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UNIVERSITY OF GUYANA MARKETING 2204 ……INTERNATIONAL
MARKETING STRATEGIES
ERIC M. PHILLIPS (MBA,
CTP, BSc. Eng.)
APRIL 15, 2013
INTERNATIONAL MARKETING
International Marketing is the performance of business activities
designed to plan, price, promote, and direct the flow of a
company’s goods & services to consumers or users in more
than one nation for
a profit.
Factors Influencing Company Marketing Strategy
TARGET
CONSUMERS
Product
Price
Promotion
Place Suppliers
Marketing
Intermediaries
Publics
Competitors
Economic /
demographic
environment
Technological-
natural
environment
Social-
cultural
environment
Political-
legal
environment
Strategic Planning
The process of developing and maintaining a strategic
fit between the organization’s goals and capabilities
and its changing marketing opportunities.
It involves defining a clear company mission, setting
supporting objectives, designing a sound business
portfolio, and coordinating functional strategies.
“If you fail to plan, you are planning to fail.”
The annual and long-range plans deal with the
company’s current businesses and how to keep them
going.
What is a Mission?
Mission statement are enduring statements of purpose
that distinguish one business from other similar firms.
A clear mission statement acts as an “invisible hand” that
guides people in the organization.
It identifies the scope of a firm’s operation in product and
market terms.
It promotes a sense of shared expectations in employees
and communicates a public image to important
stakeholder groups in the company’s task environment.
Objectives Vs Goals
Objectives are the end results of planned activity.
They states what is to be accomplished by when and
should be quantified if possible.
The achievement of corporate objectives should result in
the fulfillment of the corporation’s mission.
In contrast to objectives, a goal is an open-ended
statement of what one wishes to accomplish with no
quantification of what is to be achieved and no time frame
for completion.
Designing the Business Portfolio
Business portfolio – the collection of businesses and products that make up the company.
Portfolio analysis – a tool by which management identifies and evaluates the various businesses making up the company.
SBU – a unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses.
The company must
1) Analyze its current business portfolio and decide which businesses should receive more, less, or no investment.
2) Develop growth strategies for adding new products or businesses to the portfolio.
The Boston Consulting Group Approach
A portfolio-planning method that evaluate a company’s SBUs in term of their
market growth rate and relative market share.
SBUs are classified as stars, cash cows, question marks, or dogs.
One of the four strategies can be pursued for each SBUs.
Invest more in the SBU in order to build its share.
Invest just enough to hold the SBU’s share at its current level.
It can harvest the SBU, milking its short-term cash flow regardless of the
long-term effect.
The company can divest the SBU by selling it or phasing it out and using
the resources elsewhere.
THE BOSTON MATRIX
Problem Child:
- Products having a low market share in a
high growth market
- Need money spent to develop them
- May produce negative cash flow
- Potential for the future?
Problem children – worth spending
good money on?
THE BOSTON MATRIX
Dogs: – Products in a low growth market
– Have low or declining market share
(decline stage of PLC)
– Associated with negative cash flow
– May require large sums of money
to support
Is your product starting to
embarrass your company?
THE 3 STEPS IN MARKET SEGMENTATION, TARGETING, AND POSITIONING
1. Identify
segmentation
variables and
segment the
market
2. Develop
profiles of
resulting
segments
Market Segmentation
3. Evaluate
attractiveness
of each
segment
4. Select the
target
segment(s)
Market Targeting
5. Identify possible
positioning concepts for each target
segment
6. Select, develop, and communicate
the chosen positioning
concept
Market Positioning
19
STEPS IN MARKET SEGMENTATION, TARGETING, AND POSITIONING
1.Identify bases for segmenting
the market
2. Develop profiles of
resulting segments
3. Develop measures of
Segment attractiveness
4. Select the target
segments
5. Develop positioning for each
Target segment
6. Develop marketing mix
for each target segment
Market Segmentation
Market Targeting
Market Positioning
BASES FOR SEGMENTING CONSUMER MARKETS
Occasions, Benefits, Uses, or Attitudes
Behavioral
Geographic
Region, City or Metro Size, Density, Climate,
Nations, counties, villages
Demographic
Age, Gender, Family size , Life cycle, Race, Occupation, Income , Religion, Education, Nationality.
Lifestyle or Personality
Psychographic
Measurable
Accessible
Substantial
Differential
• Segments must be large or profitable enough to serve.
• Segments can be effectively reached and served.
Actionable
• Size, purchasing power, profiles of segments can be measured.
• Segments must respond differently to different
marketing mix elements & actions.
• Must be able to attract and serve the segments.
Effective Segmentation
FIVE PATTERNS OF TARGET MARKET SELECTION
Single-segment concentration
Product specialization
M1 M2 M3
P1
P2
P3
Selective specialization M1 M2 M3
P1
P2
P3
M1 M2 M3
Full market coverage
P1
P2
P3
Market specialization
M1 M2 M3
P1
P2
P3
P1
P2
P3
M1 M2 M3
P = Product M = Market
DIFFERENTIATION AND POSITIONING
Positioning maps
show consumer
perceptions of
their brands
versus competing
products on
important buying
dimensions
Developing Growth Strategies
Existing New
products products
Existing
markets
New
markets
Market
Penetration
Market
Development Diversification
Product
Development
7
The International Marketing Mix
Political/legal forces
Economic forces
1
2
Environmental uncontrollables country market A
Environmental uncontrollables country market B
Environmental uncontrollables country market C
Competitive structure Competitive
Forces
Level of Technology
Price Product
Promotion Channels of
distribution
Geography and
Infrastructure
Foreign environment (uncontrollable)
Structure of distribution
Economic climate
Cultural forces
3
4 5
6
7 Political/
legal forces
Domestic environment (uncontrollable)
(controllable)
MARKETING MIX ADAPTATION
In India, McDonald’s serves chicken, fish, and vegetable burgers, and the
Maharaja Mac—two all-mutton patties, special sauce, lettuce, cheese, pickles,
onions, on a sesame-seed bun.