Lecture Overview
Introduction
Strategy as process:
The marketing audit Mission, objectives, strategies and structures Stakeholder value analysis Inter-market segmentation Market selection The marketing plan Implementation.
Learning objectives
Describe the marketing audit process. Examine how mission, objectives, strategies and structures interrelate and their impact on marketing strategy. Explain the importance of responding to all stakeholders in international marketing. Describe how inter-market segments are defined and targeted. Explain how firms evaluate and select target inter-market segments. Analyse how resources and competencies impact on marketing strategies. Discuss how firms decide on adaptation/standardisation. Describe the contents and crafting of an international marketing plan.
Introduction
This chapter focuses on international marketing strategy and introduces a seven-step process for managing it.
Strategies are the plans, means of getting from here to there, patterns of behaviour, and position in relation to product markets or competitors that emerge as a firm acts to achieve its objectives.
Market orientation
Market orientation
Market orientation essentially has three main building blocks:
insight (acquiring, sharing and analysing information)
intent (sharing knowledge about stakeholder preferences and agreeing about appropriate strategic response)
interaction (implementing intended strategies, observing stakeholder responses and continually adapting to stakeholder preferences and improving customer experiences).
Its purpose is to evaluate performance and identify the current and future realities upon which its strategic planning will be based
Vision Statement
The vision statement outlines aspirations for the future position of the firm the reasons why it intends to achieve that position its enduring purpose (longer-term reason for being) intentions to meet future stakeholders needs.
Mission Statement
The mission statement concerns the present business scope and purpose.
It gives life to the vision by identifying:
current stakeholders (who we serve)
unique capabilities (what we do) competencies and resources (how we do it).
Objectives
Objectives are SMART: strategic measurable achievable realistic and time-bound goals
They translate the mission and vision into more detailed strategies and tactics. They serve as performance targets by which firms evaluate financial and strategic performance.
Strategies
Strategies are the plans developed to achieve objectives.
International marketers need to develop:
Corporate strategies Business strategies Competitive strategies.
Strategies (continued)
Generic strategies include:
Overall cost leadership Differentiation Focus strategies
Alternative typology:
Prospectors Defenders Analysers Reactors
Structure
Can be organised based on infrastructure, geography, customers, technological complexity, value chain relations etc. Organisational culture is intrinsically part of organisational structure. Concept of Ubuntu should be incorporated into structure.
Adaptation strategies:
seek to maximise responsiveness to local variations in preferences by varying the marketing mix.
Step 7 Implementation
Plan is put into practice
Be prepared for constant change Two broad types of controls can be put into place:
Monthly performance reviews Quarterly strategy reviews
Summary
This chapter introduced a framework for crafting effective international marketing strategies. It emphasised that international marketing takes place in a dynamic and complex competitive environment in which success comes to firms that provide sustainable superior solutions to stakeholders, especially customers.