marketing mix (4 ps) product exporter/licensor/jv/strategic alliance principal usually has success...
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Marketing Mix (4 Ps)Marketing Mix (4 Ps)
Product Exporter/licensor/JV/Strategic Alliance
principal usually has success in home or other international markets
Product modification required? Localization, approvals and certificates, packaging & labeling, measures, etc
Marketing Mix (4 Ps)Marketing Mix (4 Ps)
Promotion Pricing Place (Distribution)
These elements of the marketing mix usually require local knowledge
MatteMattel’s 1990s Internationalization l’s 1990s Internationalization
of Barbieof Barbie Strategic Analysis
Cost Control Global Product Focus
Country Analysis
Japanese market opportunities getting easier
Mattel’s 1990s Barbie Mattel’s 1990s Barbie InternationalizationInternationalization
Market Analysis Large market Few strong competitors Distribution difficult High prices Heavy advertising neededEntry Mode Wholly owned subsidiary Import Barbie Distribute and advertise Barbie
Mattel’s 1990s Internationalization Mattel’s 1990s Internationalization
of Barbieof Barbie
Business Plan
Open up sales to specialty discounters Price aggressively Listen to customer
Market Size and Potential Market Size and Potential (STP)(STP)
Market Segment = Girls
Target Market Segment = Dolls for Girls
Product Positioning = Barbie
Barbie Doll Advertising Strategies Barbie Doll Advertising Strategies
Encourage purchase of toys:
stimulates primary demand for toys, toys for girls and thus sales of Barbie
Active Market EntryActive Market Entry
Country Analysis Report
Market Analysis
Marketing - Entry Mode AnalysisMarketing - Entry Mode Analysis
Promotional Mix: Foreign importer familiar with practices, language and regulations
DISTRIBUTION: THIS IS THE KEY! All of the above issues depend upon channel(s) needed in the market
Source
Channel of
Message
CommunicationEncode ReceiverDecode
Noise
Noise
Feedback loop
Noise
Fields of experience
The communication processThe communication process
Export Pricing Policy Issues Export Pricing Policy Issues
Channel length: longer channels than domestic markets, drives up end user prices
Price influence: less influence over decisions
by channel members Price-setting authority: How much pricing
authority should be given to agents or to subsidiary?
Foreign Sales Pricing Foreign Sales Pricing Strategies Strategies
- uniform global price to reduce gray/parallel market activity vs. pricing to market.
- pricing to attract and hold intermediaries
- pricing to establish a product position (e.g. high priced “foreign luxury item”)
- test pricing to learn market