Global Marketing plan & Strategies

1. MORIBA TOURAY
GLOBAL MARKETING PLAN
FINAL RESEARCH PRESENTATION
SCHILLER INTERNATIONAL
UNIVERSITY

2. 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.

3. POLITICAL
 Environmental protection/legislation
 Consumer protection
 Government’s attitude
 Competition regulation
 Advertising standards

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

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

6. 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

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

8. Environmental
 How people’s perception and reaction to
environmental issues can affect a business.

9. 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.

10. Summary of SWOT Analysis
 Strengths
 Weaknesses
 Opportunities
 Threats

11. 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 .

12. 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.

13. 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.

14. 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.

15. 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.

16. 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.

17. 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.

18. 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

19. 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.

20. 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.

21. 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

22. 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 data
2. Determine importance of country indicators
3. Rate the countries in the pool on each
indicator
4. Compute overall score for each country

23. 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)

24. Exporting
Indirect Exporting
Export merchants
Export agents
Export management companies (EMC)
Cooperative Exporting
Piggyback Exporting
Direct Exporting
Firms set up their own exporting departments

25. 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

26. 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 trust
Conflicts arising over matters such as strategies,
resource allocation, transfer pricing, ownership of
critical assets like technologies and brand names

27. 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

28. 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.

29. Exit Strategies
 Risks of exit:
Fixed costs of exit
Disposition of assets
Signal to other markets
Long-term opportunities

30. 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.

31. 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

32. 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.

33. 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.

34. 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.

35. 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.

36. 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.

37. 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.

38. What is the definition of
Competitive Advantage
Competitive Analysis
The process of identifying key competitors;
assessing their objectives, strategies,
strengths and weaknesses, and reaction
patterns; and selecting which competitors
to attack or avoid.

39. Steps in Analyzing
Competitors

40. Hofstede’s Cultural Dimensions
 Individualism-collectivism
 Masculinity-femininity
 Power distance
 Uncertainty avoidance

41. 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

42. Masculinity-Femininity
 Success
 Assertive acquisition of money/power
 achievement
 Equality of genders
 Caring for disadvantaged
 Harmony

43. Power Distance
High-Power Distance
 Accept position
 Follow authority
 Concentrated & centralized authority
 Hierarchical
Low-Power Distance
 Avoid concentration of authority
 Decentralized
 Fewer layers of management

44. Uncertainty Avoidance
Low Uncertainty
Avoidance
 Embrace unpredictable
 Less adherence to rules, procedures, or hierarchies
 Risk taking desirable
High Uncertainty
Avoidance
 Threatened by ambiguity
 Need stable & predictable workplace
 Reliance on rules

45. Alternative Dimensions
Outer-directed—Inner-directed
Universalism—Particularism
Neutral—Emotional
Specific—Diffuse
Achievement—Ascription
Individualism—Communitarianism

46. Segmentation
Definition
 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.

47. 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.

48. Position Strategy
Positioning 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 marketing
Segmenting
Targeting
Positioning

49. Marketing Mix – 4Ps
 The marketing mix elements that make up
an organization’s marketing program:
1. Product
2. Promotion
3. Price
4. Place
These are management decisions, and
controllable factors

50. Marketing function relates to
many people, groups, and
forces

51. Marketing task: satisfying
consumer needs

52. Price - Quality
Strategies
Premium
Strategy
Overcharging
Strategy
Overcharging
Strategy
Good-Value
Strategy
Good-Value
Strategy
Economy
Strategy
Economy
Strategy
Price
Higher Lower
Higher
Lower
Quality

53. Promotion
 Why are promotions?
Raising customer awareness of a product or brand
generating sales
Creating 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

54. The Role of Advertising
 Integrated Communication Program
 Blend with objectives
 Enhancing Sales Effectiveness
 Does it help?
$$ per salesperson
Higher ratings
Supplier reputation
Increased brand awareness
Gross margins

55. Managing B2B Advertising
 Selecting Advertising Media
Based on what the target market uses
Business publications
Horizontal publications
Ad Age, Marketing News
Vertical publications
Sporting goods Business
Requester publications

56. Measuring Advertising Effectiveness
 What benefits does advertising provide the
company?
 Measuring Impact on Purchase Decision
Indirect communication
 Measurement Program
Benchmarking
Common benchmarks

57. 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

58. 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

59. 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

60. 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

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

62. 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

63. 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

64. 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 concept
2. The total cost concept
3. The trade-off concept

65. Activities involved in Supply chain
i. Purchasing
ii. Manufacturing
iii. Logistics
iv. Distribution
v. Transportation and
vi. Marketing

66. 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

67. 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

68. Domestic to International
1. Substantial geographical distances
2. Forecasting problems/difficulties in foreign markets
3. Fluctuations in exchange rates for different currencies
4. Demand for great variety of products
5. 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

69. Domestic Supply chain Distributions
Supplier
Supplier
Supplier
Storage} Mfg. Dist. Retailer CustomerStorage
Supplier
Supplier
Storage
} Service Customer

70. Global Supply Chain
Inventory
management
Physical
distribution
transportation
Order
placement
CorporationSuppliers Customers
Order processing
transportation
storage
Materials
managemen
t
Inventory
management
Physical
distribution
Storage
Forward and reverse flows of information, products and funds

71. Managing Global Logistics
Two major areas of Global Logistics are
i. Global sourcing and
ii.Global distribution

72. What Does Supply Chain Involve?
 NETWORK OF FACILITIES
 MATERIALS
 RAW MATERIALS – PRODUCTS
 FINISHED PRODUCTS
 LINKS
 PROCUREMENT
 LOGISTICS
 ELIMINATE
 REDUNDANCY
 DELAYS
 RESOURCES

73. 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.

74. 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?

75. Benefits of going digital
Over traditional marketing
Puts the consumer in control
Provides convenience
Drives brand loyalty
Reduces the selling cycle
Builds your brand
It is measurable
It is cost effective

76. 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 audience
3.Motivate your audience to take action
4.Ensure efficient spending on your campaign

77. What does the digital Marketing
Consist of?
Key components
Website design (user
experience)
Search engine optimization
(SEO)
Pay per click (PPC)
Social media marketing
(SMM)
Email marketing
Display advertising (banner
ads)

78. 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)

79. References
Hofstede, 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=orpc
Nielsen, 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-ENG
Keegan, W.J. (2014). Global Marketing Management. 8th ed. Prentice Hall, Saddle
River, NJ
Sonkiya, S. (2014). PESTLE Analysis: External Business Environment. Retrieved from
http://www.izenbridge.com/blog/pestle-analysis-external-business environment
Chaffey, D. & Chadwick, F. E. (2015). Digital Marketing: Strategy, Implementation and
Practice 5th Edition. Apprentice Hall, Saddle River, NJ
Armstrong, G. & Kotler, F. (2007). An introduction Marketing, 8th Ed, Pearson
Education, Saddle River, NJ

80. THANK YOU!