Download Marketing Strategy

GLOBAL MARKETING
Marketing Strategy
• Strategy is integrated action in pursuit of
competitive advantage
– Offering unique value to customers that
cannot be duplicated by competitors.
Benefits of Strategy
• Coordinates activities among functional
areas of organization
• Defines resource allocation
• Leads to a superior market position
Components of Strategy
Statement of objectives
Selection of strategic alternative(s)
Establish general
direction of strategy
Selection of customer targets
Choice of competitor targets
Positioning
Statement of core strategy
Description of supporting marketing mix
Description of supporting functional programs
Implement
strategy
Considerations for Global Strategy
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Political risk
Market access
Land, labor, and capital costs
Shipping considerations
Country infrastructure
Foreign exchange
Product fit
International Market Entry
• Sourcing
– Should the firm export or produce locally?
• Licensing
• Investment
– Joint ventures
– Sole ownership
• Global strategic partnerships
Market Expansion Strategies
• Should the firm seek new markets in
countries in which it already operates or
seek new country markets for already
identified and served market segments?
Market Segmentation
Concentration
Diversification
Concentration
Narrow focus
Country focus
Diversification
Country
diversification
Global
diversification
Stages of Global Development
Characteristics
Domestic
International
Multinational
Global
Transnational
Key assets
Located in
home country
Core centralized,
others dispersed
Decentralized &
self-sufficient
All in home
country except
marketing or
sourcing
Dispersed
interdependent &
specialized
Role of country
units
Single
country
Adapting &
leveraging
competencies
Exploiting local
opportunities
Marketing or
sourcing
Contributions to
company
worldwide
Knowledge
Home
country
Created at center
& transferred
Retained within
operating units
Marketing or
sourcing
developed jointly
& shared
All functions
developed jointly
& shared
Strengths
NA
Ability to exploit
parent company's
knowledge &
capabilities thru
worldwide diffusion
of products
Flexible ability to
respond to
national
differences
Global market or
supplier reach,
leveraging the
home country
organization,
skills, &
resources
Combines the
strengths of each
of the preceding
stages in an
integrated
network,
leveraging
worldwide learning
& experience
Generic Marketing Strategies
Broad
target
Cost
Leadership
Differentiation
Narrow
target
Cost Focus
Focused
Differentiation
Lower cost
Differentiation
Competitive Advantage
Broad Market Strategies
• Cost-leadership advantage
– Low-cost producer
– Experience curve
– Need to obtain largest market share to
have lowest cost per unit in industry
– Ability to offer lower prices and more value
to customers in competitive stages of
product life cycle
• Differentiation
– An actual or perceived uniqueness in
product offering
– Ability to command premium price
Narrow Target Strategies
• Focused Differentiation
– Offers a narrow target market the
perception of product uniqueness at a
premium price
• Cost Focus
– Offers a narrow target market lower prices
than the competition
• Differentiation
– adding a set of meaningful and valued
differences to distinguish the firm’s offering
from competitors’ offerings
– Criteria:
• important
• distinctive
• superior
• preemptive
• affordable
• profitable
• Differentiation Variables
Product
Services
Personnel
Channel
Image
Form
Ordering ease
Competence
Coverage
Symbols
Features
Delivery
Courtesy
Expertise
Media
Performance
Installation
Credibility
Performance
Atmosphere
Conformance
Customer training
Reliability
Durability
Customer
consulting
Responsiveness
Reliability
Maintenance &
repair
Communication
Repairability
Miscellaneous
Style
Design
Events
Implications of Product Life Cycle on
Marketing Strategy
Introduction Stage
• Objective: Create awareness and
product trial
Product—offer a basic product
Price—charge cost-plus
Distribution—selective
Communications—target advertising to early
adopters and dealers to increase
awareness; heavy sales
promotion to stimulate trial
Growth Stage
• Objective: Maximize market share
Product—product extensions, warranties
Price—decrease prices to penetrate
Distribution—intensive
Communications—target advertising to mass market
to increase awareness; reduce
sales promotions
Maturity Stage
• Objective: Maximize profit while
defending market share
Product—diversify products and brands
Price—match or best competitors’ prices
Distribution—more intensive
Communications—use advertising to stress brand
differences and benefits; increase
sales promotions to encourage
brand switching
Decline Stage
• Objective: Reduce expenditure and milk
the brand
Product—phase out weak models
Price—cut price
Distribution—selective; phase out unprofitable outlets
Communications—reduce and target hard-core
loyals; reduce sales promotions to
minimal levels