Académique Documents
Professionnel Documents
Culture Documents
Outline
1. 2. 3. 4. 5. 6. 7. 8. 9. Marketing challenges in global corporal activity Data collection und diagnoses in international marketing Market research in international marketing Strategic decisions in international marketing The tools of demand management as operational marketing Product and programme policy Contract and price policy Distribution policy Communication policy
SS 2011
HS Karlsruhe - HTW
International Marketing
Communication Policy
Target group or target persons in selected countries on selected markets should be provided with service offerings appropriate to their needs
The challenge lies in directly or indirectly informing or influencing target persons through messages by efficiently using various communication instruments
Distribution Policy
Decisions are made on which ways the international market will be developed and through which distribution channels products are provided to customers
All elements of the contracts (prices, terms, conditions of credit, conditions of payment and delivery) constitute independent areas of international marketing
SS 2011
HS Karlsruhe - HTW
International Marketing
Outline
1. 2. 3. 4. 5. 6. 7. 8. 9. Marketing challenges in global corporal activity Data collection und diagnoses in international marketing Market research in international marketing Strategic decisions in international marketing The tools of demand management as operational marketing Product and programme policy Contract and price policy Distribution policy Communication policy
SS 2011
HS Karlsruhe - HTW
International Marketing
Outline
6. Programme and Product Policy 6.1 6.2 6.3 6.4 6.5 6.6 Overview over programme and product policy Topics of programme and product policy Alternatives of decision in programme/product policy Determining factors of product-line decision Innovations Advantages and Disadvantages of various market strategies
SS 2011
HS Karlsruhe - HTW
International Marketing
Service policy includes all elements of decision referring to a market-driven organisation of all services offered on the market by the enterprise. Product policy as part of service policy should be understood as all actions that aim at the development, design, change or elimination of the service package forming the object of business activity. Programme policy as part of service policy should be understood as all actions that aim at the arrangement of the product line. From the supplier`s view, product line (programme) is understood as the sum of all selfproduced or producible and externally procured or procurable service packages offered at a particular time by a supplier to his customers.
SS 2011
HS Karlsruhe - HTW
International Marketing
Product decisions
(Which particular products?)
Programme decisions
Product shaping
(Which product features?)
Products and product lines Broadness and depth of product line External procurement or own production
SS 2011
HS Karlsruhe - HTW
International Marketing
Retention
Change of structure
Shifting of weight Product variation Depth of product line Product differentiation Vertical diversification Broadness of product line Horizontal diversification Lateral diversification
Extension
Change Narrowing
Standardisation Specialisation
SS 2011
HS Karlsruhe - HTW
Technological reasons
Reasons of costs
Reasons of proceeds
Purchase advantage
Utilisation of potentials
Targets of growth
SS 2011
HS Karlsruhe - HTW
International Marketing
6.5 Innovations
Degree of novelty for the supplier
high
World novelty
medium
Product improvements
Country-specific adaptation and new launch of products that are established in other countries
low
SS 2011
HS Karlsruhe - HTW
medium high Degree of novelty for the customer/country`s market Dr. Philipp Plugmann MSc MBA International Marketing
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Advantages
Disadvantages
- Brand costs must be borne by one product - High need of coordination between countries - Short product life-cycle, often not cost-effective
Example
Philip Morris with Benson&Hedges and Marlboro, Eckes with Chantr and Mariacron
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HS Karlsruhe - HTW
International Marketing
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Advantages
- Mutual support of the brands leads to better acceptance at commerce and customers - Lower costs for brand establishing because of synergy effects
-Too high diversification weakens brand image - Negative image transfer is also possible - Coordination need among brands Disadvantages - Danger of cross-national inflation of the brand product-line
Example
Beiersdorf with Nivea (shampoo, deodorant, cream, suntan oil) and Hansaplast (patches and spray)
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HS Karlsruhe - HTW
International Marketing
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Hardware - software - textiles - CDs - watches - medicine -spare parts for cars - cars - toys
Ferrari
At least 10 illegal workshops in G and the USA, where (among others) the Ferrari 355 GTS was completely copied
Lego
At least 14 lawyers of the enterprise control and prosecute forgeries in 15 countries
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HS Karlsruhe - HTW
International Marketing
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Digression Brand Piracy - Claims of the Manufacturer Claims of the Affected Brand Manufacturer
14
Information of distribution partners about forgers`activities, check of distribution channels, selective choice of new market intermediaries Addition of forgery-proof product features,: holograms, microchips, etc
Cooperation with authorities, assignment of private investigators, incentives for customers to identify forgeries, tracing of ditribution channels of confiscated forgeries Complaints of offence are possible, if trademark rights have been reserved
Prosecution
Public Relations
Advice about economic damage, hints at safety endangerings (e.g. forged original brake covering at cars) Standardisation of the legal EU-framework, improvements of customs checks at Eu borders, membership in relevant associations
Lobbying
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HS Karlsruhe - HTW
International Marketing
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Outline
1. 2. 3. 4. 5. 6. 7. 8. 9. Marketing challenges in global corporal activity Data collection und diagnoses in international marketing Market research in international marketing Strategic decisions in international marketing The tools of demand management as operational marketing Product and programme policy Contract and price policy Distribution policy Communication policy
SS 2011
HS Karlsruhe - HTW
International Marketing
16
Outline
7. Contract and price policy 7.1 Position of price policy in the framework of sales marketing 7.2 Price policy in international marketing 7.3 Price strategies in international marketing 7.4 Price elasticities 7.5 Price differentiation 7.6 Price-bundling strategy as a special form of price differentiation Digression: Opening rituals in business negotiations
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HS Karlsruhe - HTW
International Marketing
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HS Karlsruhe - HTW
International Marketing
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7.1 Position of Price Policy in the Framework of Sales Marketing II At commodities (products that are perceived as of similar type) price has a strong effect on sales. Price-political instruments cause a change of behaviour in the customer that is up to twenty times stronger than that of other instruments (product and communication policy) Compared to other instruments, price policy can be employed at shorter notice and causes comparatively low costs.
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HS Karlsruhe - HTW
International Marketing
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Cut of piece prices and increasing of price transparency and with that increase of price competition
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HS Karlsruhe - HTW
International Marketing
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When entering the market or when launching new products respectively, boarding with high price that is gradually lowered after exhaustion of the demand potential or appearance of several competitors. High price level is permanetly kept: -if market entry is made impossible for others through barriers -if advance of quality is protected by patent -if a uniquie selling proposition is gained by building up a brand image
Penetration of the market through lower price level and discouraging competitors. Low profit margins are supposed to be profitable through mass effect.
In the course of the product life cycle the lower price level is established
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HS Karlsruhe - HTW
International Marketing
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Advantages High gains on short term possible already in early phases Skimming Strategy Quick amortisation of research and development costs ! Positive quality and prestige effects (High quality assumed at high prices)
Risks Not enough elite consumers might be reached Competitors enter the market too early with campaign prices
Quick increase in sales possible Penetration Strategy Quick decsend to experience curve Reduced flop risk because high acceptance is probable due to low prices
Sales and piece price degression stay behind the planned values Competitors are not discouraged long enough and enter the market with even lower prices -
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HS Karlsruhe - HTW
International Marketing
22
15 DM
15 DM 10 DM
Price
10 DM
50
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HS Karlsruhe - HTW
International Marketing
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In the framework of price differentiation customers demand prices of differing height for identical service packages. Therefore it is an instrument of differentiated market cultivation, the application of which is based on the results of market segmentation Forms of price differentiation personal spatial concerning human resources quantitative Price-bundling as a special form of price differentiation
SS 2011
HS Karlsruhe - HTW
International Marketing
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All products can only be bought as part of a bundle, not individually Example.:VW special edition with in-built, particular equipment
When buying a product the customer receives vouchers for the purchase of another product with weaker sales at reduced price. Example: Coca-Cola with voucher for reduction at the purchase of Minute Maid
Linked Business
Supplier offers complementary goods at a lower price Example: Mobile phone contract plus inexpensive mobile phone with 24months contract
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HS Karlsruhe - HTW
International Marketing
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Japan
Spain / Italy
30 min
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HS Karlsruhe - HTW
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Outline
1. 2. 3. 4. 5. 6. 7. 8. 9. Marketing challenges in global corporal activity Data collection und diagnoses in international marketing Market research in international marketing Strategic decisions in international marketing The tools of demand management as operational marketing Product and programme policy Contract and price policy Distribution policy Communication policy
SS 2011
HS Karlsruhe - HTW
International Marketing
27
Outline
8. Distribution policy 8.1 Distribution entities and channels 8.2 Forms of direct marketing 8.3 Assignment of sales personnel 8.4 E-Commerce as channel of distribution and instrument for customer loyalty
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HS Karlsruhe - HTW
International Marketing
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Aims and functions of distribution policy lie in - choosing the appropriate marketing intermediaries and distribution entities - determining suitable storage locations and sizes - determining adequate packaging units - choosing the partners involved in the physical distribution.
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HS Karlsruhe - HTW
International Marketing
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International Marketing
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In which coutries do those restrictions exist - how far has the state to be engaged as intermediary institution?
These huge universal trade companies (Mitsubishi Corp. and Mitsui & Co. Ltd.) have to be engaged to develop the Japanese market Particular pharmaceutical wholesalers in Austria list German pharmaceuticals only under the condition of exclusive distribution rights in Germany In how far are large supermarkets and their location factors transferable to other indutrial countries, which buying habits are dominant?
International Marketing Dr. Philipp Plugmann MSc MBA
31
Large self-service department stores had to be built outside of the big cities. These are only accessible by car many Japanese do not own a vehicle, because the costs (e.g. parking space) in the big cities such as Tokyo are nearly unaffordable.
Due to the high property prices singles as well as families live in most constricted conditions therefore there is little store room in the flats (deep freezer etc for groceries), so that many Japanese are forced to go shopping several times a week.
The self-service department store Carrefour with 17.000 sqm, recently opened in Tokyo, unfortunately did not yield the demand hoped for Continuative Question Can these tendencies be imagined in European countries as well? In which countries could such a trend take place? What would it depend on?
SS 2011 HS Karlsruhe - HTW International Marketing Dr. Philipp Plugmann MSc MBA
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f)
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International Marketing
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Advantages:
-Usually particularly high competence at complex, technically demanding products -- Positve omage effects from the view of the foreign customer possible -Good knowledge of the company and the company policies
Advantages:
-Positive image effects at the customer possible in the sense of a global enterprise --Possibly highest competence, if allocation of sales personnel to a country is carried out independent from nationality but only according to qualification
Disadvantages:
-Very cost-intensive -- Possibly politically or legally conditioned restrictions as regards work possibilities of foreigners in the country (e.g. at high unemployment in the country) -- Low local market knowledge -- Possible low cultural affinity between buyer and seller -- Often low inclination of sales personnel to move abroad
Disadvantages:
-Decision possibly not according to company policies --Often low knowledge about products and their areas of application
Disadvantages:
-Customer might get confused about actual origin or head quarters of the enterprise -Possibly large cultural divergence between buyer and seller -- Possibly politically or legally conditioned restrictions as regards work possibilities of foreigners abroad (e.g. at high unemployment in the country)
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SS 2011
HS Karlsruhe - HTW
International Marketing
8.4 E-Commerce As Channel Of Distribution And Instrument For Customer Loyalty Restrictions and Questions in E-Commerce
Language barriers in Internet presence Elimination of local trade intermediaries abroad Safety in payment transactions A various choice of languages is necessary - at luxury consumer goods e.g. English, French, Spanish, Russian, Chinese and Japanese. Not in all cases are Internet prices allowed to lie under the sales prices of local merchants to avoid conflicts and keep up the merchants`favourable attitude. Data security systems or forms of electronic signature are getting increasingly more expensive and complex; additionally there is no international standard in existence yet. Does the customer live in an EU or Non-EU-State? Private or business customer? Can the German exporter prove the foreign customer`s identity? Organisations such as Trustedshop offer certification about confidentiality, safety of order, payment transactions, AGB and data security
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HS Karlsruhe - HTW
International Marketing
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Outline
1. 2. 3. 4. 5. 6. 7. 8. 9. Marketing challenges in global corporal activity Data collection und diagnoses in international marketing Market research in international marketing Strategic decisions in international marketing The tools of demand management as operational marketing Product and programme policy Contract and price policy Distribution policy Communication policy
SS 2011
HS Karlsruhe - HTW
International Marketing
37
Outline
9. Communication policy 9.1 Tasks and topics of communication policy 9.2 Advertising in international marketing 9.3 Limitations and possibilities in the international communication policy 9.4 Cultural meaning of colours in different countries 9.5 Marking in international marketing 9.6 Cross-Media-Marketing
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HS Karlsruhe - HTW
International Marketing
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Advertising
Sales Promotion
Personal Marketing
Direkt Marketing
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HS Karlsruhe - HTW
International Marketing
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Language, Communicative Knowledge, behaviour, Educational Frequency of use Background, of which Reasonablechannels / ness of medium? technical details for e.g, goods that need explanation
International Marketing
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HS Karlsruhe - HTW
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Example MedTech
Communication = Presentation
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HS Karlsruhe - HTW
International Marketing
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Cultural particularities are captured in market research and flow into shaping of the advertisement message.
The level of education of a nation determines the degree of abstractness of the advertisement message, the number of pictures in comparison to the text and the selection of technical details.
Offending religious feelings must be avoided The role of man or woman decides who is more likely to be the addressed buyer.
Norms like e.g. beauty ideals also determine the content of advertising A naked shoulder causes a sensation in China, while causing positive associations in Western Europe. A big person might personify a lack of discipline in Western Europe, not in the Middle East, where s/he is associated with wealth.
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HS Karlsruhe - HTW
International Marketing
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Switzerland
Pessimism
Anger
China
Tolerance
Japan
Pakistan
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HS Karlsruhe - HTW
International Marketing
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Differentiation
Trademarkn cross-national identical, brand name adapted (Langnese, Iglu, Aldi, Deichmann)
Differentiation
Trademark and brand name adapted for the individual specific country
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HS Karlsruhe - HTW
International Marketing
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HS Karlsruhe - HTW
International Marketing
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Aldi in Austria
The Swiss family enterprise Dosenbach, founded 1865, was taken over by the Deichmann Group in 1973, the name of the enterprise Dosenbach, however, has been kept in Switzerland.
in Germany
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HS Karlsruhe - HTW
International Marketing
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Crossmedia-Marketing means the use of different, inter-coordinated communication channels to advertise a product or a service. Supplementing the classical communication mix, particularly the new electronic media are employed. The advertising media are networked with each other to use their specific strengths in an ideal way. Therefore a consistent advertising line (CD/CI) is used to gain a high recognition value. (Example: print media plus radio advertising plus Internet plus mobile phone)
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HS Karlsruhe - HTW
International Marketing
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9.6 Cross-Media-Marketing
Lidl, grocery discounter in Austria, advertises with Internet offer, newspaper inserts, advertisements, SMS announcements and personal shopping list in the Internet
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HS Karlsruhe - HTW
International Marketing
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International Marketing
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International Marketing
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Out of the Box : Private Equity / Venture Capital Is this important for international marketing ?
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HS Karlsruhe - HTW
International Marketing