Marketing

Market Coverage

3 Main types of coverage:

 Intensive – Distributing the product through The largest number of different intermediaries

 Selective – Choosing a number of Intermediaries for each area

 Exclusive – This involves choosing only one Intermediary

Promotion

Promotional Mix includes:

Advertising

Public Relations (PR)

Personal Selling

Direct Marketing (DM)

Sales Promotion

Standardisation Vs. Adaptation

Standardisation = same promotional message/element of the promotional mix used across all Communications and markets e.G. Same TV advert used (with language updates)

Adaptation = all (or some) of the promotional mix is changed to appeal to local needs and Demand e.G. Produce different TV advert and marketing material for each Language/culture a product is sold in

Standardisation Vs. Adaptation

Minimum standardisation of promotion tends to be around language

Some Companies try to get round this with minimal words and addition of music, Actions etc.

Strapline Or USP may stay the same across countries e.G. Audi ‘vorsprung durch technik’ Or HSBC’s ‘world’s local bank’

Product

Standardization — allows a product with a standardised specification and features to be Marketed across a number of countries (including the home market)

Economies Of scale and reduce costs

There May have to be some adaption of the packaging, and branding to accommodate Language differences

Product

Adaption — requires modification to the product specification (design, quality, Features) to meet national requirements

Increase Production costs

Adaption To branding, packaging, warranties and after sales service in order to meet Local requirements

Offset By the larger volume of sales due to the product being better designed to meet The needs of the local market

What Stage is the product in the life cycle?

What Is the state of the competition – are substitute goods available?

What Are the extra international costs of exporting – shipping, in country Transport, storage, staff in country, insurance etc – this can lead to price Escalation

Vital – that price escalation does not price product out of international market

Price

Single Pricing policy applied across several markets/countries = standardisation

Difficult To maintain due to changes in exchange rates

Companies May have to increase prices as exchange rates  Fluctuate

Could Make them uncompetitive with local manufacturers

Price

Take Account of local factors e.G. Demand, competitors etc. And adapt pricing policy In line with these local factors = adaptation

 Allows pricing policy to be in line more with Local conditions