IMS 554 INFORMATION MARKETING for INFORMATION SYSTEMS DEPARTMENT CHAPTER 5 MANAGING INFORMATION MARKETING Pn Hasnah Hashim Lecturer Faculty of Information Management Universiti Teknologi MARA Puncak Perdana Campus

MANAGING INFORMATION MARKETING 1. Information Consumer Relationship 2. Competitive Marketing Strategies 3. Global Marketplace 4. Global Information Marketing 2

1.0Information Consumer Relationship  Identify, satisfy, retain, and maximise the value of their best user department relationship for long term benefit like loyalty program and clienteling where a strong personal contact of ISD personnel with user department is the main emphasis.  Empowerment, Project Team, Personal Contact, 3 MANAGING INFORMATION MARKETING

 Things affecting relationships  Initiate positive phone calls  Make recommendations and service suggestions  Show appreciation  Use “we” problem-solving language  Get to problems  Talk of “our future together”  Accept responsibility  Plan the future 4 MANAGING INFORMATION MARKETING

2.0Competitive Marketing Strategies  Something special that makes an IS department preferred by user department or better able to compete and continue to exist in the long term.  Differentiated Oligopoly - few IS providers with differentiated information products and services  Monopoly is the market or industry in which there is only one IS department, which can therefore set the prices of its information products and services.  Natural Monopoly is the industry in which IS department can most efficiently supply all needed information products or services. 5 MANAGING INFORMATION MARKETING

3.0Global Marketplace  Objectives Understand how the international trade system, economic, political-legal, and cultural environments affect a company’s international marketing decisions. Learn three key approaches to entering international markets. 6 MANAGING INFORMATION MARKETING

7  Objectives cont.. Understand how companies adapt their marketing mixes for international markets. Learn how to identify the three major forms of international marketing organizations.

Case Study Coca- Cola  1900: Coca-Cola was available in foreign countries  Early branding efforts placed logo prominently abroad  Coca-cola has recently entered India, China and Indonesia  Consistent positioning and taste worlwide  Ads and promotions are adapted to local markets 8 MANAGING INFORMATION MARKETING

9 Definition Global firm A form that, operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors.

MANAGING INFORMATION MARKETING 3.1Many businesses are becoming global companies and moving toward transnational business strategies in which they integrate the global business activities of their subsidiaries and headquarters. 3.2Global companies are increasingly using the Internet and related technologies as a major component of the global IT platform to develop and deliver global IT applications that meet their unique global business requirements.

11 MANAGING INFORMATION MARKETING 3.3Global IT and end user managers must deal with restrictions on the availability of hardware and software, restrictions on transborder data flows and movement of personal data, and difficulties with developing common data definitions and system requirements.

3.4Companies face six major decisions in international marketing: 3.4.1Looking at the global marketing environment 3.4.2Deciding whether to go international 3.4.3Deciding which markets to enter 3.4.4Deciding how to enter the market 3.4.5Deciding on the global marketing program 3.4.6Deciding on the global marketing organization 12 MANAGING INFORMATION MARKETING

3.4.1 Looking at the global marketing environment  The International Trade System Tariff, quotas, embargos, exchange controls, nontariff trade barriers World Trade Organization and GATT Regional free trade zones o European Union o North American Free Trade Agreement o Other free trade areas MANAGING INFORMATION MARKETING

3.4.2Deciding whether to go international  Economic Environment Industrial structure o Subsistence economies o Raw material exporting economies o Industrializing economies o Industrial economies Income distribution MANAGING INFORMATION MARKETING

 Political-Legal Environment Attitudes toward international buying Government bureaucracy Political stability Monetary regulations o Countertrade: barter, compensation, counterpurchase MANAGING INFORMATION MARKETING

 Cultural Environment Impact of Culture on Marketing Strategy o Cultural traditions, preferences, behavior Impact of Marketing Strategy on Cultures o Globalization vs. Americanization MANAGING INFORMATION MARKETING

3.4.3Deciding which markets to enter  Define international marketing policies and objectives and sales volume goals  Decide how many countries to target  Decide on the types of countries to enter  Screen and rank each of the possible international markets using several criteria Market size, market growth, cost of doing business, competitive advantage, risk level MANAGING INFORMATION MARKETING

3.4.4Deciding how to enter the market  Exporting Direct vs. indirect  Joint venturing Licensing, contract manufacturing, management contracting, joint ownership  Direct Investment Assembly facilities, manufacturing facilities MANAGING INFORMATION MARKETING

3.4.5Deciding on the global marketing program  Standardized Marketing Mix Same basic product, advertising, distribution, and other elements of the marketing mix are used in all international markets.  Adapted Marketing Mix The marketing mix elements are adjusted for each international target market. MANAGING INFORMATION MARKETING

 Product Strategies for the global market Straight product expansion oMarketing the product with no change Product adaptation oAltering the product to meet local conditions or the wants of the foreign market Product invention oCreating new products or services for foreign markets MANAGING INFORMATION MARKETING

 Global promotion strategies Standardized global communication oAdvertising themes are standardized from country with slight modifications Communication adaptation oAdvertising messages are fully adapted to local markets MANAGING INFORMATION MARKETING

 Global pricing strategies Company face many problems oPrice escalation oPricing to foreign subsidiaries oRecent economic and technological forces oThe Internet MANAGING INFORMATION MARKETING

 Global distribution channels Whole channel view oSeller’s headquarters organization oChannels between nations oChannel within nations oNumbers and types of intermediaries MANAGING INFORMATION MARKETING

3.4.6Deciding on the global marketing organization  Managing international marketing activities Step 1:Organize export department Step 2:Create an international division Step 3:Become a global organization MANAGING INFORMATION MARKETING

4.0Global Information Marketing  The international dimensions of global information marketing include uniform IS products and services that can be used the same way all over the world. dealing with cultural, political, and geoeconomic challenges posed by various countries. developing appropriate business and IT strategies for the global marketplace. MANAGING INFORMATION MARKETING

26 developing a portfolio of global IT applications and a technology platform to support them. database management methods have to be developed and systems development projects managed to produce the global information systems that are required to compete successfully in the global marketplace. MANAGING INFORMATION MARKETING

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