The Competitive Market there is a limit to the products that can be supported in a market the competitive market is the specific products in a category as well as companies that produce them market share is the percentage that a product takes of the total dollars spent within a particular category market segments are narrower categories The Competitive Market
One of the big issues becomes, how does a company increase its market share? 1.Take sales away from its competitors 2.Increase the size of the market One of the big ways to increase the size of the market is. International Marketing Starbucks moves into
India! The Wall Street Journal October 10, 2011 Starbucks sets out to perk up sales by making a long-awaited entry into one of the worlds fastest-growing markets (deal to be closed soon) Within the next 3 months, announce partnership with Tata Coffee Ltd. to open stores in India. Starbucks outlets are likely to be located in retail stores and hotels, associated with Tata group.
Traditionally drinkers of tea, Indians have of been taking to order espressos, etc at quick service cafes as a growing middle class increasingly adapts to Western tastes India's restrictive foreign-ownership laws could prove to be a challenge for HSBC The Worlds Local Bank HSBC prides itself on understanding customers and business at a local level
around the world this is their USP Their tag-line (slogan) The Worlds Local Bank shows how important this concept is to them Lets look at some of their advertising HSBC Television Advertising Local Customs http://www.youtube.com/watch?v=JK_NinOmFW w
Golf in Japan http://www.youtube.com/watch?v=GHuO6qmiSgg The Wrong Flower http://www.youtube.com/watch?v=8jrbu0lCWjk International Marketing
Use same methods in international marketing Marketing Mix (4 Ps) Target Market Consumer Profiling & Segmentation Competitive Advantage Unique Selling Proposition BUT, it needs to suit the local market Research and local knowledge is critical Marketing Mix
Product Packaging needs to be in the right language Regulations must be followed Understand competitors there, size of product Design (make up colour, cars) Price
Need to factor in transportation costs, tariffs, tax impacts, insurance, exchange rates, etc. Tariffs: tax placed on good being imported into a country Must calculate landed cost the total, end cost to go into that country
Consider the type of currency used Marketing Mix contd Promotion Portrayal of womens roles Forbidden products and regulations What channels are most effective?
Language Placement Channels of distribution Ethical issues, customs, and regulations Wholesale, retail, need to be assessed
Understand the impact of the black market Consider your options for distribution 3 Approaches to International Marketing 1. Global strategy - minimal changes for new markets McDonalds or Coke
Very few pure global companies - Pringles 2. Adaptation strategy - making changes in product or promotion to meet target's needs/wants/culture Nike - clothing, sizes, climate, cultural sports; Nestle Milo drink in South Africa (soccer theme) 3. Customized strategy - developing a totally new
product to meet specific market needs Coke in China (herbal flavours) Marketing Strategy Depends on 1. Geographical Factors - high population 2.
3. 4. 5. areas, climate, land type; product, price (costs), place Economic Factors - money, how developed the country is, employment rates; price, place, product, promotion Political Factors - role of government, trade barriers; place, product, price Legal Factors - laws that govern the
country; product, promotion Cultural Factors Name some examples What Can Happen if this Approach is Not Used? Coors put its slogan Turn it Loose into Spanish, where it was read as suffer from diarrhea Clairol introduced the Mist Stick, a curling iron, into German only to find out that mist is slang for manure
Scandinavian vacuum manufacturer Electrolux used the following in an American campaign: Nothing sucks like an Electrolux In Chinese, the Kentucky Fried Chicken slogan finger-lickin' good came out as eat your fingers off More Global Marketing Bloopers The Coca-Cola name in China was first read as Ke-kou-ke-la, meaning Bite the wax tadpole or female horse stuffed with wax, depending
on the dialect. Coke then researched 40,000 characters to find a phonetic equivalent ko-kouko-le, translating into happiness in the mouth Pepsi's Come alive with the Pepsi Generation translated into Pepsi brings your ancestors back from the grave, in Chinese In Italy, a campaign for Schweppes Tonic Water translated the name into Schweppes Toilet Water Globalizat ion
Customizatio n Product Adaptation Promotional Adaptation
