ABN: 80 126 576 896
National Provider Code: 91412
CRICOS Code: 02978C
Version: 1.0
Doc ID: SPAI-1305050396-12646
Page 1 of 68
Market goods and services
Internationally
BSBMKG416
Learner Guide
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Guidelines and tips
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Market goods and services Internationally
Typology: Lecture notes
2019/2020
1 / 68
This page cannot be seen from the preview
Don't miss anything!
Related documents
Partial preview of the text
Download marketing learner guide and more Lecture notes Marketing Theory in PDF only on Docsity!
ABN: 80 126 576 896 National Provider Code: 91412 CRICOS Code: 02978C Version: 1.0 Doc ID: SPAI- 1305050396 - 12646
Market goods and services
I nt e rna ti on ally
BSBMKG
Learner Guide
ABN: 80 126 576 896 National Provider Code: 91412 CRICOS Code: 02978C Version: 1.0 Doc ID: SPAI- 1305050396 - 12646
Table of Content
Contents
Table of Content ............................................................................................................................................. 2 Section 1: Selecting Appropriate Marketing Activities ...................................................................................... 4 Ruling the nursery - in China and around the world ................................................................................. 16 Section 2 Implement International Marketing Activities................................................................................. 30
Action Plan Template ................................................................................................................... 31
Section 3 – Monitoring and Reviewing Marketing Performance ..................................................................... 50
ABN: 80 126 576 896 National Provider Code: 91412 CRICOS Code: 02978C Version: 1.0 Doc ID: SPAI- 1305050396 - 12646
Section 1: Selecting Appropriate Marketing Activities
This section is about accessing and interpreting an international marketing plan and marketing strategy for a specific international target market. International markets have become increasingly viable with the advances in communication and transportation, potential international customers have needs and money to spend, however appropriate and effective marketing activities need to be implemented to ensure organizations reach their targeted international market. As you can imagine, foreign markets differ greatly. When selecting international marketing activities various factors must be considered. These include:
- climatic and environmental factors
- social and cultural factors
- government legislation and controls Documenting selected international marketing activities, costs, viability and suitability in relation to the market research undertaken and obtaining approval for implementation is also an essential element. This scenario will be the basis for Assessment Task 1. Scenario: Water Logged Company - new product TruNature has developed an amazing new product. The product is a solidified log of water that is like a clear log of Jelly. It can be buried in the ground at the base of plants, as the>ground dries out, the waterlog slowly breaks down liquefying as required, ensuring the plant receives the necessary water to survive. This is a fantastic product and the potential to market internationally is enormous. Being a relatively new company with minimum competition, it has concentrated its marketing nationally; however, market research has shown enormous potential for the product to be sold internationally. Within the domestic market TruNature has concentrated its marketing through trade fairs selling to garden suppliers and nurseries. This has been backed up with advertising in relevant consumer magazines and publications such as Better Homes and Gardens. Once the product has been delivered in-store, a gondola is supplied that stocks the product and provides leaflets for customers. Once customers have purchased the product they are invited to register online and receive further product information and comment on the product. This provides the customer with valuable information regarding the product and its benefits whilst building a customer database for TruNature to capitalize on in the future.
ABN: 80 126 576 896 National Provider Code: 91412 CRICOS Code: 02978C Version: 1.0 Doc ID: SPAI- 1305050396 - 12646 TruNature is now ready to expand into the global arena. An international marketing plan and strategy has been devised, the main objective being to inform new markets of the product and how beneficial it would be for them. The learning points throughout this workbook are to be completed during group sessions with the assistance of your facilitator. What skills will you need? In order to work effectively as a member of an international marketing team, you must be able to:
- identify relevant legislation relating to international target markets
- demonstrate an understanding of marketing concepts, principles and strategies
- define cultural and social appropriateness
- effectively communicate and utilize feedback. Interpreting a marketing plan and marketing strategy Correctly defining and interpreting an international marketing plan and marketing strategy is essential in preparing an organisation for an overseas marketing effort. Firstly, an international marketing plan must be developed, and secondly, the organisation must determine a strategy on how to enter the international market. An international marketing plan differs from a domestic marketing plan as there are certain elements that must be considered. Describe the target market/s in which the product is to be sold
- geographic region/s demographics, lifestyles, etc. Your product
- brand name - origin and significance
- positioning strategy
- evaluate the product as it will be perceived by the intended market
- discuss major product problems and resistances based on the preceding evaluation Your marketing objectives
- target market (specific description of the market)
- expected market share or market penetration rate
- expected sales in dollar volume
- product differentiators or competitive advantage
- packaging
- support services Your promotion strategy
- major message thrust
ABN: 80 126 576 896 National Provider Code: 91412 CRICOS Code: 02978C Version: 1.0 Doc ID: SPAI- 1305050396 - 12646 An international marketing plan is a planning document. The international marketing strategy which is part of the marketing plan outlines the tactics and methods for implementing the marketing plan. Each element warrants consideration to ensure entry into the international arena is well researched to achieve success. As relevant information and knowledge increases about international markets, revision and amendments will be required. After several revisions, you will be able to identify further international business market opportunities and how to extend market reach. Some organizations have the benefit of a dedicated export department, however forming a dedicated export department can be an expensive task, building an alliance with an outside party can reduce the time and effort it takes for an organisation to become established in the global arena. Marketing plans and strategies International marketing strategies involve tactics for expanding and managing business operations in multiple locations throughout a geographical region. By going global, an organisation intends to widen its customer base, achieve economies of scale, diversify macroeconomic risks, and acquire global business skills and competencies. Marketing process model
ABN: 80 126 576 896 National Provider Code: 91412 CRICOS Code: 02978C Version: 1.0 Doc ID: SPAI- 1305050396 - 12646 THROUGH WHAT CHANNELS CAN YOU REACH THE CUSTOMER? WHO SHOULD YOU TARGET?
CORE ELEMENTS OF
AN INTERNATIONAL
MARKETING
STRATEGY
HOW SHOULD YOU SELL THE CUSTOMER ON YOUR BRAND? WHAT SHOULD YOU OFFER THE CUSTOMER? One of the major challenges in developing an international marketing strategy is to adapt the products or services to 'local' flavour and concentrate organisation resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage The strategy is centred on the key concept that customer satisfaction is the main goal. Therefore, it is important to make each strategy goal measurable. When McDonald's introduced the drive-thru in Germany during the early 1990's, cars were lined up and down the auto ban. The German customers would drive in, order up their food and drive to the side of the road. They would stop by the side of the road, set up a table and chairs from the trunk of the car and eat their meal. At that time, Germans simply wouldn't eat in their cars, and certainly not while driving. That was disrespectful to safety, to the car and also the meal. That thought probably never occurred to any American. It's a funny story now, but it shows the effect a culture can have on a marketing idea^1. In the example above the core elements of the international marketing strategy reached the target market, but perhaps not as the scenario was intended. (^1) Russel, E 2010, The Fundamentals of Marketing
ABN: 80 126 576 896 National Provider Code: 91412 CRICOS Code: 02978C Version: 1.0 Doc ID: SPAI- 1305050396 - 12646 Geographic Demographic^ Psychographic^ Behavioural World region or country Country region Climate Age Gender Family life cycle Income Occupation Religion Race Nationality Education Social class Benefits sought Lifestyle Occasions, regular or special Loyalty City size or density Personality^ Attitude toward product Attitudes Readiness^ for new product Segmentation aspects that need to be considered:
- demographic
- psychographic
- beliefs, values and lifestyle
- stage of life
- size
- identity
- accessibility
- response
- consumer attributes Breaking it down into the following bases as indicated in the following chart: The segmenting process consists of four activities:
- Determining who the actual and potential international customers are.
- Identifying the different segments of your international customers.
- Analysing your competitors in the international market.
- Selecting the targetable international customer segments. Determining who your international customers are, identifying the different types and selecting the best international target customer segments are all activities that contribute to the process of segmenting. Analysing your competitors in the international market is one of the first steps to completing a competitor analysis.
ABN: 80 126 576 896 National Provider Code: 91412 CRICOS Code: 02978C Version: 1.0 Doc ID: SPAI- 1305050396 - 12646 Position
- Identify differential
segment advantages
- Develop positioning
concept
Define Target Markets
- Define abilities and
resources needed
- Analyse competitor's
resources and skills
- Consider the company's
abilities compared to
competitors
Segment Market
- Determine actual and
potential customers
- Identify segments
- Analyse competitor
intensity for each
segment
- Select attractive
customer segments
ABN: 80 126 576 896 National Provider Code: 91412 CRICOS Code: 02978C Version: 1.0 Doc ID: SPAI- 1305050396 - 12646
People Product Price Promotion Place
It is imperative to analyse the available data and focus the international resources. An international marketing plan, just like a domestic marketing plan does, should also consider the 5Ps. These five elements incorporate:
- People: who are the people you want to attract?
- Product: every detail of the product, packaging and presentation.
- Price: does the price reflect exclusivity or an everyday purchase?
- Place: the place of a product's availability sends the message, is it special or every day?
- Promotion: what message are you sending? Analysing each of the 5Ps will assist you in identifying your international target market’s needs and enable you to select relevant marketing activities. Market research will help identify what your market wants. By comparing your international target market’s needs and examining the products and or services, you will be able to determine if these needs are being fulfilled. As the international environment changes and the international market matures, continuous improvements will need to be implemented to adapt and capitalise on relevant changes. Scenario: Chocolates Consider the differences between an exclusive brand of chocolates and a Twirl chocolate bar. The exclusive chocolates appeal to a different type of person, they have a higher income and generally they would buy them for a gift or a special treat for themselves. The person buying a Twirl would more than likely purchase one as it is readily available, and they would prefer not to pay for the exclusive brand. The exclusive brand would have meticulous packaging and be presented in a gift-wrapped box, whilst the Twirl is on the shelf no different to many other chocolate bars. The price of the exclusive chocolate reflects its uniqueness and is expensive compared to an economy priced Twirl chocolate bar. The Twirl is available at the corner store or in the supermarket for convenience whilst the exclusive chocolate is just that, exclusive, it is only available from exclusive upmarket specialty stores.
ABN: 80 126 576 896 National Provider Code: 91412 CRICOS Code: 02978C Version: 1.0 Doc ID: SPAI- 1305050396 - 12646
Research activity:
List websites for relevant industry bodies that could assist with the consultation process. A good place to start is . This will provide information on various countries and point you to relevant industry bodies. Drawing up a range of potential marketing activities Numerous marketing activities can be used to influence consumer purchase, but what needs to be considered when researching the range of potential international marketing activities? Remember you are targeting an international audience; you will need to have a comprehensive understanding of the various advertising applications and vehicles that are available to successfully reach your international target market. A marketing mix could comprise several elements that make up the international marketing campaign. Marketing vehicles could include:
- press
- direct marketing
- taxi signage
- television
- radio
- public relations
- sales promotion
- demonstrations
- trade fairs
- billboards
- exhibitions
- point-of-sale
- cinema
- bus signage
- advertising The objective is to source the most effective means of communicating with the international target market. Whilst you can examine ideas, at this point it would be beneficial to research your international target market and define what is considered to be culturally and socially appropriate. When identifying international marketing activities that are appropriate you will also need to consider the development, coordination and implementation of the activities, the available resources, financial and ethical constraints. Consultation with relevant industry bodies can prove extremely beneficial. They can provide valuable information regarding current issues, collaborations and opportunities to reach an international target market. Industry consultants also have access to varied information and resources that can help your organisation to identify ideas and ways to ensure positioning and performance. They can also help your organisation to identify their ability to deal with challenges and capitalise on future opportunities. An example of a marketing consultant - Clientlink, . An Australian based firm will be able to provide valuable information relating to potential international marketing activities.
ABN: 80 126 576 896 National Provider Code: 91412 CRICOS Code: 02978C Version: 1.0 Doc ID: SPAI- 1305050396 - 12646 The universal pitch P&G had the right diaper and the right price point. Now it faced the bigger challenge. 'You have to convince someone that they need this thing,' says Ali Dibadj, an analyst who covers P&G at Sanford C. Bernstein and Co. For Frances Roberts, global brand franchise leader for Pampers, every trip to China was (and still is) an opportunity to learn more about Chinese nursery habits. It's part of the P&G ethos that brand leaders visit consumers in their own homes - something Roberts has done in dozens of countries, including Germany, Russia, and Indonesia. The goal is to uncover the nuances of each market, and early on in its diaper research P&G discovered a universal need. 'Moms say the same things over and over,' Roberts says. Their cry: We want more sleep. With the help of the Beijing Children's Hospital's sleep research Centre, P&G researchers conducted two exhaustive studies between 2005 and 2006, involving 6,800 home visits, and more than 1, babies throughout eight cities in China. Instead of cloth, the research subjects were tucked into bed with Pampers. The results: P&G reported that the babies who wore the disposables fell asleep 30 percent faster and slept an extra 30 minutes every night. The study even linked the extra sleep to improved cognitive development, a compelling point in a society obsessed with academic achievement. P&G then put its marketing machine into motion. Pampers launched the 'golden sleep' campaign in 2007, which included mass carnivals and in-store campaigns in China's biggest urban areas. A viral campaign on the Pampers Chinese website asked parents to upload photos of their sleeping babies to drive home the study's sleep message. The response was impressive: 200,000 photos, which P&G used to create a 660-square-meter photomontage at a retail store in Shanghai. The ad campaign boasted 'scientific’ results, such as 'baby sleeps with 50% less disruption’ and 'baby falls asleep 30% faster.' No diaper brand, not even rival Kimberly-Clark, maker of Huggies, has come close to spending as much on advertising in China, according to CTR Market Research, the China-based division of American media researcher TNS Media Intelligence. Since 2006, Pampers' measured media spend topped 3 .2 billion yuan, or about $476 million - more than three times as much as any other brand. In 2009 alone, P&G spent $69 million, compared to Kimberly-Clark's $12 million spend for Huggies, Ruling the nursery - in China and around the world Today, Pampers is the top-selling brand in China, a country where about a decade ago the disposable diaper category hardly existed. P&G does not release sales figures for specific countries, but Datamonitor estimates that the company has captured more than 30 percent of the $1.4 billion market.
ABN: 80 126 576 896 National Provider Code: 91412 CRICOS Code: 02978C Version: 1.0 Doc ID: SPAI- 1305050396 - 12646 Karl Gerth, an Oxford professor who researches the spread of consumerism in China, says P&G's marketing campaigns strike the right tone. 'You don't want to come off as paternalistic,’ says Gerth, who wrote the book 'China made: consumer culture and the creation of the nation.' 'The idea that Pampers brings a scientific backing and gives children an edge in their environment - that's a brilliant way to stand out from the competition.' You could argue that it's easy being number 1 when the market is still small. But P&G still has a lot of work to do. The company faces challenges from private-label and domestic brands, including the number. 2 market leader, Hengan International Group, which has steadily grown its market share to 20 percent. Local brands, meantime, are catching up with better products, marketing, and distribution. 'Chinese consumers are going to want to root for the home team,' Gerth says. And there's still the challenge of making disposables a habit. On average, diaper use still amounts to less than one a day. 'We've only just begun to scratch the surface [in China],' Dimitri Panayotopoulos, vice chairman of global household care, told investors in a 2008 analyst meeting. There's even bigger potential in India, where the birth rate is almost double that of China but the diaper market remains tiny at about $43.4 million. (Pampers is the top-selling brand there, too.) So now, P&G plans to take the sleep argument throughout rural and poor areas in India and elsewhere. The company also makes its case by positioning itself as a baby-care educator. Pampers sponsors healthcare-outreach programs such as a rural immunisation program in China and mobile medical- care vans in Pakistan and Morocco. In India, there's a door• to-door program that offers baby-care tips and diaper samples for moms. Of course, P&G tweaks the sales pitch to fit different markets; that's what the company is known for. In India, for instance, the convenience of disposable diapers doesn’t resonate with parents. The company's consumer research found that many Indian mothers think that only lazy moms put their babies in disposable diapers that last a full night. As Pampers brand manager Vidya Ramachandran reported in an internal video shown to employees, “We really had to change that mindset and educate [mothers] that using a diaper is not about convenience for you — it’s about your baby’s development.”
ABN: 80 126 576 896 National Provider Code: 91412 CRICOS Code: 02978C Version: 1.0 Doc ID: SPAI- 1305050396 - 12646 Description of daily life and lifestyles
- male/female roles in society
- typical and popular foods available and meat/vegetable consumption rates
- types of housing available (single-family, multi-family, etc.) o do most people own or rent?
- recreation/sports/and leisure activities o types available and in demand o percent of income spent on such activities
- impact of technology (available technologies and skill level of the general population and labour force) Availability and impact of media This section reports data on all media available within a country. Later you will select specific media from among these as part of the promotional mix strategy for your product.
- availability of media
- availability of agency assistance
- percentage of population reached by each medium. Availability of channels of distribution This section reports data on all channel middlemen available within the country. Later you will select specific channels as part of your distribution strategy.
- retailers - number and typical size (small or large) of retail outlets/role of chain stores, department stores
- specialty stores
- wholesalers - number and typical size/cash or credit operators
- other types of available agents or intermediaries It is imperative to understand when dealing with the international market that: 'it's not always black and white'.
ABN: 80 126 576 896 National Provider Code: 91412 CRICOS Code: 02978C Version: 1.0 Doc ID: SPAI- 1305050396 - 12646 Symbols A symbol is something such as an object, picture, written word, sound, or particular mark that represents something else by association. The same symbol can have a different meaning in another cultural context. The following information illustrates the many aspects that need to be considered and incorporated when selecting appropriate international marketing activities. In different countries, simple colours and forms can have a symbolic meaning that can be deceptive as they mean different things to different cultures. For example: the colour black is a sign of mourning in Mexico and the U.S. whilst black and white are the mourning colours in the Far East. Green is a favourable colour in the Islamic world, packaging and marketing material containing the colour green is looked upon favourably. In the U.S and Australia mints are packaged in green or blue, whilst they are packaged in a red wrapper in Africa. The importance of colour is paramount when organising international marketing activities, always check if colours have special meanings in different countries. Symbols Always be aware of symbols. The same symbol can have a different meaning in another cultural context. For example, the number seven signifies good luck in the USA but the opposite in Singapore. The number thirteen signifies good luck in Italy whilst it is the opposite in Australia. In Japan number four is unlucky. It is wise to avoid using a nation's flag or any symbols relating to religion. Form Form is another aspect that needs to be considered. This could affect the design of packaging and marketing materials. In Asia Feng Shui is very important. It is believed that if buildings, furniture, roads and other human-made objects are placed in harmony with nature, they can bring good fortune. Language Differences in values, assumptions, and language structure, make it difficult to meaningfully translate ‘word-for-word' from one language to another. A translator must keep 'unspoken understandings’ and assumptions in mind in translating. Often the intended meaning of a word may differ from its literal translation. For example, the Japanese word 'hai' is literally translated as 'yes.' To Americans, that would mean 'Yes, I agree.' To the Japanese speaker, however, the word may mean 'Yes, I hear what you are saying' (without any agreement expressed).