Marketing Management

Marketing ManagementI. Schuiling


Catholic University of Louvain-La-NeuveAcademic year 2004-2005 academic year --- modified: 2005-2006


Part 1: IntroductionCh 1: The role of marketing in the company.i) Development of management methods:Different possible orientations:
 • Orientation production (the choice is made according to the price and availability). The goal is to increase the capacity and performance.• Orientation product (choose the product that offers the best performance). The goal is to improve the quality of the product.• Orientation sale (product selection is made according to the intensity of the selling pressure. "The products are bought, not sold") the goal is to use sales techniques and more aggressive.• Marketing Orientation (needs must be understood in order to satisfy them). Develop products or services that meet those needs.ii) Definition of marketing:The company must identify the needs and desires (1) of the target consumers (2) and produce satisfying (3) desired a cost effective manner (4), as more effective (4) competition (5).  The central objective is to satisfy the consumer.
 (1) To identify needs, we do market research(2) It is not intended to affect all consumers, we are interested in a segment
     particular(3) Develop products that will satisfy consumers(4) the profitability of the company is the ultimate goal of the marketing approach(5) must be very familiar with what the competitionmarketing approach allows companies to be more efficient in the design and marketing of its products.The concept of market-orientation (dd Lambin) refers to the fact that the company considers ts stakeholders who influence the purchase decision of the client (broad market)



 all functions of the company are market oriented.We can say that there is a management philosophy through the need for customer satisfaction
                                                                                                        The integration of activities to meet those needs
                                                                                                        Obtaining long-term profit through meeting these needsMarketing has two faces: Strategic: it is a process of analysis. It gathers information and analyzes the market to understand the consumers, the environment, ... Operational: it is the process of implementation, implementation. He represents all that was decided in a marketing perspective, it is therefore the most visible  careful not to confuseRMQ: we talk about the 4 P's: product, price, place (distribution) Promotion (consumer)There are five steps in the strategic and operational marketing:a) Analysis of market opportunities:It is both an external analysis (customers, competitors, market, environment) and internal to (company). We analyze the opportunities and threats and the strengths and weaknesses.b) Segmentation (meeting consumer as needed) target markets:Here the choice of segmentation criteria will play an important role.c) Phase of targeting, attractiveness / competitiveness:The following development strategies, and selecting one or the other segment attractive.d) Positioning:It identifies differentiation. + Positioning strategies  question is how to differentiate itself from othere) Marketing mix:With the 4 P: Product, Price, Pomotion (Communication), Place


                       (Distribution).A to d = strategic marketing, operational marketing e =The concept of marketing includes three dimensions:• An analytical dimension (= understanding of markets)• A dimension of action (= market penetration)• An ideological dimension (= market-oriented culture).RMQ: do not confuse marketing with advertising, promotions, communication, sales techniquesiii) Evolution of MarketingSome companies have addressed the marketing through advertising or promotions. Others, such as industrial, considered that the marketing (advertising sales) was not for them. Some companies claim to practice marketing without any real consideration of strategic marketing ...There are three action areas of marketing:- Individuals (B to C: business to consumer) is interested in the final consumer is a  marketing of goods and services- Organizations (B to B: business to business eg Renault and Arcelor: the plate is not for the final consumer)
                                  - Non-profit organizations
                                 There are different types of strategic marketing:• strategic marketing response involved the identification of unmet needs by developing a solution (innovation driven by the market)• strategic marketing to create checks for the existence of a market, size, and includes key success factors (innovation driven by the company).
         cooperation between marketing and research and development is fundamental.An observation is unfortunate ... There is indeed a dissatisfaction vis-à-vis the traditional marketing. There are no satisfactory measures of performance of marketing investments, or long-term relationship with consumers.Therefore, the solution is to move towards market: all business functions take into account all the stakeholders who influence the buying decision.Therefore, the role of marketing will strengthen as markets mature and needs saturated, there is widespread acceleration of technological progress and increased internationalization of the markets.iv) Major changes affecting the marketing: cultural change:For emergence of new segments (seniors, one-person households  eg creation of frozen meal, working women  delivery of home race   new opportunities), new consumers (buying behavior has changed) and consumerism (movement for consumer protection.) (Cross-power group of consumer advocacy group). Development of new technologies:Technological competition becomes greater. There is also a disruption of the boundaries of existing areas, as well as a need to redefine the reference markets ... Ecological Movement:There is an awareness of the scarcity of natural resources, an awareness of the impact of consumption and marketing on the environment. Therefore, there is a new goal: improving the quality of life and not customer satisfaction. (Ex: Pampers diaper generates millions of jobs each year  biodegradable materials) Power of retailers:There are more and more creative private labels, and powerful purchasing groups to increase their bargaining power. Emergence Marketing responsible or ethicalThere is need for more ethical behavior and accountability. Consumer interest in the long run is more important. Globalization of the economy:There is a globalization of markets, the interdependence between them and a globalization strategy that allows for substantial economies of scale.All this of course has an impact on marketing strategies.v) The boundaries of marketing:• Meeting the needs in the short or long term?• Satisfaction of individual or collective needs?• Products required by the market or driven by technology?vi) Current topics: Global Marketing:Here there are defining marketing strategies in global or regional level. There is a search for economies of scale generated by the development of standardization as well as international brands at the expense of local brands. (Ex: BBL now ING)But then arises the dilemma of standardization or adaptation? Relationship Marketing:We want to create relationships with customers as a loyal customer is more profitable than a new customer. There is then created different levels of relationship.
 Trade Marketing:Here, the retailer is using marketing to its advantage. There is a development of strategies for segmentation and positioning. We launch private labels (eg intersection). Direct and Interactive Marketing:Access to targeted information and new information channels and sales. There is a possibility to customize messages and contacts with the client. Brand Management:The brand has an existence beyond the product and provides tangible and intangible benefits. Brands have become the capital of the company. New strategies such as the extension of the brand, the co-branding or changing the names are put in place.In conclusion, we can say that marketing is indeed a management philosophy. It focuses on understanding consumer needs. Strategic marketing is the most important part of marketing thinking. Operational marketing is the execution.













Part 2: Development of Strategic MarketingCH. 2: Analysis of needs and behaviorsof the buyer.i) The concept of need:The requirement is a requirement of nature or society.We distinguish two types of need: generic needs (basic needs) they are innate needs, natural needs derivatives: what needs are acquired, cultural and social.
 Ex; GSM: the aim is to communicate, it is derived from the basic needThese are needs that must be generic answers.Indeed, the derivative needs is a response made to the technological needs as well as generic object of desire. Saturation will affect the need and not the generic derivative. The company must then define its mission in terms of required credits.Kotler will distinguish:• Need: sense of lack felt in respect of general satisfaction related to the human condition.• Desire: preferred means of meeting a need.• DemandThe generic requirements are stable but the desires are many and changing. Therefore, the marketing, according to Kotler, just wants to influence by making the product attractive and available.You can still make a distinction between: Needs articulated: it is the stated requirements (what the client says), needs no statements (what the customer expects) and imaginary needs (the dream of the client). Unmet articulated: what are the real needs (well-being of the client) and unconscious needs (which unknowingly motivate the client).ii) The theories of needs:The typology of Murray tells us that all individuals have the same needs but they are expressed differently from individual to individual. His typology differentiates basic needs (physiological) and secondary (other) positive (those that will attract the individual) and negative (give a bad image), clear (those who will influence the behavior) and latent (needs imaginary ) and finally the needs conscious or unconscious.The Maslow hierarchy of needs is as follows:Requirements fulfilled (5) (need to make things difficult to overcome)Esteem needs (4)Social needs (3) (being part of a social group)Security needs (2)Physiological needs (1)These requirements do not exist to the same extent in all individuals. Need to move to the next one must first satisfy the lower levels of the pyramid.In addition, the individual does not appeal to the property only for practical reasons but to communicate with its environment. The property to be developed and designed to meet these needs should be designed accordingly.Question: marketing creates he needs? it does not create basic needs, it needs influence derivatives. (Ex: mercedes: it addresses the need for social status but does not create the need for social status)
      
                  What limits should we give?Legislation, ethical behavior  ethics in the practice of management.iii) purchasing patterns: (can be measured before, during and after)Purchasing behavior is the set of activities that precede, accompany and follow the purchasing decisions.We will hypothesize that the purchasing behavior (the act of purchase is an activity designed to solve a problem) follow a rational behavior. However, the behavior is rational within the limits of information held (DOT)!The client has a role in behavior. This role is threefold: User: receiving the service, The payer: finance the purchase The purchaser buys ... The level of risk: when I buy a good try to have lots of product information to mitigate risk (eg auto = financial risk)Each role can be exercised by the same person or different people. (Ex: a mother, business ...)In the process of buying, there are five steps:• Recognition of the problem,• Research information• Evaluation of possible solutions,• purchasing decisions,• Behaviour after purchase.V. model of buying behaviorModel cpt purchasep 28iv) The process of responding buyers:It is a hierarchical model as it is considered as one moves from one level to another without skipping a level ... (This process is followed if the risk and degree of involvement is important)
 First is the cognitive response that is receiving the information (= cognitive LEARN).Then comes the emotional response that is rather the evaluation of information (= emotional FEEL).Finally comes the behavioral response is the action given the information (= behavioral DO).The model of Foote, Cone and Belding (FCB)Quadrant 1: learning processQuadrant 2: affective processQuadrant 3: minimal involvementQuadrant 4: hedonistic dimensionSlide 15 Page 30Measures of cognitive response:= Set of beliefs and information held by an individual.There is awareness that the degree of brand awareness among the public. Awareness is- Spontaneous (ex: what brand of computer do you know?)- Power (eg, among the scrub, where do you know?)-There is also the recall of the brand is the memoryMeasures of emotional response:= Feelings, preferences, attitudes, intentions, favorable or unfavorable judgments.The concept of attitude includes the mental state of the individual formed by the experience and knowledge gained, allowing him to structure his perceptions and preferences. We are in a model of "multi-attribute" to find out what criteria will be positive or negative. It is therefore in a decomposition approach (classification attribute) and composition (overall utility score based on the evaluation marks on different attributes).
Different matrices can be constructed.Ex: Matrix importance / performance: see page 31 slide 18An attribute can be seen as very important for the buyer but not perceived as present in a brand.This matrix has two weaknesses: Performance is defined in absolute terms regardless of competitors. The best would be to analyze the performance relative to competitors. The importance scores do not measure the determination of an attribute. matrix determines / relative performance.Measures of behavioral response:= Sales of the product, market share, brand loyalty, satisfaction / dissatisfaction.A satisfied customer remains loyal longer, buy more, less is determined using prices and supports the company. Indeed, in many areas, over 80 to 90% of sales are made by existing customers. Win a new customer costs five times more than retaining an existing customer. The loss of profitable customers affect the results of a firm.Companies also find that 20 to 40% of customers are not profitable ...In addition, satisfaction begets loyalty. Indeed, the satisfaction is the main factor explaining the loyalty and long-term financial performance.We must create a culture that grows to excel in the interest of the client. A loyalty through a marketing relationship. We try to understand the type of client so as to best meet.RMQ: it must be remembered that market knowledge is very important:Ex: Coca-Cola versus Pepsi launched the New Coke but the consumer preferred the old product because it also an image associated (United States, ...)A few years ago believing Levi's leader has not changed in its modelsFormer types of studies:Studies exploratory (qualitative): you ask some person representative sample of the population eg focus group (one to one interviews or expert)Market Studies (Quantitative) you ask more people. (Ex: questionnaire, telephone, Internet, mail ...)



v) The purchasing behavior in the industrial market:Nature of request:Demand is derived, ie independent of one or more applications downstream of its activity. The application is therefore relatively inelastic, fluctuating and its analysis is more complex.Structure and nature of the client:Purchasing decisions are made by decision-making centers of purchase or buying groups.Stakeholders are multiple (buyer, user, decision maker, ...).Buyers are buying fewer but more important. Trade relations when it found close ...Type of industrial products:They are developing products for other consumer products or industrial. They are also intended to enable the achievement of business operations. They are purchased for resale.vi) The product in response to a needThe product (service) is a response to a need, it is a multi-attribute solution to a problem (basket of attributes). In addition, the product provides a functional value (served basis) and utilities and what side to stand out.RMQ: different products can meet the same need.Ex: IKEANeed: to fill in a modern way for a good priceBasic function: providing designer furniture at a good priceAdditional services: restaurant, cafeteria and all for a purpose: to keep the consumer as long as the store. There is also the center and the corner to teens and that in order to give parents time to see the store occupants children.










CH. 3: Market segmentation.i) The levels of segmentation:The macro segmentation is to identify the products markets, this analysis is most often used in industry  it is not sufficient for the services or consumer productsThe micro segmentation that it identifies the consumer segments  goal is to develop a marketing program that meets the needs of these consumers.ii) Macro segmentation:We define the relevant market of pt of view of the buyer in terms of "solutions to a problem.
 We will ask three questions:• What are the different groups of potential buyers?• What are the different needs to meet (solution to?)• What existing technologies to meet those needs?•Here are the structures of the relevant market:
 • A product market: a generic need for specific client group with a particular technology• A market solution: all the possible technologies for a need and a group of customers.• An industry: is defined by technology, regardless of the needs and client groups
iii) The analysis of segmentation:It will be different from product to product. It has a simple logic, but is difficult to achieve. Are analyzed by type of consumer products.RMQ: Segment = cut
            Target = take a segment



iv) The different types of segmentation:Demographic segmentation:Consumers have different demographics. The aim is to group them according to these characteristics (eg gender, age, household size, family composition, income, occupation, education).The advantages are: Easy access to information, Easy access by a targeted marketing mix.The disadvantages are:

 Consumers do they share the same needs?
 Underestimation of the cultural trends;
 No new or original segmentationsEg: Fisher Price: age; Magazines: sex, cosmetics, sex, cars: incomeSegmentation by benefits sought:Here, the consumer looking for different benefits or profits. These benefits may differ by class of products studied. This segmentation involves understanding: the list of attributes or benefits associated with the product category,
                                                    an assessment of the relative importance of each attribute
                                                    a group of buyers that give equal weight to attributes.

                               It is therefore in the presence of a multi-attribute model.The advantage is: The segmentation makes sense ...The disadvantages are:

 Difficulty of identifying the benefits to favor
 Conducting market research rather expensive
 Loss of recognition of the socio-demographic profileEg• Prices: Seiko, Pulsar, Citizen, Picture / Symbol: Rolex; Elegance / Fashion: Gucci, Armani, Sportsmanship; Toghueuer, Breitling, Refinement: Patek Philippe• Spa: Benefits sought: the taste of water, composition, price, packaging practice, patriotism, the symbolic image of the brand.But do not forget that it is better to make a classification of these benefits and know their percentage.Psychographic segmentation:Consumers can be grouped according to their opinions or their value system. So according to their lifestyle they are grouped. (Ex: organic product). Some consulting firms are conducting studies to identify major trends in lifestyle (socio-styles).The advantages are: The need is more related to trends or lifestyles. Identification of new original segments.The disadvantages are:

 Studies of socio-styles: the incentives are not always reliable or representative ...
 Doing so will make bad decisions.Eg study of society MOPER:The goal is to understand the motivations and values ​​of € pean (1000 persons dabs 35 countries)Identification of six groups in € pe:Dynamics: material values ​​and objectivesprofessionalDevotees: duty and traditionThe altruistic: Question and social welfareThe intimate: Relationships and familyThe hedonistic: welfare and serviceThe creative education, knowledge and technology
                    Nokia: 650 million potential users around the world divided into 10 categories:Wealthy executivesThe young forward-thinkingThe motherThe perennial concern ...



Behavioral Segmentation:Consumers are grouped according to their buying behavior. The criteria are eg the user status, the utilization rate, loyalty status, ...There are two types of segmentation: to a variable:One variable is used to segment the market, the segment is finding therefore less accurate. Multi-variables:We take various criteria that we will cut on a variable or two. We then have more information on consumers, marketing mix is ​​more satisfying by segment and there is less consumer segment.Exercise: Segment the market for cars:1. demographic segmentation:- Revenue: low - medium - high- Household size: small - medium - large- Age: young - adult - elderly2. segmentation by benefits sought:- Price- Security- Performance- Design- Brand (sports, social status, ...)- Related services- Functionality, comfort- Consumption- Pollution- The quality (origin of the car)3. Psychographic segmentation:- The eternal concern- The green- Social success- The traditional4. behavioral segmentation:- Utilization (km)- The non-user or the user loyal-Another example Findus: socio demographic: urban singles under 35
                                    Benefits sought: food diet, varied without
                                                                      cook

The conditions for an effective segmentation of demand homogeneous segments (similar needs within the segment), Measurable (segments comparable in size, volume, costs and profit), substantial (segment generating enough profit potential) and accessible ( marketing efforts, is that I can touch that part of marketing?).v) Industrial Market Segmentation:There are three types of segmentation:a) benefits sought by:This is the most natural because it is based on specific needs and defined. It classifies customers by type of industry and end user. (Ex: Arcelor interest to segment customers according to their needs will be different because the (auto industry, appliance, construction)b) socio-demographicThese are the criteria describing the profile of the industrial customer (eg, activity, geographic location, size (small, ...), the composition of shareholders, ...c) Behavioral Segmentation:Segmentation is more common, there gathers the customers according to their structures and how their works mall.Eg: P & G that the segmentation is done by benefits sought:- Whiteness: Dash- Removal of tasks: Ariel- Ease of use: Vizier- Price: Bonux- Protection of laundry: Dreftvi) Hedging Strategies:a) undifferentiated marketing strategy:The goal is to treat the market as a whole. It does not take account of different segments.b) differentiated marketing strategy:The aim is to target several market segments and process each segment with different marketing strategies. The costs are higher as a marketing program is tailored to each segment.Eg: L'Oreal: L'Oreal Paris, Vichy, Biotherm, Helena Rubenstein,
                           Lancômec) Marketing strategy focused:The goal is to specialize in one segment due to lack of means, no capacity to go into several segments. It is more suitable for SMEs.We try to be the best in the segment selected. The choice of strategy will depend on the number of profitable segments and corporate resources.vii) Targeting:Targeting is based on the analysis of attractiveness (= changes in demand) and competitiveness (competitive position + strengths and weaknesses of competitors).It will allow you to select target segments that the company wants to occupy. Segment consists of cutting the market while targeting is to select themarket segments to occupy.Objectives and corporate resources also play a roleThis step is crucial because it guides the development of the company.

 Targeting is based on:• Analysis of attractiveness: the level of demand and the life cycle phases• Analysis of competitiveness: competitive position, strengths and weaknesses of competitors and the ability of the company..








CH. 4: Targeting - Analysis of attractivenessi) Basic concepts:There are two types of applications:1. The primary demand:That market demand = total quantity purchased by a group of buyers in a given place and at any given time in a given environment.2. Demand to the company:This is the request to the brand = share of primary demand corresponding to the market share held by the mark in a particular market.Eg brand A has a volume growth of 15% with a primary demand of 15% believes that it is stable 
           Brand A has a volume growth of 15% with a primary demand of 20% believes that it is not stable 
                           A brand volume decrease of 5% with a primary demand decreases by 20%  worseThe primary demand is a function of determinants of demand.We must distinguish: - environmental factors out of control for the enterprise and end users, intermediate customers (distributors), competitors, ...
                                     - Total pressure marketing: the 4P.Growth opportunities:Slide 6 page 52


The current market potential depends on the pressure exerted marketing, while the market potential is an absolute limit to which tends primary demand:• Any potential user of a product is effective user;• Each user uses the product on each occasion of use;• Each user is performed at the optimal dose.Eg oral hygiene marketii) The model of life cycle:Demand changes over time:Slide 14 p 56In this strategic analysis of CVP at each stage: The economic and competitive environment is different, The strategic objective is redefined The costs and benefits are different The marketing program is rehabilitated.CVP applications are:
              The life cycle of a product market which is different in each product market and its function (technology) but also the market (aggregate demand)
               The life cycle of a trademark in which the variables are under the control of the company.Explain the different phases:(A) Phase of introduction:Sales growth is very slow. It is developing the technology, the distribution is built, competition is rare if you're an innovator. The big problem of this phase is the high degree of uncertainty and financial risk.The primary objective is to create the request as quickly as possible. Other objectives are:- Create product awareness- Inform the market benefits of the product- To encourage buyers to try the product- To introduce the product in distribution networksThe role of the marketing mix is
            - The basic design of the product- The selective and exclusive distribution- The ability to charge high prices- Communication informative(B) Growth phase:There is a rapid growth in demand ( demand continues to rise). Indeed, the occupancy rate increases rapidly through the "grapevine" ... there are lower production costs due to the effect of experience. The products are available, but new competitors arrive but still everyone is a winner because the market is growing.
The priority objectives are:- Expand and develop the market to maintain growth.- Building a strong brand image to be protected by post since the competitors are sometimes very pacifist.- Create and maintain brand loyalty is easier to do in times of growthThe marketing mix will attend:
                                          - Improve the product (features)- Adopt an intensive distribution- Reduce price- Communication with a max. consumer ("coverage" this means that we will try to reach a maximum of individual)Eg wind turbines, GPS, USB keys(C) Period of turbulence:Here, demand continues to grow but at a decreasing rate ... The weaker competitors leaving the market ... the industry is concentrated and the target that we want to touch is the majority.The priority objectives are:- Segmenting the market in creative ways- Maximize market share- Maintain brand loyalty-The role of the marketing mix will take care of:
                                                      - Product differentiation driven by the
                                                            target segments- Cover maximum distribution- Prices based on perceived value- Communication tailored to the segments-(D) Stage of maturity:Here, growth is low and occupancy rates / penetration is high. The market is highly segmented (covers all needs). The market is concentrated and therefore there is a strong competitor. The technologies are commonplace and the demand is stable.The primary objective is to increase market share (to the market to competitors)Other objectives are to:- Differentiate the product with new attributes baskets- Look for new niches or niches- Avoid price competition because if one starts to decrease its prices, everyone will have to lower its prices  it will create problems for companies.- Adopt a relationship marketing to maintain consumer qques (you want to be closest to the client (often in the area of ​​service))Eg PC, mobile phone, DVD player(E) Phase of decline:.The main feature is a structural decline in demand. New products appear more powerful, consumer habits are changing, there are changes in socio-economic policy ...The priority objectives are to:- Divest- Specialize in a residual market (eg in boxes, use of old records)Eg: Does the audio cassette, video, cameras normal ...Limitations of CVP:All products do not go through all the phases, and the company can influence the shape of the curve in innovative ...Slide 30 Page 64iii) Methods of forecasting demand:There are different types of forecasting methods: Methods subjective Objective Methods naive methods (based on past observations) Methods causal (explanatory factors) There is a need for an integrated approachMore slide 31 p 65CH. 5: Targeting: Competitiveness Analysis.Analysis of competitiveness:We analyze the competitive product-markets or segments and assesses the nature and strength of the competitive advantage of competitors.i) The concept of competitive advantage:= Set of attributes or characteristics held by a product or brand that give a certain superiority vis-à-vis direct competitors.It is therefore essential to differentiate from the competition. This differentiation is based on an internal or external competitive advantage. The external = distinctive qualities of the product giving market power (= differentiation strategy). It is based on the distinctive qualities of the product that is a value for the buyer. It allows to adopt a selling price higher than the competition (=> market power). The internal = superiority of the company in controlling costs, giving it a lower cost price (= strategy of cost leadership). So there is a presence of a gap in cost due to improved productivity. In areas of intensive labor, lower costs is seen as and as the company accumulates experience.ii) The concept of extended rivalry:Porter identifies five dimensions of the attractiveness of a market:1. Threat to the intensity of competition2. Threat of new entrants3. Threat of substitute products4. Bargaining power of customers5. Bargaining power of suppliers1-2-3 = 4-5 = Menace Menace direct indirectOne should not focus only on specific competitors (direct competition). Porter's model broadens the analysis of the intensity of competition.




Porter's model:
Bargaining power Threat of newincoming supplier




Threat of products Bargaining powerSubstitutes for customers
Threat of new entrants:These are firms outside the market looking for synergies. These are firms for which the entry is a logical extension of their strategy.The threat of new entrants depends on(1) The existence of barriers to entry- Economies of scale: emphasis on mass production  each unit produced is less expensive => the firm is protected- Patents: eg in the pharmaceutical, X years for the molecules can not be reproduced- The strength of brand equity: brand recognition  advantage over others.- Capital requirements: year where the needs are very high capital (eg building works)  new entrants can not afford to enter the market- The cost of transfer: what are the costs that come when you move from one company to another (eg change suppliers)  it is very difficult to change from one company to another.- Access to distribution channels: in order to prevent any other competitors to establish themselves on this circuit- The effects of experience and benefits costs: the impact of cost-cutting taking place in a business where there is an improvement of the MO through experience::> more efficient production




(2) response capacity established competitorsThreat of substitute products:
            These are products that perform a similar function for the same group of buyers but are based on different technology.  Importance to search for products that meet the same need generic or perform the same function.Bargaining power of customers:
             Their influence to profitability via the pressure to lower prices ...The importance of their power depends on:• Customer group is concentrated or purchases large quantities• Items purchased by the customer is an important part of its cost• Items purchased are poorly differentiated  the customer can go to another company• The transfer costs are low from one provider to another• Threat of backward integration (the client decides to make himself what this product)Bargaining power of suppliers:
              They have the ability to raise prices, reduce the amount ...
              The importance of their power depends on:• Group supplier more concentrated than the client group• No threat of substitute products• Not a major customer for the supplier• The product is an important means of production for the customer• Product differentiation suppliers• Threat of suppliers to integrate downstreamExercise: Spa Queen: we want to advisepotential entrants are: Coca Cola (Chaudfontaine)major retailerslarge water containersbarriers to entry: the effect of experience
                                                                           strength of the brand K
                                                                           Substitutes: light beverages, fruit juice,
                                                                                             cool pad, soft
                                                                                             drink, energy drink, water
                                                                                              tap





iii) Knowledge of competitors:Who are they, what are their objectives, strategies, strengths, weaknesses, ... are the questions we must try to answer.But how to find out about the competition?Several means are available to us:- Analyze the press and specialized media,- Monitor the standards, patents and regulations- Consult the databases- Shell the competing products ...Assess the strengths and weaknesses:Diagnosis of competitors - suchWe inquired about the reputation, product quality, product availability, technical assistance and expertise of commercial competitoriv) Competitive Strategies:Must be developed based on a realistic assessment of the forces.There are four types of strategies:Strategy leader: the leader is one who wants to become No. 1 eg L'Oréal, NestléThe characteristics of this strategy are:- The development strategy of aggregate demand- The defensive strategy (protecting market share against competitors in the most dangerous)- The offensive strategy (benefit from the effects of experience and improve profitability)- Strategy demarketing (voluntarily reduce the market share)Challenger's strategy: It's the No. 2 tjs he tries to become No. 1 and it will attack in different ways2 possibilities: he either: frontal attack (directly opposed to the leader using the same weapons) ex: Pepsi, Coca Cola vav Attack side (opposed to a point where the leader is weak or unprepared).Follower strategy: it will copy the leader or challenger  it does not have much ambition, yet he has a good profitabilityIt aligns its decisions on the leader given its low market share.
            It can segment the market in a creative, efficient use of R & D and think small!Strategy Specialist: As the follower, it makes little financial capacity  it will take a reference segment that is attractive and with little competition, it then tries to be the onlyThe segment chosen must:- Represent a sufficient profit potential- To have growth potential- Being attractive to the competition may- Match the distinctive competencies of the company- Have a defensible barrier to entry



























CH. 6: Positioning and marketing planA. Positioningi) Definition of Positioning Positioning:This is the most important stage of strategic marketing.This step is to give the product a definite place in the minds of consumers relative to competition.Goal = differentiate if possible by finding a sustainable competitive advantage!ii) Types of differentiation: For the product (quality (Honey, Apple), performance, reliability (Duracell), design, technological innovation ...) For the service (ease of control, timing, installation, training, consulting, repair ...) For the image (brand personality (CocaCola, Rolex, perfumes, cigarettes, cosmetics ...)) For the price (high-end, low-end price / quality ratio (Ikea, Colruyt, Aldi, ...)RMQ: there is only one product differentiationiii) Value Chain (Porter):This value chain is one of the possible tools in the search for an element of differentiation. The goal is to create a substantial competitive advantage and sustainable (external).
             The principle is that any business is a set of activities and each activity is a potential source of differentiation.

iv) Criteria for a good differentiation

              It must be unique relative to competitors. Differentiation must be important for the buyer and defensible long term. Finally, it must be communicable (not too complicated to explain) and financially viable.EgPositioning of the coffee market in France- Grandmother: acknowledged expertise, keeps its secrets- Melita: technology coffee- Coffee House: vacuum packaging preserves flavor - Santa: drink lots of coffee Frustration-Free- Jacques-Vabre: to drink in the morning and evening- Fabre J: have funQuality: Melita, Gd-Mother, Douwe EgbertsImage: Fabre, StentarPositioning of various companies:- Jacquemotte: Product- Black Cat: image, product and price differentiation   too much error in marketing- Louis Vuiton: image- BMW and Rolex: image- Contrex: Product- Perrier, the image- Mach 3 (Gillette): TechnologyRelationship marketing mix:The positioning defines the strategy chosen for the basic product or brand. This strategy is reflected in the choice of the marketing mix by product, distribution, price and communication?The elements of the marketing mix must be fully consistent with the position)B. Strategic Marketing PlanCourse:a) Defining the mission of the company:It is a vision to LT. We must define the scope of activities and the priorities of the company. It should also analyze the constraints (financial, person-time) of the company and its resources but also what are the guiding principles and corporate values.Finally, we can define the basic strategic options ie to the ambitions of the company (leader? Marketing differentiation? Cost leadership? ...)b) Analysis of the external environment:= External threats and opportunities facing the company in the product market. Must be so different analysis such as analysis of market trends, consumer behavior, competitive environment, what is the international context, the analysis of the technological, legal, social and political as well as that of changes in the distributionc) Internal analysis of the company:= Analysis of strengths and weaknesses of the company. Again, the various tests are: analysis of the company, its financial, distribution, pricing policy, the strength and quality of communication, and analysis of product portfolio ( BCG Matrix / General Electric) and that of its product, its brand and its imaged) SWOT analysis:= Analysis Strengths / Weaknesses and Opportunities / threats.So the analysis of strengths and weaknesses of the company and the opportunities and threats from the environment.e) Goal Setting:! The most important step!Goals can be expressed in sales volume targets (AC units), financial objectives (profit), market share, consumers (awareness level, image), ... It is very important to integrate these goals.f) Choice of marketing strategy:= Hows of achieving the objectives.
            Do this:• Define the basic strategy: defense, penetration by developing products, by developing markets, international development??• Statement of the strategy by identifying one or more target segments and defining the position.g) Decisions strategic product and brand:= Definition of objectives such as: achieving a significantly higher quality of the key attributes of the product from the most dangerous competitor) and strategy (resources used).h) Strategic Decisions Price:A new definition of objectives (eg maintaining an average price in ... =) and strategy (resources used).i) Strategic Decisions distribution:Setting objectives (eg cover distribution channels) and strategy (resources used).j) Decisions of strategic communication:Setting objectives (eg awareness, trial rate, image, ...) and strategy (the means implemented as TV advertising, Radio advertising, ...).k) marketing budget and sensitivity analysis:= Detailed description of the means to each element of the marketing program.




CH.7: Portfolio analysis and selection of basic strategies.i) Analysis PortfolioThe goal is to help the company allocate its resources among its various products, markets. The analysis is to identify the strategic position of each product / market according- Market attractiveness,- The competitive strength of the companyThe two most common methods are: The matrix of Boston Consulting Group (BCG) is a matrix analysis of the market share / growth rate. The matrix attractiveness / competitiveness (General Electric).BCG Matrix:= Matrix "growth (that is the element of attractiveness) / relative market share (it is the element of competitiveness)."It operates on two criteria:• The growth rate of the reference market• The relative market share leader.It runs on two assumptions:• The effect of experience (there are n at the effect of volume, at my costs go down)• The life cycle.The Boston Consulting Group then identified four groups of product-market (BCG): The cows The stars The problem children The dead weightStrategic goals, financial needs (which vary according to product groups) and the contribution to profit will be different for each group. V. P. 2 graphics 92Define the four product-market:(B) cash cows:Its characteristics are low growth, but a dominant market share. They generate more liquidity as needed to maintain market share. The primary objective in to reap through various strategies such as maintaining a dominant market share, investing in cost reduction and technology, avoid over-invest ...(C) The stars:Here we are in the presence of strong growth and a high market share. Profits are more substantial. The stars require high liquidity to support growth. The objective is to develop market share through strategies such as protecting market share, win new users, lowering prices if necessary ...(D) The problem children:Here, growth is fast but the market share is low. Profitability is low and demand for liquidity is high ... The goal is to develop selective. The strategies are to invest heavily to increase market share, competitors purchase, divest when necessary, ...(E) The dead weight:Growth is low, the market share is low. We are in the presence of a viewpoint cost disadvantage. There are few opportunities for growth, so the main objective is to surrender to the low profile (we will not invest a lot). The strategies are to target a specific segment, skimming by reducing the support, divest, ...The diagnosis of the portfolioThis is actually an indication of the potential strategy for each product-market. It is also an assessment of financial need and potential for profitability. The assessment of the balance of the business portfolio is based on the distribution of revenues according to the quadrants.The result is a script development to maintain or restore balance.Development scenario p.95 slide 14The benefits of the BCG matrix: Strength of theoretical development Using objective indicators of attractiveness and competitiveness Visual Synthesis of the activities of the firmThe limitations of BCG matrix:

    Existence of the effect of experience (industry volume)
    The concept of competitive advantage is internal, not external (the benefits are related to costs).
    Difficulty of measuring
    The guidelines are general, not specific recommendations. If you are in a logic of differentiation marketing, this matrix is ​​useless, it is used only in strategies of domination of cost, volume, ...General Electric matrix: Matrix = attractiveness / competitiveness.The attractiveness of the market, we use several indicators of attractiveness (an index is defined). The indicators are external to the firm and uncontrollable.For market competitiveness, we use several indicators of competitiveness (an index is defined). The indicators are related to internal strengths and weaknesses of the company. The criteria are established on a case by case basis.Benefits of GE matrix:- Application broader than BCG- High flexibility in the choice of indicatorsThe limits of the matrix:- Risk of subjectivity in the measures- How heavy and demanding- General RecommendationsUsefulness of these tools:- Aim to temper the CT (balance between activities)- Encourage companies to think in terms of attractiveness and competitiveness in terms of- Establish priorities in terms of human and financial resources- E-development strategies for differentiated activitiesP s 97 16P s 98 19
ii) Formulation of basic strategies:We must first determine the nature of sustainable competitive advantage (productivity or market power). There are three major marketing strategies based (Porter):• cost leadership: we try to have the lowest costs (eg the lowest cost)• Differentiation: highlight a competitive advantage that will allow us to differentiate ourselves against other competitors  you can ask a higher price: 90 '% of existing businesses (eg Sony, HP, 3M)• Concentration: the focus on a particular segmentP99 slide 21
- Differentiation Strategy:The goal is to give the product of the distinctive qualities (objective and subjective) that differentiates it from competitors in order to have market power.
            The result should generate higher profits through higher prices, despite higher costs.This protects the company from competitive forces (barriers to entry): direct competitors, the entry of new competitors, supplier power, substitute productsRisks:The price may be too high.
            The need for a differentiated product fade with the trivialization of the product.
            Imitations reduce the impact of differentiation, there will therefore loss of market power because the difference is becoming smaller.- Strategy for cost leadership:

            The goal is to achieve a low price by reducing costs at all levels of the "business system". So there again protection from competitive forces ...
            Here we have a single lever difference is the price. So who has the cost structure of the lowest that will survive.
            This strategy because it is not easy to tjs keep costs down (ie if we increase the MP ...)Risks:Technological changes cancel out the effects of experience.
            It may also be diffusion of technology among competitors.There may be an inability to detect changes.Finally, there may be inflation in the costs.At one point we come over to be the cheapest ...- Strategy of concentration:

             The goal is to focus on the needs of a segment and choose either the differentiation or cost leadership.
             It is therefore aimed at a niche (small segment that has specific needs so that the general will not close) the market.
             Eg: Ferrari, Porsche, L'Oreal Professional ...Risks:

            The price differential may be too large in relation to non-specialists. The differences between segment and fade ... The global market segment is divided into sub-segments when more specialized.

            There is no strategy that is better than the otheriii) Growth Strategies:There are again three types of strategies:- A strategy of intensive growth (within the reference market: with the product on the market available):The goal is to grow within its market. The procedure is therefore our current products in defined markets.P 103 s 30the three intensive growth strategies are:a) Strategy for market penetration:
                                 We want to increase sales in existing markets. The goal is
                                 therefore to increase primary demand (conversion of non-
                                 users of the class, increase the use and
                                 the frequency of use and we will find uses
                                  new ...).
                                 We also want to increase market share by winning customers
                                  on competitors ...Eg mobile operators: free minutes, and reach non-users with systems of patronage, reducing costs with the rising cost of recharging.b) Development Strategy for Products:Here, we want to increase sales in existing markets by improving existing products or developing new ones.Eg by adding new features, improving product quality, expanding and rejuvenating the product line by acquiring new product lines, ...Eg GSM manufacturer: there is more functionality on the mobile phone (camera, camera ...)c) Development Strategy by the markets:The goal is to increase sales by introducing current products in new markets.Eg, geographic expansion, new distribution channels, new segments of buyers, ...- Integrative Growth Strategy:The goal is to grow within the industrial sector. There are differentTypes of integration:• upstream: acquisition of suppliers, sourcing• downstream: to acquire or control its outlets• side: to acquire or control some competitors ...- Growth Strategy for diversification:The goal is to grow from opportunities outside the industrial sector. This is the strategy most often the most risky but paid off.We are dealing with two types of diversification:• Concentration = add additional activities on the technological or marketing• Pure = develop activities unrelated products or markets.
































CH.8. Marketing analysis toolsTypes of studies:There are three main types of studies: Exploratory Studies:These qualitative studies (eg use of secondary data,discussion group, expert interviews, ...).The advantages are flexibility, imagination, little formality, speed,and it is cheaper to quantitative analysis.The disadvantages are that the results are not representative, but... only indicative, they can not be generalized. In addition, the results can be subjective according to the interpretations ... Descriptive studies (quantitative):The objectives area) provide a photograph or monitor an aspect of the market.Ex: to describe the competitive structure of a market, describe the behaviorpurchase, describe the image, ...b) create a market research ... For it to be effective, there must be one or more assumptions, that the information sought is clearly defined and the method of gathering information clearly identified night.There are different types of surveys (personal interview, byphone ...). causal studies:It is an analysis of causality in statistical processingsophisticated.  A good study is one that uses the scientific method, whichis creative, which measures the value and cost of information, has developed a critical sense, ...






C.9: Policy decisions related to the product and the brand."A product may be copied by competitors, a brand is unique ...."i) Definition of the brand:A trademark is a name or symbol used to identify one product from another and registered in the minds of consumers a set of perceptions of both rational and emotional.Eg: club med / Neckerman, addidas / Nike, Coca-Cola/Red BullA brand is more than a product ... P 118 s 9
Context in which emerged the concept of brand?In the 80s, there was an awareness of the capital represented by brands. It is the beginning of a series of acquisitions, intangible assets are beginning to be privileged.Eg brand value in billions of dollars: 1) Coca-Cola 67, 2) Microsoft 61, 3) IBM 54, 4) GE 44, 5) Intel 33, 6) Disney 27, 7) 25 McDonald, 8) Nokia 24,9) Toyota 23, 10) Marlboro 21

              In addition Nestlé to become the No. 1 food purchase brands that were strong (KitKat, Buitoni, Maggi, Perier, Smarties, San Pelligrino.)
                             Uniliver: Slimfast and Knorr, Kraft: Gold Coast, Procter and Gamble:
                                             VicksIn the 90s, there was a growth of private labels and intensity of competition between brands.In the 2000s, the success of brands continues but an anti-brand is growing ...ii) Benefits of the brand:- For the company:The brand created a differentiation from competitors. There is also a creation of a loyalty to a product and an opportunity to offer a higher price. Create a competitive advantage and a barrier to entry, in fact, today's SMEs have great difficulty in creating brands because it is expensive (advertising ...)  most SMEs do not mark their products and they do mark by large retailers but the problem is that as the product is greater, if it becomes too expensive, major distributors get rid  SMEs have no bargaining power to create an advantage  brand- For the consumer:There is a decreased risk of a purchase and establishment of trust. But also a guarantee of product quality, guarantee safety and brand a certain value, a sign to differentiatePage 120 s 14iii) Key concepts:- Positioning / brand identity:There is product differentiation from competitors by giving a definite place in the minds of consumers. The identity elements give additional personalities (make fun, sad ...)- Branding:There is consumer perception of the position / identity ofbrand. The image must be in line with the position chosen by the company. Is the image is what they want to communicate?The consequences are:• Need to compare the positioning of the brand with its image• There are differences between what the company wants and what the consumer perceives• Studies should be held regularly.- Capital brand:This is a new concept created late 80's. It was created because there wasneed to value financial brands and improve marketing productivity.• the capital of the brand's consumer is the strength of thisIndeed, the reputation and brand are important.Identity Prism Kapferer:


                                                                 Physical
                           
                                      Personality Relationship


                              
                                        Reflecting Culture


                                                                MentalizationMentalization, the internal mirror of the brand, internal process that pushes the purchase of the brand.The reflection is the type of people who used to buy that brand. to understand a brand must understand the six different facets
 Eg: MercedesMindset: large sedans, reliable comfortRelationship: distancePersonality: Simple, conservativeReflection: Man, age, significant, easyCulture: Germanic order, culture, disciplineMentalization: show statusTo understand the strength of a brand, we can not be based solely onvariables of sales or market share. The brand strength also lies in the minds of consumers in the form of perceptions, associations and image. The brand equity = value given to a product as a result of marketing investments.iv) policies brands: Choice of brand name:There are different types of marks:• the brand product: a product is assigned here to a name.
                        Ex: Ariel, Dash, Vittel, Evian, ...• Brand-range: A range of products under one name andthat same position (or the same market).
                                    Eg Moulinex, SEB, Sun, ...• the umbrella brand: the same brand supports multiple products indifferent markets.
                                   Eg Heinz, Virgin, canon, Palmolive, ...• Brand-source:It is an umbrella brand strategy with products that have a name  two brands are used together: a mother and a daughter.
                                  Ex: Jazz by Yves St Laurent, Pepito Lu, hello LU, Danone Mindanao ...For the name is quality, it must not be descriptive (because if too descriptive, it will be too generic => we can copy it), think internationally (this is difficult because you have to check all countries that the name does not exist and has not a negative meaning in some language), it should not be generic if the brand loses its power of differentiation (a mark designating a set of product: eg bic, Kleenex, Pampers, karcher ...), it must be integrated over time and must be easy to pronounce. Co-branding:We made a covenant with another brand to increase the chances of success.Ex: Phillips and Nivea: philipshave cool skin
       Phillips and Douwe Egberts: Senseo / Phillips and Interbrew: perfect draft.
       What are the reasons to do co-branding?The reasons are many: Expand the target consumer Fast access to new markets Strengthen Loyalty Use the advantages of each technology Synergy reputation Sharing of costs of production and penetration Countering private labelsNow what are the limits of co-branding?
 Length of development and implementation of partnerships
 Risk of cannibalization of a product / service of a partner
 Imbalance of reputation and risk of dilution of image for a partner ...
 Delicate mechanisms to share value-and post ...There are two types of co-branding:• Strategic alliances:It divides the costs and risks of innovation. It is an association thatmake longer term investments and are more significant.Ex: Sony Ericsson, Douwe Egberts and Senseo• The tactical alliances:Alliances are one-time (short term) to more communicationproduct strategy. There is low investment partners as well as a lack of integration.Ex: Procter and Gamble and Fisher Price: pampers offers Fisher Price toys with its productsExtending brands: We use the same name and the same image on different products eg Taillefine (water, biscuits, yogurt ...)United States, 40% of new product launches were ofextensions. Only 30% of new brands survive more than four years - more than 50% for extensions.  There are fewer brands but just as many products in the range ...What are the reasons for this?• The cost of new product introductions are high.• Advertising costs are also high.• The defense of sustainability of a brand is easier with extensions.• We use a capital picture• It is a potential need for a single product brand to expand!There are again two types of extensions: the range:= Extension by neighborhood, we launch products with the same name in thecategory.The advantages of using the reputation, and ultimately saves money inadvertising.The disadvantages: the association in case of failure is with the brandmother and there is likelihood of confusion if the position is unclear. brand:Extension = discontinuous, launching products with the same name but notin the same category.Advantages: use of notoriety.The disadvantages: the image of the trademark may not be, and theredilution of the image if failure.What is special extensions?Downward extension:
        Ex: Mercedes (Mercedes A)Extension up:
                    Ex Volkswagen (Phaeton)
            Extension in two directions:
                    Ex: Accor (Form 1, Ibis, Novotel, Sofitel, ...).What makes a successful extension?

            First, it is necessary that the extension belongs to the same concept as the brand. Then, the limits of a certain know-how of the company are not exceeded. Finally, the perceived distance with the pivots of the brand products must be acceptable.Internationalization of brand:Everyone knows that there is some priority given to brandsinternational and global.In addition, there are important economies of scale available ...
            Ex:
                     Procter & Gamble have 300 marks (avt 1200).
                     Nestlé focuses on six global brands (Nescafe, Nestea, Buitoni,
                    Maggi and Frieskies).
                    L'Oreal has 17 global brands.
                     Ola: which is known in several countries under different names but has removed the name of its products for the benefit of their logo which is international: the Heart  economies of scale...As a result, many local brands have been eliminated (BBL,Generale Bank, CGER, Marie-Thum, Suzy Waffle ...)v) Sustainability Brand:Innovation is ongoing. Communication must be continuous. The price premium must be = the value added tax. There will be creating barriers to entry.


































CH. 10: Decisions relating to distribution.A ° DISTRIBUTION:i) distribution networks:A distribution channel is a structure formed by the partners in the competitive process in order to bring goods to the service consumer.Distribution has several functions:- Transport: the manufacturer's products to his home.- Split: it will separate the different products according to consumer habits (eg Makro kid quantity Champion smaller amount)- Store- Sorting: it will have different brands for the same property (eg, Milka, Cote d'Or)  must match them to its various delights consumers.- Buy: he buys the goods he sells to the producer  he takes risks if he can not sell assets = net loss- Contact: he will contact the consumer with advertising ...- Inform: vendors specialized knowledge will inform customers about a certain product (it is especially at stores like Vanden Borre, Media Mark ... we are not buying every day)- Promotion: make promotions (tender; coupons ...)  before putting a product from another- Sell
 The rationale for the distribution are:- The multiplication of contacts: the contacts it offers varied and can affect a large number of consumers- Economies of scale because the dealer will do the distribution for many companies at the same time- Better selection offered (as a consumer, it is an advantage because we have a choice ...)- Better service.At the exam, we can ask ourselves what are the different functions of thedistribution, the rationale for ...

What are the different types of intermediaries? Wholesalers (they buy products they will sell themselves to other intermediaries)  it does not sell directly to consumers Independent retailers (eg baker, butcher,  they have no chain) The integrated distribution (hypermarkets and supermarkets like Carrefour or integrated specialty chains such as DIY, ...) The "hard discounters" (it is the distributors who have the lowest prices as Aldi, Lidl ...) important development in recent years agents and brokers (ex: insurance brokers who do not develop their own insurance (the role of the insurer) but will distribute them. Today, insurers still do not pass by brokers, they sell directly themselves services companies (eg banks)ii) Criteria for selection of a distribution network:3 main criteria: Market characteristics (it is geographically widespread, are there many consumers? ...) Characteristics of products sold (perishable? More complex products requiring reversal? ...) Firm Characteristics (high financial means? Low? ...) The most important are: what types of segments and what kinds of people feel?iii) Hedging (dvlpt the target segment) chosen by the distributor:

      First make a small type of products:
      Four major product families:• Products for everyday purchases: first necessity products (milk, meat, ...) Products impulse (we bought it because we see it (candy, chips, ...)) Products Troubleshooting (current purchase like an umbrella, sunscreen, ...)• Products Purchasing think: The risk is higher because the price is higher. Eg TV, computer, ...• Specialty products: These are luxury products, distribution is more exclusive.• Products not wanted: sales techniques must be quite extensive.
With regard to hedging strategies, we are 3:• The mass distribution:  it is a very broad distributionThe objective is to maximize product availability, c to d to maximizecoverage, access to the product.Ex: COCA-COLAThe types of products are those of everyday purchases, the first base material and serviceslow involvement.The difficulties of this distribution are:o Complication order management and thus cost as it is a lot of items (make sure the product is still within range)o Risk of losing control of its marketing policy (do not contain some elements of the marketing mix). (These are large areas that decide how the product will be highlighted).o Risk of not maintaining a consistent brand image.• Selective distribution:  it is a selection of some stores: eg, TV, radio, these products are not sold in any storeThe goal is to use a number less than the number of intermediariesavailable.
      The types of products are reflected purchases (eg TV, computer ...)There are different criteria for selection of intermediaries:o The size of the distributor (small or large store: Vanden Borre Blokker ...)o The quality of the served (= element of differentiation)o Technical competence (at the product is complex, the longer it takes the infirm Product  choosing a qualified distributor)
       The selective not known to have prices as low as the intensive, there may be inconsistencies in the distribution channels ...• Exclusive distribution and franchising:It is the extreme form of selective distribution.The types of products are those high quality, prestige or servicesHigher (Ex: Godiva, Ralph Lauren, ...)A particular form of exclusive distribution is franchising. This isto request an independent to sell our product and it will invest himself but he will be able to use the sign of the brand. (Ex: Mc Donald, daily bread, Leonidas, Etam, Benetton, Prémaman, Pizza Hut ...)Advantages for the franchisor:He has access to a source of capital. It can avoid the high fixed costs ofown shops (in fact he is not going to invest in the decor of the store ... but it is independent). It can cooperate with independent distributors, but motivated as well as local businessmen. It can create a new revenue stream based on technical know-how. It can finally benefit from economies of scale.

Benefits to the franchisee:It can start a business with limited capital. It reduces the risk. Itreceives training and support while enjoying a better purchasing power. It also benefits from R & D and new business products. He receives a management support and finally continues to belong to a large organization.iv) Communication strategies vis-à-vis intermediaries:Two types:• Strategies pressure (push marketing) = give a max. promotion to better sell its product in the distribution. ( we communicate as a priority with the distributor)• Strategies suction (Marketing pull) the goal is not to spend money with intermediaries, it is the end user and say that he will come directly from the producer)RMQ: often using a combination of the two.B ° Strategic marketing distributor:The retailer himself realizes that he can be more effective usingmarketing concepts ...  it is no longer passive but it becomes active, it is market research in order to differentiate itself from other distributors.The large distribution companies with their sales and percentageabroad:1. Wal Mart, United States, 229, 51%2. Carrefour, France, 73, 51%3. Metro, Germany, 56, 48%4. Ahold, P-B, 52, 83%5. Tesco, Britain, 50, 21%
i) Mutations in the supermarket:Over the past decade, major changes have occurred in the largedistribution ... In fact, competition has become more enhanced, there are concentration process (+ alliances - specialization of actors + stores: Toys R Us, Intertoys, Go-Sport, Maniet, Tom & CO) while as internationalization process (before, each country with its own distributors), we also see the development of new distribution formats (with Hard Discounters Aldi, ...), a more professional and a great pressure on price, pressure on suppliers.  All this has meant that retailers are now looking for new competitive advantages ...

 What is the process of internationalization?Internationalization came late compared to other industries ...Pq? Socio-economic differences (the needs are local) Differences of interest for the products (we note here the success of IKEA through its identification of the same consumer segment) Local Small Business ...There was no need to internationalize.But we finally found reason to accelerate internationalization:• Homogenization of markets• Saturation of certain local markets or stagnation• Cultural ChangesThe new formats are developed: Discounters (Aldi, Lidl, ...) Specialty Retailers (Maxi toys ...) Warehouses / clubs (Macro) Hyper hypermarkets (Bigg's)ii) Search for new competitive advantages:Two main strategies are followed in the field: cost leadership:= ALDI, LIDLDifferent operational cost reductions are:• Reduction of logistics costs: We use the DPP (Direct Product Profit) which measures the profitability of each reference. This is important because we know what to grow as a product and what to avoid.• Reduced administrative costs: using new scanning techniques (it garners less staff) as well as new methods of data interchange (EDI): this exchange take place between the computer manufacturer and the distributor. Finally we use the ECR (Efficient Customer Response) system to see how effective between distributor and manufacturer by eliminating all unnecessary costs.Appear when the economies of scale with increases in the size of shops and businesses, offering more products and greater diversification.• Reduced cost of purchase: the technique is the concentration (we have more weight in terms of purchasing from suppliers) and the cooperation with the purchasing.




 Differentiation:How?• Segmentation and positioning (eg Colruyt: brand products at the lowest price, Delhaize: quality, freshness, service, crossroads wide variety of products with very aggressive prices, as they are in fact 2, it can afford to buy in large quantities  economies of scale)• Provides wider product• Product Development distributors• Development of communication (eg advertising in newspapers).iii) Development of private labels:There are creating private labels adjacent to the markings of producers. Thesuccess is important in many categories.Two types of evolution can be drawn: private labels:70 years: Launch of white goods to compete with discounters. Themoderate success ...80 and 90 years: own brands with good quality / price ratio. Thesuccess is great! The role:The role has evolved over the years:• Strategy of attack: reduction of corporate power• Increased margins: increase margins categories• marketing differentiation: offering a differentiated product to build the brand. The reasons:

      CONSUMER DISTRIBUETEURSSThe economic downturn: the Dvlpmt
 - More sensitive to the ratio discounters
   Price / quality - designed more-Positive attitude-price pressure
   to label products - and more roomConso-intelligent differentiation
                                                                                                          
                                             PRODUCER
          In the manufacture private labels Lower sales of brands Need to volume Production of retail brands



There are different types of marks low price and quality (white goods) for the purpose originally was to compete with hard discounters, which made their market entry. Price and quality means (me-too). Here we will copy what already exists: eg the Kellogs ... High quality at a high price. : Eg organic DelhaizeThe categories that get a great success are those where innovationis limited in the market, the advertising intensity is low ( no brand), the industry concentration is high and consumer involvement is low (not interested in this product because no one buys really interested in it)  manufacturers have to innovate all the time not to be copiedEg market share of private labels in Europe and 92 in 2000:
                33 GB & 46%, Switzerland 42 & 42%, Belgium 16 & 26%, France 15 & 19% ...
       Ex copied product that works well: the mayo, chips, water, yogurt, pasta following ones are walking less beer, whiskey, cereals, chewing gum, shampoo because they are products which the marks are very important  we will not buy this product if it is not the brandWhat are the advantages for the distributor?
  They are many:• Building loyalty• Increased power over manufacturers• Lower costs (cost of introducing and advertising)• Lower prices• Best presentation on the shelves (at eye level because what sells best is at that height)• Good promotional support• No costs of introducing• Using the image on all products• Communication costs lower (because economies of scale).However, there are still some drawbacks:• Not possible to know the consumers in each product category. The products are less suitable because they are too numerous to specialize ...• Picture of highest quality for manufacturers• Difficult to benefit from technological advances (just mimics).However, we find that the benefits take over the disadvantages.You can also ask the question of the future of these brands ... There will beprobably improve the quality of them. New categories will surely be created.

The reasons for making private labels are Use of excess capacity Take advantage of economies of scale and experience Do not allow competitors to produce for major retailers Improve relationships with distributorsThere are risks to manufacture brands. Indeed, for a distributor, there may be loss of power, price war, declining interest in the marks producer if there is good quality products distributors and finally, internal conflict and contradiction (as employees of the same group can compete).Co. The restructuring of distribution networksWith the advent of the Internet, companies can directly contact theConsumer (eg Dell only distributes its products via the Internet  as it does not sell on the market, it gains in the margins because no intermediary and may offer lower-cost computers and as it produces on order, n has no stock)i. Electronic Commerce:E-commerce is either complementary or substitute for operations"Online" (stores ...) and "off-line" (internet)
       Substitution: eg Dell, Easyjet, Amazon.com
       Use of 2: ex: Barnes and Noble, Virgin Express

        It is also noted that there is disintermediation: the tasks assumed by the distributor are listed by the manufacturer or the consumer  it is a new division of labor.
         There is also a role infomediaries: as there is a loss of contact, we have a new need for information  emergence of new intermediaries: they are agents who select the best deals on the internet and elsewhere.











CH.11: Decisions related to the product and the brand.A brand needs to show a lot of innovations through new products in order to move forward.i) Importance of innovation:Innovations have a decisive impact on business profits. These innovations are important for the survival and development of a business. However, it is difficult to innovate. Indeed room for improvement but real innovations are much more difficult.Why chess?Innovation is more likely to succeed if the product belongs to a great actor (know-how, financial resources, ...). The success rate is higher if it has few competitors. There is also need to test the product to consumers. It may be that the product is not in line with the promises.ii) Components of an innovation:The importance of risk associated with an innovation depends on three factors:• The degree of originality and complexity of the concept (= market risk)• The degree of innovation of technology to achieve the concept (= technological risk).• The degree of novelty for the company (strategic risk =).A distinction must be novelty and innovation. Indeed, a true innovation is a product, service or concept that brings a new solution to the buyer. Eg disk => CD.The term "new product" is used interchangeably to denote a minor or major innovations.iii) Types of innovations:Innovation can be classified according to four criteria: Degree of novelty for the company and the market:
                                                             New market for the company
                                                                  Low High
                                         High Risk technique Risk technical and commercialNew ProductLow risk for the company limited commercial risk Nature of innovation:Two types of nature:• Innovation dominated by technology:= Physical characteristics of the product (manufacturing processes, use of a new component, a new material first).• Innovation-dominated organization:= Mode of organization, distribution, sales ... Type of technological change or behavioral:
                                                                 Technological changeLow HighChange Brought Out radical organizational innovationBehavioral (Kinepolis) (GSM, Internet)
                                 Improved low technological Technological breakthrough(Fax plain paper) Electronics (electro-
                                                                                                    mechanical).• Technology improvements:= Gradual improvement of the product with no impact on buyer behavior.• Disruptive technologies:= Innovations to significant technological change but not change the behavior of the buyer.• Organizational Failures:Innovations = low technological change but which involve a change in behavior.• Radical Innovations:= Technological change and behavioral.iv) Organisation of the innovation process:It is important to institutionalize the process of creating new products.Ex: 3M is a company excellent in terms of innovations. Indeed, his philosophy is based on the fact that 25% of the company's sales must come from products that do not exist five years ago.v) Reasons for failure:• No market research• The product has not kept its promises (we have been too ambitious).• The product was poorly positioned• The price is too high• There is underestimation of the Reactions of competition• There is under-estimated costsvi) Success factors of innovations:• Superiority of the product (distinctive qualities)• Know-how marketing (understanding market needs, ...)• Know-how (good synergy R & D, production and engineering)Cooper is still together different factors of success as a superior product, strong market orientation (= understanding of the customer), a global product concept, a preliminary intensive, a precise definition of the concept, plan to launch a structured, Finally, a cross-functional coordination ...vii) Steps to develop a new product:• Research ideas:By customers, researchers, competitors, general management, distributors, secondary sources such as market research, ...• Filtering of ideas (then pick a number):The aim is to detect and remove as soon as possible bad ideas. At this stage, rapid analysis, internal and inexpensive. Via an evaluation grid, it is the most important factors that are analyzed.• Development of a concept:Describes the promise that this new product, without sheet. Then we choose the positioning of new product (what are the intentions of buying?).• Test the concept:This is the first investment of the company. Subjecting the description of the concept to potential consumers (either a concept or through an advertisement). It emerges when buying intentions (if more than 60% are happy, then it is a good concept). Ex q? posed: the concept is clear? + What? Do they meet a real need? What are your intentions to purchase? ...• Development of technical marketing (to whom this product is intended):Segmentation and target market selection, positioning and marketing mix.• Economic and financial analysis:Estimated sales and cost / benefit.• Product development:Development of a prototype.• Test the market:If they are consumer products, it is testing the concept and use, it provided the product in stores as "laboratories" or simulated test markets (such as in Namur) or in areas or tests market controls.If they are industrial products, we make the technical tests, tests of acceptability or trade shows.• Launch:We answer four questions: When (season)? Where (country)? From whom (consumers)? Comment (distribution)?viii) Process for adoption by the consumer:A new product will be approached differently by different consumers.The theory of diffusion of innovations: Innovators (2.5%) Early Adopters (13.5%) Early Majority (34%) Late Majority (34%) Latecomers (16%)Graphically, it has a bell curve.V P 171.The analysis of the economic viability tells us that there are three critical points: The dead simple (it leaves the area of ​​loss) The break-even overall balance (total revenue covers the total expenditure) The point of acquisition of productive capital (profits can reinvest in new investments).V. Graph p. 173.































CH.12: Strategic decisions in price.i) The role of price:Price is important mainly for two reasons: It is a tool for stimulating demand This is a key determinant of profitability (product range) of the business as determining the price may be too high because otherwise there will be no demandHowever, the price requires a triple consistency:• Internal consistency (cost constraints and profitability) ie include all costs needed to produce the product (the price should not be "at cost). The price must cover costs• Consistency external (market capacity is a constraint imposed by consumers). the price must be attractive to the consumer.• Consistency strategic (product positioning).What will influence decisions in terms of price is the level of demand,profitability (CT - CA), perception (quality ...), the image of the brand, the comparison with competitors (it's easier than comparisons of quality), and finally with the accounting other components of the mix (consistent with the position).Make pricing decisions is very complex. Indeed, there is acceleratedtechnological change and shortening product life cycle. In addition, there is proliferation of private labels ... In addition to legal and social constraints, there is contraction of purchasing power and transparency over the euro ...The responsibility for setting prices is variously located inthe company.Eg SMEs management. Great Society: Division Directors or product managers, or specialized service (charging heavy)ii) Definition of prices: floor price (limit price) covers the direct cost price Technical Price = neutral: it covers the direct costs + fixed costs / E (Q) Target price: Prices Technical / (1 - desired margin).iii) Errors of pricing policies:The price is determined solely from the cost of not taking into accounta variety of elements such as competitors' prices, strategy, ...The price is not changed quickly enough due to the market changes ...response to a price war has to be very immediate.In addition, the price is developed without reference to other variables in the mix ...Finally, the price does not take sufficient account of the variety of products offered andmarket segments.iv) Process pricing:The steps are: 1. determine the objective (market share,image, ...) 2. assess the demand (price elasticity) 3. estimate costs (CF, CM, margin, ...) 4. analyze competition, 5. choose a pricing method, 6. pricing (attention, there are psychological thresholds: eg € 2.99 Determine the goal:The award follows logically from the choice of target and positioning. Different objectives can be selected as the survival, maximizingprofit (does not include other variables in the marketing mix and the reactions of competitors), the maximization of market share (eg the price of penetration = low price, it is lower than the price calculated) skimming , image search ... Assessment of the application:Several factors affect the price sensitivity:• significant product differentiation• knowledge of alternatives? yes-no, if not, the sensitivity with respect to price is not high• ease of comparison? yes-no, if not, the sensitivity with respect to price is not high• weight of the low-cost high, so high, consumers are more price sensitive (eg car) so weak, not sensitive (eg, candy ...)• weight of the price received in the total cost• perceived quality: the greater the amount is high, at least the consumer will be price sensitive• ... Less demand is elastic, the higher the price will be high. In addition the product is unique, the more you can increase the price.To measure price elasticity, several methods arevalid. Indeed, there is the method of expert judgments, consumer surveys, experimentation money (eg false supermarket), econometric studies, ...Once we know the elasticity, we know how to influence pricesstimulate demand. It may also include brands that are better able to price increases. Finally, we can adjust prices in a single product line.



However, these measures have their limits of elasticity:• Measure the facts• It is often interesting to know the perception of prices by buyers (which usually depends on the perceived quality of the latter)• The elasticity does not measure the effect on the willingness to try the product on his loyalty, ... Cost estimate:Demand often induces a ceiling price, costs induce the floor price. The company must estimate costs for different levels of production and experience. The costs include fixed costs and variable costs. Analyze the competition:There are prices, we analyze the list prices, we make customer surveys to assess the value. The price must reflect the competitive positioning of the product Selecting a pricing method:Different methods focus on some of the factors mentioned above:• The extra border: ignores the request or competitors (internal method)• The desired rate of return: do not take into account the elasticity of demand of competitors (external method)• Perceived value: requires good methods for estimating the perception of the product (external method)• Market price: pricing into account competition (external method). Pricing:The objective of the previous steps was to reduce the acceptable price ranges. We must now optimize prices based on psychological and feedback from distributors, vendors, suppliers, public authorities, ...v) The price changes:The companies vary their prices in many ways around the base price:• Flexibility of prices across markets• Flexibility in terms of seasonality• Promotional prices (special offers, free credit, coupons, ...)• Discounts and rebates (cash discount, discounts for quantity discounts and seasonal sales, times ...)• Prices of services and "yield management"• Flexibility in e-commerce

vi) The price changes:Or lower prices. There are many reasons (excess capacity, declining market share, need to reflect lower cost, ...). The risks of such a decline is image degradation, declining loyalty, volume risk, ...Or price increase. The reasons are cost inflation, excess demand ... The risks are falling demand ...These changes give rise to reactions: why the competitor prices are changed? The price is changed it temporarily? What impact on market share, what is the answer most likely competitors? ...The market leader is often the target of a price war from its competitors. The leader may react in different ways:• Maintain its prices• Maintain its prices-attacking against in other areas• Reducing prices• Increase prices and strike back against the product• Launch a defensive markvii) Price of launching a new product:Two types of strategies are followed:o Skimming Pricing Strategy:We sell at high prices by limiting consumers who voluntarily which pay a high price for the new product (method more financial and commercial).o Pricing Strategy of Entry:We sell at a low price to acquire a high market share.This strategy must answer a series of conditions:• Request price elastic• Ability to achieve low unit costs (economies of scale or effect of experience)• Threat of strong potential competition• Market premium is satisfied• transfer costs low











CH. 13, The policy of communication.A ° Communicationi) Communication tools:Advertising (television, magazine, radio, postering, ...)Above the line
                                                                                                                                         .Below the lineSales Promotion Sales Public RelationsMarketing Direct Marketing Event Sponsorship Advertising:The aim is to communicate a message to a relatively wide audience. The means are: television, magazine, radio, film, ... There are three types of advertising: informative (it explains the new product), persuasive (it provides arguments for the product) and recall (eg coca Cola).Advantages:• Covers a wide audience• Good communication quality of the image• Long lasting effect because it can develop a brand image long-term (it was not especially immediate effects) to communicate the position (> <promotion).Disadvantages:• Relatively high costs• No effective targeting• Space advertising Sales promotion:The objective is to stimulate consumers to try, purchase a product or continue using a product. The means are coupons, sampling, loyalty cards, competitions, ...Advantage: immediate effect on salesDisadvantages: short-term effect, can degrade the brand, price sensitivity increases, ... Event marketing and sponsoring:The objective is clearly to increase product awareness, the brand, but it was not time to put forward positioning. It explains nothing, the goal is just to inform.Means: everything is new!Advantages: fast creation of awareness, press coverage (selected events that are specific to the target).Cons: Effects are difficult to measure, not enough long-term ... Direct Marketing:The aim is to target consumers with a personalized message. With the Internet, this type of marketing has developed very quickly. The means are telephone, mailing, Internet, ...Advantage: precise targetingDisadvantages: need to have good files, costs to maintain these files ... Public relations:The goal is to create awareness and image of the company. The means are press contacts, advertising, editorial, corporate communications, ...Advantages: less commercial characterDisadvantages: Difficult to analyze the effects. Sales:The aim is to convince buyers to purchase the product. The means are the sales force internally or externally.Advantage: personal contactDisadvantages: expensive, not to create brandii) Selection factors tools:o Factors related to the product:Quantity and complexity of information (very complex TV, no complex radio).o Factors related to the stages of life cycle:Introduction (samples, coupons,  create awareness, do try)Growth (contact the maximum contact)Maturity (promotion, loyalty card)Decline (it is investing more in communication)o Factors related to product type:Industrial or consumerProducts priced high or lowo Factors related to the type of consumer:Few or many consumersNeed informationiii) Models of the action of communication:The development of advertising will go through different stages. This is called the model of the hierarchy of effects:Advertising   Stade Stade cognitive emotional behavior 

                        Make love to know how to act
                        (Reputation, (attraction to the brand (conviction, purchase)
                        knowledge of the effect on the image,
                        product) preference for
                                                          product)iv) Communication strategy: Target:The choice of a hearing has a significant impact on the message and the medium. Objectives:The company must specify which type of response she expects consumers. There are three types of responses:- Cognitive (awareness, knowledge)- Affective (attitude, preference, conviction)- Behavior (purchase, market share)V. example p. 203. The message:Four problems must be solved: What does it mean? (Message content)You have to convince a rational way (show the benefits of the product) demonstrate that the product will deliver on its promise. How to tell? (Message structure) In what form? (Message format)Appropriate to the medium! Who is to say? (Source of the message)The credibility of the source may also play an important role. To allocate a budget:There are different methods based on:- The resources available: high or low (if high-resource, sometimes we spend too)- The percentage of sales too often set arbitrarily.- Alignment with the competition: we spend the same amount as the competition but the competition has it defined its amount?- Analysis of objectives and needs: analysis with the most sense: the budget is calculated according to the product of the company, according to the target ...







B ° The development of advertising:i) Development ad:There are different partners: advertisers (the company that makes the pub) Advertising agencies: the creative: one creating the ads. The media (TV, press, radio, cinema, display, ...) Media agencies: to negotiate the price of pubs MediaRMQ: for effective advertising, follow a path veryRigorousEx: the biggest advertisers in Belgium:Company Total Expenditure (in million € in 2OO4)1) Procter and Gramble 852) Belgian State 793) 72 Belgacom4) 68 Danone5) L'Oreal 426) D'Ieteren 347) France Telecom 278) 24 Fortis9) 24 Telenet10) PSA Peugeot-Citroen 24ii) Development of advertising strategy: Goal Setting:What is the desired result? (Known as new product, it establishes aeg goal to reach 60% in 6 months and if not achieved they go back to the advertising agency to ask why ..., testing, improving the brand image ...)What is the target audience?
                 The target segment? Establishment of advertising strategy:What is the location chosen?How to translate it as a "copy strategy" (= positionAd = the translation of our position)?The "copy-strategy" is divided into 3 §:1. classic positioning  consumer benefit2. why we should believe us in terms of profit (or Reason Why-support)3. the brand personality (style "brand character")EX: VOLVO: 1. car that offers unparalleled security for its occupants
     2. Volvo offers a range of accessories for advanced
         better protect the vehicle.
     3. Volvo brand serious and solid
                RMQ: sometimes the second paragraph does not exist (eg field of cosmetics, luxury sector ...)EX: ANTIKAL: 1. Antikal is superior to traditional methods
                                  to remove the limestone and shiny surfaces.
                              2. The formula works on contact and dissolve the
                                  inlays strongest because of its effervescence.
                              3. Antikal is enthusiastic and tenacious. A hard tender heart.The copy strategy is the product of the marketing strategy. This strategy isestablished for the long term. It describes the contents but not the shape of the message. Copy strategy:For a copy strategy to be successful, it must:o be specific and concreteo Focus on a promise of nase, many more (USP)o be distinctive from competitorso Rest of the benefits that consumers and non-technical (because different techniques may meet the same requirements as the technology evolves and we we can not change our strategy)o be sustainable (not related to a mode because it is ephemeral) Development of the "copy brief"
                      Contents: Project Description reminder of the "copy strategy" Competitive Landscape "consumer insights" Expected Responses Development of a "board" Production of Advertising







iii) advertising executions Style:Different types: Slice of life Lifestyle Fantasy Testimony Technical expertise / scientific evidence Character symbol Humorous ... the risk is that one does not remember most of the product only of humoriv) Measurement of advertising effectiveness:The metrics are sales, increased knowledge of thebrand attitude change (the first three tools are made retrospectively from the pub) by the market research or marketing of specific tests (these are essential).
     There are different tests according to the stages of development:- Test design- Test board (comprehension test)- Test of the spot (before or after exposure in the media (memory test, recognition ...)v) Choice of media:Two strategic approaches to remember:• Coverage:New products, strong brand loyalty, target large, long-... repurchase rate  aims to cover a large number of people the widest possible• Frequency:Highly competitive, complex message, redemption rates high, low brand loyalty, close  target goal is to have the commercials as often as possible






CH. 14: The international marketing strategies and global.A ° Global Marketing Global Marketing:i) Reasons for globalization:Several reasons: Globalization of the economy Competition increasingly global The need for businesses to cut costs and find new competitive advantages.ii) Definitions:International marketing (multi-domestic) is a marketingsells products internationally with local marketing programs. So we adapt products to local needs.The maximum standardized global marketing elements of the marketing mix toideally have a standard product for all markets, and, if possible, the same advertisement. (Ex: Nokia, McDonalds, IKEA, Caterpillar, Coca-Cola, P & G, British Airways, Citi, Mars, Siemens ...).iii) Acceleration of the move towards global marketing:Why all accelerated?Companies are seeking new competitive advantages:Indeed, as there is growing competitive pressure, marketingoverall is considered a competitive advantage (cost savings) ...
      The advantage is to maximize the size. In fact, benefit from the leverage of the sizein all stages of the business (R & D, manufacturing, logistics, marketing) can generate substantial cost savings.Ex: RAIDER  TWIXR & D: Centralization of the Department of scale eco MFG. : Centralization of production (volume  economic of scale)LOGISTICS: Cost reduction of stocks ...MARKETING MIX:Marketing: same packageCommunication: global awareness, more coherent picture, even advertising for different countries ...
In industry, when a firm begins to globalize their strategies,others follow ... (Ex: Unilever which followed P & G)In addition, there is often pressure from the financial community. Indeed,shareholders and financial analysts favor the restructuring leading to economies of scale (increased share value).iv) Last changes:

              Multinationals are beginning to understand the limits of globalization. They head to a lower level of globalization.v) Benefits Global Marketing: Cost reductions at all levels (an advantage over price increases profits) (logistics, production, marketing) Speed ​​of launch (it goes faster through the effect of experience, ...) (less than a year) Image World (for those who travel a lot: the same brand found everywhere) Better control of subsidiaries (when the group is centralized, managers can no longer impose what they want)Unilever P & G followed by globalizing its brands: centralization strategiesConcentration  400 international brands Elimination 1200 other brands.vi) global marketing Disadvantages: Excessive centralization (  company too slow replies fast enough to change if local perspective)Insensitivity to local markets  Risk of local execution less efficient Standard product (not necessarily in line with local needs of the most important) (it is good to the point of view of cost but it's not good to the local point of view) Risk of weakening the brand Risk management more difficult (local problems  global problems)EX: some companies globalizing their products after deciding to back off:
             P & G
             Coca-Cola: 2000 policy changes
                                  "Coca-Cola WAS operating as big, slow and insensitive Sometimes global company. The world has changed. It Is Demanding Greater Flexibility, responsiveness and local sensitivity "
                               Douglas Daft: Coca-Cola CEO in March 2OOO
  return to multi-domestic marketing.Slow: In fact the decisions were made at the highest level there is a Qd problem, before tt does not move, the company fails to startGreater Flexibility: it must be more flexible to react quicklyLocal sensitivity: the problem of understanding and communication. Indeed, itDo not get the message the same way in all countries because people have different culture since 2000 Coca-Cola, the subsidiaries can develop initiatives.(Eg in Belgium, Fanta Grapefruit)Global marketing is a process mainly carried out for reasonssavings (cost advantages based on economies of scale).We're not asking the views of consumers ... What is marketing??Try to better meet that competition to consumers' needs (> <excessive globalization).vii) Conclusions: The benefits of globalization are indisputable There are also risks Consumers need to be heard  balance of global and local brands is more appropriate.GENERAL CONCLUSION:1) we must understand the needs of consumers2) it must segment the market3) we must find the right product for a limited number of individuals  must have a max of information about the market and the consumer4)  positioning differentiation

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