22 : Marketing strategy

Eva : IT & AI in marketing planning

Eva : marketing strategies to enter international markets

What is a marketing plan?

researched report of marketing objectives and marketing strategy to achieve those aims

• Aim of business

• Situational analysis - what’s the position of the business in the market

• Marketing objectives (SMART)

• Marketing strategy

• Marketing mix details

• Marketing budget

Marketing plan should be consistent, if image of business is not consistent and different from customer perception, message will be misleading

Marketing mix should be aligned with marketing objective

Promotion should be considered with available budget

Pros and cons of marketing plan

• Make future decisions more focused, effectively, avoid unnecessary work

• With research, shape marketing objectives to be more realistic, reduce risk of failure

• Provide clear aim, prepare business better
  (HRM - plan enough employees
  Finance - control cash flow )

• The plan is detailed, a change in market means the plan need to be redo constantly

• Poor employees skills, bad information will ruin the plan, making future decisions fail

Role of IT & AI in marketing

IT

Cheap, quick, reach a lot of people

Collect sales data, customer needs => improve marketing

AI

Able to process large amount of data in a short time

• Analyse consumer search key words, monitor sales and predict trends in real time

Collect data might disrupt customer privacy, pressure-group actions

Significant investment in IT, computing power

Marketing strategies for international market

Why international market?

Home market is saturated or downturn

Spread risk (have income in different countries)

Legal difference create opportunities

Need to understand the new international market

• National level (political, law,…)

• Economy state (GDP growth,…)

• Opportunity for business (any potential supplier available?, location?)

Pan-global marketing

Sell same product the same way for the world whole

Cheap - use same advertisement for the whole world

Same product - product recognition

Economies of scale

Cultural, religious differences

Different law in different country

Countries have different income levels, set same price for every country is bad

Which type of business should use pan-global marketing?

Super luxury brands (Rolex, Rolls Royce). Already established a famous identity, cultural difference don’t matter

Mass-appeal brands (Nike), famous worldwide, economy of scale

Global localization strategies

Different marketing plan for different countries

Products will fit laws of different countries

Meet local taste, sell more

Reduced economies of scale

Differences between international markets

Average income level (GPD per head)

Legal differences

Cultural differences

Setting up a business can be long and expensive in some countries

How to enter international markets

Export product via international trade agents

Trade agents have knowledge about local market (sell more)

Pay commission

International franchising

Inefficiency communication - Training and communication for different franchises in countries can be complex

Joint venture

Shared costs & risks

Get more resources

Conflict

Working cultural clash

All partners pay for a mistake 1 partner makes

Licensing

Sell the rights to produce a product in another country

Same with franchise, but have more freedom in how you sell it (does not follow licensee rule)

unethical production by licensee bring bad publicity to licensor

Direct investment in foreign subsidies

Instead of takeover a local business, buy shares of a local business and let them do their work

Keep all profit

Easy operation - parent company has full control over subsidiary

Expensive (senior staff need to visit those countries)

Foreign operations can be banned with changes in local law

If subsidiary so something wrong, the parent company will have bad publicity