Page 1
Thursday - Bus 602 1
Marketing Management
Chapter 13Chapter 13
Direct Marketing &
Global Marketing
Page 2
Thursday - Bus 602 2
Exam InformationDate: Thursday August 12thTime: 7:00 p.m. – 10:00 p.m.Place: downstairs SBE• You are responsible for all assigned materials from the text, notes, readings and related
material covered in class.
• Cheat Sheets are allowed – 3 pages single sided.
• About 50% of the exam will be multiple choice questions. Remaining will be mini case and essay style based on applying theory from the notes, reading and textbook to “hypothetical” situations.
• You will be expected to demonstrate that they know and understand the material. You are expected to be able to apply the strategy properly.
• Please bring a silent calculator.
• Please arrive early and bring your student I.D. card.
• I will be at the exam
Page 3
Thursday - Bus 602 3
What Is Direct Marketing?
• Communications with carefully targeted individual consumers to obtain an immediate response– Cultivate relationships– Often one-to-one interactive– Precise targeting– More effective results– Not simply an extra piece of the
puzzle, a whole new approach due to technology
http://www.photostogo.com/store/101','False','248684C','@1@upL6Nw5%7B%7CC','_OfQ%60MWNHMZC%5E1Ikw%5E46Ob@UEl','134','107','Dart%20in%20bull%60s%20eye%20of%20dart%20board','720','514%20622%20741%20975%201205%201572%202501%202515%202610%205692%205834','361','%60Q_EZL6OwU%7BjT Page 4
Thursday - Bus 602 4
Growth of Direct Marketing
• Direct Marketing– The marketing is exploding and it will continue
for a while yet• Growing 8% annually vs. 6% for retail sales
• Canadian sales >$50 Billion
• Expected over next 5 years - 60% growth rate
• Online marketing– An untapped potential
• 65% are able to access the Internet, +29% VYA
• Canadian sales $2.3B (2000) to $5.5B (2005)
Page 5
Thursday - Bus 602 5
Growth of Direct Marketing:Trends
• The shift of consumers and how they spend their time is requiring new ways to get to them
• Consumers’ regaining control of their time:– Higher traffic costs (commuting, congestion)
– Inconvenient parking
– Lack of time
– Shortage of retail help
http://www.photostogo.com/store/101','False','403694C','DjCuwLFS%7DgioC','aKaQaUkKHNNL_27fJs@SDR6v5p','89','130','Word%20%60Productivity%60%20projected%20on%20clock%20face','31','1%20167%20246%201025%201322%201535%202482%203219%203240%204300%205070%205833','734','dNbEsRFV%7DMe%7CT Page 6
Thursday - Bus 602 6
Mass Marketing Vs. One-to-One Marketing
Mass Marketing One-to One Marketing
Average customerCustomer anonymityStandard productMass productionMass distributionMass advertisingMass promotionOne-way messageEconomies of scaleShare of marketAll customersCustomer attraction
Individual customerCustomer profileCustomized market offeringCustomized productionIndividualized distributionIndividualized messageIndividualized incentivesTwo-way messagesEconomies of scopeShare of customerProfitable customersCustomer retention
Page 7
Thursday - Bus 602 7
Customer Databases
• An organized collection of comprehensive data about individual customers or prospects including geographic, demographic, psychographic, and behavioural data
• NOT a mailing list• Database Marketing
– Process of building, maintaining, and using customer databases and other databases for the purpose of contacting and transacting with customers
Page 8
Thursday - Bus 602 8
Forms of Direct Marketing
Customersand
prospects
Customersand
prospects
Face-to-faceselling
Face-to-faceselling
TelemarketingTelemarketing
Direct mailmarketing
Direct mailmarketing
Kioskmarketing
Kioskmarketing
Onlinemarketing
Onlinemarketing
DirectResponse
TV Market-ing
DirectResponse
TV Market-ing
Cataloguemarketing
Cataloguemarketing
Figure 16-1
Page 9
Thursday - Bus 602 9
Face-to-Face Selling
• The sales call – we have spoken about this many times
• Business-to-business heavily relies on this– Locate prospects– Make customers– Build relationships– Grow business
• Consumer companies– Use both sales force (push) and consumer
promotions etc (pull)
Page 10
Thursday - Bus 602 10
Telemarketing
• Using the telephone to sell customers directly
• Outbound– Sell to consumers and businesses
• Inbound– Receive orders from radio and TV
ads, direct mail and catalogues
http://www.photostogo.com/store/101','False','236170D','@jFupKIOq1x0C','_NdL_IWL%7CNUEYkLP5qPvIDEz~3','128','103','Women%20telemarket%20operators','818','7%20263%20869%20875%20942%20943%20956%201293%201294%201295%201431%201535%202907%205834','337','%60NeEZKIVqQx7T http://www.photostogo.com/store/104','True','513285','EtGu%7DPLSwyTC','bLaM%60UCQ%7CIV4%5EG-gEsRdbll%5E0','132','92','Young%20man%20telemarketing%20in%20office','267','7%20167%20263%20281%20332%20347%20661%20752%20771%20869%20873%20942%20956%20994%201111%201255%201284%201294%201295%201436%201441%201463%201478%201543%202430%202527%202908%203481%204640%205834','818','eLfElVLVwNNT Page 11
Thursday - Bus 602 11
Direct-Mail Marketing
• Sending a reminder, announcement, offer, or other item to a person at a particular address– One-to-one– High selectivity– Personalized– Flexible– Measurement results
easy
Page 12
Thursday - Bus 602 12
Direct-Mail Marketing:New Forms of Mail Delivery
• Fax mail– Sent and received
instantly
• E-mail– Instant arrival– Stored until read– Mail filters– Spamming
• Voice mail– Leave selling messages
http://www.photostogo.com/store/101','False','389414B','D-GuqTKU5fg1C','%60SgOYLBEoSQxOkOZYuOKq4oiDx','107','133','Paper%20coming%20through%20fax%20machine','61','167%20263%20440%20661%20741%20911%201291%201293%202594%202595%205041%205833','728','dMfEkZKX5Ll8T http://www.photostogo.com/store/101','True','369429','C%7CCuqSMQ6%7BLC','%60QgOZQhK-K_QVkHCvHQc3RBsH','136','94','Information%20superhighway','1466','167%20263%20266%20564%20615%201149%201263%201291%201293%201339%201670%202834%203219%203240%204381%204556%204758%204798%204982%205070%205494%205834','644','cObEkYMT6RFT Page 13
Thursday - Bus 602 13
Catalogue Marketing
• Selling via catalogues mailed to a select list of customers, or made available in stores
• Sales $120B• Web-based catalogues
– Passive and must be marketed
– Won’t replace print catalogues completely
Page 14
Thursday - Bus 602 14
Direct Response TV Marketing
• Infomercials– Advertising programs for a
single product
• Home shopping channels– Entire channel dedicated to
selling
• Direct response advertising– TV ad with toll-free telephone
ordering
It allows you to browse the latest headlines, get scores and schedules on sports programs, order free coupons or product samples, and even buy products - all by using your remote.
Page 15
Thursday - Bus 602 15
Kiosk Marketing
• Placing information and ordering machines at locations
• Some current uses:– Greeting card maker
– Fit woman’s jeans
– New car information
– Fundraising
– Trade shows
Page 16
Thursday - Bus 602 16
Online Marketing and Electronic Commerce
• Conducted through interactive online computer systems which link consumers with sellers (marketspaces)
• Commercial online services (AOL) that provide services for a fee– Growth is slowing
• Internet – While free, you need an ISP to get access– Began in the US with military
– >Billion websites now
http://www.photostogo.com/store/104','True','513559','EtGu%7DPLV9%7BTC','bLaPlYCQjFR4lGtcFlQcglWso','114','132','Credit%20card%20coming%20out%20of%20computer%20screen','267','7%20167%20169%20263%20266%20305%20455%20539%20540%20583%20661%20673%20701%20771%20774%20819%20869%20942%201291%201438%202512%202793%202908%203216%203240%204556%205063%205443%205508%205779%205833','818','eLfElVLY9RNT http://www.photostogo.com/store/104','True','513578','EtGu%7DPLVquTC','bLaP_XCQjHS4lI9bF_TS$_Xre','95','132','Computer%20screen%20w/%20e-mail%20graphic','267','167%20263%20266%20347%20661%20701%20873%201291%201293%201533%201560%201670%202537%202594%202595%202793%202843%203458%204300%204798%205063%205070%205345%205443%205833','818','eLfElVLYqQNT Page 17
Thursday - Bus 602 17
Online Marketing Channels
Four Ways to Conduct Online Marketing
Creating anElectronic Presence Online
PlacingAdvertisementsOnline
Using onlineE-mail or
Webcasting
Participating in InternetForums, Newsgroups and
“Web Communities”
Page 18
Thursday - Bus 602 18
Integrated Direct Marketing
Paid ad witha response
channel
Paid ad witha response
channelDirect mailDirect mail Outbound
telemarketing
Outboundtelemarketing
Continuingcommunication
Continuingcommunication
Face-to-facesales call
Face-to-facesales call
Page 19
Thursday - Bus 602 19
Global Marketingin the Twenty-first Century
• Faster communication, transportation, and financial flows
• International trade booming
• Intensifying global competition
• Foreign competition in home markets
http://www.photostogo.com/store/101','True','342912','B4BuqN3S5fNC','%60O%60TYJvHJJ%5Ejf~Dzkp1A0~sZc','130','95','Money%20globe%20eclipsing%20the%20Earth','174','167%20316%20381%20385%20540%20673%20741%20819%201199%201438%203240%204490%205834','593','bTaEkT3Z5LXT Page 20
Thursday - Bus 602 20
Global Marketingin the Twenty-first Century
• Era of free trade• Government assistance
– Team Canada
• Global is risky– Economics– Regulations– Tariffs– Trade barriers– Corruption
Page 21
Thursday - Bus 602 21
Deciding Whether to Go International
• In order to survive locally you need to think strategically about your industry
• Reasons:– Defensively
• Counterattack on competitor’s home turf• Reduce market dependence• Global competitors entering
– Offensively• Higher profits than at home• Shrinking domestic market
• Weigh risks and assess global ability
http://www.photostogo.com/store/104','True','360577','CjAuqSCPq$OC','%60Q%5EP_OhFjDUFPl3Zutba3U7IF','81','135','UNIOB067%20Turtle%20with%20rocket','249','32%2036%20661%20741%20779%201075%201360%201452%201463%201560%201587%201665%201670%203240%203443%204029%204551%205833','632','cN%60EkYCMqPET Page 22
Thursday - Bus 602 22
Concentratedomestically
Concentratedomestically
Select entryoptions
Select entryoptions
Identify specific opportunitiesIdentify specific opportunities
Can we?Can we? No
Yes
Should we?Should we? NoMust we?Must we? No
Yes
Start
Improvecapability
Improvecapability
The Decision Process Involved in Determining Whether to Compete in Global Markets
Page 23
Thursday - Bus 602 23
Major Decisions in International Marketing
DecidingWhether to go international
DecidingWhether to go international
Decidingwhich markets
to enter
Decidingwhich markets
to enter
Looking at theglobal marketing
environment
Looking at theglobal marketing
environment
Deciding on theglobal marketing
program
Deciding on theglobal marketing
program
Deciding on theglobal marketing
organization
Deciding on theglobal marketing
organization
Deciding howto enter the
market
Deciding howto enter the
market
Page 24
Thursday - Bus 602 24
The World Trade Organizationand GATT
• WTO formed as an umbrella organization to oversee world trade– 140 member countries
– Administers trade agreements
– Provides negotiation forum
– Handles trade disputes
• Oversees the General Agreement on Trade and Tariffs (GATT)– Designed to promote
world trade
– 8 rounds of negotiation since 1948
Page 25
Thursday - Bus 602 25
Global Marketing Environment:Regional Free Trade Zones
• European Union (EU)– Formed in 1957
– 15 members
– Euro currency
– Tremendous trade opportunity
– Big and competitive
– “Fortress Europe”
• North American Free Trade Agreement (NAFTA) - 1994
• Asian-Pacific Economic Cooperation (APEC)
• Mercosur - Latin America
Page 26
Thursday - Bus 602 26
Cultural Environment
• Every country has:– Folkways
– Norms
– Taboos
• Business behaviour– Personal distance
– Direct vs. diplomatic
– Lack of promotion
– Meeting and greeting
http://www.photostogo.com/store/101','True','503030','Ej~u%7DOFI7ckC','bKaKkPBQ1Ds1%60@w%7BHepJbgNFV','91','138','Canadian%20flag','212','185%20465%20729%20932%201279%201640%202408%202646%204956%205833','830','eN%5EElUFF7IQT http://www.photostogo.com/store/101','False','428694','D4@uwN9N%7DgNC','aMfQaUwTKEWoYq2pHl~B8crY$','104','133','American,%20Canadian,%20British,%20%20and%20%20Japanese%20flags','1648','185%20465%20539%20673%20932%201227%201279%201438%201614%201631%201632%201640%201908%202002%202350%202354%202483%205617%205622%205623%205833','791','dT_EsT9O%7DMXT http://www.photostogo.com/store/101','False','188749','v3@u9N8O87OC','%5ESfRsOoTLKS%5EXwtP5eFv98bvx','96','144','Traditionally%20costumed%20Japanese%20children,Japanese','873','56%2058%20207%20214%20226%20228%20259%20292%20448%20501%20531%20673%20741%20942%201681%202002%202511%202591%202898%202899%202907%202919%205215%205626%205821%205833','181','%5ES_EYN8P8WOT http://www.photostogo.com/store/104','True','140017','v%7CAu9JDK55WC','%5EO%5EKYMvF1HatMdq2NBEE6v2Lr','140','94','POSCA071%20Onion%20domes,%20St.%20Basil%60s,%20Moscow,%20Russia','87','50%20232%201070%201529%201911%202116%202432%202490%202517%202591%202596%202629%202658%203096%204990%205805%205834','142','%5EO%60EYJDH5UWT http://www.photostogo.com/store/101','False','393543','D0vuqUHK8eSC','%60TaPsKxQjIXslX%7CMjv_wgyh9E','112','72','Golden%20lion%20in%20Forbidden%20City,%20Beijing,%20China','1364','50%2056%20163%20332%20426%20544%20621%20717%20749%20898%201124%201652%201756%201832%202490%202517%202630%202878%203101%203278%204002%205834','749','dOgEkkGP8KDT http://www.photostogo.com/store/101','False','341860','B3FuqN1VpdOC','%60O_S%5EHvIIGy-%60qEjs%5EjK0%5E51r','88','132','Group%20of%20young%20and%20mature%20adults%20with%20cake','1740','7%2013%20131%20207%20348%20353%20414%20741%20771%20785%20827%20898%20942%20943%201281%201431%201458%201570%201572%201578%201606%201679%202424%202597%202898%202907%202908%202919%205746%205747%205833','587','bSeEkT1lpJYT http://www.photostogo.com/store/101','False','427225','D4FuwN8P6yNC','aMeMZVwU%7CBXibL6pbATFyuFwP','87','132','Cruise%20on%20the%20Bosphorus,%20Istanbul,%20Turkey','659','56%20157%20332%20465%20898%20932%201087%201279%201394%201993%202408%202691%202772%203278%205187%205833','797','dTeEsT8W6NXT Page 27
Thursday - Bus 602 27
Examples of Cultural Differences that Could Lead to Market Problems
Body Language
• Standing with your hands on your hips is a gesture of defiance in Indonesia.• Carrying on a conversation with your hands in your pockets makes a poor impression in France, Belgium, Finland, and Sweden.
• Shaking your head from side to side means yes in Bulgaria and Sri Lanke.
• Crossing your legs to expose the sole of your shoe is really taboo in Muslim countries. In fact, to call a person a “shoe” is a deep insult.
Physical Contact
• Patting a child on the head is a grave offense in Thailand or Singapore, since the head is revered as the location of the soul.
Promptness
• Be on time when invited for dinner in Denmark or in China. In Latin countries, your host or business associate would be surprised if you arrived at the appointed hour.
Eating and Cooking
• It is rude to leave anything on your plate when eating in Norway, Malaysia, or Singapore.
• In Egypt, it is rude not to leave something.
Other Social Customs
•In Spain, there is a very negative attitude toward life insurance. By receiving insurance benefits, a wife feels that she is profiting from her husbands death.
Page 28
Thursday - Bus 602 28
Politico-Legal and EthicalEnvironment
• Four key factors:– Attitudes toward
international buying– Government bureaucracy– Political stability– Monetary regulations
• Countertrade– Barter– Compensation (buyback)– Counterpurchase
http://www.photostogo.com/store/101','False','427225','D4FuwN8P6yNC','aMeMZVwU%7CBXibL6pbATFyuFwP','87','132','Cruise%20on%20the%20Bosphorus,%20Istanbul,%20Turkey','659','56%20157%20332%20465%20898%20932%201087%201279%201394%201993%202408%202691%202772%203278%205187%205833','797','dTeEsT8W6NXT http://www.photostogo.com/store/101','True','408942','E%7CDuwOLU8$XC','aKfTsSBTJDW6Zz9d_ppU9CS~%60','86','132','The%20Blue%20Mosque,%20Istanbul,%20Turkey','1256','50%2056%20163%20332%20426%20621%20717%20898%201070%201255%201601%201652%201993%202475%202481%202490%202596%202609%202691%202772%202878%203278%204428%204434%205540%205712%205833','845','eOcEsULs8PRT http://www.photostogo.com/store/101','False','182996','~xvu9QJO%7D7RC','%5ES%60TaLoHJFXBfu2K~Z9Ut7j0S','89','135','Parliament%20Buildings.%20Ottawa,%20Ontario,%20Canada','103','50%20163%20185%20237%20552%20618%20717%201087%201118%201674%202173%202181%202591%202646%202878%203278%205833','199','%5ETgEYN3T%7DTNT http://www.photostogo.com/store/104','True','226208','~1GupK4S48RC','_MdMXQwR%7CLS$_V-wTBc1%7B4VRC','92','139','USCIT062%20Exterior%20of%20White%20House,%20Washington,%20DC','702','50%20552%20621%20717%201334%201464%201631%201886%202354%202381%202387%202646%202704%202891%203278%205833','268','_QfEZK4V4XRT Page 29
Thursday - Bus 602 29
Import and Other Restrictions
• Common trade restrictions:– Tariffs
– Quotas
– Embargos
– Exchange controls
– Non-tariff barriers
http://www.photostogo.com/store/101','False','198489','~t@u9RQLwpRC','%5ETfO%60OxT-GT___9N1q%5E%7CaP$E6','94','142','Loading%20logs%20for%20export','409','139%20261%20425%20486%20756%201139%201141%201318%201394%201432%202519%202796%203286%203391%205833','211','_L_EYRQMwZRT http://www.photostogo.com/store/101','False','018370','~2Fu8J7Qq2PC','lLfN_GCT0Gd7ssI0JAQQ$GC$g','139','92','Container%20ship','3','192%20193%20278%20425%20662%20780%201344%202519%202656%205834','277','_ReEXJ7XqRPT http://www.photostogo.com/store/101','False','182996','~xvu9QJO%7D7RC','%5ES%60TaLoHJFXBfu2K~Z9Ut7j0S','89','135','Parliament%20Buildings.%20Ottawa,%20Ontario,%20Canada','103','50%20163%20185%20237%20552%20618%20717%201087%201118%201674%202173%202181%202591%202646%202878%203278%205833','199','%5ETgEYN3T%7DTNT http://www.photostogo.com/store/101','False','428694','D4@uwN9N%7DgNC','aMfQaUwTKEWoYq2pHl~B8crY$','104','133','American,%20Canadian,%20British,%20%20and%20%20Japanese%20flags','1648','185%20465%20539%20673%20932%201227%201279%201438%201614%201631%201632%201640%201908%202002%202350%202354%202483%205617%205622%205623%205833','791','dT_EsT9O%7DMXT Page 30
Thursday - Bus 602 30
Economic Environment
• Marketers must evaluate the country’s:– Stage of economic development– Buying power of the people– Strength of the currency– And many more …
Page 31
Thursday - Bus 602 31
Deciding Which Markets to Enter
• Set marketing objectives and policies
• Volume of foreign sales• How many countries?• Types of countries?• Rank markets
• What are your decision criteria!!
http://www.photostogo.com/store/101','False','178263D','v%7Cvu9MLHp1jkC','%5ERfM%5EICNtNQ7ZV0fd7_%7BfWtLFc','138','93','Lighted%20bulb','18','742%201500%201592%202487%202604%202716%203237%205048%205335%205834','139','%5ENgEYMKMpQ-%7CT Page 32
Thursday - Bus 602 32
Indicators of Market Potential:Demographic Characteristics
• Size of population• Rate of population
growth• Degree of urbanization• Population density• Age structure and
composition of the population
http://www.photostogo.com/store/101','False','405325','D1@uwL3K6ySC','aKcNZVBS0BV3lM4yGkSNcbkzl','136','89','Farmer%20rounding%20up%20sheep%20on%20farm,%20Ohio','256','7%2036%20332%20378%20436%20437%20439%20443%20606%20630%20770%20771%20869%20898%20942%201106%201136%201452%202354%202413%202544%202646%202657%202888%202908%203341%204674%205834','761','dQ_EsR3L6NYT http://www.photostogo.com/store/101','False','399938','Dj@uqULQ7$QC','%60TgTkPxKJHSVc%7D9D%7B~@ub_Lu-','89','133','Ancient%20buildings,%20Aswan,%20Egypt','2074','35%2050%20163%20239%20332%20346%20621%20885%20898%201104%201706%201735%201903%202413%203147%203278%205456%205833','731','dN_EkkLR7PGT http://www.photostogo.com/store/101','True','389431','D-GuqTKU7cOC','%60SgOkIoK-HYSVX3qwGu%7BCUWSU','133','104','Sun%20reflecting%20off%20buildings%20at%20dusk,%20Denver,%20CO','1893','50%20163%20237%20238%20332%20378%20426%20613%20817%20898%201168%201169%201260%201362%201366%201367%201840%202354%202445%202646%202812%202892%203278%205834','728','dMfEkZKX7IET http://www.photostogo.com/store/101','False','410311','Dj@uwMCK5dYC','aL%5ENYRCF0CYzRL61HWT7%7CUPro','132','104','Montage%20of%20knife,%20bolo%20tie%20top%20%20and%20%20Native%20American','207','1%20417%20741%20771%20845%20942%201227%202451%202776%202809%202833%202834%202898%202899%203240%203528%203612%204272%204534%204578%205834','731','dN_EsSCL5JOT http://www.photostogo.com/store/101','False','403611','Dj@uwLFN5dVC','aKaQYRBQKCZ1Zz7$bpwY8ZUAS','135','88','Ancient%20Capitol,%20Bali,%20Indonesia','2448','35%2050%2056%20163%20239%20332%20426%20621%20717%20885%20898%201104%201674%201747%201984%202490%202776%202840%203178%203278%204477%205834','731','dN_EsRFO5JLT http://www.photostogo.com/store/104','False','220924','~4vupK1O64QC','_M%5ETZMwFJJ_2d~GdMw0Cx%7CWls','139','93','Navajo%20man%20in%20full%20dress%20outdoors,%20Ute%20Mt.','868','7%20417%20771%20845%20898%20942%20994%201840%202354%202646%202776%202892%202898%202899%202908%204192%205834','289','_SgEZK0T6TPT http://www.photostogo.com/store/101','True','449588','D4CuwPpRwuLC','aOgP%60YvKjHMgWI%7CqOUZBt%60Xj%5E','133','88','Mosque,%20Anatolia,%20Yenisehir,%20Turkey','1462','50%2056%20163%20260%20332%20426%20621%20717%20898%201070%201166%201652%202596%202609%202635%202691%202772%202776%202878%203278%204065%204428%204431%204434%205712%205834','794','dTbEsVpUwQVT http://www.photostogo.com/store/101','False','393544','D0vuqUHK8fSC','%60TaPsLxQjIWslXjNjv%60pyyrwF','135','90','Buddha%20monument,%20Tokyo,%20Japan','1364','56%2057%20332%20336%20717%20741%20821%20898%201070%201124%201202%201558%201575%201652%202002%202333%202630%202776%203101%203278%203839%204429%204431%204435%205834','749','dOgEkkGP8LDT Page 33
Thursday - Bus 602 33
Indicators of Market Potential:Geographic Characteristics
• Physical size of a country
• Topographical characteristics
• Climate conditions
http://www.photostogo.com/store/101','True','420414B','E-FuwQBR5%7BdiC','aM%5EOYUT@oLPZJB7oQcPCSP32ZI','91','132','Great%20Wall%20of%20China,%20Jimshanling,%20China','802','10%2035%2056%20239%20332%20618%20621%20717%20719%20834%20898%201118%201233%201389%201669%201693%201832%201946%202777%203101%203278%203444%203991%204043%204188%204560%205581%205833','827','eMeEsWBY5R$jT Page 34
Thursday - Bus 602 34
Indicators of Market Potential:Economic Factors
• GNP per capita• Income distribution• Rate of growth of
GNP• Ratio of investment to
GNP
http://www.photostogo.com/store/101','False','420124','D1@uwNjI6gMC','aM%5ELZUwF2BW2L~7sUR@KKua~h','132','88','Toy%20blocks%20spelling%20money%20%20and%20%20currency','1466','167%20316%20455%20564%20673%20819%202792%203240%204490%204654%204655%205033%205070%205834','761','dQ_EsTjJ6MkT Page 35
Thursday - Bus 602 35
Indicators of Market Potential:Technological Factors
• Level of technological skill
• Existing production technology
• Existing consumption technology
• Education levels
Page 36
Thursday - Bus 602 36
Indicators of Market Potential:Sociocultural Factors
• Dominant values• Lifestyle patterns• Ethnic groups• Linguistic
fragmentation
http://www.photostogo.com/store/101','True','488592','D3vuwT8K%7DeYC','aSfPaSoTjE_%5E%5EspD3qX4rRoJG','112','91','Eiffel%20Tower,%20Paris,%20France','1377','50%20163%20332%20426%20469%20621%20717%20798%20898%201166%201222%201905%201911%201923%202195%202629%202684%203200%203278%203407%203425%205008%205109%205834','779','dRgEsZ7P%7DK%60T http://www.photostogo.com/store/101','True','486040','E2GuwW5Q8yWC','aSdKsQoR1Dasa@~V247Y6$XoQ','93','139','Tower%20bridge,%20London,%20England','1462','50%20157%20332%20621%20717%20898%201087%201394%201908%201911%202052%202326%202350%203195%203200%203425%203430%203871%205833','878','eRfEsl5T8NlT http://www.photostogo.com/store/101','False','211800','~tFupJJV40ZC','_L_SXICIILby%600FrYz@CjVPY_','123','122','Couple%20standing%20by%20house%20%20and%20%20car','608','7%2080%20190%20295%20332%20426%20626%20715%20741%20771%20898%20942%201403%201431%201459%202822%202907%202908%202919%203335%205333%205834','217','_LeEZJJl4PZT http://www.photostogo.com/store/101','True','398795','Dt~uqUQP%7DgOC','%60TfRaMxTLHV_Xu6L62584%7BXr6','138','93','Two%20young%20brothers%20peering%20out%20window','2199','50%20151%20226%20228%20426%20626%20661%20741%20942%20989%201146%201426%201447%201480%202454%202822%202908%202919%205643%205834','710','dL%5EEkkQM%7DMIT http://www.photostogo.com/store/101','False','351282C','CjvuqRDHweecC','%60P_M%60JXCtNVSKVOG%7D$T%60Xl2~X3','138','92','Miao%20farmer,%20China','1721','7%2014%2057%20332%20413%20439%20590%20771%20869%20898%20942%20946%20989%201106%201832%202454%202494%202529%202861%202898%202908%203253%203278%204000%205203%205834','629','cMgEkXCMwK%7BrT Page 37
Thursday - Bus 602 37
Indicators of Market Potential:National Goals and Plans
• Industry priorities• Infrastructure
investment plans
http://www.photostogo.com/store/101','True','483545','EjEuwWFT8rSC','aSaPsVoQjD%5EYlNpF-k$6r6FbA','91','134','Highway,%20Namibia','200','259%20332%20346%20451%20616%20719%20898%201088%201118%201241%201513%201539%201568%201669%201693%201706%202472%202614%202777%203141%203179%203219%204068%204071%204188%204300%205000%205833','836','eNdEslFW8SIT http://www.photostogo.com/store/101','False','400140','D4FuwL1O8cPC','aK%5ELsQBF2DYyLB70EPY7iYB2@','90','136','Aerial%20of%20crossing%20highway%20roads,%20Dallas,%20TX','1502','10%2088%20332%20616%20674%20715%20898%20972%201088%201263%201339%201344%201345%201641%201872%202324%202354%202481%202490%202646%202892%205008%205833','797','dTeEsR1V8IZT http://www.photostogo.com/store/104','False','141271C','@jFu9LDPq1ixC','%5EO_M_GWCtO%60TKUC@vrPa0_iZ__','93','137','Cut%20logs%20piled%20for%20logging%20industry','44','332%20486%20664%20708%20759%20898%201432%202413%202796%203286%205833','337','%60NeEYLDWqQi0T http://www.photostogo.com/store/101','False','218389','~2CupJ7Pw9PC','_LfN%60RCT0DY7s%607iJv_RiFhzr','92','137','Labs%20research%20%20and%20%20analysis','643','7%20350%20597%20707%20789%20869%20942%201076%201431%202667%202907%205833','274','_RbEZJ7SwYPT http://www.photostogo.com/store/101','False','404162','C4DuwM5MpdOC','aKbL%5ESBP2FW2VD3y_yWO5k$fb','135','89','Truck%20drivers%20for%20gold%20mining,%20Marathon,%20Canada','31','7%20136%20185%20332%20544%20662%20664%20711%20715%20771%20813%20869%20898%20942%20994%201344%201352%201436%201437%201601%202646%202908%202919%204476%204819%205157%205834','695','cTcEsS5TpJYT http://www.photostogo.com/store/101','False','154060','v28t%7DJ%7CF%7C$C','%5EPbK%5EF~P1EziWbDrG1NIfoP~k','126','93','School%20bus%20with%20children','444','151%20165%20226%20228%20391%20898%20942%20943%20994%201119%201243%201447%202669%202908%203256%204130%205834','16','%5EQXLlJjF%7CDT http://www.photostogo.com/store/101','False','153227','vxBu9KKL65XC','%5EPaMZM~Q%7CIbo%5EsIz_@Qp414-h','93','140','Children%20at%20computer','31','151%20226%20228%20240%20266%20391%20661%20741%20942%201243%201447%201503%202512%202908%203256%205820%205833','103','%5EKaEYKKS6UXT Page 38
Thursday - Bus 602 38
Deciding How to Enter Markets:Market Entry Strategies
Exporting
DirectIndirect
Joint venturing
LicensingContract manufacturingManagement contracting
Joint ownership
Direct investment
Assembly facilitiesManufacturingfacilities
Amount of commitment, risk, control, and profit potentialAmount of commitment, risk, control, and profit potential
Page 39
Thursday - Bus 602 39
Deciding on Global Marketing Program
• Standardized marketing mix or adapted marketing mix?– Marketing concept applies
– World brands
– Adapt only if local wants cannot be changed or avoided
• Think globally but act locally
Page 40
Thursday - Bus 602 40
Deciding on Global Marketing Program: Product
Develop newproduct
Communicationadaptation
Communicationadaptation
Dualadaptation
Dualadaptation
Productinvention
Productinvention
Straightextension
Straightextension
Productadaptation
Productadaptation
Adaptproduct
Don’t changeproduct
Don’tChangepromotion
Adaptpromotion
Product
Pro
mot
ion
International Product and Promotion Strategies
Page 41
Thursday - Bus 602 41
Deciding on Global Marketing Program: Promotion
• Message• Colours• Communication
adaptation strategy• Media availability
Page 42
Thursday - Bus 602 42
Deciding on Global Marketing Program: Price
• Not always the case but pricing in other countries generally is higher than domestic
• Foreign subsidiaries and the challenge of setting the right price
• Currencies – show problems• Influence of the internet – level playing
field• Moving towards standardizing
Page 43
Thursday - Bus 602 43
Deciding on Global Marketing Program: Distribution
• What level of control do you want to have• Do you give it to someone to sell or sell
it yourself?• Depending on the risk level and control
you want it will vary the program that is best for a company
Page 44
Thursday - Bus 602 44
Deciding on Global Marketing Organization
ExportingGlobal
OrganizationInternational
Division