International marketing Lecture 3 - The Marketing Mix CRM 2. Analytical Tools 3. Consumer Behaviour Models 4. Channels 5. Consumer, B2B, Direct, Retail Marketing, etc A revisit to the basic tools of marketing in the international context

1. International Marketing 463-441
Lecture 3
The Basic Tools of Marketing Redefined in the International Context

2. 1. The Marketing Mix CRM
2. Analytical Tools
3. Consumer Behaviour Models
4. Channels
5. Consumer, B2B, Direct, Retail Marketing, etc
A revisit to the basic tools of
marketing in the international context

3. The International Marketing Toolkit

4. An Overall View

5. Domestic Market
Competitors
Tastes
Trends
Feed forward
Promotion Competencies
Branding
Channels Chemical Raw
Materials Relative
Style Logistics Competitive
Packaging Advantage
Sourcing
Finance
Company Fit
Manufacturing
Processes Regulation
Feedback Material Technology
Availability
International Markets

6. PEST Analysis
• Political Analysis • Economic Analysis
b) Political stability b) Type of economic system in country of operation
c) Risk of military intervention c) Government intervention in free market
c) Legal framework for contract enforcement d) Comparative advantages of host country
d) Intellectual property protection e) Exchange rates & stability of host country currency
e) Trade regulations and tariffs f) Infrastructure quality
f) Favoured trading partners g) Skill level of workforce
g) Anti-trust laws h) Labour costs
h) Pricing regulations ix) Business cycle stage
i) Taxation – tax rates and incentives j) Economic growth rate
j) Wage legislation k) Discretionary income
k) Work week l) Unemployment rate
L) Mandatory worker benefits m) Inflation rate
M) Industrial safety regulations n) Interest rates
N) Product labeling requirements o) Income distribution
p) Poverty rate
• Social Analysis • Technology Analysis
b) Recent technology developments
b) Demographies
c) Technology impact on product offering
c) Class structure
d) Impact on cost structure
d) Education
e) Impact on value chain structure
e) Culture
f) Rate of technology diffusion
f) Entrepreneurialism
g) R&D activity
g) Attitudes
h) Leisure interest

7. Major PEST Trends in Asia
• Political factors
b) Growing acceptance of the benefits of free trade and foreign investment
c) Increasing resistance by non-government organisations to ‘globalisation’
d) General reduction of political risks
e) Major regional and other free trade agreements
f) Government protection of domestic firms and industries decreasing and becoming less effective
• Economic factors
b) Fewer barriers to trade, investments and financial flows
c) Increased trade and investment flows
d) Improved institutional frameworks for business, trade and investment
e) Continued growth of China, the emergence of India
f) Growing risk of contagion within and across regions during economic and financial crisis

8. Major PEST Trends in Asia
• Social Factors
b) Increasingly educated, trained and competetent consumers and populations
c) Continuing convergence in consumer needs, desires and wants
d) Grow of disposable income in East Asia
e) Easier and greater movement of skilled manpower within and outside Asia
f) Emerging pressures on corporate social responsibility
g) Long term trend of aging populations in some countries
h) Higher proportion of female graduates than males
• Technological Factors
b) More rapid and disruptive changes in technology
c) Greater ability of emerging economies to utilise and absorb technology
d) Widespread diffusion of information and transport technology
e) Changing ‘make or buy’ decisions and less defined firm boundaries

9. An Analysis of Culture and Change

10. Geography
(Climate, Topography, Flora, Fauna, Microbiology)
Adapted from Cateora & Graham P. 99
History
Adaptation
Technology and
Political Economy
Social Institutions
Socialisation
(Family, Religion, School, Media, Government, Corporations)
Application
Imitation
Elements of Culture
Peers
(Values, rituals, symbols, beliefs, though processes
Consequences
Consumption decisions Market
and behaviours Management Styles Structure

11. The Forces of Primary
Change in the Technology
In
Business
sp
n
ira
Landscape
a tio Digitization
t io
re
n
C
n
Ac
io
co
ct
ru
m
st
m
on
Destruction Adoption od
ec
at
io
D
n
Political Coordination Social
legal Cultural
Economy
(Central)
Globalization
Immediate Incremental
Acceleration Rationalization
Re
n
tio
de Realization Formation
ap
f in
Ad
itio
n
R Prosperity
n
eg Peace
tio
ul (Economic People
Futurization
a
at
(Regional
uc
io integration and (Human and social
Ed
Peace andn development๗
cooperation) Market
security)
Ultimate Kotler, et. Al., Think ASEAN

12. Value Migrator
Change
Certain/Uncertain Technology Important/Unimportant
Political Legal Economy Social-Cultural
Market
Value Supplier Value Determiner
Competitor Customer
TOWS Examination
Winner, Loser, Committed, Lost, New
Emerging
Value Decider
Company
Existing competence,
Risk, Attitude,
Stretch Possibility
The Diamond 4C
Sub-Model Choice
Go invest No-Go/Hold
Harvest Divest
Kotler, et. al, Think ASEAN P. 6

13. Strategic Opportunity to Exploitation

14. Ideas Opportunities Solutions Realisation Performance
Management
Capability
Spots Evaluates Selects Targets
Creativity Innovation Strategic
Thinking Differentiation
Competitive
Capabilities Governing Competitive Advantage
Scope
Costs: to customers
Knowledge:
Industry/market/technical/p
Competencies rocess
Entrepreneurial, Opportunity Relationships:
Identification, Network, Conceptual, Customers/suppliers/distri
Organisational, Strategic, Commitment, butors/relative power
Resources Structure: Ability

15. The Outcomes
(potential targets)
Key internal The process of Key external
influences on the product/market influences on the
Size and depth of change
development development development
Time
process process
The base potential for development
Where the business is
currently performing
Gibb & Scott 1988

16. Potential Product Lifecycle IP Value &
Profitability Novelty
IP
Va
lue
Competitive
Concept
Risk Taking
Risk Taking
it
of
Pr
Pioneers Early Early Late Late
followers Majority Followers Time
Majority

17. Profile of business in terms of performance:
Performance
Base • Market trends: current product mix, market mix, competition
• Production trends: Utilisation, efficiency, quality
•Financial and Management: net worth, liquidity, gearing, trends
Key internal
influences on Administrative, marketing, production and Managerial
the resources and capabilities.
development
process
Key external Competition, market restrictions
influences on
the development
process
All influence the type of product and market development
that will take place

18. Environmental Analysis: Threats and Opportunities
Market: product position and prospects Competition: Traditional, new firms, new
industries, profits
Technology: Changes and developments The Economy: Growth, inflation, Law
Operating
Needs
Personal Business Strategies Operating
& Tactics Products
Objectives Objectives Budgets
Manpower
Finance
Feedback loops
Business Analysis: Strengths and Weaknesses
Product: 4 Ps or 4 customer wants Profit/Cash flow: its sources and uses
People: Management and Skills Facilities: age, technology and utilisation
Burns & Dewhurst 1993

19. Potential Strategies Identified through SWOT Analysis
Strengths Weaknesses
S W
SO Strategies WO Strategies
Use strengths to take Take advantage of
Opportunities advantage of opportunities opportunities by
overcoming weaknesses or
O making them irrelevant
Threats ST Strategies WT Strategies
Use strengths to avoid Minimize weaknesses and
T threats avoid threats

20. Sources of Competitive Advantage
(The reason for any product development in a company)
Importance of price to customers, distributors, the extend of
Costs: demand elasticity
Knowledge: Stage of industry lifecycle, common industry knowledge
verses your own specialised knowledge
Links with customers, suppliers, distributors, relative
Relationships: power
Appropriate organisational structures, Ability to respond
Structure: to market, leadership.

21. Regulation
SCCP placed lemongrass oil
under scrutiny as a cosmetic
Trends & Technology ingredient in EU.
Alternative technologies to
Trends & Technology
steam distillation (CO2) Substitutes
can make much smoother Citral (main constituents) can
Regulation
oil but will increase capital be produced from a number of
needs greatly. chemical feed stocks.
Natural, exotic, organic, Alternative oils (litsea cubeba)
FAIRTRADE could cost much less to produce.
increase oils popularity (?) Lemon myrtle oil much
if seen as exotic. smoother and acceptable to
end users
Many alternatives to
lemongrass in product
formulations.
Substitutes
Industry Competitors
Bargaining
Bargaining power of
power of buyers
suppliers
Intensity of Rivalry
Competitive
Rivalries Bargaining Power of Buyers
Currently small item of trade in
flavour industry, strong
relationships with established
producers.
Bargaining Power of Suppliers
Collecting the most suitable Competitive Rivalries
planting material require effort. Lemongrass quick yield and
Extraction and straightforward to cultivate and distil
harvest .technology needs to be – expect high elasticity of supply
acquired or developed from both existing and new
Analytical equipment or service producers.
maybe expensive/remote. Producers of substitutes very
aggressive

22. Fulfillment: (dreams)
Actualisation
(The Artist)
Study after retirement
Self-fulfillment
Fresh vegetables (Organic)
Books
Fine Dining & Processed Foods Aromatherapy products
Luxury cars
Esteem Nutraceuticals & herbs
Travel & Vacations (The Executive)
Achievement, Fine Fragrances
prestige,fulfillment
Car Air Fresheners Responsibility: (hope)
Fashion Clothes (e.g.
Social (Worker) Jeans)
Chewing Gum Family, relationships,
workgroups
Community: (acceptance)
Most
Water Household
Safety (The Farmer)
Purifiers Cleaning
Home, Security and stability
Necessities: based on what is good (existence) Products
Fresh
Soap Vegetables
Physiological (The Hunter) Rice
Basic Biological Needs – Food, water, air
Staples: based on survival (fear)

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24. Decision Framework

25. Free Trade Investigate Potential
Arrangements Market Competitive
Further Advantage
Political &
Legal Situation
Firm Capabilities
Market & Partners &
Competition Channels

26. Yes
Yes
Access to Potential to Continue
channels?
Networks and
Partners?
Yes
Yes Capabilities?
Sustainable
Market Size?
Yes
Yes
Yes Competitive
Market Product Concepts Advantage?
Access? Acceptable?

27. Distant Geographic Market Close
Existing Product Market New
Early Timing of Entry Late
Dependent Entry Mode Independent

28. Overseas Manufacturer
Importer/and or Agent
Master Distributor
Regional Distributor
Local Distributor
Wholesaler
Retailer
Consumer
Channel Depth Australia Malaysia Japan/Korea Hong Kong

29. Stakeholders

31. Product/Channel/Market Models

32. The
The Level of Branding
Competition Paradigm
The
Channel of
Distribution

34. Market Targeting Market Positioning
Market Segmentation
Develop Measure of Develop positioning
Identify bases for segment attractiveness for market segments
segmenting the market
Select target segment Develop a marketing mix
Develop segment Profiles
for each segment
Major Segment Variables for Consumer Markets
Geographic Variables
World Region and/or country
City and/or region
Density
Climate
Demographic
Age, gender, family size, family life cycle, income, occupations, education, religion, race, generation, nationality
Psychographic
Social class, lifestyle, personality
Behavioural
Types of occasions and festivals, existing market cultures, user status, loyalty status,
concept readiness stage, attitude towards products

41. Price
More The Same Less
More for the
More More for More same More for Less
Benefits
The Same The same for
Less
Less Less for much
Less
Possible Value Propositions