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Global Business  ( Chap 8 ). Dept of Technology Management for Innovation (TMI), Graduate School of Engineering Professor Kazuyuki Motohashi 工学系研究科 技術経営戦略学専攻教授 元橋一之 http://www.mo.t.u-tokyo.ac.jp. Today’s Class. What is marketing, why important? Marketing strategy planning steps

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global business chap 8

Global Business (Chap8)

Dept of Technology Management for Innovation (TMI), Graduate School of Engineering

Professor Kazuyuki Motohashi

工学系研究科 技術経営戦略学専攻教授

元橋一之

http://www.mo.t.u-tokyo.ac.jp

today s class
Today’s Class
  • What is marketing, why important?
  • Marketing strategy planning steps
  • 4P: Product, Price, Place and Promotion
  • Marketing for emerging economies: China, India
  • Bottom of the Pyramid (BOP) Business
ansoff s product and market growth matrix
Ansoff’s Product and Market Growth Matrix

Global Business Context: CAGE and AAA framework

price
Price

To what extent you can be a price setter, instead of price taker ?

promotion aidma
Promotion (AIDMA)

Changing to AISAS in

Internet Era

promotion in global business some caveats
Promotion in global businessSome caveats
  • Regulations over promotion activities: such as whether you can do “comparative advertising”
  • Terminology in foreign language
  • Brand creation (difference in customer’s perception)
  • Importance of local ad agency
  • Lack of product knowledge at local distributors
market potential of china and india
Market potential of China and India

Middle Class

= Volume zone

  • Profit=gross margin * sales volume (size of market and competition)
  • Difference between durable and consumption goods, customer preference?
another concept of price ppp
Another concept of price: PPP
  • Concept of PPP(Purchasing Power Parity)
  • Big Mac price by Economist magazine

US: 4.07 $, China: 14.7 RMB=2.27 US$ (▲44%)

bop bottom of the pyramid
BOP(Bottom of the Pyramid)

75 mil. -100 mil.

150 mil.-1,750 mil.

4,000 mil.

(出典)The fortune at the bottom of the pyramid (C.K. Praharad)

bop s business chance poverty premiu m
BOP’s Business ChancePovertypremium

(出典)The fortune at the bottom of the pyramid (C.K. Praharad)

example icici s micro payment
Example: ICICI’s micro payment

(出典)The fortune at the bottom of the pyramid (C.K. Praharad)

slide22
DetailinformationofBOPbusinesscanbefoundin TMI’s Innovation Case Studies Course material (in Japanese)

Overview of BOP business

http://www.mo.t.u-tokyo.ac.jp/kyouiku/2014/140624_JRIkougishiryou.pdf

Ajinomoto’s Ghana project

http://www.mo.t.u-tokyo.ac.jp/kyouiku/2014/todai20140624ajinomoto.pdf

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