MARKETING VIRTUAL

 Module 1 introduction:
1. What are the different types of value chains questions? How can it benefit a company
strategy?

2. What are the ways companies can internationalize? How do they begin to
internationalize?
3. What are the primary methods of internationalization firm?
4. Are there methods by which firms can become more competitive internationally?
5. What are some of the inherent difficulties of international market research?
6. What are some political and economic forces that are currently influencing marketing?

 Marketing Review:
1. Marketing mix: basic marketing mix are Price, Place, Product and Promotion.
2. Marketing plan elements:
how we are going to execute the idea of the 4ps, this by doing a marketing plan which
consist of vision and mission, internal and external analysis, ST, PD, SWAT.
a. Define what your business does. (Mission and goals, strengths and
weaknesses)
b. Describe your product or service. (Key benefits and problem being solved)
c. The PS of your product and services.
d. What is your offer or message?
e. Communication medium.
3. Internal external analysis: internal is inside your company, external is like political
economic (PESTEL):
a. Political
b. Economic
c. Social
d. Technical
e. Environmental
f. Legal
4. Implementation: how we are going to get our product or services to a particular market.
5. Control: is going to involved how you are going to make sure that the quality or the
price is going to remain within your target, how to manage cost.
6. STP-D market segmentation: are naturally occurring groups could be age, gender, and
other example people who live in Bogotá in different sectors.
7. STP-D target primary, secondary: Por ejemplo el objetivo principal de Nike es hacer
zapatos para corredores, en segunda opción son madres que desean un zapato
casual.
8. STP-D position: where you want the product or service in the mind of the consumer,
where is on the mind of the consumer?
9. STP-D differentiation: how is you product different from the product of other
organizations?
10. Consumer behavior: cambia significativamente de un país a otro. Segmentación:
a. Lifestyle: El estilo de vida cambia dependiendo por ejemplo de los países
donde vivan.
b. Lifecycle: Depende del entorno o de las personas que te rodean.
c. Psychographic: where we place ourselves in where we believe we are in the
social structure.
11. Buying Behavior: simple, complex dissonance reducing, habitual, variety seeking.
12. CRM: Customer Relationship Management – how I’m going to management my
customers
 a. BCG matrix: relation of market growth rate and relative market share (cow,
dog, starts, questions)
b. Perception map: como percibimos algunas cosas.
c. SWOT matrix.
13. B2B, B2C, and B2G: Business to business, business to consumers and business to
governments: there are common concerns, where your business is going to sell.
14. Influencers: help influence the way you buy or how a consumer acts.
15. Decisions makers: are purchasing managers who decide where they are going to buy
goods and services.
16. Comparative advantage: how you have an advantage of the over a product.
17. Value proposition: example low cost or very technical advance. What value does the
consumer get?
18. Perceived value: what value you perceived like IPhone is fashion statement.
19. Brand: the name of the product.
a. Brand image: colors or logo.
b. Brand identity: what do you think of a certain brand?
c. Brand equity: the money that is been put into the brand over the years.
d. Co-branding: when you work together with another brand.
20. Service mix: different to the marketing mix.
a. Intangible: Cannot touch.
b. Inseparable.
c. Variability.
d. Perishability.
21. Product life cycle
a. Intro.
b. Growth
c. Maturity
d. Decline
e. Price affects a lot in different ways.
f. Penetration pricing: smart gym there are entering the market so is in low cost
than other gyms.
g. Price skimming:
h. Cost plus pricing: in business organizations. Add a %
i. Price elasticity: how demands continue in prices.
j. Market channel: any way you are going to get a product.
k. Franchise: method to get a product or service.
l. Joint venture: when two companies get together, some type of business,
involves exchange of money.
m. Licensing: you have the rights to use or distribute a product
n. Contract manufacture: license to make a product in another country.
o. Omni channel: the idea you are going to sell in different international markets
simultaneously.
p. Channel conflict: En un lado se está vendiendo el producto en un menos valor
ya que el producto es diferente en varios canales.
q. Promotional mix: 5 elements :
- Advertising. AIDA ( attention, interest, decision, action)
- Promotions.
- Public relations
- Network
- Direct sales.
r. Ethics

 Case: Pocoyo
Pocoyo belongs to the companies of KIA, which is from Madrid; his most famous program is
Shuriken School, which only play one season as molonu. They use these programs to
 promote other products such games, puzzles, clothes and other things that kids like.
Pocoyo is running in 120 countries including Philippines.

 7P´s: 4P´s
1. Price.
2. Place.
3. Product.
4. Promotion.
5. People.
6. Process.
7. Physical Evidence.

 Value proposition:
The value a client receives from a particular product.
 LSE: Large Scale Companies. Have many resources
 SME: Small to medium enterprises. Had limited resources. Owner manage directly, informal
organizations most of them.
 Multinational enterprises. International conglomerates, many types of businesses. Different
brands.
 Globalization: cultural idea.
 Localization: when a business is going to try to change the product or service in other to
adapt to the local market.
 Glocalization: the idea that you can be globalization and localization.
 Globalization of markets: when our market becomes global
 Globalization of production: Make our product anywhere in the world
 Globalization of taste: similarity in taste like Coca-Cola.
 Looking Glass Effect: Cooley – We look at the world from our own perspective. (Según
como las personas a mi alrededor me vean, de esa manera actuó)
 Self-Referencing Criteria: characterizes our unconscious orientation to our cultural ideas,
values, etc.
 Avoiding Self-referencing criteria: four ways that we should avoid.
1. Define: define the problems or goal in terms of home country traits, habits
and norms.
2. Define: define the problems or goal in terms or foreign culture traits habits
and norms.
3. Isolate: isolate the problem and examine it carefully to see how it
complicates pattern.
4. Redefine: Redefine the problem without the self-referring and solve for the
foreign market situation.
 Simplified value chain:
1. Research and development: can be done in a local culture
2. Production.
3. Marketing.
4. Sales
 Upstream and downstream (Exam) read blue boxes

 Case: Dominos

They adapted for the culture of every country. Began in 1983 in Winnipeg, Canada. In
1995 opened 1000 stores. In 1997 opened 1500 stores. 2006 opened 3000. Today is in
 50 markets. The goal is to be the leader in delivering pizza. Pepperoni is the number one
topping worldwide. In 1985 began to sell franchises large franchises are in Mexico,
England and Australia. In Mexico opened in 1990 growth to over 500 stores.

Three Key Ingredients of Domino’s Digital Transformation

1. Organizational Buy-in From the Top Down was Critical

2. Relentless Dedication to Measuring Results
3. Marketing Around Telling Customers about Technology Investment.

Domino’s success can be explained in two distinct phases.

1. The first phase of their transformation was based on getting the fundamentals right.
2. The second major phase of the process was surprise and delight.

Lecture 2

 Globalization: is an international cultural movement. 1. Globalization of tastes 2.

Globalization of production is more than a cultural movement.
 Internationalization: is when a business goes from one country to the next.
 Adaptation: when you adapt your product or service to the local needs.
 Localization: where you try to make your product as local as possible.
 Diaspora: when people move around the world

Coffee 1 part:

Starbucks: has 750 stores in the UK and over 20000 more around the world. In 1982, the company
sells only beans, 1987 first store was open.

Nero:

Costa: where coffee making is an exotic art, where pricing is an exact science. Top of the pile of
UK, the most successful player in the market 1700 outlet across the country. Founded in 1971 by
two brothers

Recession was a boom snap up to new locations

 LESSON 2:

 Studio F
When we look to international sales, marketing sales, issues such as that,
oftentimes we look at the internationalization of clothing and the globalization of
taste and globalization of markets. Taste from one person become similar to
another. First is traditionally a company that appeals to the classic kind of clichéd
version of Latin American woman, Zara started to offer much different types of
clothes, there was a lack of market for clothes for the businessperson. It was a big
trigger and motivation in the change of Studio F because, they need to increase
their profits because Zara was cutting into their market share, they wanted to be a
 player in international design, and they have traditionally competition. They started
to bring designers from other countries, they change the line making three basic
segments, and they started to expand internationally. In Colombia there is over 200
outlets and like 100 outlets internationally. Studio F is a dominant brand.

 VIDEO 1:
Proactive and reactive motives. EF the most famous product is English live.
Internationalization could be Inward/outward. Inward is like importing from another
country (supplier) and outward is when you export product to another country. You
import raw material and you export finish goods. STX has two primary retail
companies Studio F and Ela. Studio F import clothes from china, then they bring it
to Cali (proactive and reactive) a proactive is try to find knew form markets and
reactive is a lot of competition.
Internal and external triggers. Vestergaard uniforms for clinic. STP-D segment:
medicine, target: doctors, position: fabric, differentiation their selves. Extant their
products to Africa.

 Gravitational mode:
There are factors in gravity theory that may determine bilateral trade:
1. Size of economies.
2. Geographical proximity.
3. Shared history.
4. Language similarities.
5. Similar time zones.
6. Similarities in consumer preferences.

Jan was an economist and won the Nobel Prize, he said the key factors:

1. Geographical proximity.
2. Economic size of the respective countries.
3. Similarities in consumer preferences and economic development.

 Kellogg’s company:
Founded in Battle Creek, Michigan, the Kellogg Company has employed
over 33,000 employees since 2017. In 2014, the number dropped to 29,818
employees, before the workforce increased again to 33,000 employees.
Along with being one of the largest food companies in North America,
Kellogg’s was rate as one of the most valuable food brands worldwide. The
Kellogg Company saw steady increases in net sales from 2010 to 2013,
before reporting losses from 2014 to 2017.

The Kellogg Company is best known for its breakfast foods and cereals,
such as Frosted Flakes, Froot Loops, and Rice Krispies. It readily competes
with General Mills for the title of the biggest vendor of ready-to-eat cereals
in the United States, and recent market data shows customers’ loyalty to
Kellogg’s Pop Tarts.
 In order to expand its offerings outside of the breakfast realm, Kellogg's
acquired several other brands, such as Keebler, Morningstar Farms,
Cheez-It, and Pringles, helping it compete among the leading salty snack
food companies. As of 2017, market data showed that the Kellogg
Company and its subsidiary Keebler Company made it to the list of the top
cracker vendors in the United States.

Cultural Resource Rout:

Some emerging market brands generally suffer from the negative image of
their country of origin.

Havianas released on June 14, 1962. Creatos Sao Paulo Alpargatas, stores 250. +80
countries.
You can attach culture to a product and that can be a benefit for your product.

 LESSON 3:
There are internal and external motivations to international expansion. An internal
motivation is for example in your home market it is saturated or does not appreciate
the product that you can sell internationally. An external motivation is for example you
want to establish a name brand in another country.

If you are able to make more product, you are going to gain experience advantage and
you are able to innovate in the future. Six primary theories:

OLI: Based on three conditions or advantages:

1. Ownership: who is going to produce abroad?

2. Location: where to produce?
3. Internalization: why to produce rather than license someone else?

INCREMENTAL OR UPPSALA:

When they studied the companies, they noticed that there was no formal exports that
people would informally export products. There is independent representatives.
Companies will make a foreign sale subsidiary or a foreign office. They will stablish
production and sales subsidiaries.

Psychic distance: how comfortable we feel with a foreign culture.

Internationalization process theory: products are traditionally exported to places with

low psychic distance. You have to have state and changes properties, you have to
know is there is opportunities and them you do relations.

Networking theory: form market information and knowledge, which we can leverage.

Network perspectives: should have an international extension, you have to penetrate

these markets, after that you are able to integrate your sales.

VIDEO 2:
Transaction costs analysis model: One of the most famous because Coast, who
won the Nobel Prize for economics, originally expanded it. Organizations have
international activities and have a choice to enter market.

Friction: is the key concept to transactional cost model.

- Ex-ante cost: the cost of finding a buyer or seller.

- Ex-post cost: monitoring and enforcement.
 - Forward integration: an international subsidiary take care of those ex-ante and
ex-post cost. Because the cost of working with an intermediary is lower than the
cost of doing it yourself.

Opportunistic behavior: people don’t act in our best interest.

Example: Carports – the company had sold proper product. There was o problem so he
had additional costs because he had ex-post cost for renegotiation the contract for trying
to get money.

 Leverage
 Linkage
 Learning
You try to learn from your clients, create connections or links and then you
are going to leverage that learning and linking in order to make more
money.

Companies creates links.

New international ventures: are often called born Globals

 LESSON 4:
Two Internationalization Theories

The asian tortoise model and b2b and b2c model.

Video 1:
Market competitiveness is essential in marketing.
Porters five forces model:
1. Intensity of rivalry: how intense different market competitors are in the particular
field.
2. New entrance: organizations that may come into the market.
3. Suppliers: people that supply different companies.
4. Substitute: something you can exchange for something else.
5. Buyers: have enormous influence on the competition.
Blue ocean strategy framework
When you try to move from a market that is saturated (red ocean) and move to a
market that is less saturated (blue ocean).
Perceived customer value: the total customer benefits: monetary cost, time cost,
energy cost and psychological costs. Total Customer Benefit (TCB) – Total
Customer Cost (TCC) = Customer Perceived Value (CPV).
 VRIO: We are go to received value in something as 1. Can create value, 2. Is rare,
3. Unable to be imitated, 4. It is organized. V= Valuable, R= Rare, I= Inimitable, O=
Organized.
Video F1 case:
It is a French hotel, designed for the budget traveler. Target as unique, and
therefore has become successful. It was a budget option of Accor group. There is
very limited selection of services. F1 is the lower option in the group. Target is
young traveler. They think that the target does not want the additional services.
They are focus in in four key areas: 1. 24 hours check-in, 2. Microfiber towels, 3.
free parking and free Wi-Fi. There is machine, there is no a reception o someone.
They also have every can you eat at breakfast. You have shared bathrooms. This
hotel is working in the blue ocean model. They understand millennials wants.

Theory blue and Red Ocean processes:

The idea is to compete in a blue ocean where there is no sharks, but most of the
business compete in a red ocean. There is a five-step process:
1. Find competitors.
2. Find areas of competitions.
3. Chart Red Ocean – strategic canvas.
4. ERRC: Eric model to eliminate, reduce, raise, and create.
5. Chart Blue Ocean.
To make a red ocean you need to use a canvas (example in excel).

Case: Metallica.
There was no radio involved, so the intensity. It was like a homegrown thing, was
not direct by a record company, it was the brilliant young people doing things
different. They combine groove and the grift. They became the pioneers of metal.
Each time they play, they became bigger. They eliminate opening bands (no
support act), Raise video (instead of having a support act, they had a kind of
movie), they create local content, they create live band feed, create snake pit,
Raise band meetup.

 LESSON 5: