European market marketing research topic

6/23/14  DOING MARKETING IN EUROPEAN BUSINESS CONTEXT Da Nang, June, 2014 Nguyen Hai Ninh Dr Hanoi Foreign Trade University – International Business Department Cell: (+84) 0915139839 Email: nguyen.haininh@hotmail.com 1  6/23/14  Training outcomes           Recognize the differences in culture between the West and the East Know how to conduct a marketing research in the international business context Segment the market and choose the right customer group Understand the factors effecting the consumer behaviors Draft the International customer oriented marketing mix strategies AGENDA Part 4: Understanding customers behaviors Part 1: International business Blunders Part 5: Competition analysis Part 2: Marketing research methods Part 6: Marketing Strategies (customer oriented) Part3: Marketing environment analysis THE END 2  6/23/14  Part 5  INTERNATIONAL MARKETING BLUNDERS!  FORD in Europe Between 1988 and 2000, U.S.-based Ford Motor Company acquired European boutique brands Aston Martin, Jaguar, Volvo and Land Rover But the automotive mammoth struggled with the luxury brands and in 2007 and 2008 sold them all off 3  6/23/14  WAL-MART in Germany After opening 85 stores over the course of eight years, the U.S retail giant abandoned the German market in 2006 at an estimated cost of US$1 billion Walmart's domestic success is built on streamlined distribution channels, high-volumes sales and low prices — none of which fit into German culture or its regulatory regime German policy and attitudes favor the "mittelstand," small and medium-sized retailers that know the ins and outs of the country's restricted business hours, intricate labor laws and multi-layered distribution systems "Unless the German laws and the culture change, the whole thing that sustains Walmart's model — which is their ability to discount heavily and to operate in some cases 24 hours a day — doesn't work there If you don't allow them to differentiate themselves, it makes it very difficult for them to operate," “Worse yet, Germans are less price sensitive than North Americans They might even be skeptical of discounts and question the quality of the product,”     PEPSI Cola in Asia Pepsi Cola lost its dominant market share to the Coke in South East Asia when Pepsi changed the color of its vending machine and coolers from deep “Regal” Blue to light “Ice” blue The light blue is associated with death and mourning in this region 4  6/23/14  FIAT in China Fiat released an ad in Italia in which actor Richard Gee drives a Lancia Delata from Hollywood to Tibet Gere is hated in China for being an outspoken supporter of Dalai Lama- there was a huge on-line uproar on Chinese message boards commenting that they would never buy a Fiat car 5  6/23/14  WPP in Argentina The ad featured a member of the Argentine Olympic hockey team training in the Falkland Islands The hockey player was filmed doing step-up exercises on a British war memorial and included the line, "To compete on English soil, we train on Argentine soil.” 6  6/23/14  …… coming from the lack of marketing research not everyone fits the one size 7  6/23/14  Part INTERNATIONAL MARKETING RESEARCH steps of conducting the marketing research Define Develop Determine Collect Analyze Link information need and the costs, benefits of the research efforts the relevant data from secondary, primary or both the data and interpret and summarize the results the results to the decision makers the research problems and establish the research objectives a research design Source: John Wiley & Sons (2009) and Cateora & Graham (2007) 8  6/23/14  Marketing data collection Primary Data:     Data which are collected for the first time Obtained directly from consumer to fulfill a specific purpose Secondary Data:     Data that are readily available from other sources Accessing data through sources such as the Internet and library “Data itself is useless Data is only useful if you apply it.” -Todd Park- 9  6/23/14  FOCUS GROUPS bring together respondents with common characteristics OBSERVATION actually view respondents PRIMARY DATA COLLECTING METHODS EXPERIMENT controlled variables and respondent groups PERSONAL/NON-PERSONAL INTERVIEW one-on-one survey with respondents NON-PERSONAL SURVEY on site, telephone, post-mail, fax, computer - based   PRIMARY DATA RESEARCH     Directly relevant to the business   Up-to-date data obtained   Competitors not have access to the findings     Time consuming   Often expensive   Results may be misleading if the sample size is too small, questions are unclear or there is interviewer bias 10  6/23/14  Part UNDERSTANDING CUSTOMER BEHAVIORS Knowing customer, gaining success….  “There is only one boss The customer And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else” -Sam Walton- 26  6/23/14  Cus·tom·er  /ˈkəstəmər/ A person or organization that buys goods or services from a store or other business (Webster dictionary) Consumer A person who purchases goods and services for personal use Customer Implies a relationship over time between the buyer and a particular brand or retail outlet 27  6/23/14  Customer satisfaction Dependent on a product’s perceived performance in delivering value relative to a buyer’s expectation Value and Customer satisfaction Expectation  Perceived value  6  10  Perceived value  6  Expectation  10  If the perceived value is lower than the expectation of consumer, the satisfaction is low or even un-satisfaction and vice versa 28  6/23/14  “ the emotional, mental and physical activities that people engage in when selecting, purchasing using, and disposing of products and services so as to satisfy needs and desires.” -Sebastiano Mereu, 2011- CUSTOMER BEHAVIORS AWARENESS EVALUATION PURCHASE USAGE REPURCHASE ADVOCACY Consumer Purchasing Behavior   Source: Kyle Lacy (n.d.) 29  6/23/14  Business getting   AWARENESS EVALUATION PURCHASE Business keeping  USAGE REPURCHASE ADVOCACY Consumer Purchasing Behavior   Factors affecting Consumer Purchasing Behavior PERSONAL            Age, Gender Occupation Education Economic situation Lifestyle PSYCHOLOGICAL            CULTURE      Culture, Sub-culture Social class Motivation Perception Experience Belief Personality SOCIAL      House hold type Reference groups 30  6/23/14  Factors effecting Consumer Purchasing Behavior MARKETING STRATEGIES Part COMPETITION ANALYSIS  31  6/23/14  I have been up against tough competition all my life I wouldn’t know how to get along with out it Walt Disney American film producer (1901-1966)  Who are competitors? •  Companies with a product/service addressing similar needs •  Products/services considered to be close substitutes •  •  Don’t define too narrowly Analyzing broader competitors allows for innovation maximization 32  6/23/14  Substitute Products Apple - Ipad Mini Samsung - Galaxy Note Microsoft - Surface Competitive Analysis Framework Michael Porter’s components competitive matrix •  •  •  •  Competitors’ Objectives Competitors’ Assumptions Competitors’ Strategies Competitors’ Capabilities Purposes of the matrix: •  What drives the competitors? •  What is the competitor capable of doing? 33  6/23/14  advertising packaging branding promotion Part public relation Marketing S trategies Customer oriented customization 4A Rules in Marketing strategy shaping •  •  •  •  Appropriateness Affordability Accessibility Accountability for the promises made 34  6/23/14  Marketing Mix - The Hall of Fame In 1948 James Culliton described the role of the marketing manager as a "mixer of ingredients" The term 'marketing mix' was first used in 1953 when Neil Borden, in his American Marketing Association presidential address In 1960 Jerome McCarthy group Marketing strategies into four categories which we now refer to as the 4P of marketing: product, place, promotion and price In 1981, Boom Bitner develop the extra Ps crucial in the delivery of services: people, processes and physical evidence What is Marketing Mix? “A Marketing mix is the mixture of controllable marketing variables that the firm uses to pursue the sought level of sales in the target market.” -Phillip Kothler - 35  6/23/14  Traditional Marketing Mix Ps Modern Marketing Mix Ps TRADITIONAL PURCHASE JOURNEY 36  6/23/14  NEW PURCHASE JOURNEY NEW PURCHASE JOURNEY 37  6/23/14  NEW PURCHASE JOURNEY Customer Oriented Marketing tactics AWARENESS Pr, Direct mail, Print, TV ads, Email, Social network EVALUATION PURCHASE USAGE REPURCHASE ADVOCACY E-book, Web, Webinar, Blog, SEO Ecommerce, In-store, Catalogue, MobiApp, Sale forces SMS, Email, Community network, FAQs Email, Coupon, Web2.0, direct mail/email Review, Community, Events 38  6/23/14  FLEXIBILITY  to adjust the strategy to the situation COURAGE  to make a decision and stand by it BOLDNESS  KNOWING THE FACTS  KNOWING THE RULES  LUCKY  INTERNTIONAL MARKETING STRATEGY MARKUP! to act without hesitation when the time is right in order to formulate strategy from the ground up but internalizing them so they can be forgotten marketing warfare has an element of chance; a good strategy only makes the odds more favorable THE DIFFERECE BETWEEN WHO YOU ARE AND WHO YOU WANT TO BE IS WHAT YOU DO AND WHAT YOU HAVE TO DO TO GET WHERE YOU WANT TO BE MAY NOT BE PRETTY OR MY NOT COME EASY… 39  6/23/14  THANK YOU very much FOR ! YOUR ATTENDANCE 40  ... 6/23/14  …… coming from the lack of marketing research not everyone fits the one size 7  6/23/14  Part INTERNATIONAL MARKETING RESEARCH steps of conducting the marketing research Define Develop Determine... oriented marketing mix strategies AGENDA Part 4: Understanding customers behaviors Part 1: International business Blunders Part 5: Competition analysis Part 2: Marketing research methods Part 6: Marketing. .. magazines, newspapers RESEARCH ASSICIATIONS publications of non-profit research association MARKET RESEARCH PROFESSINALS free data of market research corporations ACADEMIC RESEARCH DATA Findings