Marketing

1. Marketing Process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individuals and organizational objectives ©2004 Prentice Hall

2. Marketing Mix • How to develop the firm’s products • How to price those products • How to sell those products • How to distribute those products to the firm’s customers • Who is the Target Market? ©2004 Prentice Hall

3. The Elements of the Marketing Mix for International Firms Marketing Mix Product Pricing Promotion Place ©2004 Prentice Hall

4. Key Decision-Making Factors • Standardization versus customization • Legal forces • Economic factors • Changing exchange rates • Target customers • Cultural influences • Competition ©2004 Prentice Hall

5. Standardization versus Customization • Should the firm adopt an ethnocentric approach? • Should it adopt a polycentric approach? • Should it adopt a geocentric approach? ©2004 Prentice Hall

6. Advantages Reduces marketing costs Facilitates centralized control of marketing Promotes efficiency in R&D Results in economies of scale in production Reflects the trend toward a single global marketplace Disadvantages Ignores different conditions of product use Ignores local legal differences Ignores differences in buyer behavior patterns Inhibits local marketing initiatives Ignores other differences in individual markets Standardized International Marketing ©2004 Prentice Hall

7. Advantages Reflects different conditions of product use Acknowledges local legal differences Accounts for differences in buyer behavior patterns Promotes local marketing initiatives Accounts for other differences in individual markets Disadvantages Increases marketing costs Inhibits centralized control of marketing Creates inefficiency in R&D Reduces economies of scale in production Ignores the trend toward a single global marketplace Customized International Marketing ©2004 Prentice Hall

8. Product Life Cycle Intro Growth Maturity Decline Sales Profit ©2004 Prentice Hall

9. Break Even Analysis Total Revenue Curve = Selling Price X Units $ Cost Curve = Fixed Costs + Variable Costs BE = Total Fixed Costs/Price – Variable Costs Units ©2004 Prentice Hall

10. Pricing Policies • Standard price policy • Two-tiered pricing • Market pricing ©2004 Prentice Hall

11. Conditions for Market Pricing • Firm must face different demand and/or cost conditions in the countries in which it sells its products • Firm must be able to prevent arbitrage ©2004 Prentice Hall

12. Risks to Market Pricing • Complaints about dumping • Damage to its brand name • Development of a gray market for its products • Consumer resentment against discriminatory prices ©2004 Prentice Hall

13. Promotion Mix • Advertising • Personal Selling • Sales Promotion • Public Relations ©2004 Prentice Hall

14. Factors affecting Advertising Strategy • The message it wants to convey • The media available for conveying the message • The extent to which the firm wants to globalize its advertising effort ©2004 Prentice Hall

15. Advantages of Personal Selling for International Firms • Local sales representatives understand local culture, norms, and customs • Personal selling promotes close, personal contact with customers • Personal selling makes it easier for firm to adopt valuable market information ©2004 Prentice Hall

16. Distribution Issues • Physically transporting its goods and services from where they are created to the various markets in which they are to be sold • Selecting the means by which to merchandise its good in the markets it wants to serve ©2004 Prentice Hall

17. Basic Parts of a Distribution Channel • The manufacturer • A wholesaler • The retailer • The actual customer ©2004 Prentice Hall

18. Distribution Channel Options ©2004 Prentice Hall

19. Using E-Commerce http://www.prettygarlic.com and disintermediation. ©2004 Prentice Hall