GLOBAL MARKETING

1. GLOBAL MARKETING Marketing Strategy

2. Benefits of Strategy • Coordinates activities among functional areas of organization • Defines resource allocation • Leads to a superior market position

3. Components of Strategy Statement of objectives Establish general direction of strategy Selection of strategic alternative(s) Selection of customer targets Choice of competitor targets Positioning Statement of core strategy Description of supporting marketing mix Implement strategy Description of supporting functional programs

4. Marketing Goals • Desired general accomplishments stated in vague terms. • Indicate the direction the firm is attempting to move and the set of priorities it will use in evaluating alternatives and making decisions.

5. Should be attainable and realistic. • Should be internally consistent. • Should be comprehensive and help to clarify the roles of all parties in the organization. • Should involve some degree of uncertainty.

6. Examples of Goals • To have the largest, best-trained sales force in the industry. • Having the best recognized and most effective advertising campaign in the industry.

7. Marketing Objectives • Provide specific and quantitative benchmarks that can be used to gauge progress toward the achievement of the marketing goals for which they are developed. • Should be attainable with a reasonable degree of effort.

8. Should specify the time frame for their completion. • Usually related to sales revenues, market share, profitability, or cash flow

9. Examples of Objectives • The marketing department will be responsible for having 40% of customers listing this financial institution as their primary financial institution within one year. • The sales department will increase sales 18% during the next 2 years.

10. Strategic Alternatives: Growth • Market development strategies • Attract non-users • Enter new markets

11. Attracting non-users • Increase willingness to buy • Demonstrate benefits of product form • Develop new product forms with desired benefits • Increasing ability to buy • Offer lower prices or credit • Provide greater availability

12. Enter new markets • Broaden distribution • Move into new geographic markets • Add channels of distribution • Product-line extension • Vertical product line extension • Horizontal product line extension • Expansion through acquisition or diversification

13. Market penetration strategies • Increase purchase rate of existing customers • Attract competitors’ customers

14. Increasing purchase rate • Broaden usage • Provide examples of additional uses of product • Increase consumption levels • Lower prices, special-volume packaging • Improve buyers’ perceptions of product benefits • Increase rate of replacement • Improve benefits, e.g., convenience, lower operating costs, that encourage early replacement

15. Attracting competitors’ customers • Head-to-head competition • Superior marketing effort • Quality, selection, availability, brand name recognition • Price-cost leadership • Offer comparable quality at lower price

16. Differentiation • adding a set of meaningful and valued differences to distinguish the firm’s offering from competitors’ offerings • Criteria: • important •preemptive • distinctive • affordable • superior • profitable

17. Differentiation Variables

18. Strategic Alternatives: Profitability • Maintain satisfaction • Consistent, high quality • Effective customer complaint system • Build strong customer relationships • Encourage repeat business through formal relationships • Target best customers • Develop complementary products • Increase dependence on firm

19. Decrease costs/increase efficiencies • Increase price • Decrease product offerings/emphasize selling of most profitable products

20. Strategic Alternatives: Cash Flow • Harvest market position • Systematically raise prices and reduce marketing expenses to capitalize on ST performance opportunities • Divest market position • Sell firm • Close down operation and sell assets

21. Implications of Product Life Cycle on Marketing Strategy

22. Introduction Stage • Objective: Create awareness and product trial Product—offer a basic product Price—charge cost-plus Distribution—selective Communications—target advertising to early adopters and dealers to increase awareness; heavy sales promotion to stimulate trial

23. Growth Stage • Objective: Maximize market share Product—product extensions, warranties Price—decrease prices to penetrate Distribution—intensive Communications—target advertising to mass market to increase awareness; reduce sales promotions

24. Maturity Stage • Objective: Maximize profit while defending market share Product—diversify products and brands Price—match or best competitors’ prices Distribution—more intensive Communications—use advertising to stress brand differences and benefits; increase sales promotions to encourage brand switching

25. Decline Stage • Objective: Reduce expenditure and milk the brand Product—phase out weak models Price—cut price Distribution—selective; phase out unprofitable outlets Communications—reduce and target hard-core loyals; reduce sales promotions to minimal levels