global business #9 july 2, 2011
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Global Business #9 July 2, 2011. Dept of Technology Management for Innovation (TMI), Graduate School of Engineering Professor Kazuyuki Motohashi 工学系研究科 技術経営戦略学専攻教授 元橋一之 http://www.mo.t.u-tokyo.ac.jp. Today’s Class. What is marketing, why important? Marketing strategy planning steps - PowerPoint PPT PresentationTRANSCRIPT
Global Business #9July 2, 2011
Dept of Technology Management for Innovation (TMI), Graduate School of EngineeringProfessor Kazuyuki Motohashi
工学系研究科技術経営戦略学専攻教授元橋一之
http://www.mo.t.u-tokyo.ac.jp
Today’s Class
• What is marketing, why important?
• Marketing strategy planning steps
• 4P: Product, Price, Place and Promotion
• Marketing for emerging economies: China, India, BOP
• Introduction to the next class: Shiseido in China
Marketing and Sales
Marketing Sales
New customers, potential customer needs
Existing customers
Forward looking (for new product, services)
Existing products
Market analysis for value creation
Actions (Eigyo), and sales force management
Involves whole process of marketing strategy
Focus on “Promotion” in marketing 4P
How marketing fits in corporate strategy ?
Strategic Marketing Planning
Ansoff’s Product and Market Growth Matrix
Global Business Context: CAGE and AAA framework
Example of Market Segmentation
Target Segment Identification
Marketing’s 4P
Product
Price
To what extent you can be a price setter, instead of price taker ?
Place (Channel)
Promotion (AIDMA)
Changing to AISAS in Internet Era
Promotion tools (in detail)
Promotion in global businessSome caveats
• Regulations over promotion activities: such as whether you can do “comparative advertising”
• Terminology in foreign language
• Brand creation (difference in customer’s perception)
• Importance of local ad agency
• Lack of product knowledge at local distributors
Marketing mix by product life cycle
Market Intelligence: China and India
• Concept of PPP( Purchasing Power Parity)
China India J apanGDP 3.45 14.67 129.55Consumption 3.46 13.58 129.16Food, beverages 5.52 21.33 238.42Alcohoic, tabacco 5.75 31.53 97.04Colothing 6.86 16.72 167.23Housing related 3.37 12.33 128.19Furnishing, durables 5.27 22.73 167.25Health 0.69 3.00 64.80Transport 5.98 32.46 162.32Communications 3.14 17.46 127.15Nominal Ex- rate 8.19 44.1 110.22
China India J apan0.42 0.33 1.180.42 0.31 1.170.67 0.48 2.160.70 0.71 0.880.84 0.38 1.520.41 0.28 1.160.64 0.52 1.520.08 0.07 0.590.73 0.74 1.470.38 0.40 1.15
Targeting?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1985 1995 2001
インドの所得別世代構成比
高所得層(180,001ルピー~)上位中所得層(135,001~180,000ルピー)中所得層(90,001~135,000ルピー)下位中所得層(45,001~90,000ルピー)低所得層(~45,000ルピー)
• Profit=gross margin * sales volume (size of market and competition)
• Difference between durable and consumption goods, customer preference?
BOP(Bottom of the Pyramid)
75 mil. -100 mil.
150 mil.-1,750 mil.
4,000 mil.
(出典) The fortune at the bottom of the pyramid (C.K. Praharad)
BOP’s Business Chance
(出典) The fortune at the bottom of the pyramid (C.K. Praharad)
Example: ICICI’s micro payment
(出典) The fortune at the bottom of the pyramid (C.K. Praharad)
Next Class: Shiseido Case• Is China is important for Shiseido? Evaluate based on Shiseido’s
domestic and global operation statistics• List merits and demerits of operating in China, as compared to
operations in US and Europe• Characterize Shiseido’s marketing strategy in China. Take Urara
as an example, and discuss its targeted customer and marketing 4P. Do they have a consistent story?
• Compare Shiseido’s marketing in China with those of US and European mega players such as l’Oreal and P&G. It is better to keep such strategy, when Shiseido competes with them in Chinese market?