Economics and Management Notes International Marketing Notes
Benefit to buyer - very concise, sourced from a variety of readings, easy to interpret
Note taking style - short, accurate bullet points, topic by topic
Content - Introduction to Marketing, Profiling, Consumer Motivation, The Marketing Mix (4Ps), Loyalty and Retention, Global Marketing...
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Role of marketing?
Plato: in an economy of specialisation, we need an established marketplace and an acceptable communication. Marketing = link between production and consumption
Latent demand -- (marketing) Effective demand
Drucker: the only business purpose is to create a consumer. Thus, the only two functions are innovation and marketing.
Narver and Slater – market orientation can be of three types:
Customer, Competitor (or inter-functional coordination)
Change in media
Globalisation | Localisation | Digitisation | Fragmentation |
---|---|---|---|
One to many | One to few | One to one | Many to many |
Traditional | Segmented | Customised | e.g. YouTube |
Post Recession Trends
Simplify, Ethical Governance, Trift, Less loyalty
Strategic marketing
About identifying and creating opportunities for the firm
Operational marketing
About achieving a target market share through tactical means
Marketing = culture + analysis + action
Orientations:
Product Orientation with Passive marketing
Good quality products sell themselves. Standardized products industry, such as technology, commodities etc.
Marketing takes a backseat to operations, finance etc.
Sales Orientation with Operational marketing
Customers need to be convinced strongly about buying the product. Focus on firm rather than customer satisfaction.
Sales teams need to achieve targets of the firm.
Important component: ACTION
Customer orientation with operational-strategic marketing: FMCG
Need to find niche markets, target segments of customers
Marketing important – to find goals and to achieve them
Important component: ANALYSIS
Market orientation with Market-driven management
Emphasis on globalisation of markets, culture similarities and differences and sustainability of environment
Important component: CULTURE
The majority rule fallacy = core market saturation
Marketing focus is changing from firms to customers
“market-as-network” perspective: actors and relationships matter more than the product
happened because the corporate level has given way to smaller, localised SBUs
Market is in disintegration instead of integration (see above)
Problems | Solutions |
---|---|
Uncertain definition of marketing | A way to measure marketing productivity |
Inability to measure | Long-term instead of short-term focus |
Increased demands of CRM | Involve marketing in innovation |
Moving resources to sales | Building brand equity |
Limited role at firms, pushed down to SBUs |
Marketing Myopia – sustained growth depends on how broadly you define your business and how carefully you gauge your customer’s needs.
The marketing effort should be customer, not product oriented.
Positioning school of strategy
Generic strategies: economic + competitive marketplace
Early military writings, consulting, analysing
Marketing warfare strategies
Market leader wants to increase PIE, protect and increase his share of PIE
Market challenger only wants to increase his share of PIE to be leader
Consultancy models
Match firms capabilities with environmental opportunities for optimum resource allocation
Firm’s competitiveness | Market’s potential | |
---|---|---|
BCG Product Portfolio Matrix | Relative market share | Market growth rate |
GE Business Screen | Business strength | Industry attractiveness |
Shell Directional Policy Matrix | Competitive capabilities | Sector profitability |
Ansoff’s Growth Matrix | Product | Market |
Use cash cow to invest in ? to become a *
Wind and Mahajan (1981) – two different businesses with different factors could find themselves on same position merely because of summed-up scores – don’t rely on this!
Kralgic’s Supplier Portfolio Management: (i.e. how a firm should purchase)
Exploit: if buyer dominant
Diversify: if suppliers dominant
Balance: if neither dominant
Porter’s Model of Competitive Analysis – not for small, fragmented markets or retailers
Chandler “structure follows strategy”, therefore:
I. Analyse and choose industry to compete in II. Analyse and choose firm’s strategy III. Implement strategy by managing activities
5-forces, generic strategies, value chain analysis
Mintzberg’s generic strategies (LISQDU)
Low price | Image | Support | Quality | Design | Undifferentiation |
---|---|---|---|---|---|
Ryanair | Gucci | Dell | M&S | Pharma | Petrol stations |
Corporate strategy – to control and coordinate all operations toward firm strategy
Competitive strategy – how to create and maintain a SCA in face of competition
Marketing strategy – defines target markets and what to do within them
Influences on marketing strategy
Organisational resources and objectives – strive towards a common goal
Attitudes to change and risk – tolerance or risk and innovation for marketing
Market structure and opportunities – stable, aggressive or complacent markets? Innovation and the entrance of foreign firms may make a market dynamic
Competitor strategies
Strategic marketing analysis – need to view holistic product portfolio
The Boston Box
Market attractiveness model: the GE matrix
Shell’s directional policy matrix
Growth strategies for marketing
Intensive growth
Market penetration – increase sales volume by aggressive marketing
Market development – sell existing product to new markets
Product development – sell new/improved products to existing markets
Diversified growth
Spreads risk and allows synergies between resources. But may fail if positioned against existing specialist providers
Concentric diversification – theres a link between old and new
Conglomerate diversification – everything is new
Integrative growth
Staying within the same value chain but entering new roles/processes to gain greater control or to expand it.
Backward integration – to guarantee quality of supplies
Forward integration –...
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Benefit to buyer - very concise, sourced from a variety of readings, easy to interpret
Note taking style - short, accurate bullet points, topic by topic
Content - Introduction to Marketing, Profiling, Consumer Motivation, The Marketing Mix (4Ps), Loyalty and Retention, Global Marketing...
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