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The five marketing orientations
Market orientation
What are marketing orientations
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There are five different marketing orientations which are production, customer, sales, strategic marketing, and social marketing. Avon’s use of social marketing orientation is a must because it is part of their international image which is to support women’s needs which could include supporting charities such as breast cancer and domestic violence. When Avon established its first foreign market with Canada it they were more focusing on sales orientation instead of product adaption. Today, they use customer, strategic marketing, and social marketing in their international strategy. Products are modified to meet customers’ need such as skin care products in Japan, while adding insect repellent to skin cream in Brazil. Avon also modified its distribution method, especially in China for the strategic marketing orientation.
(Daniels, John. Radebaugh, Lee. Sullivan, Daniel. (2011).
2. Avon has become more dependent on it foreign operations rather than its U.S operations because Avon forecasted slow growth selling in the United States. Because, the U.S market was just about tapped out for sales in cosmetics, fragrances, and toiletries, Avon decided to look into less-competitive markets, discovering that the annual report expected the U.S to be in line with that of the overall beauty market, which meant that sales would depend on the growth of the population of women in the cosmetic using age. This was bad news as well because even if there was an untapped U.S market, less than 5 percent of the world’s population lives in the United States. Secondly, Avon depends on independent salespeople who are usually women which usually place orders with Avon and deliver the products to the customer. This process has made Avon successful and has ...
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...ch as this when attempting to market and supply products in today's competitive environment.
Works Cited
((2008, November 22). Global Recession-Keeping business at the heart of sustainable development. Retrieved September 10, 2011, from http://http://www.businessfightspoverty.org/profiles/blogs/global-recession-keeping
(n.d.). About Avon. Retrieved September 10, 2011, from http://www.avoncompany.com/aboutavon/index.html
Avon gives birth to "Baby” line. (2010, September 03). Retrieved September 25, 2011, from http://www.abs-cbnnews.com/lifestyle/09/03/10/avon-gives-birth-baby-line
Daniels, J. D., Radebaugh, L. H., & Sullivan, D. P. (2011). International Business (Environments and Operation. (13ed.). Prentice Hall.
Dody, S. T. (2003, November 10). Marketing: Avon's makeover. TIME. Retrieved from http://www.time.com/time/magazine/article/0,9171,1006143,00.html
Under Andrea Jung's direction, Avon is focusing on developing nations especially China. Many developing countries are more receptive to direct selling by women since jobs with Avon are opportunities for women who want to be independent in the male dominated cultures. Avon has also recognized that the demographics has changed and recruiting younger women to sell to the younger customer base.
In this way, Avon opens an earnings occasion to its sale negotiants who trade Avon’s lotions and lipsticks to the end user. To achieve that goal, Avon under Jung’s management syncretises production in gathering numerous local markets. By more directly aligning the giant cosmetic enhances women’s lives through contributions to effective products. Furthermore, the company’s proceeds and income increases vividly as Jung focuses her management strength in researches and beauty products expansion in all areas such as online sales, increased direct representatives main outlet, and the more rapidly ordering system. This way surely diminishes filling forms and selling time.
competitors include Mary Kay Inc., and Revlon, Inc. The company’s top foreign direct selling companies of beauty products are L’Oréal (France) and Infinitus (China). AVON sold their North American division, as 90% of sales come from non-U.S. markets. These companies are the top competitors for AVON, due to the similar product base within the cosmetic environment, price points, and target market audience (Wood, 2013). AVON has lost domestic market shares to Revlon, who has increased their marketing campaign against the company. AVON has a challenging foreign market to infiltrate between rivals in respected countries such as L’Oréal and Infinitus. The threat of substitutes is highly competitive within foreign markets in an already competitive industry to
Jung knew that her strategic vision was vital to the success of Avon Products in the future. She envisioned Avon as the "ultimate relationship marketer of products and services for women." (Thompson, C-37) Her view was an Avon that went beyond selling just cosmetics, but also becoming a trusted retailer of almost any type of good or service that the consumer wanted or needed. Her new company would allow women (chief consumer) to purchase beauty products as well as financial services.
A major challenge of doing business internationally is to adapt effectively to different culture. Such adaptation requires an understanding of cultural diversity, perceptions, stereotypes, and values (Hodgett &Luthans, 2005). Doing business overseas has its challenges as well as it rewards.
Foley, J. F. (2004). The global entrepreneur: Taking your business international. United States?: Jamric Press International.
...ust its marketing strategies. Avon had successfully negotiated with the Chinese government to restart its business. Avon agreed to operate as a wholesaler, selling its products to retail stores and converting its 75 branch centers into retail outlets. The new arrangement meant that Avon's 50,000 sales representatives would lose their jobs.
In this way, Avon opens an earnings occasion to its sale negotiants that trade Avon’s lotions and lipsticks to the end users. To achieve that goal, Avon under Jung’s management syncretises production in gathering numerous local markets. By more directly aligning the giant of cosmetic industry has enhanced women’s lives through contributions to effective products. Furthermore, the company’s proceeds and income increases vividly as Jung focuses her management strength in researches and beauty products expansion in all areas such as online sales, increased direct representatives main outlet, and the more rapidly ordering system. This approach surely diminishes filling forms and selling
Worthington, I. and Britton, C., 2006. The business environment. 1st ed. Harlow: Financial Times Prentice Hall.
Svensson, G., 2001. 'Globalization' of Business Activities: A 'Global Strategy' Approach, Management Decision, 39(1), pp.6-18.
Many companies can experience growth as time passes but to remain viable these companies must continue to compete in the global market. Growth can bring a lot of advantages for example bigger brand name, international market shares, different investors, more resources for income, and even the capability to produce a product for less labor cost. Regardless of the reasons why a company desires to grow internationally, this changeover won't take place without a great number of problems or hurdles. The greatest problems a company may encounter could be the moral and social dilemmas that they will encounter every time they get into a new market in a different country. We will talk about this kind of example with the Levi Strauss and Company and the entry into the international markets.
The second is the urgency to get needs satisfied and desire a willingness to see information, compare, and shop. The last is geographic location and other demographic characteristics of potential customers (Perreullt, Cannon, & McCarthy, 2014, p. 98)”. The first product to be tried would be by me, and would consist of for example the product line of cosmetics for women. The second would be the place where I would market the cosmetics, such as online, Facebook, and Instagram to name a few. The flow and ease of distribution from the producer to the customer is constant. The price to how much a potential customer is willing to pay also touches the social aspect of the effect on the strategic decision and space. The behavioral needs, and type of potential segmenting dimensions for cosmetics jointly emerges with the urgency. The two are closely related because of the behavioral, psychological, and social needs of a female’s desire to have a specific brand. This also brings comfort of the cosmetics and make-up to help the women make better
15. Hill, Charles W.L. International Business: Competing in the Global Marketplace. New York : McGraw-Hill, 2007.
Europe should also be a continued focus for Avon. Industry leader, L’Oreal’s attributes 50% of their total sales to the European market. Avon has had a successful growth rate in Europe but only 23% of the total 2003 sales came from Europe. There is still room to expand in this market.
Since the end of World War II, international operations have become a reality for an increasing number of corporations. Many of these initial efforts began as simple export schemes to sell goods overseas to supplement domestic sales. Over time, however, international operations have become increasingly more complex: from joint-ventures to purchasing existing foreign firms to ‘green-field’ start-ups. While export operations usually require no more than extended business trips overseas, more complex international operations demand long-term assignments of key personnel outside their home-country. What would normally be considered routine business transactions in the home country can become very complicated when they are conducted between individuals and organizations from different cultures. In this essay we will examine how this cultural gap can affect international business and joint ventures.