– Evaluating the strategy to be adopted (product, pricing, communication)

– Developing and managing strong brands, tracking brand performance

– Sales forecasts; follow-up of launching and re-launching

– Evaluating shopper experience, needs, optimal shelf set-up, etc

AdvertisingResearch

AdvertisingResearch

Innovation & BrandResearch

Innovation & BrandResearch

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Shopper Experience:

Eye-tracking - respondent either wearing a pair of special spectacles (mobile camera) and walking round a store or being in front of a computer screen/data projector on which store images are shown (fixed camera).

Diagnostics are required to help interpret the data, usually followed by in-depth interviews to gain deep understanding of shopper behavior

LESSON 4: MARKETING RESEARCH

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LESSON 4: MARKETING RESEARCH

Marketing research areas:

– Loyalty research tools will lead you to an effective customer-oriented business management and more productive work force by understanding your customers and your employees better

– Understanding needs + quality and satisfaction + loyalty and value

– Customer Journey (CEM)

– PA research provides an understanding of public opinion and needs, and bridges the gaps between the public, government, local government, non-profit-making and private sectors.

– Media and technology research helps to understand media environment – ie media consumption and ratings, consumer behavior as they view / read / listen to and use media, tracking how people use devices to access content, media brand equity

Customer &Employee

Loyalty

Public AffairsPublic Affairs

Media, Technolog

y

Media, Technolog

y