IS 1-24

Constructivist learning perspective learners actively construct their understanding and knowledge through their interactions with the environment, rather than passively receiving information.

Insights: learners are more effective when…

• understand why they are learning

• learn in the context

• active and self-directed

• an immediate application in the context

To set up teaching session:

• preparation → learners understand why they are learning, how this session help for improving their performace

• design a pattern of learning experience → learners learning in the context

• conduct the activities → learners interact, active and self-directed

• reflection → learners have immediate application

MTTAC ( some of them are in marketing strategies)

• Market entry strategy → a company enters a new market or expanding its operations into a different area

  • Export: Companies may choose to enter a new market by exporting their products or services. → direct exports (selling directly to customers in the target market) & indirect exports (utilizing intermediaries such as distributors or agents).

  • Licensing: a company grants permission to a foreign company to use intellectual property or technology. 知识产权

  • Franchising: a company grants the right to operate under its established brand and business model.

  • Strategic Alliances: form strategic alliances or collaborate with local companies to share resources, knowledge, and market expertise.

• Target market strategy

  • Market Segmentation Strategy: involves dividing the overall market into distinct groups or segments based on shared characteristics such as age, gender, income, lifestyle, interests, or geographic location. Each segment represents a specific target audience.

  • Market Selection Strategy: the company selects one or more target markets to focus on based on criteria such as market size, growth potential, profitability, competitive landscape, and alignment with the company's capabilities and offerings.

    
    

• Timing strategy → when to launch a product, enter a market, or execute specific actions to maximize the chances of success and achieve desired outcomes.

  • Country specific timing strategy: First mover, Follower

  • Country overarching timing strategy

    • Sprinkler: simultaneously launching multiple initiatives or projects across different areas or target markets.

    • Waterfall:  step-by-step

    • Mixed

• Allocation strategy

  • Configuration strategy

     Central

     Decentral

  • Performance strategy

     Standardize

     Adapt

• Coordination strategy 协调策略

  • Coordination demand reduction strategy

     Outsourcing 外包

     Spare Resources 备用资源

  • Coordination demand covering strategy

     Structural

     Personal

     Technocratic 技术专家

【SCMCR】

• Sales targets

  • First according to corporate goals

  • Strategic sales targets (coverage, share, control …) lead to operational sales KPIs

• Customer strategy

  • Customer is at the center of corporate activity

  • Who are they? What are their needs? Segmentation? Differentiation?

• Market approach

  • Strategic direction for area of business (Ansoff) & market segmentation

  • Market selection strategy, geographic areas (national / international), Timing

  • Competitive strategy (evade, attack, innovate, imitate)

• Channel and partner strategy

  • Choice of distribution / sales channels

  • Choice of sales partners

• Resource allocation

  • Which resources are required to fulfill targets?

  • Which resources are used for which sales activity?

1) FDI = A foreign direct investment (FDI) is an investment of a company or individual from one country in another country.

- for example, through a Joint Venture 合资企业

- it often involves acquiring ownership or control over a foreign company

-  it is measures by the “net inflow” (Inflow - Outflow = net flow)

• a positive net flow means that companies from a country invest more in other countries → positive indicator

• a negative netflow means that foreign companies invest more in a country.

FDI is an investment, it is not a revenue.

2) International Trade Volume: 国际贸易量

- involves the exchange of goods and services across borders → export and import

Difference:

• Measurement Differences:

  • FDI is measured by financial flows.

  • Trade volumes are measured by the value or quantity of goods and services exchanged between countries.

• Purpose and Scope:

  • FDI aims to establish a presence or gain strategic advantages in a foreign market; Trade volumes aims to meet market demands.

  • FDI is more about investment and ownership, while trade volumes is about the movement of goods and services.

→ FDI is an equity entry mode 股权进入模式, trade volumes is a non equity mode.

3) No, FDI and trade volumes are not directly comparable as they focus on different things. But sometimes we can use these two index to gain insights into the economic activities and relationships between countries. BUT we can combine them together to have a comprehensive understanding and give the insight to a foreign countries.

For example, a high level of FDI inflows into a country might indicate its attractiveness as an investment destination, while high trade volumes may suggest strong trade relationships and interdependencies with other countries.

Arbitrage has the effect of causing prices in different markets to converge. 使得不同市场下的价格趋同

When an arbitrageur 套利者 buys an asset from cheaper markets and sells the same asset in more expensive markets, the demand for the asset in the cheaper market will increase, causing prices to go up. In contrast, the more expensive market will see an increase in supply, causing prices to decrease.

1.Segmenting & Targeting:

-  End-users decision where to purchase doesn’t only depend on WHAT to buy but on HOW (s)he prefers to buy it

-  Segments: the service outputs that the end user needs to obtain from marketing

最终用户决定在哪里购买不仅取决于购买什么，还取决于他喜欢如何购买。

细分最好根据最终用户需要从营销渠道获得的服务输出来定义。

2. Channel Auditing:

Auditing channels and their characteristics/capabilities

- Sales/ selling cycle

- Activity performance of different channels / every segment demands different activities.

-  Selecting the right channels: each channel has its strength as well as weaknesses

-  Calculating the average cost per contact to reach business markets

-  Selecting the right multi-channel mix

3. Identifying service and cost gaps:

-  Think of: Is the service supplied (SS) balanced out with the service demanded (SD)? 平衡

-  Zero based channel 零基渠道 (means that service gaps and cost gaps are avoided)

4. Channel Type Decision:

-  Selection of specific channel members (screening process, selection process, negotiation process, implementation process)

-  More types raise the coverage variety but not necessarily the coverage 更多类型增加了覆盖范围的多样性，但不一定覆盖范围

-  Risk that channels collide 渠道冲突 and customers cross-shop 客户跨店

5. Channel Intensity Decision:

-   Channel intensity is about the channel partners competing for customers

-   Three levels are distinguished:

• Exclusive distribution: only one vendor, local monopoly (specialty goods) 独家经销：只有一个供应商，当地垄断（特产）

• Selective distribution: limited retail coverage (infrequently purchased shopping goods -> shoes) 选择性分销：有限的零售覆盖范围（不常购买的购物商品 -> 鞋子）

• Intensive distribution: in every possible shop available (e.g. convenience goods) 密集分销：在每个可能的商店中（便利商品 -> 低参与度产品）

-   Power balance between downstream (retailer) and upstream (supplier)

6. Dual Distribution Decision: 双重分配决策

-   Multiple channels: yes or no

7. Make-or-Buy Decision:

-   If this channels should belong to you or not

Aim is to: 8. Closing service and cost gaps:

-   The path to zero based channels

-   Meaning that service gaps and cost gaps are avoided 

First starts from the Corporate strategy, then come into organization, market planning, customer planning, business development.

You start in the top left hand side:

-        Corporate strategy: after the corporate strategy is defined, you deduct the marketing strategy, you come up with sales targets and the sales strategy then is the formulation of what you want to achieve in your sales department on long-term

-        As a result of that one -> Structure follows strategy: the organization is set up; how do you want to organize yourself and you define processes

-        You could say: the organization would be the result of our channel design decision to a certain extent

-        And then you enter the selling approach itself: 1. You need to have an understanding of the market; market planning activity (rough segmentation; à define market segments)

-        Next step: move closer to the individual customers; customer planning activities (fine segmentation); prioritize customers; measures of targeting à acquisition strategy

-        Then: develop the business! Get it done. Direct marketing gets execute, run the campaign etc. –> in the end customer inquiry

-        Inquiry check: check the interest, etc.; not every inquiry is going to be a customer à remain only the relevant inquires

-        Relevant inquiries: prepare an offer; a lot of dialogue inside in this step (what is the customers situation etc.)

-        Pre-clarification: before you have a deal, customers still might have inquiries/ want to discuss decision à come to an agreement

-        Maybe some final negotiations about the price, then contract/ letter of intent/ order à deal is closed

-        Order management: deliver the deal, implementation

-        After sales care: handle complaints, try to sell more, loyalty management at its best à loyalty as the outcome of this step

Zero based channel

-  Means that service gaps and cost gaps are avoided.

-  It’s meeting the right segments with the right service output at a minimum cost 它以最低的成本满足正确的细分市场，提供正确的服务输出

⟶ Do I provide a right service output at a minimum cost?

meet the right segments with the right service output + at a minimum cost = zero based channel

Service gap:

-  Service levels and costs are too high (Too high level of service provided) SD < SS

e.g. young girls going on a shopping trip (they feel uncomfortable, when somebody wants to consult them), then they may leave the store

-  Service levels are too low and costs too high. SD ＞ SS

e.g. fashion retail: older women who want to buy clothes; but they don't get good advice and buy from a store with better advice 

Cost gap: Cost gaps occur when total costs of performing all functions jointly are higher than necessary to deliver the service output demanded

Three levels are distinguished:

• Exclusive distribution: only one vendor in the area, local monopoly -> most common in luxury industies / specialty goods, 独家经销：只有一个供应商，当地垄断（特产）

• Selective distribution: limited retail coverage -> most common for infrequently purchased shopping goods, e.g. shoes 选择性分销：有限的零售覆盖范围（不常购买的购物商品 ）

• Intensive distribution: in every possible shop available -> most common for convenience goods, low involvement products 密集分销：在每个可能的商店中（便利商品, 低参与度产品）

Factors to consider:

1)  Channel competition to prevent complacency 渠道竞争防止自满

2)  Product category (e.g. Luxury products - exclusive distribution)

3)  Brand strategy: Premium and Niche Positioning (e.g. Luxury products - exclusive distribution) 品牌战略：高端和利基定位

4)  Channel Influence (how much influence you want to have in the channels? The more influence you want – the more exclusivity / selectivity you need!)

5)  Dependence Balancing

6)  Opportunity and Transaction Costs (the higher they are, the more it costs to come up with another transaction)

7)  Other manufacturer’s strategies

upstream (suppliers) & downstream (retailers) 上游 & 下游

Upstream (suppliers) focus on distribution:

-  Prefer high downstream competition and intense brand coverage

Advantages for this way:

-  Brand should be easy to find for the consuemr

-  higher profit

Problems if intensity is pushed too much:

- Lack of sales support by retailer to save resource and margins 零售商缺乏销售支持，以节省资源和利润率

- Defection by downstream channel member 下游渠道成员倒戈

- Opportunistic behavior by retailer (bait and switch) 零售商的机会主义行为（诱饵和转换）

additional:

Suppliers: Idea of increasing intensity with which their products are sold - but not too much

Retailers: mostly want exclusivity

⟶ Both push and pull into different directions and need to negotiate: You need a stable relation!

→ direct sales & open own retail stores

No, they should stick to direct sales channels, as service requirements favor the direct sales. BUT Trying to reach all of India with a direct sales force would be unmanageable.

So at the same time, they can also open own retail stores to avoid bait and switch (convincing customers, but then at the retail store they switch to another brand) .

Choose selective strategy, it integrates company-owned stores with big box retailers and others, as it can meet all the factors when making channel strategy decisions:

1)  Channel competition to prevent complacency

2)  Product category

3)  Brand strategy: Premium and Niche Positioning

4)  Channel Influence

5)  Dependence Balancing

6)  Opportunity and Transaction Costs

7)  Other manufacturer’s strategies

for other strategies, they cannot meet with all the factors.

a method of international trade where a company sells its products to foreign markets through intermediaries or third-party entities. 实体

1.  Broker 经纪人

- specialist for contracts, not for goods handling, gets 5% commission, based in home country

-  specializes in particular products

-  typically deals primarily in commodities

-  therefore, not a practical channel for many potential export marketers

2.Export management company (EMC) 出口管理公司

- act as an outsourced “export department” to help the companies to manage

- focuses on export-related activities, helping companies expand their international sales by managing the export process, market research, promotion, and distribution.

- they offer local knowledge about markets, transactions and offer low costs

3.Trading company (ETC) 贸易公司

- act as intermediaries between manufacturers or suppliers and buyers, facilitating the exchange of goods.

- focus on product sourcing, marketing, sales 产品采购

- may have broader trading expertise, including import operations and a wider range of product knowledge.

- Broad scope of services (counter trade, finance, warehousing Turnkey project, shipping)

Direct export:

-  manufacturer sells directly to an importer, agent or distributor in the foreign market

Beneficial for export performance? (compared to indirect export)

-  direct exports achieves better export performance (easier to adjust the needs of foreign customers)

-  more profit, lower costs, exploitation of opportunities better control over the way the products or services is marketed

the optimal choice depends on the specific product, target market, competitive landscape, and business objectives.

Agent: sells your products for you, works on commission basis, they do not purchase the product, they rather connect the exporteur with the buyer 不实际购买产品，只是销售厂家的产品，从中获取佣金，不需要承担盈亏责任

Distributor: stocks and sells your products for you, gains the difference between the buying price and the selling price 实际购买产品，并销售厂家的产品，需要自负盈亏

• Agent or distributor 代理或分销商

  - Consider using agents when you want to retain more control over pricing, marketing, and distribution. Agents are especially useful when entering new markets, as they provide local market knowledge and connections.

  - Use distributors when you want a single point of contact for the market, and when you prefer to offload logistics and administrative tasks to a local partner.

  - For closed economics, distributors are impossible.

• National or regional territory

  depends on the target country:

  - National Territory: Choosing a national territory is suitable when your product has broad appeal and can effectively reach a large customer base. It allows for a comprehensive marketing and distribution strategy across the entire country. National territories are often beneficial when dealing with countries with a large market size and homogenous consumer preferences 产品在 某个国家或地区具有较大的吸引力和客户群，选择国家领土是有利的

  - Regional Territory: Opting for a regional territory is appropriate when your product has regional-specific preferences or when market characteristics vary significantly across different regions. This approach allows for more targeted marketing and distribution efforts that cater to the unique needs of specific regions. 产品具有特定于区域的偏好或不同区域的市场特征存在显着差异时，选择区域是合适的。

  - to small countries, single national is better

  ·       Japans business culture prefers national exclusive dealerships (multiple regional territories due to clear preferences)

  ·       Switzerland there is a division of the country so here it might be good to go with regional distributors

  
  

• Territory exclusivity granted (exclusive distribution) or not (intensive, selective)

  You don’t want to have a sole exclusivity representative, you should prefer to work with multiple. You want competition on the distribution level. Monopolies are not good.

• Category exclusivity for your product demanded (only your product in one category?

  Exclusivity as much as you can.

• Manufacturer’s targets are not similar to the targets of the dealers/distributors.

• The most basic and essential motivation for a distributor is profit!

• No balance – no business: The relationship must be profitable for both (distributor - manufacturer).

• Get an unfair share: time and effort that a distributor gives for your product and not the other. Supplier have to motivate distributor to sell particularly your product and so get an unfair share.

• Manufacturer is like the black widow for the distributor (famous for one trade): If they are really successful with your product you will terminate the contract and set up direct channels.

6.     Distributor’s tactical response is mushroom treatment: keep the manufacturer in the dark feeding them practically exclusively on manure! (Dependence, fear)

7.     Don’t talk about „Partnership – open exchange of data – understanding – trust“ as the goals of suppliers and distributors are different, this precludes trust! 目标不同，无信任可言

Trust and commitment are developed only by successful operation, not in the screening & selection phase.

Trust needs to be earned!

As inputs, relationship value (termination cost & benefits), shared values, communication, reduced opportunistic behavior (violation of promises, etc.) are required.

So that all this is leading to the output of satisfaction (both are satisfied with the relationship), relational commitment (both parties believe that a good relationship is important that they put effort to maintain it) and trust (Willingness depend on an exchange partner), more acquiescence (degree by which partner accept the policy or request of the other), lowered propensity to leave, 降低离开的倾向 strengthened corporation and only functional conflict and reduced uncertainty.

（1.  Desk research)

2.     Talk to final customers, Talk to many distributors

5.     Often, small and hungry dealers are usually the best

6.     Advantages of large dealers are often illusionary 虚幻的

Treat distributers like murder suspects and crosscheck the data.

What needs to be checked? / selection criterias?

-        Size of sales force and expansion plans 销售人员规模及扩张计划

-        Sales record (past five years, targets) 销售记录

-        Territorial coverage 地域覆盖范围

-        Facilities & Equipment - warehouses, stocking, maintenance, after-sales, training, controlling

-        Customers, key accounts

-        Promotion support (market information, media, budget)

-        Product mix / # of represented lines / compatibility / conflict of interest

-           Distributors can lie and cheat in order to protect a franchise

-           Distributors tell the suppliers whatever they want to hear

-           They are so called “vultures” - all talk, no action

-           Sometimes distributors want franchise for the wrong reason

-           Mistakes in the selection process can be very expensive

Treat them like murder suspects

the biggest difference is the ownership and control.

secured distribution - equity stores 担保分销/股权商店,

The company has complete ownership and control over the distribution channels,

e.g. apple stores, These stores are owned and directly operated by Apple, giving the company full control over the customer experience, product presentation, and sales operations.

Commercial representatives - commission agent systems 商业代表/佣金代理系统,

They operate on a commission basis and do not have ownership or direct control over the distribution channels.

e.g. Dell Technologies. Dell has a diverse range of products, including laptops, desktops, servers, storage devices, and networking equipment. To expand its global reach and market penetration, Dell employs a network of commercial representatives in different regions and countries.

a)     Product or trade name franchising (e.g. Coca-Cola)

 产品特许经营权（ Product Franchising） 特权持有人拥有某种商品的专利权， 并容许受让人在一定情况下（ 通常是在某些指定地区） 生产及销售该种商品， 较显著的例子是可口可乐授权太古集团在香港生产及行销可口可乐。 Coca-Cola authorizes the Swire Group to produce and market Coca-Cola in Hong Kong.

-       allow other companies to take their products and to bundle them

-       focus on distribution of the product

-       distribution system with a supplier-dealer relationship with few rules (exclusiveness, stock amount, time period …)

-       franchisor develops trade name and licences it to the franchisee (authorisation to sell products)

-       franchisee has own business operations

(b)   Business format franchising (e.g. Tchibo, Calzedonia or Vapiano)

 营运模式特许经营（ Business Format Franchising）（比上一个范围更加大）特权持有人向受让人提供一个完整的经营模式， 其中包括商标的使用、 提供销售的商品（ 或服务） 、 经营手法、 品质控制、 市场策划、 选择经营地点， 以及其他必须的服务等， 麦当劳餐厅是这类特许经营中最显著的例子。

-       franchisor sells a “way of doing business” e.g. a business model

-       to develop the outlet itself is the product

-       franchisee is integrated in franchisor’s company

-       continuous exchange of expertise, assistance and guidance (comprehensive package of services) in return for royalties

In the Franchising - contracts in most countries it is not allowed to fix the price (no vertical price fixing)

-> Limited control and royalties 版税 -> Franchisee pays lower royalties to the franchiser 被特许人向特许人支付较低的特许权使用费

-> Low risk of losing partners

-> Less ownership risk

Contractual dealer systems: Weakest form of working together

-> Relative low-cost solution

-> High risk of losing partners

-> Rapid expansion

-> Manufacturer offers a quite limited support package (includes marketing, advertisement, training, sometimes IT-Systems to participating dealers)

-> Dealer often benefits from a common branding (e.g. most Car-Dealership-Houses in Germany belong to this system)

5 standard franchising contract elements:

1. Standard components (Names, Date, Birth,…)

2. Duration (Agree on a duration -> Certain period of time, on which the franchise agreement would be working)

3. Area -> Territorial protection 地域保护

(A franchiser might have several franchisees and assigns certain territories to them in order to

1)  Avoid too much competition between those franchisees

2) Agree for a certain amount of protection for each franchisee)

4. Termination

(Under which circumstances do you terminate such a franchise-agreement)

5. Non-competition rules

(Franchisee is e.g. not allowed to work together with the competitors and sell their products)