international and strategic marketing communication through branding value network management...

International and Strategic Marketing

Communication through brandingValue network managementBuilding a competitor

intelligence system

Branding

Brands used to be about trust – the quality of a product etc (Marks and Spencer St Michael quality brand)

Nowadays brands must be real - use real people - in real situations - offer real benefits

If they are to connect with REAL people

Elements in the Communications Process

Sender Message Receiver Response Feedback Noise

Steps in Developing Effective Communications

Identify target audience

Determine objectives

Design communications

Select channels

Establish budget

Decide on media mix

Manage integrated communications

Image

The set of beliefs, ideas, and impressionsa person holds regarding an object.

Designing the Communications strategy

Message strategy Creative strategy Message source Personal communication channels Non-personal communication channels Integration

Creative Strategy

Informational and transformational appeals Positive and negative appeals

Fear Guilt Shame Humor Love Pride Joy

The Importance of taglines

Ad Tagline

I’m lovin’ it Every little helps?

Beanz meanz Heinz

THINK OF SOME OTHERS!

Message Source

Celebrity Characteristics Expertise Trustworthiness Likeability

- Kerry Catona – Iceland - Take That – Marks and Spencer

Setting objectives Establish the market share goal. Determine the % of market/s that should be reached. Determine the percentage of aware prospects that

should be persuaded to try the brand Determine the number of people seeing the

advertisement Determine the % increase in sales as a result of the

advertisement Determine the necessary advertising budget

What does branding do?

Branding strikes a balance between aspiration (“I want to be part of that club”) and identification (“this is for me”).

Branding is more effective if it uses ‘real’ people

Emotional ties

Quality is now often taken for granted. Brands attempt an emotional connection with consumers;

They are customer based as opposed to

Function based

Stay with me ….

Brands now need to make sure that customers stay with them

Defection and switching is growing in consumer markets as people become more price sensitive

Value chain management

Michael Porter’s value chain is a well established concept for considering key activities that an organisation can perform or manage with the intention of adding value for the customer.

Why a chain?

Because the value is added as products and services move from conception to delivery to the customer (Porter 1980). The value chain model simply describes different value-adding activities that connect a company’s supply side with its demand side.

What is value?

Value = (benefit of each value chain

activity minus - its cost)

+ (benefit of each interface between

value chain activities minus – its

cost)

Internal and external value chain

Internal – activities carried out within the boundaries of the organisation

External – activities carried out external to the organisation by partners.

By analysing different parts of the value chain managers can redesign internal and external processes to improve their efficiency and effectiveness.

Restructuring the internal value chain

The traditional model has been re-evaluated in the light of global, electronic communications.

Weaknesses of traditional model include: It is more applicable to manufacturing as

opposed to services It is a one way chain pushing products to the

customer and ignoring customer needs

Value networks

Reduced time to market and increased customer responsiveness can be achieved through reviewing the efficiency of internal processes and how information systems are deployed.

What sort of partners?

Supply side partners - suppliers Partners who fulfil primary or core value-

chain activities – eg inbound logistics Sell-side partners – B-2-B exchanges,

wholesalers Value-chain partners such as a partner

who provides the electronic infrastructure for a company – eg website providers

Five Forces Determining Segment Structural Attractiveness

Competitive Forces

Threat of:Threat of:1.1. intense segment intense segment

rivalryrivalry

2.2. new entrantsnew entrants

3.3. substitute productssubstitute products buyers’ growing buyers’ growing

bargaining powerbargaining power suppliers’ growing suppliers’ growing

bargaining bargaining powerpower

Based on Porter’s Five Forces

Identifying Competitors

Concept of CompetitionNumber of Sellers and

Degree of Differentiation Does the market consist of:

Pure Monopoly Oligopoly Pure competition

Identifying Competitors

Market Concept of Competition

are there: Entry barriers Mobility barriers Exit barriers

Degree of Globalisation Costs Laws

Designing Competitive Strategies

Market-Leader Strategies Expanding the Total Market

New Users Market-penetration strategy New-market segment strategy Geographical-expansion strategy

New Uses More Usage

Defending Market Share

Designing Competitive Strategies

Brand-extension strategy Multibrand strategy Heavy advertising and

media pioneer Aggressive sales force Effective sales promotion Competitive toughness Manufacturing efficiency

and cost cutting Brand-management system

Designing Competitive Strategies

Choosing a Specific Attack Strategy

Price-discount Lower price goods Prestige goods Product proliferation Product innovation Improved services Distribution innovation Manufacturing cost reduction Intensive advertising promotion

Designing The Competitive Intelligence System

Four Main Steps

Setting up the system

Collecting the data

Evaluating and analysing the

Data

Disseminating information

and responding

Designing The Competitive Intelligence System

Major Steps in Customer Value Analysis:1. Identify the major attributes customers value.2. Assess the quantitative importance of the different attributes of each segment3. Assess the companies’ and competitors’ performances on the different customer values against their rated importance.4. Examine how customers in a specific segment rate the company’s performance against a specific major competitor on an attribute-by-attribute basis.5. Monitor customer values over time.

Competitive advantage

What strategies do your industry plan for in order to achieve a competitive advantage?

Branding? Pricing? Promotion? Quality? Market leader? We will review strategies next week –

last teaching week!

Assignment tutorials

In weeks 1st and 8th December I will be undertaking assignment tutorials. (Remember I won’t be around on 15th December due to a hospital appointment so I am making up the time beforehand).

Please make a mutually convenient appointment with me.