Identify the five basic segmentation strategies. Give an example of a company that has used each one.
These strategies are:
Demographic: For example segmentation based on the age or sex of the consumers. Lips stick marketing would only target women.
Psychographic: Segmentation based on personalities. For example if people are depressed, they are marketed a product that would minimize the depression.
Behavior: This segmentation is based on different behaviors, like people who want to have fun.
Ethnic: segmentation based on the ethnicities of people. For example advertising something African Americans people.
Regional: Segmentation based on regions. For example South Asia.
What is the difference between export marketing and export selling?
Export marketing is a full fledge marketing strategy in which the company that wants to have a presence in the outside company than its own adapts to marketing mix strategies to promote a product.
On the other hand, a company might want to just sell a product in a foreign country and do not adapt a marketing mix strategy. They might simply translate their manual in the language of the foreign country.
Describe the stages a company typically goes through as it learns about exporting.
Following are the stages:
- The firm is unwilling to export.
- The firm fills unsolicited export orders but does not pursue unsolicited orders.
- The firm explores the feasibility of exporting.
- The firm exports to one or more markets on a trial basis.
- The firm is an experienced exporter to one or more markets.
- The firm pursues country- or region-focused marketing based on certain criteria
- The firm evaluates global market potential before screening for the “best” target markets to include in its marketing strategy and plan.
What are the advantages and disadvantages or using licensing as a market entry tool? Give examples of companies from different countries that use licensing as a global marketing strategy.
Some of the advantages of licensing are that it is a low cost tactic to enter to a new market. Licensing can also help in reducing some of the political pressures that would otherwise be present if the company itself goes to the alien market.
The disadvantages of licensing are that the company that has issued the license would lose most of the control on the operations and marketing strategies.
Nickelodeon & Viacom Consumer Products, Marvel Entertainment, Warner Bros consumer products and General Motors are examples of some of the global licensing companies.
What is the difference between a product and a brand?
A product is a tangible or intangible item that is manufactured by a company and presented to the consumers against a sum of money. On the other hand a brand is intangible and represents the perception of a product or line of products in the minds of the consumers.
What are some of the elements that make up a brand? Are these elements tangible or intangible?
A brand is a combination of many elements. A brand is a quality promise that is made by a company to its consumers about a certain product. When people ate attached to a brand, they trust the brand name and opt to buy the series offered by the brand without hesitation. Brand is an impression and the representation of the quality of a product which is intangible.
What are the basic factors that affect price in any market? What considerations enter into the pricing decision?
There are many factors that affect the price in a market. These factors are taken into consideration while making pricing decisions. For example the purchasing power of a market is really important to know. No company would want to introduce a product or service in a market that does not have the power to purchase the it.
Define the various types of pricing strategies and objectives available to global marketers.
Different pricing strategies are:
Premium Pricing: A pricing strategies in which the price is set higher than the competitors.
Penetration Pricing: A pricing strategy in which capturing the market by entering with a low price than the competitors.
Economy Pricing: With this approach, the prices are kept to the lowest possible point to attract as many as possible customers.
In what ways can channel intermediaries create utility for buyers?
Channel intermediaries create utility by the following ways:
Place utility: this is when the products are made available in places that are suitable for the consumers.
Time utility: Product is made available at the time that is most suitable to the customers.
Information utility: The consumers can get the information from the channel intermediaries about the specifications of the product.
What factors influence the channel structures and strategies available to global marketers?
Following factors influence the channel structures and strategies available to the global marketers:
The characteristics of the customers. For example the culture of the customers.
The characteristics of the product. For example which age group this product is for.
Environmental characteristics: How would the environment be affected by the product.