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A little background….
Senior Project Consultant at
Håndværksrådet International A/S and
Euro Info Centre Viborg
Member of European Commission
Working Group for Information Society
and e-business for 5 years
Business and Export background
No formal IT training.
International Marketing
Programme:
Tuesday - International Marketing for ICT
14.00 Danish business example
Wednesday - Role of the consultant
Afternoon - short session: Travel for business meetings Europe
Thursday morning - Branding
Thursday afternoon - 14.00 CMMI
Saturday - Kristiina Sunell
Sunday - Kristiina Sunell
Definition:
Anon
International Marketing
Definition:
• Target market
• Customer needs
• Integrated marketing
• Profitability
International Marketing
Definition: Markets
Markets can be:
• Needs based (e.g. dieters)
• Product based (e.g. shoes)
• Demographic based (e.g. Youth market)
• Geographical (e.g. France)
• Can also cover non-customer groups such as
Voter markets, labour markets etc.
International Marketing
Definition: Needs
• Stated needs (I want an inexpensive car)
• Real needs (I want a car which is cheap to
run)
• Unstated needs (I expect good service from
the dealer)
• Delight needs (I buy the car and get air
conditioning added free)
• Secret needs (I want my friends to see me as
environmentally conscious)
International Marketing
Profitability
Most companies don’t market unless:
• Sales decline
• Slow growth
• Changing buying patterns
• Increased competition
• Increased market expenditure
International Marketing
Offer-centric:
• Selling at people, not to people
• Most common type in ICT marketing
• Innovation is keyword – no alternative, no
history, no market research available
• Can be only option for most new software as
demand does not exist
International Marketing
Demand-centric
Demand-centric
Desire-centric
• Assumes non-rational decision making:
• More creative, more sophisticated and more
reliant on sociology than on accountancy
• More geared to B2C market than B2B but
considerable overlaps exist
• Not suitable to government/official tendering
International Marketing
SWOT
Market Selection
Example 1:
Target market for instant breakfast drink is families
with children who are receptive to a new convenient,
nutritious and inexpensive form of breakfast. The
company’s brand will be positioned at the higher-
price, higher-quality end of the instant breakfast drink
category. The company will aim initially to sell
500.000 cases or 10% of the market with a loss in
the first year not exceeding $1,3 million. The second
year will aim for 700.000 cases or 14% of the market
with a planned profit of $ 2,2 million.
International Marketing
Example 2:
The product will be offered in three flavours in
packets of 6 to a box for retail price $2,49. 48 boxes
to a case and case price to distributors is $ 24. For
the first two months, dealers will get 1 free case for
every 4 bought, plus advertising allowance. Free
samples given door to door and discount coupons
given in newspapers. Sales promotion budget is $
2,9 million and advertising budget is $ 6 million split
50/50 between national and local. Two thirds into TV
and one third into newspapers. Advertising will
emphasize nutrition and convenience. $100.000 will
be spent in year 1 on market research to audit stores
and consumer panels.
International Marketing
Example 3:
The company intends to win a 25% market share and
realise a post tax return on investments of 12%. To
achieve this, product quality will start high and be
improved over time through technical research. Price
will initially be set at a high level and reduced
gradually to expand the market and meet
competition. Total promotion budget will be boosted
each year by 20% with initial advertising/promotion
split 65:35 moving to 50:50 slowly. Market research
reduced to $60.000 after year 1
International Marketing
Groupwork:
Make a case suggestion for one
company from your work group
International Marketing
Your product
Channel opportunity
Existing channel structure in each region
Channel agent
International Marketing
Questions:
Where do our competitors earn money?
Where are the complementing products sold?
Is there a need to support the channel and the customer
simultaneously?
What is the support call response time requirement?
Do we need to establish a local office?
Who are the channel members?
International Marketing
Example: Mintel
Highly secure, but less accessible services will – most of the time –
be more successful than highly secure, hardly accessible services.
In other words, first comes access, then usage and lastly, security
is enforced to preserve usage. The well-spread belief that security
and protection are drivers to system usage is, in my mind, a bad
idea. Looking at what happened in France in the 1980’s with the
roll-out of the Minitel system is tale-telling. At that time, France
Telecom was still a government-owned PTT and not the modern
privatised service-provider we know today. FT decided back then to
equip each and every household with a free Minitel terminal. The
extraordinary life span (20 years) of this service made it an amazing
cash-cow for the telecom operator generating humongous revenues
[81].
International Marketing
Ansoff’s matrix
Penetration Product
diversification
Market Diversification
expansion
International Marketing
Group work:
Turning B2B leads into real sales