* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download 10 - Murray State University
Survey
Document related concepts
Strategic management wikipedia , lookup
First-mover advantage wikipedia , lookup
Market analysis wikipedia , lookup
Marketing research wikipedia , lookup
Social marketing wikipedia , lookup
Market penetration wikipedia , lookup
History of marketing wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Market environment wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Marketing plan wikipedia , lookup
Multicultural marketing wikipedia , lookup
Foreign market entry modes wikipedia , lookup
Transcript
3-1 Chapter Ten Local Marketing in Emerging Markets MKT568 Global Marketing Management Dr. Fred Miller Scenario Castillo Tools SA is an Spanish manufacturer of small electrical hand tools (drills, small saws, screwdrivers, etc.) . The firms offers several types of products with multiple models in each line. Each line includes wired and cordless tools as well as sets of tools using the same battery recharging system. Separate promotional efforts focus on professional and do-it-yourself markets, but both convey product durability, reliabilty and the benefits each model for its target segment. Prices vary from discount to expensive in each line, but are slightly above competitors’ prices at each product level. The firm sells across Euope through hardware stores, hypermarkets and online retailers. In international markets the firm wishes to exploit its patent-protected produces by reaching new customers in new markets Global Marketing Decisions in this Chapter What social and market conditions are dominant in emerging markets? What marketing research tools, strategy and tactics are most appropriate? What general marketing approaches are most effective in emerging markets? How should these strategies be adapted to: China India Distribution of Emerging Markets Comparative Statistics Source: World Bank 2002 Area in SQ KM Countries 24% 26% 33% High 25% High Middle Middle Low Low 51% 41% Population 17% 15% 41% Total GNI 3% High High Middle Middle Low Low 80% 44% An Optimal Entry Mode Matrix Company strategic posture Emerging High-growth Mature Services Incremental Indirect exports Indirect exports Direct exports Licensing/ Alliance Protected Joint venture Indirect exports Alliance/ Licensing Licensing Wholly owned subsidiary Acquisition/ Alliance Wholly owned subsidiary Franchising/ Alliance/ Exporting Control Exhibit 6.3 Product/Market Situation Three Marketing Environments Exhibit 9.1 Feature Life cycle stage Product/Market situation Emerging New growth Mature Intro Growth Mature Tariff barriers High Medium Low Nontariff barriers High High Medium Domestic competition Weak Getting stronger Strong Foreign competitors Weak Strong Strong Financial institutions Weak Strong Strong Consumer markets Embryonic Strong Saturated Industrial markets Getting stronger Strong Strong Political risk High Medium Low Distribution Weak Getting stronger Strong Media advertising Weak Strong In-store promotion Dominant Marketing Dimensions Product/Market Situation Task Emerging New growth Mature Research focus Feasibility Economics Segmentation Primary data sources Visits Middlemen Respondents Customer analysis Needs Aspirations Satisfaction Segmentation base Income Demographics Life style Marketing analysis: Exhibit 9.2 Dominant Marketing Dimensions Product/Market Situation Task Emerging New Growth Mature Market development Participation in growth Compete for share Competitive Focus Lead/follow Domestic/foreign Strengths/ weaknesses Product line Low end Limited Wide Product design Basic Advanced Adapted New product intro Rare Selective Fast Pricing Affordable Status Value Advertising Awareness Image Value-added Distribution Build-up Penetrate Convenience Promotion Awareness Trial Value Service Extra Desired Required Marketing strategy: Strategic focus Exhibit 9.2 cont. Global Marketing Decisions in this Chapter What social and market conditions are dominant in emerging markets? What marketing research tools, strategy and tactics are most appropriate? What general marketing approaches are most effective in emerging markets? How should these strategies be adapted to: China India Local Marketing in Emerging Markets Market analysis marketing infrastructure, income levels, currency convertibility Product strategy simplified, low-cost line; some high-end opportunities Pricing balance between skimming and penetration, innovation required Promotion limited media, less clutter, importance of visual images Distribution and Service key factor, imagination required, personal service available Global Edge Emerging Markets Emerging Markets: Success Strategies Seek compatible objectives Help develop local industry Be sensitive to local cultures and values Provide training across functional areas Contribute to social development Document contributions Adopt long term perspective Global Marketing from Emerging Markets? Costa Rican Gourmet Coffee Direct from Grower World Art From Novica Chinese Jade Seller: From eBay to seller’s site Global Marketing Decisions in this Chapter What social and market conditions are dominant in emerging markets? What marketing research tools, strategy and tactics are most appropriate? What general marketing approaches are most effective in emerging markets? How should these strategies be adapted to: China India Marketing in China Market trends Huge market potential tied to economic development Barriers - import licenses, tariffs, currency controls, trading companies Joint venture, Special Economic Zone opportunities Role of Hong Kong’s trading companies Importance of establishing personal relationships - guanxi Market analysis Segmentation: geographic and urban/rural segments Positioning: acceptance of global brands, localization of names Marketing in China Marketing strategy Product: positive view of well known, foreign brands, 4 big things Price: high price sensitivity, but imports commonly higher Distribution: weak national infrastructure, regional rollouts, many intermediaries state-owned Promotion: government control, limited media penetration, authenticity Global Marketing Decisions in this Chapter What social and market conditions are dominant in emerging markets? What marketing research tools, strategy and tactics are most appropriate? What general marketing approaches are most effective in emerging markets? How should these strategies be adapted to: China India Marketing in India Market trends Huge market potential tied to development of middle class Socialist era (1950-80) of market control Liberalization (1980-present), political risk Dual market, large emerging middle class Resurgence of domestic brands Market analysis Segmentation: urban middle class, poor rural population Positioning: growing acceptance of global brands, more demanding Local Brands in India Marketing in India Marketing strategy Product: full product line, significant first move effects Price: value orientation in middle class, especially for unknown brands Distribution: weak infrastructure, requires greater attention/investment Promotion: linguistic/cultural localization, no direct attacks India and Bangladesh Women’s Bank of Bangladesh Video What economic statistics are used to portray Bangladesh in this video? How does the Women’s Bank initiative respond to these conditions? What elements of controversy does it generate? How does the bank address them? What lessons might a brewer exporting to Bangladesh learn from the strategies of the Women’s Bank? Measure Bangladesh Iowa Area 144,695 km2 144,000 km2 Population 147,365,352 2,966,334 Per capita income $ 470 $ 19,674 Access to safe water 74% 100% Women’s Bank of Bangladesh Video Update: Mohammed Yunus and Grameen Bank shared the 2006 Nobel Peace Prize, Grameen now has 6 million borrowers worldwide Microlending and microfranchising have been widely adopted by other organizations. Chinese Management & Modern China Videos Explain the role of the following in traditional Chinese management style and practices Family relationships and quanxi Harmony and loyalty Span of control and operational responsibility Respect for superiors and creativity How are these values related to the traditions covered in the Legacy of China video? How are these values related to Hofstede indices for China? High Power Distance, Low Uncertainty Avoidance Collective, Masculine How have state-owned enterprises, rural populations and private enterprises been affected by economic reform? 3-1 Chapter Ten Local Marketing in Emerging Markets MKT568 Global Marketing Management Dr. Fred Miller