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International expansion analysis
International expansion advantages
Product pricing and strategies
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After the organization has decided how they will enter the international market, the next problem is how to build a marketing plan or how to design the overall marketing mix. LINK NATURAL PRODUCTS (PRIVATE) LTD is a manufacturing herbal healthcare products and marketed to export and domestic markets. Therefore the company is planning to market their products in 32 European and Asian countries, while meeting their competitive business objectives. To achieve these objectives, the business must ensure that balances the four elements of the marketing (four Ps of marketing). Every product has its own different mix of the four Ps. The right mix of these four Ps will lead to the achievement of the marketing objectives and will result in the high …show more content…
A company produces a product or service or a combination of both, and in return, receive money as part of the exchange process. Value-based marketing requires that companies charge a price that consumers perceive them as a reasonable value for the product or service they receive. The price of a product depends on several factors such as number of the cost of making the product, the required level of profit "prices of competitors and customers are willing to pay prices. Currently Link Natural Company has seven factories among the Sri Lanka and around 4,000 employees are working in the company. They decide to use the concept of differential pricing due to economies of scale the cost of production is very low. Therefore compared with the natural products manufacturing companies in world market, Link Natural Company can sell their herbal products for a low price. In export prices is difficult to decide what currency prices should be quoted in. Therefore we can suggest the following options.
Local currencies of these
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In other words the development means that the process of communication. Communication plays a major role in marketing. Promotion is either above the line or below the line. Above the line promotion is paid directly to, (eg -newspaper or TV advertising) and below the line promotion is the company uses other methods of promotion for the product message through.
From Link natural company is new in the world market, has to pay more attention to the process of promotion in order to attract new customers. The company can begin the process of communication with magazine ads and newspapers. International Advertising can be considered as centers of Muslim and Catholic families. The ads can be written in both English and Arabic languages. As the literacy level of the people of The Middle East is low due to economic differences, Link Natural may include some attractive pictures of their products.
Codes and local advertising regulations directly influence the selection of media content and promotional materials. Like Qatar government, some of other governments maintain strict rules and regulations on the content of advertising. . Therefore Link Natural Company needs to more about the content in advertising. And when they are doing promotions they have to observe the behavior of their competitors and should try to give something innovative and fresh to
This paper will describe the four elements of the marketing mix (product, place, price, promotion). In addition, it will describe how each element is implemented within a specific organization and how the four elements relate to that organizations marketing strategy. The company used in this example is both a product and service driven company and is in business for profit.
As we learned from Chapter 12, price must be carefully determined and match with firm’s product, distribution, and communication strategies. (Hutt & Speh, 2012, p. 300) Therefore, there should be a strong market perspective in pricing. In order to build an effective pricing policy, marketers should focus on the value a customer places on a product or service. One of the most effective ways to do so is differentiating through value creation.
Other: Sometimes just by watching advertisements don’t attract the costumer. Until and unless they don’t taste it they would not trust the product, and buying a product of 3 dollars sometime feels risky. For this the most amazing solution for customers and for the company is to give this product with the other product of the same company in free, or in 10% discount. It will feel like a loss but if we see in the long run process it is kind of a profit only. To buy this product and taste it people will buy the existing product of the company. As the product becomes popular in our target market we can stop this process and start selling it in a normal
Along with localizing the product, businesses should adjust their advertising strategy to better suit the intended market in order to “…promote consumer awareness of its products” (Ramarapu, Timmerman, & Ramarapu, 1999). This is the third issue that U.S. businesses should address. Advertising characteristics, regulations, and customs differ between cultures. For example, it may be perfectly legal and socially acceptable to advertise a product on a billboard in the United States, but this practice may be illegal or frowned upon in a foreign market. Researching a country’s advertising customs might be needed in order to effectively target the intended consumers.
Value has different aspects which include company values; which relates to new innovations, job growth, reducing costs, as well as long term production and so forth. Value must meet customers’ needs which they benefit from the product or service.
The marketing mix is for the most part made up of four elements, and they are product, place, price, and promotion. These elements are time and again referred to as the four P’s. Countless sources will portray the marketing mix as a formula used in creating a feasible marketing strategy, with each component utilized in various ways and in different intervals supported depending upon the product or service the group or individual is attempting to market. The marketing mix will be described using three sources to illustrate the elements of the marketing mix. It will also express how each one of the four elements of the marketing mix impacts the expansion of an organization’s marketing strategy and tactics.
The purpose of this report is to evaluate Nestle Company industry based on the case study and comprehend how the company develops strategic intent for their business organizations following the strategic factors and approaches. I will analyze the strategic management process as firm used to achieve strategic competitiveness and earn above-average returns. I will critically examine the strategy formulation that includes business-level strategy and corporate-level strategy. It also aims to identify market place opportunities and threats in the external environment and to decide how to use their resources, capabilities and core competencies in the firm’s internal environment to pursue opportunities and overcome threats.
Several facts are changing in today’s marketing communications. More companies adopt the new concept of integrated marketing communications (IMC) to convey a consistent message about their brand and products. Hence, IMC has played a powerful role and developed into a useful strategy for company to reach more customers and build good customer relationships. According to Herstein et al. (2008), IMC is one of a successful strategy that coordinates and integrates all of marketing communication tools to efficiently and economically influence between an organization and its existing and potential customers. Moreover, marketers can combine IMC tools (advertising, sale promotion, personal selling, direct marketing and public relations) rather than separate practices to create values and avoid potential conflicts (Duncan & Everett, 1993). In fast food industry, fast food chains integrate advertising, sale promotion, sponsorship, packaging and Internet to promote their products as well as build brand image (Sperber, 2003; Story & French, 2004; Morrison, 2010). Advertising is most used form of communication and the most frequently utilized medium due to it easily contact the target market, especially on television advertising (Story & French, 2004; Case, 2007). In addition, simple toys and products are typically used by fast food chains in children’s meal to attract children and adolescents.
The concerned local company will pursue and follow customer-related price objectives. Under this, it will aim to win the confidence of customer and satisfying them in enriched manner. These two price objectives will prove as stepping stone in creating demand of the company’s product.
We will do this by reviewing our cost analysis and deetermining exactly how much it will cost to make one unit of our product. We will then look at the prices of our competitiors good and come up with the price of our product. We want to be charging enough to be making a profit on every unit sold, but also do not want to be too highly priced above the competiton or comsumers will not buy our product. Since our product is quite unique the price can be a little higher than the closest competiton, but not too much higher because ifthe price is too high people will just buy the competitiors product, such as yeti thermoses, and just pour their drinking into them instead of using our convenient insulated cupholder. Price is very important to the companys success.
Good understanding of the marketing mix is important for an organization. When a company is developing a marketing plan, it must consider each element. Just as important is an understanding how to use the element in the marketing process. They must create a marketing plan, which incorporated all four elements. This is usually formalized in a marketing plan consists of three phases. These phases are planning, implementation and control.
Cost-based pricing is adding a dollar amount or percentage to the cost of the product. Cost-plus pricing is adding a specified dollar amount or percentage to the seller’s cost. Markup pricing is adding to the cost of the product a predetermined percentage of that cost. Demand-based pricing if pricing based on the level of demand for the product. Competition-based pricing is pricing influenced primarily by competitors’ prices.
According to Shimp (2007), there are five important factors which determine the purpose of advertisement in terms of marketers’ communication with consumers. He listed these five factors as follows: “(1) informing, (2) influencing, (3) reminding and increasing salience, (4) adding value, and (5) assisting other company efforts.” (p.246). To clarify that, the first most important aspect is informing people which means company needs to enhance the awareness of the consumer about their products by mentioning its advantages and features. Advertising also affect the products in two ways. Firstly, by basic demand, which build consumer desires for old products of the company and secondly, refers to a new brand of the company. In addition, effective advertising can retain consumer’s mind fresh about the image of a brand which develops the trace of the memory where consumers have to choose between two or more products. Moreover, it may change the product quality, create new, well-designed and elegant product and change consumers view towards the product. Lastly, by effective advertising program, company may save money and time as s...
Creating a creative advertisement that stands out from the crowd is essential for any company’s growth. A common communication strategy is for companies to break through competitive clutter in order to shape consumers attitude and intentions. A creative ad is able to catch the attention of onlookers with the added wow factor. Interest in an ad is influenced by surprise, information and benefits. Comforts fabric softener ad (See appendix 1), is a great example of this as the ad displays a perfect visual for their product with an added touch of humor to draw potential customers attention to the ad. Their ad clearly conveys the message of their product without the need of a
Price Based Theories - This first theory focuses on the classification and study of the quality price relationship. And this led to the initial conceptualization of value as a cognitive tradeoff between perceptions of quality and sacrifice. As per this view the external ques influence product quality and value. Various instances so offered by Agarwal and Teas (2001, 2002, 2004); Dodds and Monroe (1985); Dodds et al. (1991); Grewal et al. (1998a); Li et al. (1994); Monroe (1979, 1990); Monroe and Chapman (1987); Monroe and Krishnan (1985); Oh (2003); Teas and Agarwal (2000); Wood and Scheer (1996) state the importance of price which does a bearing on the marketability of a