1. BONUS QUESTION: Explain two of the trending concepts we mentioned in our last
lecture that facilitate innovation or global consumer culture to form (10pts)
a. Customer Journey Innovation
-
Contoh : amazonGo, virtual try on loreal → ini semua dilakukan untuk
improve customer journey jadi bisa improve loyalty
b. Sharing Economy
Sharing Economy: Consumer co-production activities through online platforms,
consumer co-production networks
2. We had two guest speaker talks from Franc Bogovic (Rolls Royce) and Mike Broeren
(Human 8). What are the key takeaways that the speakers emphasized during these
talks? What is the common message between the two talks? (10pts)
Rolls Royce :
- Entry strategy ke emerging market karena ada opportunity nya
- Positioning → dia showroom nya dekat 5 stars hotel karena itu tempat business
deal, bikin keliatan luxurious
- Targeting → rich people karena banyak emerging conglomerates di Vietnam tapi
ga ada official stores nya (even mercy, bmw ga ada)
-
Franc juga the only white man, tapi malah advantage buat company karena dia
punya knowledge dan kemampuan bahasa asing
Bisa kaitin paper westjohn → DISCRETIONARY ADAPTATION salah satu
moderator nya psychic distance (karena vietnam jauh dari country of origin rolls
royce jadi dia bisa melakukan discretionary adaptation krn beda culture), firm
international experience (kalau ga ada international experience tapi bisa juga hire
orang yg punya that experience, in that case si Franc)
Human8
- Jadi Human8 tuh marketing konsultan
- Company harus continually to listen & understand the customer in order to stay
relevant
- 3 components of company build in global insight:
1. Needs to be relevant: customer must recognize the company
2. Customer feels the brand looks at things differently
3. Brand must solve friction/consumer has
- Company must always apply local relevance and local learning on each new
market
- Cara liat potential respondents tuh ada 3:
1. 90%: They won’t tell you deep inside just YES/NO answers
2. 9%: Suited for QUALITATIVE research; ensure that group is diverse
enough
3. 1%: they tell you HOW PRODUCTS/SERVICES should look to satisfy
them
- Market Illusions:
1. Illusion of Longevity: Brand yang udah tua doesn’t guarantee they will
continue being relevant – Consumers don’t care if your brand
disappears
2. Illusion of Differentiation: Make sure to keep understanding how
consumers need evolve and adapt to it
3. Illusion of Attention: Now TV is dying and the media landscape keeps
changer – Strategy is necessary to know where to reach consumers
4. Illusion of Loyalty: Do not over focus on loyalty – Loyalty doesn’t exist
for consumers. People buy multiple brand and not only your brand so
don’t only focus on loyalty
- Challenges for marketers:
1. Customer high expectations from brands – eg. sneakers customization
2. From promise to customer to purpose in the world – sustainability is now
a hygiene factor
3. A food company, deeply invested in environmental sustainability with respect to
their production processes as well as branding, is considering entering a new market
where awareness on environmental issues are rather low. Use the SHIFT framework
and give them one advice per each dimension (S-H-I-F-T) of the framework on how to
better implement their market strategy. (20pts)
a. Social Influence
- Social Norms
Descriptive norms → what people commonly do → entailed the marketing
mix, eps promotional strategies to be : “X% of new yorker eats [your
product]”
-
-
Injunctive norm → if you wish to eat meat sustainably eat [product name]
Social Identity
→ create a brand fandom, starting by targeting environmentally conscious
people such as environmental activists/influencers (which are more likely
to choose this kind of products)
Social Desirability
make sustainable products or behavior socially desirable by making it has
positive perceptions such as by linking to sustainable consumption to
higher status → the price is premium, associating it with “nice” person
(generally likable in society)
b. Habit Formation
Forming new habit by:
- Make it easy
→ make it available everywhere → 4p : place → distribution network
many stores
- Incentives: short-term, extrinsic motivation (rewards, gifts)
- Feedback: info on consumer contribution if purchasing the product (bisa
apabila dia jual di online channel trs kaya kasih email gt after purchase
nya)
c. Individual Self
- Self concept
-
Self consistency
Self identity (identity linked product)
d. Feelings and Cognition
- Create the ads using emotional appeal
- Highlight attributes that are related to gentleness / health
e. Tangibility
- Focus on giving info di packaging regarding direct benefit of this product
for the environment, society, and individual self
4. A European textile brand is considering to do market development by expanding to
geographies they are not present in. They are curious about possibilities of Licensing,
Investment, and Strategic Alliances. As their consultant, you need to explain the
differences between these strategies and layout which strategy would be better in which
situation. (10pts)
● Licensing: contractual agreement between licensor and licensee
❖ Liconsor makes legally protected asset available to other company
→ asset = brand name, trade secret, product formulation, and company
name
❖ Licensee pay through license fee, royalties / other compensation
➢ Advantage: Enables overcome tariffs, quotas/similar export barrier and
free to adapt to local taste
➢ Disadvantage: Decreased market control to for licensor and short lived
agreement makes licensee can exploit licensor know-how
Licensing bagus kalo dia punya brand atau teknologi yang gampang di
transfer dan bisa di expand quickly
●
Investment: Investing to other companies outside the home country, it allow to
produce, sell and compete local market in exchange for ownership or a stake in
the business
Investment bagus kalo dia nyari direct control and ownership dan punya
financial resources yang punya komitmen in long terms
●
Strategic Alliances: linkages companies from different countries to jointly
pursue same goals
Strategic alliances bagus kalo dia mau tau local expertise karena kan nanti
bisa kerjasama sama pihak lokal terus bisa share cost and risk juga
5. Discuss the standardization vs. adaptation decisions a firm that enters global markets
needs to make. A. Which strategy should be utilized in which cases? B. What are the
three global marketing management dimensions that such a firm needs to consider?
(10 pts)
A. Globalization (standardization)
1) Developing standardized products marketed worldwide with a
standardized marketing mix
2) Essence of mass marketing
Global localization (adaptation)
1) Mixing standardization and customization in a way that minimizes costs
while maximizing satisfaction
2) Essence of segmentation
3) Think globally, act locally
B. In GMS there are also 3 additional dimensions:
1. Concentration (cluster or mass) of marketing activities: The extent to
which activities related to the marketing mix (e.g., promotional campaigns
or pricing decisions) are performed in one or a few country locations
2. Coordination of marketing activities: The extent to which marketing
activities related to the marketing mix are planned and executed
interdependently around the globe
3. Integration of competitive moves: The extent to which a firm’s
competitive marketing tactics in different parts of the world are
interdependent
6. A Dutch furniture store decided to enter the Asian markets. As their international trade
consultant, you need to write a brief advice on what they should consider/do while
entering the new marketplace. Consider the main points in the Westjohn and Magnuson
(2017) article and the Culture lecture discussions we had in class and guest speaker
lectures and advise them accordingly. (10pts)
In entering a new market, especially a country with a very different cultural background
in this case of the furniture store, I would advise them to focus more on
implementing a discretionary marketing adaptation in their business process as
suggested by Westjohn and Magnuson (2017). According to the paper, discretionary
adaptation can enhance one’s export performance particularly in a psychically distanced
market, when a firm has significant international experience, and when it lacks significant
positional advantage. Thus, we can see that in the case of the furniture store, the target
market country (Asia) has a very different consumer attitude compared to the home
country (Dutch) consumer’s. This proves that by implementing a discretionary marketing
adaptation, the furniture store can enhance their export performance. Furthermore,
another piece of advice is for the company to increase their international exposure
through hiring experienced human resource and lastly to also not forget to
consider whether they have a high level of positional advantage, so that they can
decide whether to focus on discretionary adaptation or not.
Dah ini kurang dr yang GL gue blm bljr yak