1. Global Business （ Chap 8 ） Dept of Technology Management for Innovation (TMI), Graduate School of Engineering Professor Kazuyuki Motohashi 工学系研究科 技術経営戦略学専攻教授 元橋一之 http://www.mo.t.u-tokyo.ac.jp

2. Today’s Class What is marketing, why important? Marketing strategy planning steps 4P: Product, Price, Place and Promotion Marketing for emerging economies: China, India Bottom of the Pyramid (BOP) Business

3. Marketing and Sales MarketingSales New customers, potential customer needs Existing customers Forward looking (for new product, services) Existing products Market analysis for value creation Actions (Eigyo), and sales force management Involves whole process of marketing strategy Focus on “Promotion” in marketing 4P

4. Strategic Marketing Planning Market Analysis and Identifying Opportunities (SWOT analysis) Market Segmentation Identifying target market and product (service) positioning Marketing Mix (4P) and Execution

5. Ansoff’s Product and Market Growth Matrix Global Business Context: CAGE and AAA framework

6. Example of Market Segmentation

7. Target Segment Identification

8. Marketing’s 4P

9. Product

10. Price To what extent you can be a price setter, instead of price taker ?

11. Place (Channel)

12. Promotion (AIDMA) Changing to AISAS in Internet Era

13. Promotion tools (in detail)

14. Promotion in global business Some caveats Regulations over promotion activities: such as whether you can do “comparative advertising” Terminology in foreign language Brand creation (difference in customer’s perception) Importance of local ad agency Lack of product knowledge at local distributors

15. Marketing mix by product life cycle

16. Market potential of China and India Profit=gross margin * sales volume (size of market and competition) Difference between durable and consumption goods, customer preference? Middle Class = Volume zone

17. Average household income by decile (2010, US$) Premium Market

18. Another concept of price: PPP Concept of PPP （ Purchasing Power Parity) Big Mac price by Economist magazine US: 4.07 $, China: 14.7 RMB=2.27 US$ ( ▲ 44%)

19. BOP(Bottom of the Pyramid) Over 20,000 US$ 1500 ～ 20,000 US$ 1500US$ and under 75 mil. -100 mil. 150 mil.-1,750 mil. 4,000 mil. （出典） The fortune at the bottom of the pyramid (C.K. Praharad)

20. BOP’s Business Chance Poverty premium （出典） The fortune at the bottom of the pyramid (C.K. Praharad)

21. Example: ICICI’s micro payment （出典） The fortune at the bottom of the pyramid (C.K. Praharad)

22. Detail information of BOP business can be found in TMI’s Innovation Case Studies Course material (in Japanese) Overview of BOP business http://www.mo.t.u- tokyo.ac.jp/kyouiku/2014/140624_JRIkougishiryou.pdf Ajinomoto’s Ghana project http://www.mo.t.u- tokyo.ac.jp/kyouiku/2014/todai20140624ajinomoto.pdf