4.6 Marketing Mix
Skimming, penetration, phycological, price leadership are some strategies related to this segment of the marketing mix
Price
Selling the products directly to a foreign customer
Exporting
Adapting the marketing mix, including differentiated products to meet regional and national tastes and culture
Global localization
Good organizational culture, and a solid management and employee team are part of this section of the marketing mix
People
McDonald's partnering up with Hardcastle Restaurants and Connaught Plaza restaurants to enter the Indian market is an example of
A joint venture
Define pan-global marketing
Adopting a standardized product across the globe as if the whole world were a single market
How many services / Ps are in the marketing mix? (Give a number and name at least 3)
7 Ps (Product, people, physical evidence, process, promotion, place, price)
Toyota setting up factories throughout Europe and South America is an example of:
Direct investment in subsidiaries
"A common identity for the product can be established. Aiding in consumer recognition ". This is an advantage of:
Pan-global marketing
It can be in the form of a retail store, through a multichannel commerce and even through means such as E-commerce.
Place
Define licensing
A business allows another firm in the country to produce its branded or patented goods under a license
"Brand names do not always translate effectively into other languages" this is a possible disadvantage of:
pan-global marketing
"The environment in which the service is delivered and where the firm and customer interact, and any tangible components facilitate performance or communication of the service"
Physical evidence
Give an advantage and a disadvantage of using international franchising as a method of entry to an international market
Adv:
-Franchisees give local knowledge
-Franchisees contribute to capital costs by purchasing license
-Some operational issues are now the responsibility of the franchisee
Disv:
-Loss of centralised control
-Careful selection of franchisee is necessary. (Damage to the brand in one country could spread globally.)
Name one benefit and one limitation of global localization:
Benefits:
-Local needs, tastes and cultures are reflected in marketing mix
-No attempting to impose foreign products on regional markets
-Products likely to meet local, national and legal requirements.
-Less opposition to multinational business activity
Disv:
-Scope for economies of scale is reduced
-International brand could lose power and identity
-Additional costs of adapting products