Download 8 - Murray State University

3-1
Chapter Eight
Local Marketing in Mature Markets
MKT568
Global Marketing Management
Dr. Fred Miller
Marketing Environments and Tasks
Emerging markets - build infrastructure
New growth markets - market development
Mature markets - build market share
Analysis and strategy focus by market type
Global Marketing Decisions in this Chapter
What social and market conditions are dominant
in mature markets? What marketing research
tools, strategy and tactics are most appropriate?
What general marketing approaches are most effective in
mature markets?
How should these strategies be adapted to:
Europe and the EU
Japan
Australia and New Zealand
North America
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
Porter’s Diamond
Competitive Advantage for Countries
Firm strategy,
structure and rivalry
Factor
conditions
Demand
conditions
Related and
supporting industries
Source: Adapted and reprinted with the permission of the Free Press, a division of Simon and Schuster, from The Competitive
Advantage of Nations, by Michael E. Porter. Copyright © 1990 by Michael E. Porter
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.
Distribution of Mature Markets
Global Marketing Decisions in this Chapter
What social and market conditions are dominant in
mature markets? What marketing research tools,
strategy and tactics are most appropriate?
What general marketing approaches are most
effective in mature markets?
How should these strategies be adapted to:
Europe and the EU
Japan
Australia and New Zealand
North America
Local Marketing in Mature Markets
Market analysis
market segmentation, positioning, brand image, country of origin
Product strategy
wide line, differentiated, first mover (leaders); me-too (followers)
Pricing
range of options, relative to product position
Promotion
brand image, sales promotion for support, differentiated position
Distribution
solid infrastructure, full channels, slotting fees, piggybacking
Customer satisfaction
quality, technical vs emotional quality, surprise
CS and Two Kinds of Quality
High
Level of satisfaction
Autobytel Survey reported in
USA Weekend, Nov 2002
Almost one third of potential new
car buyers would switch cars if
dissatisfied with cup holders.
Emotional quality
High
Low
Functional quality
Low
exhibit 9.3
Level of quality
Global Marketing Decisions in this Chapter
What social and market conditions are dominant in
mature markets? What marketing research tools,
strategy and tactics are most appropriate?
What general marketing approaches are most effective
in mature markets?
How should these strategies be adapted to:
Europe and the EU
Japan
Australia and New Zealand
North America
Pan-European Marketing
Market trends
Reduction of NTB’s (1992 initiative), growth of EU
economic, financial, political integration,
Constitution rejected by France and Denmark, June 2005
Market analysis
Segmentation: pan-European, regional or local markets
Positioning: market retreat, pan-European competition, niche position
Marketing strategy
Product: euro-brands, wide lines for diverse segments
Price: Euro currency (€), price sensitivity and transparency
Distribution: trend toward large, integrated units
Promotion: pan-European reach, visual emphasis with voiceovers
Enlargement in 2004 & 2007
Florida 27th state 1845, 69 yrs after DoI
Newest Members
2004, Euro 2007-10
Czech Republic
Estonia
Cyprus
Latvia
Lithuania
Hungary
Malta
Poland
Slovenia
Slovakia
2007, 50 years after ToR
Bulgaria
Romania
No date specified
Turkey
Currency Introduction in 2002
Common banknotes,
Common/country coin design
Currency issued 1 Jan 2002
Thirteen member countries as
of January 2007 (Slovenia),
about 315 million people
Objectives: transparency,
efficiency, reserve currency
Euro Notes and Coins
Dual Pricing in a Sample Ad
Global Marketing Decisions in this Chapter
What social and market conditions are dominant in
mature markets? What marketing research tools,
strategy and tactics are most appropriate?
What general marketing approaches are most effective
in mature markets?
How should these strategies be adapted to:
Europe and the EU
Japan
Australia and New Zealand
North America
Marketing in Japan
Market trends
More penetration, import competition, value consciousness
Market analysis
Segmentation: more diverse segments, richer markets
Positioning: traditional market=quality, emerging=value
Marketing strategy
Product: broader lines, multiple price points, function without fault
Price: more price sensitivity, intrabrand competition, value analysis
Distribution: complex, difficult, emerging larger intermediaries
Traditonal: fragmented, based on relationships with intermediaries
Promotion: indirect, subtle, image based
Insider Japan Video
How does the geisha ceremony for food oil
executives illustrate traditional Japanese culture and
business practices.
In what ways is Sosha Honda’s approach to business
consistent with the traditional Japanese approach?
In what ways does it represent a new trend?
In your opinion, what factors in the video are keys to
success in modern Japan.
3-1
Chapter Eight
Local Marketing in Mature Markets
MKT568
Global Marketing Management
Dr. Fred Miller