International Marketing

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International Marketing

• Tim Beal
• Lecture11
• 28 September 2005

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Today

• Integrating marketing strategies
• Recapitulation of the course - exam
• Case study video Sealord in Japan
• Special session for international students?
• Tell me in break

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Integration

• Integration of the 4 Ps
• Price, distribution, product and communication
  must all fit together
• Example of Japanese entry into US car market
• 5th P politics
• Lets start with price

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Marketing approach

• Price sum of tangible and intangible value
• Objective obtain market position and share
• Position relative to other products/brands
• Share - of sales of product class
• Dynamic interacts with what competition is
  doing
• Time scale short, medium, long-term

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Integration with marketing strategy

• Pricing objectives and strategy must be
  integrated with other aspects of marketing
  strategy
• product development
• Communication

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Japanese example

• up to 1950s Japanese goods were low quality
• produced for price sensitive domestic and Chinese
  markets
• postwar period
• cut off from Chinese market because of Cold War
• access to American market

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Quality drive

• Government and business emphasised quality
  improvement
• Edward Demings statistical quality control
  embraced
• quality control circles gtgttotal quality control
  (TQM)
• Reputation (and reality) of Japanese products rose

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Low price to gain entry

• Japanese used low prices to gain entry to US
  market
• combined with attention to distribution, etc.
• Mistakes - no overnight success
• eg Toyopet

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Toyota and US market

• Toyopet - 1957
• competed with VW beetle
• Noisy engine
• interior rough
• lights too dim for California standards
• Overpriced

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Toyota rethinks

• Toyota withdrew from market
• Market research
• Built distributor network

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Product development

• Redesigned product to fit perceived market
• Paid renewed attention to quality
• Corona established reputation for quality for
  money
• 1969 4.5 complaints/100
• 1973 1.3/100
• Toyota's milestones
• Aggressive pricing strategy

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Pricing strategy

• Initially penetration pricing
• Priced lower than the competition
• Aim to build volume, reduce costs
• Pricing only part of integrated strategy

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Integrated strategy

• Low prices gtgtdanger of building perception of low
  quality
• Japanese combined pricing strategy with attention
  to distribution, servicing availability and
  costs, and product quality
• Over time Japanese built brands
• Reputation for quality and reliability
• Moved out of price-competition market

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Japans competitors

• Japanese realised that competing on price alone
  was a dead end
• Faced with rising costs at home (labour, land,
  raw materials, energy)
• Faced with low cost competition
• especially South Korea (nowgtgtgtChina)
• Time competition became fierce they had moved up
  market

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Integration

• Marketing strategy needs to be integrated
• Product
• Communication
• Distribution
• Price

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Recapitulation of the course
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Exam

• No surprises
• Same structure as 2004
• On coursepage
• 1 1/2 Hours, open book
• 5 October 15.40

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Where?

• Abdullah to Beens RH G01
• Bi to Buck RH G02
• Buisman to Chen Jinxi RHG03
• All others here RH LT1
• Notice on coursepage

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Exam structure

• Section A 15 marks
• Compulsory question
• A question relating to a case study used in the
  course
• Discuss articles
• Article is accessible to you
• demonstration of extra knowledge and more current
  information gtbetter marks
• Utilise research project for examples

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Section B

• 2 questions out of 5
• 10 marks each

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Preparing for exam

• Identify range of potential questions
• lecture notes
• coursepage
• Textbook only identified chapters
• Additional resources on coursepage
• Links and readings

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Structure of course

• Introduction
• Global Business environment
• Case studies
• Wine, education, .. kiwifruit
• Strategic marketing functions
• Market research, pricing, etc

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Basic rule of IM

• All aspects of market planning have to be
  reexamined
• What works in one place MAY not work in another

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Global business environment

• diagram

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In the exam

• Open book but dont spend time copying
• Read questions carefully and focus on answering
  them
• Utilise your research in course, personal
  experience, current events
• Test of understanding of concepts, analysis,
  communication

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Understanding of concepts, analysis,
communication

• Pay attention to layout use space, colours,
  diagrams
• You have to market your answer to the examiner
• Good luck!

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Sealord in Japan

• Interview with Ken Shima, Market Manager, Sealord
  Japan
• 19 Ocober 2004 in Tokyo
• Sealord website