Economic factors should be considered to determine the price sensitivity of the market. Other factors to consider would be to make sure that there is a relativity between sales volume and profitability so that there is a value for company expansion through the correct market segmentation as well as planned and affordable marketing. Also assessing the strength of competitors and their products, consumer rate of purchase, and the ease of entry into the market.
Alternative Marketing Strategies
Global marketing strategies aim to maximize standardization, homogenization and integration of marketing activities across markets throughout the world. (Kotler, 2009)
Table 1. A Framework for Alternative Global Marketing Strategies (Adapted from Schiffman
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This depends of course on the product and how much standardization it can support. There are cultural differences with the international market, so it can affect the adaptation of the product, price and promotion. The distribution channels can be affected by social conditions, so finding a balance between the degree of standardization and adaptation of the different elements of the marketing mix. Adapting the marketing mix to the local situation will lead to success and increased market shares. So by thinking globally but acting locally and take cultural differences into considerations is the overall strategy. Other marketing options could include: Discounts, competitive pricing, advertising and promotion support programs through multimedia TV, radio, print and PR support, plus heavy consumer couponing, sweepstakes, and contests, free samples or trial offers, sales incentives and programs, and developing a rapport with the consumer influences buying power through salespeople. Also by marketing and promoting through Internet/Web/e-commerce, using online customer forums for ideas and feedback as well as the general feel of the product, using software for tracking customer analysis’ and marketing research databases.
Selected Marketing Strategy
All aspects should be considered when entering into an expanded market. The 4 (P)’s are essential into the basic strategy.
Kotabe, M., & Helsen, K. (1998). Global marketing management. Temple University. New York: John Wiley & Sons.
There are typically four areas for market expansion; product development, diversification, penetration, and market development. What business you are in, what brands you have, and the type of products you offer will influence the type of market expansion that best fits the business. Coca Cola is giant in all the areas noted above when it comes to market expansion but what both companies had in common was the recognition that "Market development” was essential to revenue growth.
Global marketing is defined as marketing on a worldwide scale, or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives. Marketing managers are also tasked with the responsibility of “wringing the pennies out of the activities.” Basically, they are responsible for and add value to their activities that will contribute to a higher value in the mind of their consumers. Managers must understand the role of their salespeople as marketers – they must collaborate and support them. They must work with their supply chain functional managers to accommodate international customer preferences. Communication must flow up and down the chain quickly in order to respond to emerging international marketing threats and opportunities. It is essential to monitor the firm’s global marketing efforts in a global market.
In order to find out what are some of the key drivers’ of the analysis I will further run different sensitivity analysis. I think some of the key drivers of our assumptions could be sales growth, production costs as a percentage of sales, inventories as a percentage of cost of goods sold etc.
Marketing is the process of searching for options for accumulating profits by identifying the demands of the people and satisfying their needs with appropriate products. In today’s globalized business world, marketing can play a vital role in establishing trade blocks all over the globe with competitive and cutting edge market, research, policies, strategies and activities.
a. Ranked list of factors to consider. Very important impact of policy on profitability, market share, and share price. Somewhat important: Ways to remain competitive without signing new contract or losing customers
In internationalization, the most challenging decision faced by the company to choose between standardization and adaptation in its operations, products or services. It has been one of the important and most popular research topics since 1960s to understand whether standardization is better or adaptation for marketing mix in international marketing. The increasing role of international expansion of business across the borders has also increased the focus of companies towards the international marketing strategies. It is also a biggest challenge for companies to better understand the different needs and choice of customers due to the huge differences among the cultures from various nationalities. This leads to the dilemma in the mind of marketers to understand which strategy is effective and good - standardization or adaptation. There is a significant impact of standardization or adaptation on all avenues of business such as research & development, structure, marketing mix, production, finance and marketing mix. The attitude of a company towards the culture of a particular country in which it is going to enter or start its operations decides to choose between standardization and adaptation. Consider the different views and arguments for each standardization and adaptation, this essay critically analyze which strategy is better to choose for international marketing.
If a company has set its objectives there is need to look into the following. Which countries are their target market and who are the consumers and how or which marketing strategy should they use to reach the consumers. The company needs to know what products are best for their chosen customers and if there may arise a need to adjust the company should be ready for it. The other thing they should consider are the import regulations in their country, market and the global rules also should focus on the competition involved looking...
In week five we learn about the importance of globalization and how it can help your company’s profits grow. There are many things to look at when selling globally as different cultures need to be looked at differently when making a marketing strategy. If you understand how to market your products to different cultures in different countries you can take advantage of the profits that can be made through globalization.
Market opportunities for breakfast cereals is vast, some segments of the market have been neglected, most notably that of the over-50’s. Insightful presentations were given at the “Older, Richer, Wiser” Conference that would suggest the over 50’s market segment is targetable.
Gogel, R. and Larreche, J.C. (1991). Pan-European Marketing: Combining Product Strength and Geographical Coverage. San Francisco, California: Jossey-Bass
Because in case of global marketing analyze the factors that need to be taken into account are significantly more, including the economics, environment, cultural differences that is going to affect the analysis of situation. The issues of marketing strategy were covered in detail during classes and this knowledge was cemented with the report I had to write as a part of project assessment that marketing analysis .It was very challenging and interesting at the same
International Marketing, at its simplest level, involves the firm making one or more marketing mix decisions across national boundaries (Jobber, 2010). At its most complex level, it involves the firm establishing manufacturing facilities overseas and coordinating marketing strategies across the globe (Jobber, 2010). There are various reasons for going global, some of which are: to find opportunities beyond saturated domestic markets; to seek expansion beyond small, low growth domestic markets; to meet customers’ expectations; to respond to the competitive forces for example the desire to attack an overseas competitor; to act on cost factor for example to gain economies of scale in order to achieve a balanced growth portfolio. The methods of market entry that could be used are indirect exporting (for example, using domestic –based export agents), direct exporting (for example, foreign –based distributors), licensing, joint venture and direct investment. I found this par...
The global economy has enabled customers to enjoy a buyer’s market where the company with the most competitive price possible for a product or service receives orders from customers around the world. The burgeoning world ...
Hollensen, S. (2011) Global Marketing – A Decision Oriented Approach, Prentice Hall, Financial Times (p.2)