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Kotler asean
1. Philip Kotler
S .C. J ohns on & S on Dis tinguis he d P rofe s s or of Inte rna tiona l Ma rke ting
Ke llogg S chool of Ma na ge me nt, Northwe s te rn Unive rs ity
2. Conte nts
Why AS EAN?
AS EAN Community 2015
AS EAN Re giona l Ma rke ting
3. Why AS EAN?
AS EAN Community 2015
AS EAN Re giona l Ma rke ting
4. The Paradox of Globalization vs. Localization
“The World is Fla t”
Thoma s L. Frie dma n
N w Yo rk Tim e s c o lum nis t
e
“The World is S till Round”
Robe rt J . S a mue ls on
N ws we e k c o lum nis t
e
5. Regionalization: The Right Balance
ICT ha s a llowe d wide informa tion a cce s s .
Goods a nd s e rvice s ca n move che a pe r tha nks to
che a p tra ns porta tion a nd ICT.
Globalization The world is more borde rle s s .
In a fla t world, compe tition s e a rche s for lowe s t cos t.
Conve nie nce of flows of informa tion, goods , s e rvice s ,
a nd pe ople within the re gion
Regionalization Re la tive ly s imila r ps ychology a nd na tiona l inte re s t
within re gion
Na tiona l borde rs s till ha ve e conomic me a ning.
Na tiona l ma rke ts e xis t a nd a re de fine d by ps ychology
Localization a nd politics .
Na tiona l e conomic a nd politica l s e tba cks ca n thre a te n
globa liza tion.
6. The paradox has forced countries to form regional blocs
S ource :
Wikipe dia .com
8. Global View of Asia
Re gional Blocs, including E Asia will bepromine
ast nt
P rincipa l blocs will be Europe , Ea s t As ia a nd the Ame rica s .
The 21st Century is theAsian Century!
Asia will bealmost half of theworld’s economy by 2020
9. Asia Pre-Crisis: The Flying Geese
Before the crisis, “the flying geese” phenomenon was soaring throughout Asia and
influencing the Pacific Rim economies.
The forma tion re s e mble d flying ge e s e , he a de d by J a pa n, while the re s t of the group followe d. Countrie s
towa rd the front te nd to tra ns fe r “olde r” indus trie s to countrie s a t the ba ck.
Note :
“Flying Ge e s e ” is a conce pt de ve lope d by Ka na me Aka ma s u tha t be s t de s cribe s the e conomic s tructure of As ia be fore the cris is .
10. Asian Crisis
But the crisis put an end of “flying geese”.
Source: BBC
Asian Economic Crisis in 1997-1998: The End of “Flying Geese”, The end of
the good old days of the Asian miracle
11. Asia Post-Crisis: The Regional Squadrons
After the crisis, squadrons of the former flying geese, who increasingly drive regional
integration.
SAARC Squadron
China Squadron
Korea Squadron
Japan Squadron
ASEAN Squadron
12. Chindia, where the world's workshop meets its office
China India
S trong te chnology a nd s e rvice
indus try
Ma nufa cturing gia nt with the lowe s t price s Re la tive ly e fficie nt ca pita l ma rke t
Hybrid communis t-ca pita lis t mode l tha t S trong priva te s e ctor a nd le ga l
Strengths
Strengths
e na ble s de ve lopme nt fra me work
S olid prima ry s chools Younge r workforce
Infra s tructure tha t lure s fore ign inve s tme nt Growing popula tion
Good dis tribution of we a lth with highe r pe r- Gre a t unive rs ity s ys te m
ca pita income S trong e ntre pre ne uria l culture
Attra cts highe r price s
Re d ta pe , corruption, tough la bor
la ws a nd bure a ucra cy a ll de te r
Weaknesses
inve s tme nt
Weaknesses
He a vy re lia nce on low price s Woe ful infra s tructure
We a k fina ncia l s ys te m La cklus te r prima ry e duca tion
Ine fficie nt ca pita l s ys te m s ys te m
S low popula tion growth Exclus ive growth e nvironme nt to
the rich
The priva tiza tion of ke y indus trie s
ha s s toppe d
13. How should ASEAN ride the wave
of the rising East (read: Chindia)?
15. The Rising East: Threat or Opportunity?
Threat Opportunity
ASEAN
Integration
Individua l countrie s in AS EAN AS EAN is the only re gion
a re nothing compa re d to ca pa ble of be ing in the drive r
Chindia s e a t of the Gre a te r Ea s t As ia
inte gra tion*
* AS EAN is the firs t to s e a t AS EAN countrie s toge the r with China , India , J a pa n, S outh Kore a ,
Aus tra lia , a nd Ne w Ze a la nd, a s we ll a s Rus s ia (a s a n obs e rve r) in one ta ble during the firs t Ea s t
As ia S ummit.
16. The First East Asia Summit Driven by ASEAN
Initiated by ASEAN, the first East Asia Summit held in Kuala Lumpur, Malaysia, in
December 2005, brought together leaders of the former flying geese, with the objective to
establish the East Asia Free Trade Area by 2015 and moving towards the New Asia.
(Observer)
17. Why is ASEAN in the Driving Seat of the Greater East Asia?
AS EAN
High Ba rga ining
Ne utra l P os ition
P owe r
AS EAN is not cons ide re d a
“thre a t” to China , India , J a pa n, Compe titive
Attra ctive S ingle
S outh Kore a , Aus tra lia , a nd Ne w Re giona l P roduction
Re giona l Ma rke t
Ze a la nd Ba s e
Huge ma rke t S mooth flow of goods ,
High cons umption s e rvice s , a nd pe ople
Le s s compe titive unde r FTA
Abunda nce of na tura l
re s ource s
Low la bor cos t
18. Why AS EAN?
AS EAN Community 2015
AS EAN Re giona l Ma rke ting
19. Towards ASEAN Community 2015
ASEAN COMMUNITY 2015
AS EAN S ocio-
AS EAN S e curity AS EAN Economic
Cultura l Community
Community (AS C) Community (AEC)
(AS CC)
The P e a ce ful, P ros pe rous , a nd P e ople -Ce ntric AS EAN
P roduction/S upply Re giona l P roduction Ba s e S ingle Re giona l Ma rke t Cons umption/De ma nd
Dua l Tra ck S tra te gy
20. What does ASEAN Integration Mean?
Ta riffs will be e limina te d a nd non-ta riff ba rrie rs will
be gra dua lly pha s e d out
All ba rrie rs to the fre e flow of Rule s a nd re gula tions will be s implifie d a nd
goods , s e rvice s , ca pita l, a nd ha rmonize d
s kille d la bor a re re move d AS EAN inve s tors will be pe rmitte d to inve s t in
s e ctors forme rly clos e d to fore igne rs a nd the
s e rvice s s e ctor will a ls o be ope ne d up
Applica ble inte rna tiona l s ta nda rds a nd pra ctice s
a re followe d, a nd policie s on inte lle ctua l prope rty
rights a nd compe tition a re put in pla ce
The re gion will be come a Re giona l infra s tructure will be more de ve lope d with
more le ve l pla ying fie ld the e xpa ns ion of tra ns porta tion,
te le communica tions a nd e ne rgy linka ge s
21. Four Key Success Factors of ASEAN Integration
Rigorous Focus on
Worka ble Ins titutions
High-Impa ct S e ctors
Continue d S upport by More Effe ctive P ublic-
AS EAN Le a de rs P riva te Colla bora tion
S ource : McKins e y&Compa ny, AS EAN Compe titive ne s s S tudy, 2003.
22. Corporate Trends Supporting ASEAN Integration
Global trends in manufacturing indicate a shift towards adopting flexible
production techniques and integrated production chains
It is no longe r cos t e ffe ctive for a ll ma nufa cturing a ctivitie s to be done in in-hous e or in a
s ingle country
MNCs a re inte gra ting the ir ma nufa cturing a ctivitie s a cros s s e ve ra l loca tions
MNCs a re not only s e e king la rge cons ume r ma rke ts but a ls o re giona l s ite s whe re the y ca n
e s ta blis h e fficie nt production ne tworks
Regional Production Base
24. A Balanced Approach is Needed
Benefits to MNCs
Benefits to Local Companies
Ta rge ting more s a le s volume
More e xport opportunitie s to
in the AS EAN ma rke t
Compone nts procure me nt on AS EAN ma rke t
AS EAN-wide e xpa ns ion
a n AS EAN-wide ba s is
More product s pe cia liza tion opportunity for corpora te
growth s tra te gy
to a chie ve e conomie s of Te chnology a nd fina ncia l
s ca le
Gre a te r e mpha s is on s upport opportunitie s from
MNCs
profita bility us ing AS EAN- AS EAN-wide pool of ta le nt
wide ope ra tions
A Balanced Approach
25. Why AS EAN?
AS EAN Community 2015
AS EAN Re giona l Ma rke ting
26.
27. What is Marketing?
Bra nd Inte grity
Positioning Differentiation
Be S
ing trategy CoreTactic
Br
ge
a
Brand
nd
ma
BRAND
Id
BRAND
dI
e
nt
n
ity
Bra
Value Indicator
28. Nine Core Elements of Marketing
(mind-share) (market-share)
S STRATEGY TACTIC T
Explore Positioning Differentia
Engage
'BEING' tion
STRATEGY 'CORE' TACTIC
1 2 3 4 5 6
7
8
9
Process Execute
VALUE
'ENABLER'
VALUE
(heart-share)
V
29. Three Types of ASEAN Marketing Companies
(3) THE
MULTINATIONALS
FOCUS ING ON
AS EAN
MULTI-
NATIONALS
AS EAN
LOCALS LOCALS
(1) THE LOCAL CHAMP IONS (2) THE LOCALS GOING AS EAN
30. Local Champions
S Play small by serving niche markets
T Address the local needs and wants
V Maintain high level of customer intimacy
31. MBF Cards of Malaysia
Local Champions
Positioning Bra nd Inte grity Differentiation
S le
e ction of cards suite to
d
Malaysia’s large and
st niche segme nts
most innovative and issuer Early adoption of ne card
w
of niche cards technologies
Brand
Br
ge
a
nd
ma
BRAND
Id
BRAND
dI
e
nt
MBF Cards
n
ity
Bra
32. Goldilocks of the Philippines
Local Champions
Positioning Bra nd Inte grity Differentiation
Varie s of Philippine
tie s
The bake shop with original bake products and
ry
international standards cuisine
catering to Filipino taste Unde rstanding of Pinoy values
and se ntime nts
Brand
Br
ge
a
nd
ma
BRAND
Id
BRAND
dI
e
nt
Goldilocks
n
ity
Bra
33. Bengawan Solo of Singapore
Local Champions
Positioning Bra nd Inte grity Differentiation
H quality hand-made
igh
The conve nt gift and
nie products with attractiveand
souve options of hand-
nir exclusivepackaging
Conve ncefor orde
nie r,
made premium cake s,
de ry, and colle
live ction
kue and cookie
h, s Gift vouche package
r s
Brand
Br
ge
a
nd
ma
BRAND
Id
BRAND
dI
e
nt
Bengawan Solo
n
ity
Bra
34. Locals Going Regional
S Translate the regional positioning to local context
T Ensure regional visibility and availability
V Build regional brand
35. Extra Joss of Indonesia
Locals Going Regional
Positioning Bra nd Inte grity Differentiation
In sache not in bottle
ts, s
The affordable core e nce
sse Ge ration Biang (core
ne
of e rgy drink for core
ne ge ration)
ne
ge ration
ne Largere distribution
tail
networks
Brand
Br
ge
a
nd
ma
BRAND
Id
BRAND
dI
e
nt
Extra Joss
n
ity
Bra
36. Black Canyon of Thailand
Locals Going Regional
Positioning Bra nd Inte grity Differentiation
E nsiveWe rn and Asian
xte ste
Food house that com
s bine (e cially Thai) food and
spe
We and E
st ast coffe me
e nu
Wild Wild We name and
st
décor
Largechain of outlets
Brand
Br
ge
a
nd
ma
BRAND
Id
BRAND
dI
e
nt
Black Canyon
n
ity
Bra
37. AirAsia of Malaysia
Locals Going Regional
Positioning Bra nd Inte grity Differentiation
Low-cost structure
AS AN no-frills and fun
E F inte
un rnal culture
low-cost carrier
Brand
Br
ge
a
nd
ma
BRAND
Id
BRAND
dI
e
nt
AirAsia
n
ity
Bra
38. MNCs Focusing on ASEAN
S Coordinate the regional strategy
T Execute the local customization
V Maintain the consistency of the global value
39. Glorecalization Approach for MNCs
MNC Type 1 - Strategy, Tactic, and Value MNC Type 2 - MNC with
are determined by the global office with Glorecalization Approach:
little modification. Regional and local Consistent global value,
offices merely act as supervisor and Coordinated regional strategy, and
operator. Customized local tactic (The 3C
Formula)
Strategy Tactic Value Strategy Tactic Value
Consistent
Global Global Global
Office Office Value
(Conceptor) (Composer)
Coordinated
Regional Regional Regional
Office Office Strategy
(Supervisor) (Conductor)
Local Local Customized
Local
Office Office
Tactic
(Operator) (Improviser)
40. Yamaha Motor
Ya ma ha Bra nd a nd “Thre e Tuning Forks ” logo
Consistent Global The s pirit of cre a ting “Ka ndo” (fe e lings of de e p s a tis fa ction
Value a nd e xcite me nt) a s the bra nd mis s ion
Ya ma ha te chnology a nd production
“Growth” s tra te gy for AS EAN
Coordinated Regional “P rofita bility” s tra te gy for US a nd Europe
Strategy
Diffe re nt product mix for e a ch AS EAN country
Customized Local Diffe re nt communica tion a pproa ch for e a ch AS EAN country
Tactic
41. Toyota Kijang
Toyota Bra nd a nd “Thre e Ova ls ” logo
Consistent Global J a pa n-qua lity ma nufa cturing
Value S a le s , S e rvice , a nd S pa re pa rts bus ine s s e s
P os itioning: AS EAN Fa mily Ca r
Coordinated Regional
Strategy
Diffe re nt communica tion a pproa ch for e a ch AS EAN country
Customized Local
Tactic
42. Conclusions
• ASEAN is a regional bloc of 550 million customers
with rich resources.
• ASEAN is sure to get attention from MNCs and
investors both as a source of products and a market
for products.
• ASEAN will bring benefits to the companies in all 10
ASEAN countries because it will lower their costs
and provide larger opportunities .