Tuesday, May 21, 2019

Deciding on the Marketing Program Essay

Inter subject companies or food marketers whitethorn choose between cardinal alternative approaches in developing its marketing strategies or marketing mix. These two approaches ar a. orbicular Marketing Strategy defines a standard marketing mix and implements it with minimal modifications in all of its domestic and immaterial markets. This standard approach saves money because it allows large-scale production runs and reinforces the brands image. It can foster collaborative innovation. Through global marketing dodging, Global firms can effectively market some goods and ser frailtys to segments in many nations that share cultures and languages.This approach works best for products with strong, universal prayer such as McDonalds and for luxury products that target upscale consumers everywhere. b. Multidomestic Marketing Strategy- assumes the differences between market characteristics and competitive situations in certain nations require firms to customize their marketing deci sions to effectively r apiece individual marketplaces. In other words, it is an screening of market segmentation to contrasted markets by tailoring the firms marketing mix to span specific target markets in each nation. Keegan has distinguished five adaptation strategies of product and promotion to a foreign market (see figure below).1. Global return Strategiesa. Straight Extension introducing the product in the foreign market without any changes. This strategy permits economies of scale in production and marketing, for it involves no additional R&D expense, manufacturing retooling, or promotional modification. Once implemented successfully, it cerates universal recognition of a product for consumers from country to country.b. Product Adaptation- involves altering the product to meet local conditions or preferences. There are several level of adapatations, it could be regional version, country version, city version and retailer version. c. Product aim- consists of creating som ething new. It can take two forms, cacuminal invention and Forward invention. It is a costly strategy but the payoffs can be great. i. Backward Invention is reintroducing esrlier product forms that are well adapted to a foreign countrys needs. ii. Forward Invention- is creating a new product to meet a need in another country.2. Global Promotion Strategiesd. discourse Adaptation is the process in which a company run the same advertising and promotion campaigns employ in the home market or change them for each local market. e. Dual Adaptation- is the process in which both the product and communication are creation changed for each market/country.3. Global Pricing StrategiesGlobal Firms faces several pricing problems when selling abroad, they must deal with worth escalation, transfer prices, dumping charges, and gray markets. f. value Escalation- needs to adjust the marginal cost depending on the added costs including the currency-fluctustions risks to the products factory pric e inorder to attain the same profit locally. Because the price escalation varies from country to country, the question is how to sell the prices in different countries. Companies gift three choicesiii. Setting uniform price everywhereiv. Setting a market-based price in each countryv. Setting a cost-based price in each countryg. Transfer Price- different prices that is being charged to its subsidiary in different countries/market h. Dumping it occurs when a company charges either little than its costs or less than it charges in its home market, inorder to enter or win a market. i. weapon systems-lenght price the rpice charged by other competitors for the same or a similar product j. colour in market it occurs when the same product sells at different prices geographically. 4. Global Place (Distribution Channels)StrategiesMany companies/manufactuers think their gambol is done oncethe product leaves the factory, further they should pay attention to how the product moves inwardl y the foreign country. They should take a whole-channel view of the problem of distributin products to final users. k. Sellers international marketing headquarters- the export department or international division makes decisions on channels and other marketing mix- elements l. Channels between nation- gets the products to the borders of the foreign nation. The decision that is made on this link includes the types of intermediaries, type of tranportation, and financing and risk arrangements. m. Channels within foreign nations- gets the products from their entry point to final buyers and users.II. Deciding on the Marketing OrganizationsCompanies manage their international marketing activities in three ways through export departments, international divisions, or global organization. a. Export discussion sectionb. International Divisioni. Geographical Organization-each with vice presidents per region and each regional vice presidents has country managers who are responsible for a sales force, sales branches, distributors, and licensees in their respective country. ii. World Product Group-each with an international vice president responsible for worldwide sales of each product group iii. International Subsidiaries- each headed by a presidentc. Global OrganizationSeveral firms have become truly global organizations, these companies however faces several organizational complexities thus Bartlett and Ghoshal have proposed circumstances under which different approaches work best. They separate forces that favor global integration versus national responsiveness. They distinguish three organizational strategies d. A gloabl strategy treats the world as single market. e. A multinational strategy treats the world as a portfolio of national opportunities. f. A glocal strategy standardizes certain core elemetns and localizes oter elemets.

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