Download International marketing strategy. Develop a new international

CIBER PARIS PROGRAM (PART II)
INTERNATIONAL MARKETING MANAGEMENT AND
RESEARCH
SUMMER 2013
Professor
Office
Phone
E-Mail
Course Web Page
Frenkel ter Hofstede
in Austin: GSB 7.234 / in Paris: TBA
512-471-5471 (office)
512-484-7585 (cell)
TBA (in Paris)
[email protected]
see blackboard
COURSE OBJECTIVES
In an ever-expanding world it is essential for marketers to understand how marketing decisions are made in
today’s global rather than domestic market. In this course we will take a managerial approach, taking global
marketing strategy development as a starting point and discuss how relevant information can be collected
and generated to support global marketing decisions.
The primary objective of this course is to learn the principles and theories of international marketing management
and research and to apply these principles to practical international settings.
The specific objectives of the course are:
1.
2.
3.
To teach you the concepts and terminology of modern international marketing management.
To understand the critical issues in conducting international marketing research and to teach you the
tools used by international marketers.
To train you to analyze complex international marketing situations.
In addition to lectures and in-class discussions, we will ‘learn by doing.’ You will work with your team on an
international marketing problem of your choice. This project will give you a better understanding of how the
theory and frameworks learned in class apply to current global strategies of international companies. Your team
will present the project during the last day of class. Class participation is going to be an important part of your final
grade, so active participation is required.
CLASS SCHEDULE
Mondays and Wednesdays either from 9 am – 12 pm or from 1 pm – 4 pm (see weekly syllabus for exact times).
We will break each session into different parts with appropriate breaks in between. Location: ESCP-EAP 79 avenue
de la République Paris 11.
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WEEKLY SYLLABUS
Date
Thu June 20
9 am – 1 pm
Mon June 24
9 am – 1 pm
Topics and activities
Global Marketing and Globalization
Global Marketing Environment
Discuss International Marketing Project (IMP) part I
Team assignments
International Marketing Research
Global Market Segmentation and Positioning
Discuss IMP part II
Readings and deliverables
Chapter 1 Kotabe and Helsen
Read Chapter 1 Kotabe and Helsen
Read Chapter 7 Kotabe and Helsen
Create PowerPoint deck IMP part I
Wed June 26
9 am – 1 pm
Mon July 1
Global Strategy Development
Global Market Entry
Global Product Strategies
Work on diffusion/segmentation project
Discuss IMP part III
9 am – 1 pm
Global Pricing Strategies
Global Communication Strategies
Team presentations IMP
Wed July 3
Exam
Read Chapter 8 Kotabe and Helsen
Create PowerPoint deck IMP part II
Create PowerPoint deck IMP final
Study class notes and handouts
9 am – 1 pm
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GRADING
Your grade in the course will be determined as follows:
Points
Class participation
35%
International Marketing Project
(group presentation and PowerPoint deck)
35%
Exam
30%
For class participation, I am looking for active and constructive participation, asking relevant questions, adding
value to the discussions, participating as an active member of a team.
The exam will consist of essay questions that cover the most important issues discussed in class.
The International Marketing Project is graded based on the quality of the presentation and the content of the
PowerPoint deck. Specific grading criteria are:
1.
2.
Presentation
clear communication of the problem
creativity
concise and to the point
response to questions
performance on the board of directors
Content
thoroughness
practical marketing and business implications
consistency, conciseness and clarity of writing
use of international/marketing concepts
quality of analysis
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INTERNATIONAL MARKETING PROJECT
You and your team members will complete a marketing plan for an international marketing problem or
opportunity that you identify. Your team will operate as a team of consultants and present your work to a board of
directors (represented by another team in the class; your team will serve as a board of directors during another
team’s presentation).
The deliverables for the International Marketing Project consists of a presentation in class and a PowerPoint deck
that you will hand in. In preparing for your presentation, pretend you are addressing a hypothetical Board of
Directors.
The project consists of three parts. In the first part, you will identify the problem and describe the international
marketing environment relevant for your problem or opportunity. In the second part you will conduct market
research. In the third part you will develop international marketing strategies and tie everything together.
P ART I - B ACKGROUND AND P ROBLEM
Identify an international marketing problem or opportunity. This could be (but is not restricted to) a
product/service of an American company that you feel has potential to be introduced to France, another European
country, or the complete European market. It could be a new idea that you have on a solution that can be
marketed internationally. It could be an opportunity related to how a traditional multi-national company can
globalize certain elements of their multi-local marketing strategies.
Conduct a marketing audit and describe the company and its marketing environment. If you are thinking of a new
product/service identify potential partner companies that can help produce and/or market the product. To obtain
relevant information, consult secondary sources on the Internet (see below under secondary data sources),
business magazines and journals (accessible through the UT library), annual reports and other reports.
More specifically, describe the following (if applicable):
The problem or opportunity. Clearly describe the international marketing problem or opportunity you
want to address.
Company. Describe the overall strategic plan of the company, including its mission statement, company
objectives and goals. In case your problem/product pertains to a particular SBU, focus the discussion on
the SBU. If you do not have a particular company in mind, identify one or more potential partners and
describe their overall strategic plan.
Market situation. Identify relevant data on target market(s) over the past years, including the size and
growth of the market(s).
Product. Describe the company’s product/service offering and why you feel there is an opportunity for
the company to market abroad, or what the exact international marketing problem is.
Pricing. Describe the company’s pricing strategy.
Communication. Describe the company’s communication strategy.
Distribution. Present data on the size and importance of each distribution channel. How does the
product/service reach the customers? For example, is it available in stores and what types of stores,
though direct mail, or other?
Marketing environment. Describe the marketing environment of the foreign market(s), including its
cultural, political, economic, and legal environment. Describe socio-economic and demographic trends
that may influence the performance of the company/SBU/product in the future. Identify potential
competitors.
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Then, identify the product strengths and weaknesses, as well as the opportunities and threats that the business is
facing. In other words, conduct a SWOT analysis. Identify opportunities that match strengths of the
company/product and threats and weaknesses that may harm future activities.
In this part you can discuss potential strategies, but
P ART II – M ARKET R ESEARCH
Determine the specific information needs. What additional information will you need to develop international
marketing strategies for your product? Collect information on consumer characteristics in the countries/segments
you attempt to target (e.g., demographics, lifestyles, psychographics, purchase patterns, etc.), your product (e.g.,
willingness to pay, purchase intention, etc.) and competitive information (e.g., positioning, loyalty, etc.). Carefully
develop the research plan for collecting the information. Some of the research you can consider conducting:
-
-
Secondary data analysis using databases; there are many free online databases available (e.g., worldbank,
Eurostat) or paid services available through the UT library. See page 8 for a list of data sources you can
use. Also feel free to use any other data source relevant for your problem.
conduct qualitative interviews (in-depth personal interviews or focus group discussion) with experts or
potential customers;
develop a survey and interview people in Paris and during your travels to other countries;
observe availability of products in stores
During your stay in Paris and your travels to other countries, keep your eyes and ears open at all times, using your
experiences and observations as valuable input for developing your international marketing strategy.
Your research plan can address the following issues:
Data collection method: survey, experiment, observation, focus groups, historical data, and/or statistical
databases. You can conduct more than one method.
Sampling plan: what are the sampling units (consumers, primary shopper, households, users of a
particular product, experts), sample size, what sampling procedure do you use (random, mall intercept,
etc).
Target population, Representativeness, reliability and validity. Is the sample representative of the target
population that you want to assess? Is the sample sufficiently large to make reliable conclusions? When
you decide to collect data through questionnaires, carefully formulate the questions and pretest your
questionnaire (e.g., by asking another student in the class to fill it out and comment on it).
Statistical analyses. Describe the analyses you intend to do.
After the research plan has been specified, it is time for its implementation. Collect, code, and analyze the data
according to the research plan. Then interpret and report the most important findings that are related to your
marketing problem.
P ART III –M ARKETING S TRATEGY D EVELOPMENT
International marketing strategy. Develop a new international marketing strategy based on the information
collected in Part I and Part II. First present the marketing strategy in general terms, addressing the following issues
(if applicable):
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1. Target market(s). Describe the market segments that will be targeted and develop an entry strategy for each
segment. A segment can be a sub-segment in a country, it can consist of a set of countries, or it can span
consumers in different countries.
2. Positioning. How will the product be positioned in the markets, given the positions taken by competitors?
3. Marketing mix. Specify each element of the marketing mix. For example:
What is the level of standardization or adaptation of the product and communication strategies.
What price will the consumer pay?
What product(s) will be offered?
Based on what product attributes is the product positioned in the market?
What sales force activities will you recommend?
Will you be offering sales promotions?
What communication strategy do you recommend?
What is the general communication message to the customer?
Which advertising media will you use for your communication message(s)?
What channels will be used to distribute the product.
How does the international marketing impact the execution of strategies.
Etc….
4. Research. What additional information is needed?
Action program. Specify each element of the marketing strategy. What will be done when?
Budgets. Also provide a general marketing budget for implementing the strategy and discuss projected revenues,
costs (fixed, variable), profits, and the rate of return on investment?
Controls. Outline the controls for monitoring the plan’s progress for the first 8 quarters after implementation.
THE PRESENTATION
You are to take the role of a group of consultants presenting to the Board of Directors of the firm. As on any Board,
some members know more about the issue than you do, and all will be generally familiar with the firm's situation.
But some members have had only a slight opportunity to read materials before a meeting. Leading them through
the situation, your analysis and recommendations require considerable skills to hit the right level of detail, without
endlessly reciting facts. Of course, the same is true for your classmates - some of them have had other courses
than you had and are ready with tough questions; some will know the facts. Try to appeal to all these segments.
Also make sure that each member of the group gets some “air time.” This is difficult to do in practice, but is very
effective if the group is well rehearsed and the changeovers are seamless. Be well-prepared and pay extra
attention to the substantive content, materials and style of the presentation.
Practice your presentation well. Your team will have 15 minutes to present the plan.
Your presentation will integrate steps 1-3. The format of your presentation is flexible, but you should make an
effort to cover parts 1, 2, and 3. Pay attention to the background of the problem or opportunity, information
obtained, basis for recommendation, recommended strategy, limitations and assumptions, and action steps
needed to implement your strategy.
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SECONDARY DATA SOURCES
CIA World factbook
Euromonitor
Eurostat
International Business research desk
INSEE (statistics on France)
Worldbank
https://www.cia.gov/library/publications/the-world-factbook/
http://www.lib.utexas.edu/indexes/titles.html?id=521
http://ec.europa.eu/eurostat/
http://globaledge.msu.edu/resourceDesk/
http://www.insee.fr/en/default.asp
http://devdata.worldbank.org/data-query/
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HOFSTEDE SCORES
POWER DISTANCE
Country
Malaysia
Guatemala
Panama
Philippines
Mexico
Venezuela
Arab.
countries
Ecuador
Indonesia
India
West Africa
Yugoslavia
104
95
95
94
81
81
80
Country
Singapore
Brazil
France
Hong Kong
Columbia
El Salvador
Turkey
74
69
68
68
67
66
66
Country
Portugal
Uruguay
Greece
South Korea
Iran
Taiwan
Spain
63
61
60
60
58
58
57
Country
Jamaica
USA
Canada
Netherlands
Australia
Costa Rica
Germany
45
40
39
38
36
35
35
78
78
77
77
76
Belgium
East Africa
Peru
Thailand
Chile
65
64
64
64
63
Pakistan
Japan
Italy
Argentina
South Africa
55
54
50
49
49
Great Britain
Switzerland
Finland
Norway
Sweden
35
34
33
31
31
Country
USA
Australia
Great Britain
91
90
89
Country
Norway
Switzerland
Germany
69
68
67
39
38
38
Country
Hong Kong
Chile
West Africa
25
23
20
Canada
Netherlands
New Zealand
Italy
Belgium
Denmark
Sweden
France
Ireland
80
80
79
76
75
74
71
71
70
South Africa
Finland
Austria
Israel
Spain
India
Japan
Argentina
Iran
65
63
55
54
51
48
46
46
41
37
36
35
32
30
27
27
27
26
Singapore
Thailand
El Salvador
South Korea
Taiwan
Peru
Costa Rica
Pakistan
Indonesia
20
20
19
18
17
16
15
14
14
Country
Ireland
New Zealand
Denmark
Israel
Austria
28
22
18
13
11
Country
Columbia
Venezuela
Panama
13
12
11
Ecuador
Guatemala
8
6
INDIVIDUALISM
Country
Jamaica
Brazil
Arab.
countries
Turkey
Uruguay
Greece
Philippines
Mexico
East Africa
Yugoslavia
Portugal
Malaysia
8
MASCULINITY INDEX
Country
Japan
Austria
Venezuela
Italy
Switzerland
Mexico
Ireland
Jamaica
Great Britain
Germany
Philippines
95
79
73
70
70
69
68
68
66
66
64
Columbia
64
Country
South Africa
Ecuador
USA
Australia
New Zealand
Greece
Hong Kong
Argentina
India
Belgium
Arab.
countries
Canada
63
63
62
61
58
57
57
56
56
54
53
Country
Malaysia
Pakistan
Brazil
Singapore
Israel
Indonesia
West Africa
Turkey
Taiwan
Panama
Iran
52
France
50
50
49
48
47
46
46
45
45
44
43
Country
Spain
Peru
East Africa
El Salvador
South Korea
Uruguay
Guatemala
Thailand
Portugal
Chile
Finland
42
42
41
40
39
38
37
34
31
28
26
43
Yugoslavia
21
70
69
68
Country
Australia
Norway
South Africa
51
50
49
67
65
64
59
59
58
54
53
52
New Zealand
Indonesia
Canada
USA
Philippines
India
Malaysia
Great Britain
Ireland
49
48
48
46
44
40
36
35
35
Country
Costa Rica
Denmark
Netherlands
Norway
Sweden
21
16
14
8
5
Country
Hong Kong
Sweden
Denmark
29
29
23
Jamaica
Singapore
13
8
UNCERTAINTY AVOIDANCE
Country
Greece
Portugal
Guatemala
Country
112 Costa Rica
104 Panama
101 Argentina
86
86
86
Uruguay
Belgium
El Salvador
Japan
Yugoslavia
Peru
France
Chile
Spain
100
94
94
92
88
87
86
86
86
85
85
82
81
80
76
76
75
70
Turkey
South Korea
Mexico
Israel
Columbia
Venezuela
Brazil
Italy
Pakistan
Country
Austria
Taiwan
Arab.
countries
Ecuador
Germany
Thailand
Iran
Finland
Switzerland
West Africa
Netherlands
East Africa
9