planning, market intelligence and segmentation and positioning
TRANSCRIPT
Planning, Market Intelligence and Segmentation and Positioning
Strategies in International Marketing
Objectives
• To identify and make use of virtual tools formarket intelligence.
• To understand the planning process in International Marketing
• To distinguish between segmentation and positioning and their use in the design of a positioning strategy.
Global Segmentation Fads
• “Standardizationvs. Adaptation”
1970s
• “Globalizationvs. Localization”
1980s• “Global
integration vs. Local responsiveness"
1990s
The Nestlé Way: Evolution Not Revolution
Think and plan long term
Decentralize
Stick to what you know
Adapt to local tastes
Global Strategy
• Disney Princesses:
• Jazmin (Arabic)
• Mulan (Asian)
• Aurora (Western Europe)
Company Objectives and Resources
Foreingmarket
opportunities
Corporateobjectives and
resources
Change themShort term profit vs.Long term run
Solution:
Clear objectives
International Commitment
• Management preparation.
• Long-term marketing plan with realistic time goals for sales growth.
• Regions vs. Countries.
• Competition and digital communication forceglobal commitment.
International Planning Process
Phase 1
• Preliminaryanalysis and screening: MatchingCompany/
Country needs
Phase 2
• Definingmarket
segmentsand adapting
themarketing
mix accordingly.
Phase 3
• Developingthe
Marketing Plan
Phase 4
• Implement. and control
12-9
Phase 1: Preliminary Analysis and Screening
• A critical first step in the planning process is deciding in which existing country market to make a market investment
• A company’s strengths and weaknesses, products, philosophies, modes of operation, and objectives must be matched with a country’s qualities
• First, countries are analyzed and screened to eliminate those that do not offer sufficient potential for further consideration
• Second, screening criteria are established against which prospective countries can be evaluated
• Third, a complete analysis of the environment within which a company plans to operate is made
Phase 2: Defining Target Markets and Adapting the Marketing Mix
• A more detailed examination of the components of the marketing mix is the purpose of Phase 2
• The primary goal of Phase 2 is to decide on a marketing mix adjusted to the cultural constraints imposed by the uncontrollable elements of the environment that effectively achieves corporate objectives and goals
• The answers to three major questions are generated in Phase 2:– Are there identifiable market segments that allow for common
marketing mix tactics across countries?– Which cultural/environmental adaptations are necessary for
successful acceptance of the marketing mix?– Will adaptation costs allow profitable market entry?
Phase 3: Developing the Marketing Plan
• A marketing plan is developed for the target market—whether it is a single country or a global market set
• The marketing plan begins with a situation analysis and culminates in the selection of an entry mode and a specific action program for the market
• The specific plan establishes what is to be done, by whom, how it is to be done, and when. Included are budgets and sales and profit expectations
Phase 4: Implementation and Control
• The planning process is a dynamic, continuous set of interacting variables with information continuously building among phases
• An evaluation and control system requires performance-objective action; bringing the plan back on track should standards of performance fall short
• The system encourages the decision maker to consider all variables that affect the success of a company’s plan
• It provides the basis for viewing all country markets and their interrelationships as an integrated global unit
Alternative Market-Entry Strategies
• A company has four different modes of foreign market entry from which to select: exporting, contractual agreements, strategic alliances, and direct foreign investment
Exhibit 12.2 Alternative
Market-Entry Strategies
Strategic Marketing – STP Model
SEGMENTATIONIdentifiying
meaningfullydifferent groups
of customersTARGETING
Selecting whichsegment(s) to
serve
POSITIONINGImplementing chosenimage and appeal to
chosen segment
Product Price
Distribution
Promotion
Global Market Segmentation
• Separate consumers into groups using macroand micro variables.
MacroCountry FactorsGeographical FactorsMacro-economics F.Macro-cultural F.
MicroBehaviorLifestylePsychographicsDemographicsAttitude and UsageMicro-CulturesBrand Loyalty
Taken from: http://marketability.com.au/lend-lease-psychographic-market-segmentation/
Targeting
• Targeting is choosing which segment would be the most beneficial for the company to focus on based upon segment size, growth, profitability, current and potential competitors as well as the core capabilities of the business and then selecting which segment(s) to target.
Positioning
POSITIONINGImplementing
chosen image and appeal to chosen
segment
PRODUCT PRICE
PROMOTION DISTRIBUTION
Premium
Basic
Durable
Prestige
Fun
Powerful
Premium
Low Price
Value
Intensive
Selective
Exclusive
Positioning
• Positioning involves selecting the target market and creating and sustaining a differential advantage in relation to the competition.
• This involves the use of the marketing mix.
Top of Mind
Top of Heart
Rev
ista
Din
ero
20
12
Marketing Strategy
•Goals•Core Messages•IntegratedCampaign
DemandGeneration
ReputationDevelopment
Employee andCommunity
Outreach
Events
PublicRelations
eMarketing
Positioning Strategy
Business Goals
Positioning
Cost Leadership Cost Focus
Product Differentiation Differentiation Focus
CostDifferentiation
SCOPE OF ACTIVITIES
Broad Market Narrow Market
Hig
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Cost Leadership
• It is a strategy, by which a business offers an average product at a low cost to the broadest possible market. Economies of scale result in cost savings, partially passed to consumers. (e.g. Wal-Mart)
Cost Focus
• It is a strategy, by which a business offers an average product at a low cost to a specific customer group. Customer relationship largely depends on the cost of the product and a unique connection with a customer. (e.g. Virgin brands)
Product Diferentiation
• It is a strategy that focuses on offering a unique product to the broadest possible market. The product offering necessitates continuous innovation in light of the highly competitive market forces. (e.g. Apple's iPhone, iPad, iPod line-ups)
Differention Focus
• It is a strategy that focuses on offering a unique product to a specific customer group. The customer relationship largely depends on the uniqueness of the product and the way the customer is being served. (e.g. Rolex watches; Rolls Royce cars)
Cost Differentiation
• It is the most difficult strategy to attain. It requires offering a unique product at a low cost to a relatively broad market. This strategy creates the highest benefits and is consistent with the Blue ocean strategy, a strategy that reinvents its market place and competes in entirely new dimension. (e.g. Ikea; Henry Ford's assembly line; Motorola Moto G)
Positioning
Cost Leadership Cost Focus
Product Differentiation Differentiation Focus
CostDifferentiation
SCOPE OF ACTIVITIES
Broad Market Narrow Market
Hig
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Virtual Tools for Market Research
• CIA World Fact Book
• Kwintessential
• Legiscomex
• Procolombia