E marketing

The Death of Distance Reasons 1. Rising cost and risks 2. Falling transportation and communication cost 3. Use of microprocessor technology

Beneficial parties
Financial dealers MNCs NGOs Skilled labour Govt.

Technology and competitive advantage

Factors 1. Innovation 2. Use of technology to transform the organisation 3. Use of information processing technology 4. Pervasive part of the work environment

Using Information Systems to Achieve Competitive Advantage

Wal-Marts continuous inventory replenishment system uses sales data captured at the checkout counter to transmit orders to restock merchandise directly to its suppliers. The system enables Wal-Mart to keep costs low while fine-tuning its merchandise to meet customer demands.

Essentials of Business Information Systems

Chapter 3 Achieving Competitive Advantage with Information Systems Using Information Systems to Achieve Competitive Advantage

On the Dell Inc. Web site, customers can select the options they want and order their computer custom built to these specifications. Dells assemble-to-order system is a major source of competitive advantage.

Benefits of internet
1. 2. 3. 4. 5. 6. Global reach Enhanced value proposition Improved operational efficiency Streamlined supply chains Better connectivity Death of distance

Supply Chain
All facilities, functions, activities, associated with flow and transformation of goods and services from raw materials to customer, as well as the associated information flows An integrated group of processes to source, make, and deliver products

Supply Chain
Copyright 2006 John Wiley & Sons, Inc. 10-10

Supply Chain for Denim Jeans

Supply Chain for Denim Jeans (cont.)

Components of global electronic supply chain

1. 2. 3. 4. 5. Context suppliers -known as portals Sales agents Purchase agents Market makers Payment and logistic specialists

The Global Marketing Audit

A comprehensive, systematic examination of the marketing environment and company objectives, strategies, programs, policies, and activities
Tool for evaluating and improving company or business unit operations

Characteristics:
Formal and systematic Conducted periodically

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The Global Marketing Audit

Internal
Conducted in-house Provides critical understanding of firm and industry, but may lack objectivity

Independent
Conducted by person or firm free of influence from organization being audited Provides objectivity but may lack industry expertise

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Setting Objectives and Scope of the Audit

One of the major tasks is data collection, a detailed plan is needed for
Interviews Secondary research Review of internal documents

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Conducting the Audit

Meet with company executives and auditor to determine objectives, coverage, depth, data sources, report format, and time period Gather data Prepare and present the report

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Components of a Marketing Audit

The marketing environment audit The marketing strategy audit The marketing organization audit The marketing system audit The marketing productivity audit The marketing function audit

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Conclusion
Get directly into a job outside your home country or into a multicountry headquarters job in a global company Get company experience in an industry that prepares you for promotion to a job with multicountry responsibility or to an assignment outside your home country

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Balance of Payment

Balance of Payments :
Balance of Payment or BOP, is a comprehensive record of all economic transactions of the residents of a country with the rest of the world during a given period of time.-- The system generally adopted for recording transactions is the DoubleEntry Book- Keeping System

 Importance of BOP: Every nation carrying out economic transactions with foreign countries prepare its BOP accounts periodically :- To know its assets and liabilities. To know its receipts from and payment obligations to the rest of the world.

Main Purpose of BOP:

1. To present an account of all receipts and payments on account of goods exported, services rendered, and capital received by residents of a country and 2. Goods imported, services received and capital transferred by the residents of the country.

 Division of BOP :-- Into two categories A.CURRENT ACCOUNT B. CAPITAL ACCOUNT CURRENT ACCOUNT : (what is recorded) -Imports-Exports-Expenses on travelTransportation-Insurance-Investment income All these are related to current transactions

 CAPITAL ACCOUNT: (What is recorded) -Borrowing and lending of capital-Repayment of capital-Sale and purchase of securities and other assets to and from foreigners individuals and governments

New Product Development

Substantial risk and costs Complex in international markets

Generating New Product Ideas

Most product and service firms are driven by the marketing concept

Product development decisions are based on identifying the needs, wants, and desires of consumers

Technology firms focus on the products

Focus on research and development

Product Ideas
Consumers Competitive Analyses Channel Members Employees Top Management Inventors Consultants University Research

Screening Ideas
Consider:

Fit with target consumers and the overall mission of the organization The extent to which product offers unique benefits The extent to which target market is large and/or is likely to grow Fit between new product requirements and resources, skills, experience of the firm

Developing and Evaluating Product Concepts

Develop detailed description of product Ask consumers to evaluate and indicate willingness to buy Use:

Focus Groups Conjoint Analysis

Product Business Analysis

Estimate:

Project costs Return on investment Cash flow Fixed/variable costs

Product Development
Create prototypes Create brand identity and marketing mix Coordinate strategy across international subsidiaries

Test Marketing
Involves testing new product performance in a limited area of a national or regional target market Provides estimate of product performance in the respective country or region Expensive Time consuming Open to competitive sabotage

Types of Test Marketing

Simulated Test Marketing

Test marketing simulating purchase environment where samples of target consumers are observed during the decision-making process Test marketing that involves offering a new product to a group of stores and evaluating market reaction Full-blown test marketing Focus on cities appropriate for the test; involves selecting distributors and the ancillary marketing infrastructure Most costly Leaves the company most exposed to competitive sabotage

Controlled Test Marketing

Test Marketing

Launching Product Internationally

Quality of launch

High service quality On-time shipment Appropriate product availability Quality sales force and support Quality and amount of promotion

Product Life Cycle

Introduction Manufactures Product in Developed Countries; Exports to Developing Countries

Growth MNC Moves Production to Developing Country; Begins Importing to Home Country

Sales

Maturity Developing Country Competitor Exports Product To MNC Home Country; Competes with MNC Imports

Decline Developing Country Markets Remain Viable Target Markets for MNC; MNC Home Country Market Is Diminishing

Sales

Profits
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Dana-Nicoleta Lascu

Atomic Dog Publishing 2006