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Global Business #9 July 2, 2011 Dept of Technology Management for Innovation (TMI), Graduate School of Engineering Professor Kazuyuki Motohashi http://www.mo.t.u-tokyo.ac.jp

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Todays 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

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Marketing and Sales MarketingSales 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

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How marketing fits in corporate strategy ?

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Strategic Marketing Planning Market Analysis and Identifying Opportunities (SWOT analysis) Market Segmentation Identifying target market and product (service) positioning Marketing Mix (4P) and Execution

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Ansoffs Product and Market Growth Matrix Global Business Context: CAGE and AAA framework

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Example of Market Segmentation

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Target Segment Identification

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Marketings 4P

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Product

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Price To what extent you can be a price setter, instead of price taker ?

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Place (Channel)

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Promotion (AIDMA) Changing to AISAS in Internet Era

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Promotion tools (in detail)

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Promotion in global business Some caveats Regulations over promotion activities: such as whether you can do comparative advertising Terminology in foreign language Brand creation (difference in customers perception) Importance of local ad agency Lack of product knowledge at local distributors

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Marketing mix by product life cycle

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Market Intelligence: China and India Concept of PPP Purchasing Power Parity)

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Targeting? Profit=gross margin * sales volume (size of market and competition) Difference between durable and consumption goods, customer preference?

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BOP(Bottom of the Pyramid) Over 20,000 US$ 1500 20,000 US$ 1500US$ and under 75 mil. -100 mil. 150 mil.-1,750 mil. 4,000 mil. The fortune at the bottom of the pyramid (C.K. Praharad)

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BOPs Business Chance The fortune at the bottom of the pyramid (C.K. Praharad)

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Example: ICICIs micro payment The fortune at the bottom of the pyramid (C.K. Praharad)

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Next Class: Shiseido Case Is China is important for Shiseido? Evaluate based on Shiseidos domestic and global operation statistics List merits and demerits of operating in China, as compared to operations in US and Europe Characterize Shiseidos marketing strategy in China. Take Urara as an example, and discuss its targeted customer and marketing 4P. Do they have a consistent story? Compare Shiseidos marketing in China with those of US and European mega players such as lOreal and P&G. It is better to keep such strategy, when Shiseido competes with them in Chinese market?