WEBVTT Kind: captions Language: en 00:00:14.640 --> 00:00:22.000 Hi, good afternoon. Welcome back this is my Module 5 and Lecture 24 00:00:22.000 --> 00:00:28.000 this is the last lecture of Module 5 on designing a global marketing program. 00:00:28.800 --> 00:00:34.480 So, we were discussing on the communication strategy. As you remember we have discussed 00:00:34.480 --> 00:00:39.280 all the 3 P's the product we have discussed in international market what should be the 00:00:39.280 --> 00:00:43.600 various strategy related to the product in the international market, what should be the 00:00:43.600 --> 00:00:47.840 strategy on the pricing in international market, what should be the placement or 00:00:47.840 --> 00:00:54.320 distribution strategy in international market. So, three very important ingredients of the 00:00:54.320 --> 00:00:59.040 4 P's we have discussed and I hope you have understood this is a very complex one, 00:00:59.840 --> 00:01:05.520 very, very complex. As I said preparing a very good dish also depends on a very good chef a very 00:01:05.520 --> 00:01:12.480 good marketing manager should prepare the mix of all these 4 P's shown in a very creative fashion 00:01:12.480 --> 00:01:15.680 to gain a market share and gain the profitability of the company. 00:01:16.800 --> 00:01:21.360 So, the last one as I have said about the communication of the promotion and the 00:01:21.360 --> 00:01:26.720 communication which is the last P the promotion and the communication strategy. As you know the 00:01:26.720 --> 00:01:33.520 promotion is basically cost to the company so how effectively and how you can manage the promotion 00:01:34.400 --> 00:01:39.120 that is all very, very crucial. So, the first of all why it is challenging. In 00:01:39.120 --> 00:01:45.120 India as you know the different states, we have different languages in most of the states. 00:01:45.120 --> 00:01:52.320 So, the communication strategy are different in certain products may be used in the local 00:01:52.320 --> 00:01:58.960 communication language and some are in national in Hindi or English and the communications are done. 00:01:59.920 --> 00:02:05.920 So, imagine now you are in a global market where the languages are totally different and then 00:02:09.440 --> 00:02:14.800 economy of the country are totally different and then socio cultural differences are there. 00:02:14.800 --> 00:02:18.560 So, of course the communication will be very, very challenging for you 00:02:18.560 --> 00:02:23.760 and then regulatory conditions these are very important what you can communicate 00:02:23.760 --> 00:02:29.200 legally all those things are very, very important and then competitive differences are also there, 00:02:29.200 --> 00:02:37.360 so how do you affect these are the factors which affected. So, legal and regulatory conditions 00:02:37.360 --> 00:02:43.600 are very, very important for preparing your communication in an international market. 00:02:43.600 --> 00:02:49.600 You need to check with your legal partners or the lawyers and the advising agencies 00:02:49.600 --> 00:02:56.400 what you can ethically and legally you can promote in a country. So, they communicate in 00:02:56.400 --> 00:03:03.280 a country so that should be very, very important because what is legal allowed in country x 00:03:03.280 --> 00:03:07.520 may not be legally allowed in country y so that is very, very important for you. 00:03:09.680 --> 00:03:13.520 So, the communication mix so what can be the various communication mix? 00:03:14.080 --> 00:03:19.920 So, in the center as I have kept very simple one is a communication mix and then there can be 00:03:19.920 --> 00:03:26.240 various ways advertising you can put print media advertising, you can make the advertising in the 00:03:26.240 --> 00:03:31.600 television media, you can put the advertising in the digital media, Facebook, LinkedIn, 00:03:31.600 --> 00:03:36.880 Twitter all these advertising you can do. You can do the personal selling of course the 00:03:36.880 --> 00:03:41.760 product can have a personal selling. You can have your own companies personal selling network 00:03:41.760 --> 00:03:47.920 there. You can have your direct marketing for company you can have a direct marketing 00:03:48.560 --> 00:03:55.360 like the several couple of products I will come to that little example give you the direct marketing, 00:03:55.920 --> 00:03:59.920 you can have the sales promotion scheme, various sales promotion schemes. 00:03:59.920 --> 00:04:05.440 And then like various discounting scheme and you can come up with the sales promotion scheme like 00:04:05.440 --> 00:04:11.600 bundling the service, bundling the spares, bundling the consumables, bundling all those 00:04:11.600 --> 00:04:16.960 things can be sales promotion and then obviously the public relations of your department of your 00:04:16.960 --> 00:04:23.360 company which is also plays a very crucial role in public relations and public relations you remember 00:04:23.920 --> 00:04:28.480 play a very crucial role in a large multinational company because these people 00:04:29.120 --> 00:04:33.200 they will communicate. They will send the communication to the place 00:04:33.200 --> 00:04:44.240 and the media so that it also creates a positive publicity at the marketplace. So, public relations 00:04:44.240 --> 00:04:51.040 are very, very important function and especially if there is a problem with your company product 00:04:51.040 --> 00:04:55.760 due to God forbid, due to some reason there is a product quality problem or 00:04:55.760 --> 00:05:00.240 there is a product somewhere the product has faced some legal problems or something 00:05:00.240 --> 00:05:05.440 product got banned for certain time. Then public relations can be a very big 00:05:05.440 --> 00:05:11.360 rescuer for you in that difficult time public relation can help the company to 00:05:11.360 --> 00:05:16.960 really communicate with the customers, with the government authorities, regulatory bodies 00:05:16.960 --> 00:05:24.160 and then prepare and then resolve the situation and they know professionally how to communicate 00:05:24.160 --> 00:05:28.880 and what to communicate all those are known by the public relations people. 00:05:28.880 --> 00:05:33.520 So, they are very, very crucial in a large organization especially a 00:05:33.520 --> 00:05:39.760 large multinational or transnational organization public relations play a very, very important role 00:05:39.760 --> 00:05:47.040 both when the company is making a foray into that new market or a company is already 00:05:48.560 --> 00:05:53.280 into the market and having some new product coming up or maybe the company is 00:05:53.280 --> 00:05:59.280 applying for a new expansion in the factory. New production facility expansion or something 00:05:59.280 --> 00:06:06.240 so public relation or maybe company has faced some legal issues or product related issues or 00:06:06.240 --> 00:06:11.680 there was a product recall maybe certain parts maybe you are selling a car and maybe a certain 00:06:12.240 --> 00:06:18.720 maybe a break lining was not correct or may be some component in the car had a 00:06:18.720 --> 00:06:23.840 problem and then you have to product recall is there and then public relation there can be 00:06:23.840 --> 00:06:29.840 some negative sentiments with your customers. Public relations can communicate accordingly with 00:06:29.840 --> 00:06:36.240 the customers and in the media so that all these negativity can be taken care. So, I am harping 00:06:36.240 --> 00:06:41.920 public relations is very, very important in a communication mix apart from regular communication 00:06:41.920 --> 00:06:45.520 which is advertising, personal selling, direct marketing and sales promotion. 00:06:46.960 --> 00:06:51.920 So, advertising what type of an advertising? Advertising is a non verbal way of communication 00:06:51.920 --> 00:06:57.680 conducted through the mass media under a clear sponsorship, important decisions in advertising, 00:06:57.680 --> 00:07:02.200 objective setting, communication or sales what is your communication FL 00:07:02.720 --> 00:07:06.720 as you know so that is a communication where Hindustan Unilever on this surf. 00:07:07.360 --> 00:07:14.320 So, the communication how are you communicate so that is the way how the smart companies are 00:07:14.320 --> 00:07:20.480 doing the communication to the customers, to the consumers so how the objective setting 00:07:20.480 --> 00:07:27.280 communication, budget setting, various methods of budget what you have, message decision what 00:07:27.280 --> 00:07:32.400 is your USP or unique selling proposition of the product as I said every product 00:07:32.400 --> 00:07:36.240 should have a unique selling proposition. So, what is the unique selling propositions, 00:07:36.240 --> 00:07:41.680 standardization versus adaptation, what is your standardized communication throughout the world, 00:07:41.680 --> 00:07:47.440 what is your adaption for that particular country. So, based on the decision your 00:07:47.440 --> 00:07:54.000 communication will be there, you want to communicate one decision, one standardization 00:07:54.000 --> 00:07:59.680 throughout the world of the communication or you will adapt country specific communication. 00:07:59.680 --> 00:08:06.080 Media decision which media you do based on the TRP you can take a decision which media you want 00:08:06.080 --> 00:08:12.400 to use and then what type of a frequency, what is the impact, what is the type of the media 00:08:12.400 --> 00:08:18.960 all those thing you have to ensure that decisions agency selection whether you want to get a local 00:08:18.960 --> 00:08:23.680 agency who is very strong in that country or whether you can take an international 00:08:23.680 --> 00:08:28.960 agency for your product advertising. Advertising evaluation the communication 00:08:28.960 --> 00:08:32.000 impact and sales impact because you know at the end of the day 00:08:33.120 --> 00:08:36.960 every communication you make, every advertisement you make there is a huge 00:08:36.960 --> 00:08:43.120 cost there. So, then people, the company will always look what is the impact on the sales. So, 00:08:43.120 --> 00:08:48.000 that is the very, very crucial for you so advertising how you advertise 00:08:48.000 --> 00:08:53.840 and then evaluation of that advertisement is also very important for you. 00:08:53.840 --> 00:09:00.640 Public relation as I have said once again I am repeating many times based on my long 00:09:00.640 --> 00:09:06.880 experience in international marketing with a large corporation PR is a very, very crucial 00:09:06.880 --> 00:09:13.840 function in a company. PR is credible compared to paid and sponsor methods of communication. 00:09:13.840 --> 00:09:20.080 It is useful to image building of a company. They help a lot believe me, trust me they help a lot 00:09:20.080 --> 00:09:24.080 to build your image to the company. They will continue to give the message 00:09:24.080 --> 00:09:30.960 in the media, in various smart ways to give the information in the media so that they create a 00:09:30.960 --> 00:09:38.320 very good image about your company. Negative PR may result in heavy customer churn and revenue 00:09:38.320 --> 00:09:43.680 fall if there is a negative PR about your company, if there is a product failure, there is some issue 00:09:43.680 --> 00:09:49.520 related with product is a negative PR might have a problem and then it tends to be resolved. 00:09:49.520 --> 00:09:53.280 Internal PR required to be in confidence of internal parties, 00:09:53.280 --> 00:10:00.240 external PR helps in social image building. People relation is done using methods like donation, 00:10:00.240 --> 00:10:05.200 charity, sponsorship all these things can help you to make a good public relation. 00:10:06.800 --> 00:10:14.080 Sales promotion you can make it from the name itself is always a short term activity typically 00:10:14.080 --> 00:10:24.960 during Christmas day, Black Fridays typically in India like Diwali like what is called in Chinese 00:10:24.960 --> 00:10:33.280 New Year in China or Singapore these are the time when you come up with the huge sales promotional 00:10:33.280 --> 00:10:38.720 activities and which will boost up the sales there, these are all irregular activities. 00:10:39.280 --> 00:10:46.560 And also called below the line activities example point of sale display which is say BTL point of 00:10:46.560 --> 00:10:53.280 line display that you display demonstration, leaflet, free trails, contest, premiums, 00:10:53.280 --> 00:11:00.560 discount, rebate, sample all those things are there in the sales promotion and typically these 00:11:00.560 --> 00:11:07.680 happens sales promotion happens twice. First of all in various events like typically the cultural 00:11:08.320 --> 00:11:17.360 events like Diwali or Durga Puja or Christmas or Eid all those time there is a special discount 00:11:17.360 --> 00:11:22.640 promotional structures goes on. Typically in Black Friday in US 00:11:22.640 --> 00:11:27.680 there is a special discounting goes there, sales promotion goes there and these are all 00:11:27.680 --> 00:11:34.880 below the line that means point of display special demonstrations, leaflets all those free trails 00:11:34.880 --> 00:11:41.920 all those things are there and in B2B promotion business-to-business in that it might include 00:11:41.920 --> 00:11:51.680 free tour, all the training packages or you can do the appliances for dealer s home and then support 00:11:51.680 --> 00:11:56.400 equipment for the intermediary business. So, B2B promotion can also happen you can 00:11:56.400 --> 00:12:04.800 invite your dealers also for a training them at some other country you may include 00:12:04.800 --> 00:12:11.440 them a free you will see lot of companies they take their dealers annually in a trip 00:12:12.080 --> 00:12:18.160 for a business conference and then followed by some leisure and then maybe a sea side or 00:12:18.160 --> 00:12:23.680 hill side trip and others may be you can give dealer some good nice gifts to the dealers. 00:12:23.680 --> 00:12:28.320 And then this way how you can promote your intermediaries so that is also very, 00:12:28.320 --> 00:12:34.480 very important because those intermediaries are finally your seller. So, remember you are in 00:12:34.480 --> 00:12:39.520 this case you are not directly selling to your consumer you are selling through an intermediary 00:12:39.520 --> 00:12:46.240 so how you promote, how you have a different sales promotion not only for your consumer, but 00:12:46.240 --> 00:12:52.320 you have a sales promotion for your distributors also that is also very important here. 00:12:52.320 --> 00:12:57.200 Direct marketing as you know solicit direct response from the target audience methods 00:12:57.200 --> 00:13:02.560 direct mail and telephone, direct marketing is affecting in B2B product typically business to 00:13:02.560 --> 00:13:07.680 business product normally direct marketing is not much into B2C products it is only 00:13:07.680 --> 00:13:14.080 B2B products. So, direct marketing will be useful in B2B like you are selling a product 00:13:14.720 --> 00:13:21.920 to an industry say you are selling the product in a very high tech equipment to a steel plant. 00:13:22.560 --> 00:13:26.640 Maybe you are selling a blast furnace to the steel plant or maybe you are selling some 00:13:26.640 --> 00:13:31.440 R and D equipment in the steel plant or maybe you are selling a medical equipment in a healthcare 00:13:32.160 --> 00:13:38.680 facility like in hospital or maybe you are selling the engine or maybe the gear 00:13:38.680 --> 00:13:44.640 box or maybe the steering or maybe the crucial component like battery or tyres to the car company 00:13:44.640 --> 00:13:48.880 so there typically you will have a direct marketing network in B2B. 00:13:48.880 --> 00:13:53.840 And useful when the cost of advertising and personal selling is high here the personal 00:13:53.840 --> 00:13:56.000 selling is very, very high. Personal selling, 00:13:56.560 --> 00:14:01.600 personal presentation by sales executive to convert the lead two way communication, 00:14:01.600 --> 00:14:07.200 personal selling is in various methods, the personal selling is very, very crucial and 00:14:07.200 --> 00:14:15.040 they follow the two way communication that means you communicate with the consumers. Personal 00:14:15.680 --> 00:14:21.280 and the consumers also may have several questions about your product and you answer that. 00:14:21.920 --> 00:14:25.600 So, there is a two way communication not in advertisement where you only 00:14:25.600 --> 00:14:29.600 communicate customer cannot communicate back to you their feeling on that, 00:14:29.600 --> 00:14:34.560 but in this personal selling customer can say okay I like the product, but with feature 00:14:34.560 --> 00:14:39.040 I prefer some other feature in the product, but this feature may not be useful. So, 00:14:39.040 --> 00:14:43.760 there should be two way communication. Personal selling helps in that two way communication. 00:14:43.760 --> 00:14:50.880 Personal involvement, less noise as direct two way communication happens, used to market specialty 00:14:50.880 --> 00:14:57.920 goods or B2B products. Typically, personal selling in B2B products or very, very specialty goods you 00:14:57.920 --> 00:15:02.560 will have these type of a personal selling. More appropriate in the countries with low 00:15:02.560 --> 00:15:06.960 labour cost where low labour cost is there it is more appropriate for those countries. 00:15:09.360 --> 00:15:15.040 So, one way communication, two way communication I have two extremes I have put it. So, 00:15:15.040 --> 00:15:20.960 one way communication is the advertising newspaper, magazines, journals, directories, 00:15:20.960 --> 00:15:28.000 radio, television, cinema, outdoor these are all one way communication. The extreme right 00:15:28.000 --> 00:15:33.040 is the two way communication, personal selling, sales presentation, sales force management, 00:15:33.040 --> 00:15:38.400 traditional trade fairs and exhibitions. These are also very, very crucial trade fairs and 00:15:38.400 --> 00:15:45.040 exhibitions for international market entry, trade fairs are very important because these exhibitions 00:15:45.040 --> 00:15:50.240 if it is an international exhibition and I can tell you in Dusseldorf there is an healthcare 00:15:50.240 --> 00:15:56.960 exhibition happens, Medica throughout the world people go and attain these exhibition there. So, 00:15:56.960 --> 00:16:01.600 the participation in that exhibition for the medical equipment and medical devices 00:16:01.600 --> 00:16:06.640 companies are very, very important because if you can participate in that exhibition 00:16:06.640 --> 00:16:12.560 it helps you to reach the customers globally. All the global customer, all the customers 00:16:12.560 --> 00:16:17.760 from various parts of the world will visit Medica to see the latest products 00:16:17.760 --> 00:16:22.640 and then get the features understand their requirement there so that exhibitions. So, 00:16:22.640 --> 00:16:28.800 there are two extreme ways in between the public relations, annual reports of the company, 00:16:28.800 --> 00:16:36.320 corporate image, house magazines, press relations, public relation, events, lobbying, sponsorship 00:16:36.320 --> 00:16:42.800 then next is a sales promotion. Rebates, catalogues, samples, competitors next 00:16:43.440 --> 00:16:50.880 further two way towards two way communication is a direct marketing, direct mail, internet marketing, 00:16:50.880 --> 00:16:56.400 telemarketing and viral marketing these are two way approach towards the two way. So, 00:16:56.400 --> 00:17:02.160 we are this is the two extreme and in between the public relation, sales promotion and direct 00:17:02.160 --> 00:17:06.720 and this is taken from the Hollensen book a decision oriented approach. 00:17:09.200 --> 00:17:14.000 So, what is viral marketing? Now the last very important what is viral you must have 00:17:14.000 --> 00:17:20.320 heard this word very, very frequently what is viral marketing? It is like a grapevine 00:17:20.320 --> 00:17:25.520 to spread information about the product or service from a person-to-person, word of mouth 00:17:25.520 --> 00:17:32.640 by sharing via internet or email. So, the goal of viral marketing is to inspire individuals to 00:17:32.640 --> 00:17:36.480 share a marketing message to friends. So, I get a message about a new product, 00:17:36.480 --> 00:17:43.120 new technology I shared with all my friends group of my institute, my alma matter ,all my 00:17:44.960 --> 00:17:51.600 batch mate in turn they sent it to their family, their friends in this way it goes to a reach to a 00:17:53.360 --> 00:17:58.080 large people. So, the marketing message to friends, family and other individuals to 00:17:58.080 --> 00:18:04.960 create an exponential growth in the number of recipient. So, this is very become vital today 00:18:05.600 --> 00:18:11.840 in typically in this WhatsApp then Facebook and LinkedIn all those 00:18:11.840 --> 00:18:15.360 through this viral marketing is becoming very, very popular. 00:18:17.760 --> 00:18:25.760 So, the last one is the marketing mix between B2C versus B2C versus the services. So, 00:18:25.760 --> 00:18:31.920 there are three different segments. The first one is business to consumers B2C or business 00:18:31.920 --> 00:18:39.040 to customers. The next one is B2B business to business and the third one is a services 00:18:39.600 --> 00:18:48.240 typically the restaurant hotel services, insurance services all these services are coming under that. 00:18:48.800 --> 00:18:54.400 So, what is B2B, B2C as you know when you sell directly to the consumer products. 00:18:54.400 --> 00:18:59.120 We sell the product which goes finally for the consumers consumption 00:18:59.760 --> 00:19:04.960 so that is typically known as a consumer products B2B the products which was selling to the 00:19:04.960 --> 00:19:11.920 business. So, that means you are selling a product to a hospital or he is selling a product towards 00:19:12.480 --> 00:19:19.760 car manufacturing unit or a product to a steel plant they will use this product to make the 00:19:19.760 --> 00:19:25.840 final product and sell it to the consumers. So, your product is sold to the inter business 00:19:25.840 --> 00:19:30.880 they will use that product to make the final product which will go to the 00:19:30.880 --> 00:19:37.520 customer or the consumers. So, this segment is known as B2B and third is a services segment which 00:19:37.520 --> 00:19:44.400 can be the various type of healthcare services, insurance services, the restaurant, hotel services 00:19:44.400 --> 00:19:48.320 and then airline services various types of services industries are there. 00:19:49.840 --> 00:19:55.920 So, originally the 4 P's are derived from the research on manufacturing companies in B2C 00:19:55.920 --> 00:20:06.160 domain. So, the 4 P's product, price, promotion and placement were decided on B2C domain. 00:20:06.160 --> 00:20:13.280 Idea is centered towards the persuasion to influence the customers. However, in the 00:20:13.280 --> 00:20:18.240 business to business marketing the marketing mix is influenced by process of interaction. 00:20:19.040 --> 00:20:23.760 Influence process in B2B based on negotiation not the persuasion. 00:20:23.760 --> 00:20:30.480 In B2B this is a negotiation and not the persuasion. So, classic 4 P's do not account 00:20:30.480 --> 00:20:37.120 for the characteristics of the services. In the 4 P's are not really for the services as I have said 00:20:37.120 --> 00:20:43.920 there is a 7 P in the services segment which we have discussed previously. The characteristics of 00:20:43.920 --> 00:20:53.600 the service include intangibility, perishability, heterogeneity, inseparability and ownership. 00:20:54.400 --> 00:20:57.840 So, why it is perishability? As you know in the hotel industry 00:20:57.840 --> 00:21:05.920 why it is perishable because you have 100 room nights say you have 10 rooms in that. You have 00:21:05.920 --> 00:21:12.880 sold 8 rooms in a particular day the 2 rooms you could not sell on that particular day. So, that 00:21:12.880 --> 00:21:21.200 means the loss the room rent for the two nights are lost is a perishable. So, in this way if 00:21:21.200 --> 00:21:28.160 the hospital beds or the hotel beds are not full on a particular sold so that particular day you 00:21:28.160 --> 00:21:33.680 lost the revenue against the two beds or the three beds or five beds whatever maybe the situation. 00:21:33.680 --> 00:21:37.200 So it is perishable for there. So, the characteristics of the service 00:21:37.200 --> 00:21:45.760 industry is there that is intangible service, perishability, heterogeneity, variability, 00:21:45.760 --> 00:21:52.720 inseparability and ownership therefore 7 P's are suggested for the services rather than classic 00:21:52.720 --> 00:22:00.080 4 P's. So, in the 4 P's in that instead of 4 P's 7 P's are very important in the 00:22:00.080 --> 00:22:06.720 services so that is why remember 4 P's are typically used for consumer marketing, 00:22:06.720 --> 00:22:14.480 B2C marketing or to some extent in B2B marketing, but in services the 7 P's which I have explained 00:22:14.480 --> 00:22:19.520 are important for you that is all from my side. Thank you thanks a lot. Thank you very much. 00:22:19.520 --> 00:22:27.600 So, we learned entire 4 P's of marketing and also the 7 P's for the services sector 00:22:28.160 --> 00:22:35.760 and these are very important in how you take these from domestic market to international market. 00:22:35.760 --> 00:22:41.040 How different the product strategy, pricing strategy, placement strategy and promotion 00:22:41.040 --> 00:22:47.920 strategy in international market I have explained to you. I have also explained how crucially you 00:22:47.920 --> 00:22:56.160 have to change the other 3 P's in case of services in international market. So, please study these 00:22:56.960 --> 00:23:03.920 sessions from the session it starts from the 20 to 24 sessions. So, 00:23:03.920 --> 00:23:11.360 these are the very important session for you. So, please understand that and we do have referred 00:23:11.360 --> 00:23:17.680 couple of books there and in the below the slides each of the slides are referred the 00:23:17.680 --> 00:23:23.360 slide reference and I would suggest encourage you to go through the slides which will help you to 00:23:23.360 --> 00:23:28.080 understand much more in detail that is all from my side. Thank you very much. Thanks a lot.