Professional Documents
Culture Documents
Marketing
International/global marketing mix
Suhard Amit
MBA RMIT ( Aus )
Dip Business Management ( Aus )
Dip in Marketing
ternational And Global Marketing Content outline
But.....
Marketing Channel Strategy
Acquisition Physical
component component
customer acquisition, the right product,
consulting, in the right place
customer care and at the right time,
customer retention in the right quantity,
in the right quality.
Channels Logistics
Logistics & Distribution
Physical distribution is concerned with the ways organizations get the physical product to a
point where it is most convenient for the consumer to buy it.
Logistics takes a wider view: originally based on military terminology, logistics is concerned
with the process of moving raw materials through the production and distribution processes to
the point at which the finished product is needed.
Logistics Distribution
End customers
Our
Organization
producers
Retailers
Compan
y
Wholesalers
Distributor characteristics
A strategic decision
Choosing the right
channel
based on target market
& product characteristics
Distribution
Physical distribution
(logistics) Tactical decisions involving
transport, warehousing and
financial decisions. Also based
around product characteristics,
Logistics issues include possibility of using multiple infrastructures and market
channels, customer location, compatibility, nature of
goods/services, geography/environment/terrain,
conditions
storage,/distribution/import/export costs
Distribution Intensity
Exclusive Distribution:
Selective Distribution:
A limited number of
outlets in a given
geographic area are
used to sell the product
Select channel
members that maintain
the image of the
product and are good
credit risks, aggressive
marketers, and good
inventory planners.
Distribution Intensity
Intensive Distribution
Objective/Goal:
complete market
coverage and to sell to
as many customers as
possible
Group Discussion
Select a product of your choice and discuss the preferred distribution strategy.
Explain why
Break 15 Min
Marketing Mix
Price
A Basic Misconception of Marketing: Forgetting the but
3. Be different!
Its critically important for the firm to set the price right!
It brings together the other elements of the mix and affect each
one
.
Price determines the income and profits for each product in each
market.
Cost structure
Production cost
According to McKinsey
scale effects
Technological
advances
Group Discussion
Internal Factors
Market positioning
Marketing objectives influences pricing strategy
Marketing mix strategies Other pricing objectives:
Product mix
Costs
optimization
Organizational
Organization profit
considerations
maximization
Market share / value
share leadership
Product quality
leadership
Market penetration
PLC stage and strategy
Factors to consider when setting price
Internal Factors
Who sets the price?
Marketing objectives Small companies: CEO
Marketing mix strategies or top management
Large companies:
Costs
Divisional or product
Organizational
line managers
considerations
Price negotiation is
common in industrial
settings where pricing
departments may be
created
Factors to consider when setting price
Select a product of your choice and discuss the internal and external factors
affecting the pricing decision.
Methods of Pricing
Skimming: The company sets the price high initially so as to skim the
consumers who are prepared to pay a premium to be the first own a new
product. Commonly used in consumer electronics market.
Loss Leader: Some retailers will offer some basic commodities at a price
which will actually lose money in order to lure customers into the store.
Inevitably people will buy other goods while in the store as well as the loss
leader, and the store makes its money on these other purchase Cement,
Paint brushes, Tobacco wholesalers
Demand Pricing: Prices are set at a level which will ensure that demand
for the product is at a point which will meet corporate objectives. The
point at which further increase in price will reduce the production run past
the most economical point or a reduction in price will simply reduce profit
without materially affecting sales
Cost base and marginal costing: Starts from the cost the firm incurs
but in this method the price is set at the point where producing one more
unit of production would not be profitable. Extremely difficult to calculate
and again does not take into account the customers. Not market oriented