MORIBA TOURAYGLOBAL MARKETING PLAN

FINAL RESEARCH PRESENTATIONSCHILLER INTERNATIONAL

UNIVERSITY

What is PESTEL Analysis PESTEL (Political, Economic, Social, Technological,

Environmental and Legal) analysis is business measurement tool that is used to assess the position and market growth of any organization (Chapman, 2010).

It is also know as PEST or PESTLE analysis and helps to in understanding the relevant opportunities and the risk of business expansion.

It helps in reducing the risks associated with an unfamiliar environment while working on organizational plans.

POLITICAL

Environmental protection/legislation Consumer protection Government’s attitude Competition regulation Advertising standards

Economic

Economic growth Taxation international trade Exchange Rate Employment law Health and Safety law Inflation Consumer confidence Minimum wage

Social

Income distribution Demographics Labour & Social mobility Lifestyle changes Attitudes to work and leisure Education Fashion and Fads Health & Welfare Living conditions

Technological

Changes in physical sciences Internet Energy use and costs Rates of technological obsolescence New discoveries Govt and Industry focus on tech Govt spending on research

Legal

Employment law Health and Safety Taxation both corporate and consumer Other regulations International trade barriers Strength of the rule of law

Environmental How people’s perception and reaction to

environmental issues can affect a business.

SWOT Analysis SWOT is a business or strategic planning

technique used to summarize the key components of your strategic environments.

SWOT analysis (strengths, weaknesses, opportunities, and threats analysis) is a framework for identifying and analyzing the internal and external factors that can have an impact on the viability of a project, product, place or person. 

Summary of SWOT Analysis Strengths Weaknesses Opportunities Threats

Internal vs External

Strengths and Weaknesses are considered internal factors meaning you as the business owner can control them. How you manage or market the business controls whether it is a strength or weaknesses

Opportunities and Threats are considered external factors, meaning you have little control over them. It is your job as a business owner to respond appropriately .

SWOT Analysis Four Element

Strengths - internal attributes and resources that support a successful outcome.

Weaknesses - internal attributes resources that work against a successful outcome.

Opportunities - external factors the project can capitalize on or use to its advantage.

Threats - external factors that could jeopardize the project.

Objectives To gain an understanding of the need for research. To explore the differences between domestic and

international research. To learn where to find and how to use sources of

secondary information. To gain insight into the gathering of primary data. To examine the need for international management

information systems.

The Importance of International Research

Firms must learn where the opportunities are, what customers want, why they want it, and how they satisfy their needs and wants.

Research allows management to identify and develop international strategies.

Firms must identify, evaluate, and compare potential foreign business opportunities and the subsequent target market selection.

Research is necessary for the development of a business plan.

Secondary Data

Secondary data is information that already has been collected by some other data is, and the relevance to the task at hand.

Secondary consists of: personal records, electronic records, public records, internet information.

This data should be evaluated regarding the quality of the source, how recent the secondary data were originally collected to serve another purpose, they can often only be used as proxy information.

Primary Data

Primary data are obtained by a firm to fill specific information needs.

Conducting data collection: questionnaires, surveys, interviews, observation, case studies and focus groups.

The researcher must decide whether research is to be conducted in the consumer or the industrial product area.

Determining the Research Technique

Selection of the research technique depends on a variety of factors:

The objectivity of the data sought must be determined. Unstructured data will require more open-ended questions and more time than structured data.

Whether the data should be collected in the real world or in a controlled environment.

Whether to collect historical facts or information about future developments.

Global Market Research

Marketing research Process of collecting and using information for marketing decision making.

Research is central to understanding effective customer satisfaction and customer relationship programs

Usually follows a six-step process. Well-defined problems are half-solved. Avoid confusing symptoms with problem itself. Loss of market share is a symptom;

reason for the loss is the problem. Evaluate firm’s marketing mix and possible

changes to the marketing environment

Exploratory Research

Exploratory research Process of discussing a marketing problem with informed sources both within and outside the firm and examining information from secondary sources.

May use internal data from customer surveys, sales analysis, accounting data, and marketing cost analysis to measure.

The Marketing Research Methods

SECONDARY DATA COLLECTION Secondary data comes from internal and external sources i.e.

U.S. Census. Private data from trade associations, business and trade

magazines, and other sources. Online sources such as databases and research aggregators that

acquire, catalog, reformat, segment, and resell premium research reports.

Global Market Entry Strategy Trade barriers are falling around the world Companies need to have a strategy to enter world

markets. The need for a solid market entry decision is an

integral part of a global market entry strategy. Entry decisions will heavily influence the firm’s

other marketing-mix decisions. Mode which may include:

(1) the target product/market(2) the goals of the target markets(3) the mode of entry(4) The time of entry(5) A marketing-mix plan

Selecting the Target Market A crucial step in developing a global expansion

strategy is the selection of potential target markets.

A four-step procedure for the initial screening process:

1. Select indicators and collect data2. Determine importance of country indicators3. Rate the countries in the pool on each

indicator4. Compute overall score for each country

Choosing the Mode of Entry

Mode of Entry Choice: A Transaction Cost Explanation• Regarding entry modes, companies normally

face a tradeoff between the benefits of increased control and the costs of resource commitment and risk.

• Transaction Cost Analysis (TCA) perspective• Transaction-Specific Assets (assets valuable

for a very narrow range of applications)

Exporting Indirect Exporting

Export merchantsExport agentsExport management companies (EMC)Cooperative ExportingPiggyback ExportingDirect ExportingFirms set up their own exporting departments

Licensing Licensor and the licensee Benefits:

Appealing to small companies that lack resources Faster access to the market Rapid penetration of the global markets

Caveats: Other entry mode choices may be affected Licensee may not be committed Lack of enthusiasm on the part of a licensee Biggest danger is the risk of opportunism Licensee may become a future competitor

Expanding Through Joint Ventures Benefits:

Higher rate of return and more control over the operations

Sharing of resources and access to distribution network

Caveats:Lack of control and trustConflicts arising over matters such as strategies,

resource allocation, transfer pricing, ownership of critical assets like technologies and brand names

Entering New Markets through Wholly Owned Subsidiaries

Benefits: Greater control and higher profits Strong commitment to the local market on the

part of companies Allows the investor to manage and control

marketing, production, and sourcing decisions Caveats:

Risks of full ownership and risk of nationalization.

Developing a foreign presence without the support of a third part

Timing of Entry

International market entry decisions should also cover the following timing-of-entry issues:

When should the firm enter a foreign market? Other important factors include: level of international

experience, firm size. Also, the broader the scope of products and services Mode of entry issues, market knowledge, various

economic attractiveness variables.

Exit Strategies

Risks of exit:Fixed costs of exitDisposition of assetsSignal to other marketsLong-term opportunities

What is a Value Proposition A brand’s value proposition is a statement of the

functional, emotional, and self-expressive benefits delivered by the brand that provide value to customers in the target segment. A balanced value proposition is the basis for brand choice and customer loyalty, and is critical to the ongoing success of a firm.” (O’Guinn, Allen, Semenik 4E, 2006, p. 234)

The customer value proposition provides a focused approach to understanding the target user in the context of your product.

Value Experiences Benefit experiences: the set of events that deliver

positive value to the key target user when compared with the next best alternative.

Parity experiences: the set of events that deliver equal value to the key target user when compared with the next best alternative.

Trade-off experiences: the set of events that deliver negative value to the key target user when compared with the next best alternative

Value Experience Quantification

Precisely measure what should be quantified. Estimate what can’t be measured. Don’t try to measure intangibles. Selection of a meaningful unit of

measurement. The unit of measurement should be significant for the key target user.

Key Target

Intended user of the product. Predominant user of the product. Segment of individuals that share the same

characteristics. Key target user is a predominant user for the

product.

Value Experience Qualifications

Benefit experiences: the set of events that deliver positive value to the key target user when compared with the next best alternative.

Parity experiences: the set of events that deliver equal value to the key target user when compared with the next best alternative.

Trade-off experiences: the set of events that deliver negative value to the key target user when compared with the next best alternative.

Price vs Costs Price = the sum of expenditures paid to

you for the product and services. Price is called out specifically in the

customer value proposition. Cost = the additional expenditures not

paid to you but required to enable a product.

Cost is reflected in the value experiences.

Customer Proposition Use Build internal consensus. Align product prices with value delivered. Create marketing messages that communicate the

customer value. Train the sales team to effectively present the

customer value. Develop content targeted to the key user based on

the customer value. Continually quantify your customer value claims as

you deliver your product to new customers.

Competitive Advantages

The process of identifying key competitors; assessing their objectives, strategies, strengths and weaknesses, and reaction patterns; and selecting which competitors to attack or avoid.•Creating competitive advantage requires creative, “out-of-the-box” thinking.An advantage over competitors gained by offering consumers greater value than competitors offer.

What is the definition of Competitive Advantage

Competitive AnalysisThe process of identifying key

competitors; assessing their objectives, strategies, strengths and weaknesses, and reaction patterns; and selecting which competitors to attack or avoid.

Steps in Analyzing Competitors

Hofstede’s Cultural Dimensions

Individualism-collectivism Masculinity-femininity Power distance Uncertainty avoidance

Individualism-Collectivism

Self-perception as individual or part of a group Most widely studied Most complex Dimensions different across cultures

i.e., Asian vs Latin American collectivism

Masculinity-Femininity

Success Assertive acquisition of money/power achievement Equality of genders Caring for disadvantaged Harmony

Power DistanceHigh-Power Distance Accept position Follow authority Concentrated & centralized authority HierarchicalLow-Power Distance Avoid concentration of authority Decentralized Fewer layers of management

Uncertainty Avoidance

Low UncertaintyAvoidance Embrace unpredictable Less adherence to rules, procedures, or hierarchies Risk taking desirableHigh UncertaintyAvoidance Threatened by ambiguity Need stable & predictable workplace Reliance on rules

Alternative Dimensions

Outer-directed—Inner-directedUniversalism—ParticularismNeutral—EmotionalSpecific—DiffuseAchievement—Ascription Individualism—Communitarianism

SegmentationDefinition

This is the process of dividing the total market for a good or service into several smaller, internally similar (or homogeneous) groups.

All members in a group have similar factors that influence their demand for the particular product

Geographic: The city size, urban/ suburban/ rural population distribution and climate.

Demographic: The distribution of a population’s age, sex, income, stage in family cycle and ethnic background.

Psychographics: Personalities, lifestyles, social class including activities, interests and opinions (AIO).

Behaviour towards products. Benefits desired or sought. Product usage rate.

Target Market The target market should be compatible with

an organisation’s goals and image. The marketing opportunity presented by the segment must

match the company’s resources. The business must generate a profit if it is to continue its

existence.

Position StrategyPositioning is assessed:In relation to a competitor.According to a product class or attribute.By price and quality.

communicating distinctiveness to a particular target market segment.

STP marketingSegmentingTargetingPositioning

Marketing Mix – 4Ps The marketing mix elements that make up

an organization’s marketing program:1. Product2. Promotion3. Price4. PlaceThese are management decisions, and

controllable factors

Marketing function relates to many people, groups, and

forces

Marketing task: satisfying consumer needs

Price - Quality Strategies

Premium Strategy

Overcharging Strategy

Good-Value Strategy

Economy Strategy

PriceHigher Lower

Higher

Lower

Qua

lity

Promotion

Why are promotions?Raising customer awareness of a product or brand

generating salesCreating brand loyalty and determines when, when,

how advertising is be done: personal selling, public relations, sales promotion, and direct marketing tactics.

Promotional tools increase sales, build brand value, recognition and strengthen market positioning

The Role of Advertising

Integrated Communication Program Blend with objectives

Enhancing Sales Effectiveness Does it help?

$$ per salespersonHigher ratingsSupplier reputationIncreased brand awarenessGross margins

Managing B2B Advertising

Selecting Advertising Media Based on what the target market usesBusiness publicationsHorizontal publicationsAd Age, Marketing NewsVertical publicationsSporting goods BusinessRequester publications

Measuring Advertising Effectiveness

What benefits does advertising provide the company?

Measuring Impact on Purchase DecisionIndirect communication

Measurement ProgramBenchmarking

Common benchmarks

Trade Shows Magnitude of trade shows International trade shows Investment returns Trade show objectives

Identify decision-influencers Identify potential customers Create actual sales Provide products, services, and

company information Learn of potential application

problems Handle existing customer

problems

Home-Country Middlemen Export Management Companies

Highly specialized in certain industries and/or regions

Trading Companies The U.S. Model and the Export Trading

Company Act Cooperative Export Arrangements

Also known as piggybacking Involve exporters agreeing to handle export

functions for unrelated companies on a contractual basis

Foreign-Country Middlemen

Merchant Middlemen Intermediaries who carry the manufacturer’s

product line in a particular country Usually carries title to and has physical possession

of the products Alternative Distribution Structures: Network Marketing

Using acquaintance networks for the purpose of both sales and distribution

Have high potential in emerging markets

International Distribution and Logistics

Distribution Centers Transportation Firms Freight Forwarders and Customs Brokers Government Agencies

Promote national security Promote international involvement of local firms Provide financing and insurance for high risk

ventures

Government Agencies

International Trade Administration Bureau of Export Administration U.S. Commercial Service Export/Import (Ex-Im) Bank United States Trade and Development Agency

Global Supply Chain Management

Creating an effective supply chain Develop strategic objectives and tactics Integrate and coordinate activities in

the internal portion of the supply chain Coordinate activities with suppliers and

customers Coordinate planning and execution

across the supply chain Consider forming strategic partnerships

Global Supply Chain Management

Scheduling the arrival of materials and other inputs Warehousing and inventory control Strategic choice of international warehousing facilities Scheduling production Packaging, transportation and final delivery Analysis of transportation costs

Designing Global Value Supply Chain Management

The design and management of a system that controls the flow of materials into, through and out of the international corporation

The design and management of a system that controls the flow of materials into, through and out of the international corporation

1. The systems concept2. The total cost concept 3. The trade-off concept

Activities involved in Supply chain

i. Purchasingii. Manufacturingiii. Logisticsiv. Distributionv. Transportation and vi. Marketing

The International Supply Chain/Global Supply Chain

Covers both logistics and operations Includes activities such as sourcing,

procurement, order processing, manufacturing, warehousing, inventory control, servicing and warranty, customs clearing, wholesaling and distribution

Two Aspects of Supply Chain Management

1. Supply chain as a cross-functional entity

2. Supply chain as the integrator and coordinator of production and logistics activities

Domestic to International

1. Substantial geographical distances2. Forecasting problems/difficulties in foreign markets3. Fluctuations in exchange rates for different currencies4. Demand for great variety of products5. Inadequate infrastructures such as labor skills, availability of supply Supplier quality Lack of local process equipment and technologies Inadequate transportation facilities and Inadequate telecommunication facilities

Domestic Supply chain Distributions

Supplier

Supplier

Supplier

Storage} Mfg. Dist. Retailer CustomerStorage

Supplier

Supplier

Storage} Service Customer

Global Supply Chain

Inventory management

Physical distribution

transportation

Order placement

Corporation Suppliers Customers

Order processing

transportation

storage

Materials management

Inventory management

Physical distribution

Storage

Forward and reverse flows of information, products and funds

Managing Global Logistics

Two major areas of Global Logistics arei. Global sourcing andii.Global distribution

What Does Supply Chain Involve?

NETWORK OF FACILITIES MATERIALS RAW MATERIALS – PRODUCTS FINISHED PRODUCTS

LINKS PROCUREMENT LOGISTICS

ELIMINATE REDUNDANCY DELAYS RESOURCES

What is digital Marketing?

Digital marketing” is the process of building and maintaining customer relationships through online activities to generate sales and/or capture customers that are searching on the Internet for answers.

Why are people going digital? With the constant growth of the web, and more people

getting connected every day, digital marketing has become a necessity for many organizations. This also includes small businesses that want to trade online and make a name for themselves on the web.

The web is crowded with information. If you have a website, how can these people reach you? What are the benefits of digital marketing?

Benefits of going digitalOver traditional marketingPuts the consumer in controlProvides convenienceDrives brand loyaltyReduces the selling cycleBuilds your brandIt is measurableIt is cost effective

Digital Marketing Objectives

One way to make sure you are found on the web is with an optimized digital marketing strategy. Most digital marketing strategies and campaigns have 5 objectives: (brainstorm)1.Reach the right audience 2.Engage with your audience3.Motivate your audience to take action4.Ensure efficient spending on your campaign 5.Maximize return on investment (ROI)

What does the digital Marketing Consist of?

Key componentsWebsite design (user experience)Search engine optimization (SEO)Pay per click (PPC)Social media marketing (SMM)Email marketingDisplay advertising (banner ads)

Advantages of digital Marketing

Targeted traffic High return on investment (ROI) Does not require specialization or

vast technical skills Ability to go viral therefore high

visibility Cost effective (only time and effort)

ReferencesHofstede, G. (2011). Dimensional zing Cultures: The Hofstede Model in Context. Retrieved on November 08, 2016 from http://scholarworks.gvsu.edu/cgi/viewcontent.cgi?article=1014&context=orpcNielsen, B., Perdersen, T. & Pyndt, J. (2014). Global Value Chain Management. Retrieved from https://hbr.org/product/ecco-a-s-global-value-chain-management/an/908M14-PDF-ENGKeegan, W.J. (2014). Global Marketing Management. 8th ed. Prentice Hall, Saddle River, NJSonkiya, S. (2014). PESTLE Analysis: External Business Environment. Retrieved from http://www.izenbridge.com/blog/pestle-analysis-external-business environmentChaffey, D. & Chadwick, F. E. (2015). Digital Marketing: Strategy, Implementation and Practice 5th Edition. Apprentice Hall, Saddle River, NJArmstrong, G. & Kotler, F. (2007). An introduction Marketing, 8th Ed, Pearson Education, Saddle River, NJ

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