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GLOBAL MARKETING

GLOBAL MARKETING. Marketing Strategy. Strategy is integrated action in pursuit of competitive advantage Offering unique value to customers that cannot be duplicated by competitors. Benefits of Strategy. Coordinates activities among functional areas of organization Defines resource allocation

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GLOBAL MARKETING

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  1. GLOBAL MARKETING Marketing Strategy

  2. Strategy is integrated action in pursuit of competitive advantage • Offering unique value to customers that cannot be duplicated by competitors.

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

  4. 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

  5. Considerations for Global Strategy • Political risk • Market access • Land, labor, and capital costs • Shipping considerations • Country infrastructure • Foreign exchange • Product fit

  6. International Market Entry • Sourcing • Should the firm export or produce locally? • Licensing • Investment • Joint ventures • Sole ownership • Global strategic partnerships

  7. Market Expansion Strategies • Should the firm seek new markets in countries in which it already operates or seek new country markets for already identified and served market segments?

  8. Market Segmentation Concentration Diversification Narrow focus Country focus Concentration Country Country diversification Global diversification Diversification

  9. Stages of Global Development

  10. Generic Marketing Strategies Cost Leadership Differentiation Broad target Competitive Scope Cost Focus Focused Differentiation Narrow target Lower cost Differentiation Competitive Advantage

  11. Broad Market Strategies • Cost-leadership advantage • Low-cost producer • Experience curve • Need to obtain largest market share to have lowest cost per unit in industry • Ability to offer lower prices and more value to customers in competitive stages of product life cycle

  12. Differentiation • An actual or perceived uniqueness in product offering • Ability to command premium price

  13. Narrow Target Strategies • Focused Differentiation • Offers a narrow target market the perception of product uniqueness at a premium price • Cost Focus • Offers a narrow target market lower prices than the competition

  14. 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

  15. Differentiation Variables

  16. Implications of Product Life Cycle on Marketing Strategy

  17. 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

  18. 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

  19. 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

  20. 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

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