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Global Environment

International Marketing 70-480, Session 3 Lloyd Corder, Ph.D. Global Environment. Models. Corder’s Questions. How can we asses, define and think about marketing challenges ? What are popular marketing models and how do they work?. 3. Models International Marketing 70-480

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Global Environment

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  1. International Marketing 70-480, Session 3 Lloyd Corder, Ph.D. Global Environment Models

  2. Corder’s Questions How can we asses, define and think about marketing challenges? What are popular marketing models and how do they work? 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  3. A-B-C-D Paradigm 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  4. Standardization Issues 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  5. Marketing Audits • Techniques • Senior management interviews • Employee interviews • Customer and marketplace input • Review of marketing and communication tools Helps determine “where an organization is in terms of its marketing practices, goals and achievements. 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  6. Models 5 W’s 4 P’s 4 C’s 5 Forces SWOT Product Life Cycle 2 X 2 Maps Basic Marketing Models • Why Use Them? • Simplify marketing problems • Provide framework and a common language • Helps showcase that price is an element of the marketing mix—not a stand alone phenomenon • All marketing has a cost and should have a benefit we can use to influence price 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  7. The 5 W’s Who? (Target audience, segment, niche) Marketing Situation What? (Product, service, package) Why? (Build image, generate leads) When? (Level of urgency, life cycle) Where? (Channel, positioning) 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  8. The 4 P’s Revenue Expenses Product Place (Distribution) Promotion Price How is the product priced? How are its competitors priced? What marketing, public relations or advertising is used to sell the product? Which one(s) are working and how well? What are the product’s key features / benefits? Why should someone buy this product? How is the product distributed? How many steps does it take to get from the producer to the end user? Unique packaging “Superior cleaning power” Affinity marketing — “cool people drink XX” Retail store Warehouse store, Sam’s Club Mail order Internet/electronic distribution Newspaper versus TV versus radio ads Retail placement — aisle-end displays New media? Value pricing/ “Every Day Low Price” Premium pricing Price discrimination 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  9. Price versus Product Price Product Quality 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  10. 4 C’s Costs Customers Competitors Channels Identify relative channel leverage (sources of advantage / sustainability) Impact of channel strategies on market positioning Break down the company’s cost structure (fixed, variable) Estimate the competitor’s cost structure Understand trends in cost structures Segment the company’s customer base(new/existing; loyal/switchers) Examine company profitability by segment How much do they purchase? At what price? Identify major competitors (traditional, unexpected substitutes) What are the competitor’s strengths and weaknesses (profits, costs)? Investigate market share 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  11. 5 Forces Economies of scale Capital costs Cost advantage of existing competitors Barriers to exit Patents Barriers to Entry Number / size of suppliers Switching costs / productdifferentiation Availability of substitutes Possibility of forward integration Supplier Power Significance of the purchase relative to cost structure Switching costs Purchase volume Threat of backward integration Buyer Power Number and size of competitors Industry growth rate Product differentiation factors Industry margins / pricing Market Rivalry Relative price / value of the substitute compared to industry’s product Cost of switching to substitute Buyers’ propensity to switch Substitutes 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  12. Source: Michael Porter Strategy and the Internet Harvard Business Review

  13. Club Med Locations 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  14. Club Med 5 Forces Model 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  15. Entry Mode Pros and Cons 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  16. More Barriers 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  17. SWOT Analysis Internal External Opportunities Strengths Strengths Weaknesses Opportunities Threats Weaknesses Threats 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  18. Life Cycle • Assumptions • Products have a limited life; can’t be sold as the same product forever • Each product progresses through four stages (introduction, growth, maturity and decline) • Pricing should be adapted to capitalize on where the product is within its life cycle 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  19. Entry Issues 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  20. Life Cycle Stages Where marketers wimp out Cycles are getting shorter and shorter Start up Sell on price, exit Make money Fight off competitors 3. Models International Marketing 70-480 Lloyd Corder, Ph.D. Source: Basic Marketing, E. Jerome McCarthy

  21. 2 X 2 Diagrams • Take two attributes and plot them against each other (with each axis going from low to high) • Name the four resulting boxes • Examples • Boston Consulting Group Growth-Share Matrix • Importance-Performance Plots • Channel/Market Growth Chart • Covey Priority System 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  22. Boston Consulting Group Growth-Share Matrix High Growth Stars Question Marks Low Market Share High Market Share Cash Cow Dogs Low Growth 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  23. Importance/Performance Plots Extremely Important Keep Up the Good Work Concentrate Here Fair performance Excellent Performance Low Priority Possible Overkill Slightly Important 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  24. Channel/Market Growth Map Value Added By The Channel Low High Declining (Mail Order) Introductory (Hobbyist Store) High Market Growth Rate Excellent Performance Growing (Specialty Retailer) Mature (Mass Merchandisers) Low Slightly Important 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  25. Covey Priority System Important B A Urgent Not Urgent C X Not Important 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  26. Corder’s Conclusions • Marketing models help clarify and simplify marketing situations • There are literally hundreds of marketing models • Adapting existing models or creating your own to assess marketing challenges can be a powerful and persuasive consulting tool 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

  27. Slide 27 3. Models International Marketing 70-480 Lloyd Corder, Ph.D.

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