11 Global Marketing and R&D-2

InternationalBusiness(11)HuangHuipingEconomicSchool.WhutGlobalR&DGlobalProductionandLogisticGlobalMarketingInternationalServicesInternationalFinancialManagementInternationalAccountingandTaxationInternationalHumanResourceManagementInternationalBusinessOperationsInthisunit:WhatisGlobalMarketing?4Ps:Products,Place,Price,PromotionMarketingmixR&D11.GlobalMarketingandR&DStandardizationvs.Differentiation-ThestrengthsofStandardization/Differentiation?-TheproblemsofStandardization/DifferentiationDebate1INTRODUCTIONGlobalMarketingviewstheworld’sconsumersassimilarintheirtastesandpreference,andadoptsstandardmarketingstrategies.Themarketingmix(thesetofchoicesthefirmofferstoitstargetedmarket)iscomprisedof:-productattributes-distributionstrategy-communicationstrategy-pricingstrategy1.Howtosegmentaglobalmarket?HowdowedefineanefficientMarketSegmentation?2.Doesaparallelmarketalwaysexistinanothercountry?Whyorwhynot?3.Whatarethestrengthsandchallengesofmarketsegmentation?Debate2:GlobalMarketvs.MarketSegmentationMarketSegmentation:ToIdentifygroupsofconsumerswhosepurchasingbehaviordiffersfromothersinimportantways.Marketcanbesegmentedinmanyways,By:-Geography-Demography(sex,age,income,race,educationlevel)-Social-culturalfactors(socialclass;values;religions;lifestyle);-Psychologicalfactors(personality)Efficientsegmentation:Size,stability,identification,economic,competitionintensity.1.Whatarethebusinessimplicationsofaproductviewedasabundleofattribute?2.Whatissuesdoweconcernwhenweadoptproductstrategies?Debate3:ProductstrategyProductAttribute:Aproductcanbeviewedasabundleofattribute:design,quality,appearance,brand,utility,performance,serviceetc.Implications:-Productattributeoffersmoreideasforproductstrategies!-Newproduct:anyinnovationinproductattributecanledtoanewproduct!ProductstrategyTheproductstrategyissues-Culturaldifferences;-Economicdevelopment;-Lawsandregulations/Productandtechnicalstandard;-BrandandProductnames;-Nationalimage;-Counterfeitgoodsandblackmarkets-Shortenedproductlifecycle.concentratedretailsystemvs.fragmentedretailsystemLongchannelvs.shortchannelWidechannelvs.narrowchannelChannelexclusivityvs.marketentry(P&Gcase)Debate4Distribution/PlaceDistributionstrategy:Themeansafirmchoosesfordeliveringtheproductstothecustomers.DistributionstrategyCountryDifferencesindistributionsystemRetailConcentration-Concentratedretailsystem(集中的零售体系):afewretailsupplymostofthemarket.-Fragmentedretailsystem(分散的零售体系）:manyretails,withnoonehavingamajorshareofthemarket.ChannelLength:thenumberofintermediariesthataproducthastogothroughbeforeitreachesthefinalconsumers.ExclusivedistributionChannel：isonethatisdifficultforoutsiderstoaccess.ManufacturerinsidethecountryManufactureroutsidethecountryWholesaledistributorRetaildistributorFinalconsumerImportAgentAtypicaldistributionsystemChoosingadistributionstrategyWhichchannelthefirmwillusetoreachthepotentialconsumers:-Selldirectlyvs.Gothroughretailsorwholesaler?-Importagent?-Thelengthofdistributionchannel?Longchannelstrategy:-Inafragmentedsystem,itismoreeconomical;-Moreconvenienttoenteranewmarket;-PromotingadvantagesCulturalbarriersvs.sourceeffectvs.noiselevelPushvs.PullStandardizedadvertisingvs.differentadvertisingDebate5Communication/PromotionCommunicationStrategyTheBarrierstointernationalcommunicationCulturalbarriersSourceandcountryoforiginaleffectQ:Howtoovercomenegativeeffects?NoiselevelsPushvs.PullStrategyPushstrategy:emphasizingpersonalsellingratherthanmassmediaadvertising.Pullstrategy:emphasizingmediaadvertisingasopposedtopersonalselling.Considerations:-Producttypeandconsumersophistication;-Channellength;-Mediaavailability;-ThePush-pullmix.Q:Whendoespull/pushworkmoreeffectively?GlobalAdvertisingForstandardadvertising-Economicadvantages;-Concentratingthetalentability;-Globalbrandnames.Againststandardadvertising-Countrydifferences;-Advertisingregulationsdiffer.PricingPredatorypricingvs.MultipointPricingvs.experiencepricing?Pricediscriminationvs.dumping?Debate6LocationofR&D-Financialaidinbasicandappliedresearch-Underlyingdemandisstrong-Consumersareaffluent-CompetitionisintenseDebate7Newproductvs.R&DHowtolowerthefailurerateofnewproductdevelopment?------Tightcross-functionalIntegrationbetweenR&D,marketingandproductioncanmakesure:-Productdevelopmentprojectaredrivenbycustomneeds-Newproductsaredesignedforeasemanufacture-Developmentcostsarekeptincheck.-Timetomarketisminimized.Cross-functionalTeams-Leader:heavyweightprojectmanager-KeepatleastonememberfromeveryKeyfunction-Membersshouldbephysicallyco-located-Aclearplan-Developone’sownprocessforcommunicationandconflictresolution.BuildingGlobalR&DCapabilitiesToadequatelycommercializenewtechnologies,firmsneedtointegrateR&DandmarketingCommercializationofnewtechnologiesmayrequirefirmstodevelopdifferentversionsfordifferentcountriesThismayrequireR&DcentersinNorthAmerica,Asia,andEuropethatarecloselylinkedbyformalandinformalintegratingmechanismswithmarketingoperationsineachcountryintheirregions,andwiththevariousmanufacturingf