Chapter 11
What is Marketing?
Chapter 11 - Overview
 11.1
International Marketing
 11.2 Global Marketing
 11.3 International Marketing Mix
 Trading Partners - Spain
11.1 International Marketing
Marketing:
 All activities involved in planning,
pricing, distributing and selling of a
product or service
 4Ps – Product, Price, Place,
Promotion
 Designed to fulfill human wants and
needs
Marketing Strategies

Centralized or Decentralized

Push or Pull

Brand Acquisition or Development
Centralized Marketing Strategy
 Production
and sale from one central
location - exports to other markets
 Several marketing divisions – focus
on particular export areas
 Common marketing themes
 Still considers cultural differences
 Ex: Coca Cola – global brand,
consistent packaging / product
Advantages of Centralized
 Brand
Building – create international
brand equity – worldwide recognition
 Synergy – extra positive benefits
from larger marketing group vs.
smaller local groups working alone
 Cost Benefits – Economy of Scale –
avoids duplication (R&D, advertising)
of efforts – centralized expert focus
saves time and money
Centralized Organization
Coca Cola
Head Office
South America
Asia Pacific
North America
European Union
Decentralized Strategy
 Think
Global – Act Local
 Local facilities – local decisions
 ‘Glocal’ – global firm / local focus
 Advantages
– Proximity (closeness) to markets
– Flexibility – spot trends quickly
– Culturally sensitive – more knowledge of
local customs and preferences
Marketing Strategies



1.
2.
3.
Distribution Strategies
Focus on the best way to deliver a
product or service to the target market
3 ways to achieve distribution goals
Push Strategy
Pull Strategy
Combination of
Push and Pull Strategy
International Organization
 Marketing
and distribution centers
are set up in foreign markets
 Buying habits and customer values
are taken into account when
responding to differences
 Example: Automakers
 Honda Canada
 Honda USA
Brand Organization
A
company may have different
brands which are sold to diverse
markets
 Used greatly by companies with a
large variety of products
 Example: Cadbury & Procter and
Gamble p.13
Brand Organization
Company C
Chocolate &
Candy Bars
Beverages
Ice Cream
Cereal
Distribution Organization
 Under
this structure, marketing
activities are organized around the
ways the product or service will be
delivered to the customer
 Example: A soft drink company
Distribution Organization
Company D
Restaurants
Hotels
Retail Stores
Vending Machines
Storage
Promotion
Research
Inventory Management
Packaging
Marketing Activities
Physical Distribution
Product Development
Sales
Pricing
Branding
Marketing Activities
Nonprofit organizations do not seek
profit as primary motive but raise funds
for a specific goal.
 Ex: Canadian Breast Cancer Foundation


Not-for-profit organizations, such as
housing or child care cooperatives also do
not seek profit. Extra funds are used to
improve services offered to members
Consumer and Competitive
Markets
1.
2.


Markets are composed of 2 parts:
Consumer Markets
Competitive Markets
Consumer Markets: All consumers
who are or may become interested
in the product or service and whom
have the means to purchase it
Includes current and future
potential consumers
Consumer and Competitive
Markets
Competitive Market: Comprises of
all of the products or services
(within a specific category) that
competes for the consumers money
Ex: Toyota Corolla, Honda Civic,
Hyundai Elantra, Chevy Colbalt
2.
Consumer and Competitive
Markets
 Target
Market: All marketing efforts
directed at a specific group of
consumers that the marketer wants
to attract (and ultimately sell their
product or service to)
 If
the market is everybody, then it is
called the Aggregate Market
Consumer and Competitive
Markets
 Differentiated
Markets: These
markets are characterized in a
specific way such as age, income,
gender, personal values and/or
geographical location
The Marketing Mix (4 P’s)
Promotion Mix
Product Mix
Pricing Mix
Place Mix (Distribution)
The Marketing Mix
 The
marketing mix is usually divided
into 4 categories known as the 4 P’s:
Product, Price, Promotion and Place
(distribution)
 Some marketers include 2 C’s:
Customer and Competition
 The effectiveness of the mix of these
activities can make or break a
marketing campaign
The Marketing Mix (4 P’s & 2 C’s)
Promotion Mix
Product Mix
Pricing Mix
Place Mix (Distribution)
Competition
Customer
Marketing Strategies
Components of the Marketing Plan
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Marketing goals
Identification of the target market
Identification of competitors
Research section
Positioning of the product in the marketplace
Pricing strategy
Channels of distribution
Promotional strategy/Advertising
Sales forecast (based on new marketing plan)
Process of monitoring plans success
Marketing Strategies
Definition of a Brand
A name, term, sign, symbol or
design or a combination of any of
these intended to identify the goods
or services of a seller/sellers and to
differentiate them from their
competitors.
Marketing Strategies

1.
2.
2 Types of Marketing Strategies
Brand Strategies
Distribution Strategies
Marketing Strategies
1.




Brand Strategies
Primary goal is to communicate value of the
good/service to the customer
Brand strategies develop and communicate the
benefits associated with the brand
Brand strategies minimize costs and encourage
the customer to set up a positive value
equation
Brand strategy attempts to POSITION the
product or service (which means marketers try
to create a value equation for the product in the
consumers mind)
Marketing Strategies
How do we define value?



Value is the difference between the perceived
cost of the product and the perceived
satisfaction derived from the product
Costs are monetary but can expressed in terms
of time spent looking for the product, energy
spent setting it up, personal costs (prestige,
status, reputation, etc)
To establish the value equation, the brand uses
packaging, brand names, slogans, and
trademarks to develop a positive and and
identifiable image for each product or service
Marketing Strategies
Value Equation: fig. 1.21 (next slide)
Trip to Barbados example
 Adds
together all of the benefits of a
product (both real and imagined)
and subtracts the costs in obtaining
the product
Marketing Strategies
Distribution Strategies


1.
2.
3.
Focus on the best way to deliver a
product or service to the target market
3 ways to achieve distribution goals
Push Strategy
Pull Strategy
Combination of
Push and Pull Strategy
Marketing Strategies
1.



Push Strategy
Push the product or service to the
customer
Push strategy sells the product to
retailers, wholesalers or importers and
not directly to the end consumer
Reason: if the product is out there where
consumers can see it, they will buy it.
Marketing Strategies
2.




Pull Strategy
Pull or attract the consumer to the product or
service
This is what most people think of when they
think of marketing
Attempts to increase the consumer demand
directly instead of relying on retailers to sell the
product to consumers
Manufacturers and importers try to convince
consumers that they need the product and
should look for the product when they are
shopping
Marketing Strategies
3.




Combination of Push and Pull
Use combination push and pull
Pull strategy is difficult to use alone as it
requires distribution partners
Push strategy needs no partners,
requires consumer awareness
The push strategy needs to combine with
the pull strategy to optimize
effectiveness; however, the push
strategy can stand alone