Seminar The role of marketing in exportsDK Consultants – All rights reserved - © 2014 Seminar...

DK Consultants – All rights reserved - © 2014

Seminar “The role of marketing in exports”

Karavasilis DimitrisThessaloniki , 23 September 2014


Table of contents

What is International Marketing Approach1.

Common difficulties in International Marketing2.

Elements of successful export capacity3.

Nation Branding

5.

4.

Exploitation of the marketing gap by identifying the market paradox

6. Know how to create an added value for the product


What is International Marketing approach1.


What is International Marketing Approach

International Marketing is the multi-national process of

planning and executing the conception, prices, promotion

and distribution of ideal goods and services to create

exchanges that satisfy the individual and organizational

objectives.(American Marketing Association, 2011)

Businesses engage in International Marketing for 2 main reasons:

(1) to achieve further growth, (2) to survive.


What is International Marketing Approach?

The tactical and strategic decisions of Marketing are much more complex at the international level, rather than at domestic level, because:

– uncontrolled external environment factors of a market differ significantly from one country to another

– controlled variables (ie. Product, promotion, pricing, distribution) often have to adapt to conditions of each international target market

Marketing to International Markets

Dos & Don’ts of Export Marketing

DK Consultants - All rights reserved - © 2014

1.

2. Common difficulties in International Marketing

2.

3.

The profile of an exporting firm in the Southern -Eastern Mediterranean

The pitfalls of Greek SMEs in developing export activity



Exports are like a ship And ship is made for sailing and discovering

new lands!

What is export?



Vs

International sales Exports

Low price Added value –

Duration



ü Define your objectivesü Analyze your productü Identify your main selling value

points- USP replaced by UVPü Establish your ratesü Target your marketü Ask and listenü Consider your audienceü Tailor your marketing

campaign (country-specific marketing campaign

ü Hire an insider if necessary

Χ Don’t enter foreign markets without long-term commitment and exit strategy

Χ Don’t be adamant about what you consider your best feature to be

Χ Don’t put all your marketing eggs in one basket

Χ Don’t push a product that won’t sell

Χ Don’t panic if nothing happens in the first 2 years



q Improvisation without plan and without any help from experts

q Incomplete engagement and disposition of the company heads to

allocate the necessary funds to overcome the initial difficulties

q Ineffective selection of central distribution channel and distribution

center

q Dispersion of orders worldwide

q Downgrade a market just when another ( usually local ) increases

q Discrimination between domestic and foreign customers

q Reluctance to modify the product to meet local particularities

q Unable to offer additional services before or after sale

The most common mistakes in export marketing


The profile of an exporting firm in the Southern - Eastern Mediterranean

Ø Lack of well organized and regulated International Marketing

Management

Ø Development of export activity without a plan, based on

random orders from foreign markets

Ø Almost no conduction of prior market research

Ø Inadequate knowledge of the State’s Export Policy

Ø Inadequate knowledge of the PEST environment of the

countries – target markets



Ø Search of an international clientele

Ø Lack of financial resources

Ø Lack of skilled personnel

Ø Inability to attract commercial representatives

Ø Inability to control operations abroad

Ø High adjustment costs and costs of ensuring international

quality standards (eg ISO, British Standards)

Ø State bureaucracy



New problems are not treated with old solutions!Ø The core problem of Greek enterprises is competitiveness, which is not only the

fault of their management Boards, but also the institutional framework in which they operate.

Ø Not sales and financial results, but customer satisfaction and loyalty, build the long term survival of a company

Product profitability Customer profitability

Current sales Customer lifetime value

Brand equity Customer equity

Market share Customer equity share

Old approach New approach

Source: Kotler et al., 2012


Elements of successful export capacity3.


Elements of successful export activity

ü Government support mainly at sectorial and nation

branding

ü Good level of innovation and research

ü Quality of product

ü Production capacity

ü Product differentiation / corporate image / marketing

approach


Elements of successful export activity

All international marketing needs …

• Method• Consistency• Continuity• Synergies

What is nation branding


1.

4. Nation Branding

2.

3.

Cases of strong nation/country brands

The Greek case

4. Tips for successful nation branding



It is the process of applying corporate branding techniques topromote countries, with the aim of building and managing theiridentity and image

Ø Countries are struggling to gain share of the world’s consumers, tourists,businesses, investment, capital, respect and attention

In a world of ever increasing competition brand reputation has become a crucial differentiator!

Country’s identity

and reputation

Value system

Quality of Life

Business Potential

Heritage and

Culture

Tourism

“Made in” label



Nation Brand

Tourism

Exports

Governance

Investment &

Immigration

Culture &

Heritage

People

The Nation Brand Hexagon (© 2000 Simon Anholt)



Germany is famous for its:

Automotive industry

Organizational culture

High quality public health and social security systems

Modern Educational system



Italy has a strong brand name for:

Food Olive oil

Cars Fashion/Style



Spain is known for:

Gastronomy Olive oil

TourismCulture



GERM

ANY

FRAN

CE

UK

CAN

ADA

JAPA

N

ITAL

Y

US

SWIT

ZERL

AND

AUST

RALI

A

SWED

EN

2008 1 2 3 4 5 6 7 8 9 10

2009 3 2 4 7 5 6 1 8 9 10

2010 2 3 4 6 5 7 1 8 9 10

2011 2 4 3 6 5 7 1 9 8 10

2012 2 4 3 5 6 7 1 8 9 10

2013 2 4 3 5 6 7 1 8 9 10

2014 1 4 3 5 6 7 2 8 9 10

Top-10 nation brands for 2008-2014

Source: The Anholt-GfK Roper Nation Brands Index℠



Top 15 country brands for 2010-2014GE

RMAN

Y

FRAN

CE

UK

CAN

ADA

JAPA

N

ITAL

Y

US

SWIT

ZERL

AND

AUST

RALI

A

SWED

EN

SPAI

N

FIN

LAN

D

NEW

ZE

ALAN

D

NO

RWAY

GREE

CE

2010 11 7 9 1 6 12 4 5 2 10 14 8 3 13 22

2012 7 13 11 2 3 15 8 1 6 4 19 9 5 10 /

2014 3 17 12 5 1 18 7 2 8 4 13 11 6 /

Source: Future Brand


The Greek case

Ø The country has strong reputation for its heritage and culture

What about Greece?


The Greek case

Ø However, the country’s identity is mostly perceived as negative due largely to the Greek financial crisis and the consequent stereotypes associated to its people

Ø In fact, in 2011 Greece was one of the worst performing nation brands, losing 40% of its brand value


The Greek case

The evolution of the brand value of Greece for 2008-2011

Source: Brand Finance plc, 2011


The Greek case

How can Greece improve its nation brand?

Promoting a new brand name and emblem-Breaking away from the “bad past” -Synonymous to Quality and Balanced Life

Exporting its gastronomy-Positioning of the emblem in every single product packaging

Applying the new brand name everywhere (ex. national ID cards, government websites, quality control certificates)

-Signs of modernization and consistency

The key is to create an image of trustworthiness /reliability both internally and externally by:ü Implementing an integrated nation branding

strategy/programü Promoting partnership and coordination at higher levelü Delivering a quality product/service consistently over timeü Encouraging entrepreneurship and innovationü Putting forward administrative simplification and regulatory

reformsü Fostering transparencyü Positivizing the negative qualities/characteristics and

mainstreaming the positive ones

Tips for successful nation branding

Ø When it comes to nation brands, it is clearly what you do, ratherthan what you say that counts” (Daryl Copeland, Public Diplomacy,Branding and the Image of Nations)

Case study “the red wine”


1.

5. Exploitation of the marketing gap by identifying the market paradox


Case study “the red wine”

Market gap definition

An unmet consumer need or a group of potential

customers that are not yet purchasing a good /

service. Gaps in the market represent opportunities for

companies to expand their customer base by

increasing awareness and creating targeted offerings

to reach the untapped market.

Identification of gaps in the market is an important step

in increasing market penetration.


Case study “the red wine case”

It is very important to bear in mind the Marketing "paradox" & the country-specific branding in marketing strategy.

8-40 $

4-25 $

2-15 $

“Red wine" case


Know how to create an addedvalue for the product6.


Know how to create an added value for the product

How to add value to a product?1. Benefits: people perceive value in a product that is multi-purposed.

2. Testimonials: Choose credible sources and vary testimonials to cover the

different benefits of your product.

3. Brand: create a strong brand image for your product. People perceive

more value in branded products

4. Packaging: shape, size, color, label, everything matters! Proper technical

packaging specifications matter even more!

5. Price: people associates higher-priced products with better quality

6. Guarantees: A strong guarantee such as 100% satisfaction guarantee

increases the perceived value of your product

7. After-sales service: People perceive value in excellent customer support


Conclusion

Companies need to follow both individually and collectively an integrated marketing strategy/plan which focuses on:

• Product differentiation

• Delivering added value to the consumer

In this way they will:

ü successfully export their products and gain market shares

ü contribute to the creation of a strong nation brand name which will function as an “umbrella” for other national products leading overall to increased exports

“In unity we stand strong”!

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