The marketing budget

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MOD001194 International
Marketing
Lecture 5 International marketing
strategies
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Lecture 5: International Marketing strategies
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Competition in the global marketplace
International Marketing strategy
STP
PLC
The International Marketing Planning Process
Problems with planning for multinational firms
Lecture 5 International marketing
strategies
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Formulating International Marketing Strategy
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Generic strategy:
Differentiation strategy
Focus strategy
Cost leadership…………..All three?
Sustainable competitive advantage (SCA)
Lecture 5 International marketing
strategies
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Factors influencing international marketing strategy
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strategies
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Segmentation, Targeting & Positioning
• Segmentation: Dividing the market into subgroups of consumers that share similar
characteristics
• Targeting: Selecting a target segment
• Positioning: creating an image of your
product and its quality in the customers’
minds
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strategies
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Same company…..different
message?
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strategies
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STP for Saga Insurance
• Segmentation: demographics, particularly age
• Targeting: Over 50’s.
• Positioning: Aimed largely at those that are
retired with high disposable income.
Lecture 5 International marketing
strategies
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Lecture 5 International marketing
strategies
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The International Planning Process
Phase 1
Preliminary analysis and screening:
matching company/country needs
Phase 2
Adapting the marketing mix to target
markets
• Situation analysis
• Objectives and goals
Phase 3
Developing the marketing plan
• Strategy and tactics
• Budgets
Phase 4
Implementation and control
• Action programmes
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strategies
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Stages associated with International
Marketing planning
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1) Formulation of goals/objectives
2) External environmental analysis
3) Internal environmental analysis
4) Generalisation of global marketing strategies
5) Marketing strategies selection
6) Implementation & Control
Source: Chae and Hill (1999) “Determinants and
benefits of global strategic marketing planning
formality”, International Marketing Review, 17, 6
pp.538-562
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strategies
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Situational analysis
• requires a thorough study of the broad trends
within the economy and society, as well as a
detailed analysis of consumer, markets, competitors,
in fact all key stakeholders’
• Internal and external audit.
• Examines current environmental conditions in the
proposed market of entry (PESTLE factors)
• Various models can be used for this stage e.g.
SWOT, Marketing Mix, stakeholder analysis, and
competitor analysis.
Lecture 5 International marketing
strategies
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International marketing objectives
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Must be SMART related
Ideally short/medium/long-term
Must be inline with corporate objectives
Examples of international marketing
objectives – market share related, brand
awareness, increase sales
Lecture 5 International marketing
strategies
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International Marketing Objectives
 Must be SMART related
 Ideally short/medium/long-term
 Must be inline with corporate objectives e.g. ‘Ford’
 Our vision: to become the world's leading company for
automotive products and services.
 Our mission: we are a globally diverse family, with a
proud heritage, that’s passionately committed to
providing outstanding products and services.
 Our values: we do the right thing for our people, our
environment and our society, but above all for our
customers.
 Examples of international marketing objectives – market
share related, brand awareness, increase sales
Lecture 5 International marketing
strategies
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Marketing strategy
• ‘Strategies used in order to achieve
international marketing objectives’
• Consider growth strategies (Ansoff),
market entry methods, Porter’s generic
strategies, STP (segmentation,
targeting and positioning,
standardisation, adaptation
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strategies
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Implementation
• ‘Implementation is putting the plan into action’
• The marketing budget: ‘how much the organisation intends to spend
carrying out the plan’
• Example of a typical marketing budget for a medium sized company:
£
Salaries and wages of marketing staff
100,000
Advertising expenses
50,000
PR activities
20,000
Market research
15,000
Direct Marketing costs
23,000
Selling and agency commission
30,000
TOTAL
238,000
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strategies
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Control
• ‘Control is the process of ensuring that the
results of operations conform to established
goals’
• Control methods include: benchmarking,
self assessment, investment analysis,
customer analysis and retention, regular
comparison of actual sales and marketing
costs against budget
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strategies
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Problems with planning for
multinational firms
• Distance between the corporate plan and its
implementation ‘on the ground’
• Degree of variation in environmental
conditions
• Difference of opinion between corporate
planners and local managers
• Whose responsibility is marketing
planning?..........
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strategies
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Next week
• Read: Ghauri and Cateora (2010) Ch.10
pp.241-262.
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strategies
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