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Strategy as process:
– – – – – – – The marketing audit Mission, objectives, strategies and structures Stakeholder value analysis Inter-market segmentation Market selection The marketing plan Implementation.
• • • Describe the marketing audit process. Examine how mission, objectives, strategies and structures interrelate and their impact on marketing strategy. Explain the importance of responding to all stakeholders in international marketing. Describe how inter-market segments are defined and targeted. Explain how firms evaluate and select target inter-market segments. Analyse how resources and competencies impact on marketing strategies. Discuss how firms decide on adaptation/standardisation. Describe the contents and crafting of an international marketing plan.
‘patterns of behaviour’. • Strategies are the ‘plans’.Introduction • This chapter focuses on international marketing strategy and introduces a seven-step process for managing it. ‘means of getting from here to there’. and ‘position’ in relation to product markets or competitors that emerge as a firm acts to achieve its objectives. .
other stakeholders. anticipate current and potential industry participants’ behaviour and then to craft effective international marketing strategies.The basic premise is that… • International marketers are most effective when they engage in a continual process of gathering. . competitors and their environment in order to understand marketplace dynamics. sharing and using information about customers.
Strategy as process (continued) International marketers that follow this systematic approach are said to have adopted a: Market orientation .
sharing and analysing information) – intent (sharing knowledge about stakeholder preferences and agreeing about appropriate strategic response) – interaction (implementing intended strategies. observing stakeholder responses and continually adapting to stakeholder preferences and improving customer experiences).Market orientation • Market orientation essentially has three main building blocks: – insight (acquiring. .
The strategic marketing wheel .
Step 1 – The marketing audit • The marketing audit focuses on the firm’s: – – – – marketing environment competitive environment resources and distinctive competencies and performance • Its purpose is to evaluate performance and identify the current and future realities upon which its strategic planning will be based .
The marketing audit (continued) • Marketing audits comprise six main activities: – – – – – – The marketing environment audit The marketing strategy audit The marketing organisation audit The marketing systems audit The marketing function audit The marketing productivity audit .
mission. strategies and structures of any firm. objectives. mission. • Particularly relevant when you have previously only engaged in limited international activities.Step 2 – Vision. . objectives. strategies and structure • The decision to engage in international marketing has immediate implications for the vision.
Vision Statement • The vision statement outlines aspirations for the future position of the firm • the reasons why it intends to achieve that position • its enduring purpose (longer-term reason for being) • intentions to meet future stakeholders’ needs. .
.Mission Statement • The mission statement concerns the present business scope and purpose. • It gives life to the vision by identifying: – current stakeholders (who we serve) – unique capabilities (what we do) – competencies and resources (how we do it).
Objectives • Objectives are SMART: – strategic – measurable – achievable – realistic and – time-bound goals • They translate the mission and vision into more detailed strategies and tactics. • They serve as performance targets by which firms evaluate financial and strategic performance. .
• International marketers need to develop: – Corporate strategies – Business strategies – Competitive strategies. .Strategies • Strategies are the ‘plans developed to achieve objectives’.
Strategies (continued) • Generic strategies include: – Overall cost leadership – Differentiation – Focus strategies • Alternative typology: – Prospectors – Defenders – Analysers – Reactors .
geography. .Structure • Can be organised based on infrastructure. technological complexity. customers. • Concept of Ubuntu should be incorporated into structure. value chain relations etc. • Organisational culture is intrinsically part of organisational structure.
Step 3 – Stakeholder value analysis • Developing and implementing successful marketing strategies relies on an empathetic understanding of how consumers derive value from a product. • Strategic cost analysis explores the links the firm’s cost structures and the perceived value delivered to the market. • The strategic profit model (also called the DuPont model after its originators) can provide a very useful basis for such comparisons. .
The strategic profit model .
Step 4 – Intermarket segmentation • International market segmentation is: – the process of defining relatively homogeneous groups based on shared preferences that relate to purchase and consumption behaviour. • Intramarket segmentation focuses: – on segmentation conducted in one country. . • Intermarket segmentation focuses: – on identifying meaningful segments that can be found in many countries.
targeting and positioning .Market segmentation.
Selected bases for segmenting consumer markets .
Selected bases for segmenting organisational markets .
Segmentation best practice Six criteria: – – – – – – Identifiable Sustainable Accessible Stable Actionable Responsive. .
.Step 5 – Market selection • An ongoing process of market appraisal and assessment in which international marketers choose the locations in which they will serve their targeted intermarket segments • • • • • The regulatory and legal influence on operations The likely nature and structure of competition Resources and market participation strategies Assessing risk and rewards Standardisation and adaptation.
Step 5 – Market selection (continued) Six broad categories of evaluative criteria: • • • • • • The market and its potential The regulatory and legal influence on operations The likely nature and structure of competition Resources and market participation strategies Assessing risk and rewards Standardisation and adaptation. .
• Adaptation strategies: – seek to maximise responsiveness to local variations in preferences by varying the marketing mix. .Standardisation and adaptation • Standardisation strategies: – seek to capture benefits by minimising variations in the marketing mix between countries.
Step 6 – The marketing plan • • • • • • • Executive summary Marketing objectives Situational analysis Marketing environment Competitive environment Summary: SWOT Segmentation. targeting and positioning .
The marketing plan (continued) • • • • • Country strategies Marketing mix strategies Resources Key success factors and assumptions Scheduling. controls and evaluation. .
Step 7 – Implementation • Plan is put into practice • Be prepared for constant change • Two broad types of controls can be put into place: – Monthly performance reviews – Quarterly strategy reviews .
especially customers. • It emphasised that international marketing takes place in a dynamic and complex competitive environment in which success comes to firms that provide sustainable superior solutions to stakeholders. .Summary • This chapter introduced a framework for crafting effective international marketing strategies.
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