Marketing Management

SECTION -A

UNIT-1

1. Marketing
2. Marketing Environment
3. Marketing segmentation
4. Marketing Research
5. Marketing Information System

UNIT-2

1. Product
2. Branding
3. Elements of Marketing Mix
4. Product Levels
5. Packaging

UNIT-3

1. Promotion Mix
2. Advertisement
3. Sales Promotion
4. Sales Process
5. Advertisement Layout

UNIT-4

1. Distribution Mix
2. Warehouse
3. Transportation
4. Distribution of cost Analysis
5. Cost Analysis

UNIT-5

1. Marketing Strategies
2. Marketing of services
3. Consumer Protection
4. Global Market
5. Competitor

 

Long Answer Questions (4*15=60M)

SECTION –B

Unit-1

1. How the Marketing Environment does influence the Marketing Process?
2. Describe in detail the core concepts of marketing?
3. Explain the characteristics of marketing environment. Also assess the impact of micro and macro environment on marketing.
4. Explain the components, importance and limitations of marketing information system?

UNIT-2

1. Factors influencing Pricing Decisions?
2. Discusses the various stages involved in the product development?
3. What are the different stages in Product Life Cycle?
4. Explain the Product Mix with example?

UNIT-3

1. How will you do the Media Planning and selection for a new soft drink to be introduced in the market?
2. Explain the kinds of media used for advertisement.
3. Difference between Marketing Mix and Promotion Mix. Explain the various factors that affect the Promotion Mix.
4. Elaborate sales Promotion plan to ensure that each stage of a promotion is reached.

UNIT-4

1. Discusses the factors influencing the choice of distribution channel?
2. Discusses various factors to be taken into consideration while selecting a distribution channel?
3. Explain the different steps involved in planning an advertising campaign.
4. What is marketing planning? Discusses the scope, elements and steps involved in marketing planning.

 

UNIT- 5

1. Narrate the theories of consumer Behavior?
2. Explain customer Relationship marketing (CRM) with suitable example. Why it is important in the modern business world?
3. Explain the strategies for market leaders with process example.
4. What are the essential steps to be carried-out in identifying and analyzing competitors?

 

Compulsory Questions (1*20=20M)

Case Study -3

SECTION C

 

1. “Theoreticians and practitioners in the area of pricing never seem to see eye-to-eye”. Discuss. What approach would you suggest for fixing the price of a new brand of detergent?

 

2. A five star hotel has consulted you to find out the reasons for decline in their repeated customers. On observation you found that the service mix is good and when you interacted with the customers, they expressed satisfaction. in this background: a) what could be the probable reason for the decline in the repeated customers?

 

 

3. “Fifteen years ago, companies competed on price. Today it is quality. Tomorrow its Design.” Interpret the statement for a new marketing manager that is just starting on the job.

english notes

I, Too

-Langston Hughes

summary

 

 

Introduction

 

Langston Hughes was born in 1902 and died in 1967, and during the span of his lifetime, he saw America grow and evolve when it came to equal rights for minorities.  Even though slavery had been abolished years before he was born, Hughes still encountered blatant racism and oppression as a Black man.  His writings often represent this oppression.

The poem is very brief, containing only five stanzas, two of which are only one line long. The first line of the poem, which is also the first stanza, says “I, too, sing America.”  The use of the pronoun “I” shows the reader that this was a very personal poem, and Hughes, is the speaker.

 

content

In this poem, the speaker, who is probably Hughes himself, is proclaiming to the world that he, too, is an American.  He, too, sings America.  He refers to himself as “the darker brother,” and even though he is not allowed to be seen as an equal among men in his country,—he is continually hidden away by the white majority– he is still an important and integral part of America.  Even though the poem is dealing with a very painful subject—racism—the poet and speaker are still hopeful that one day soon, the powers that be will be ashamed of the way they have treated African Americans, and they will see that they are also a part of the country.

Conclusion

The poet conclude the  poem by saying that not only will he and other African Americans finally be seen as equal, but those who had oppressed them for hundreds of years will finally feel ashamed for what they did.  They will recognize the beauty and vitality of the African American and realize their wrongs. The use of  “I, too, am America.” To end the poem was very powerful and he was proclaiming the reader that he was just as important as everyone else in the country, and he will not be denied.

 

INTRODUCTION:  “The Toys” is one of the most beautiful poems written by Coventry Patmore. He was born in London in 1823. He associates his poems with the everyday happenings of life and has a deep concern for religion.  His publications are, ‘The Angel in the House’, ‘The Unknown Eros’ and other odes. Patmore died in 1896.

The poem, ‘The Toys’ is highly religious. The poem relates the story of a father and son. The father treats his son harshly but later realizes his mistake and asks God to forgive him for his foolish behaviour.

CHILD’S DISOBEDIENCE: The poet tells us how he punished his son for disobedience. The child acted and talked just like a grown up man. He made noise. His father asked him to keep quiet but the son did not obey him. At seventh time, the father punished his son and sent him away without the usual kisses. The child was much grieved. He left his father and went to bed.

FATHER REGRETS:  After sometime, the poet realized that he had made a mistake, as his son was lonely since his mother had died. He feared that the child might not be able to sleep due to his grief. He went to his bedside, but he found the child asleep. His eyelids were swollen due to weeping. His eye lashes were still wet with the drops of tears.

THE TOYS: The father became more emotional when he found that his son had very neatly arranged some pieces of glass, a red veined stone, some shells and a bottle of blue bells and two French copper coins on the table. They were simple but enough to comfort him. He noticed that the boy had sought consolation in small ordinary objects to comfort his sad heart. It was a touching scene for the father whose wife was dead and there was no one to console the child. He felt sorry for his attitude. The father bent over the child and kissed away the tears from the boy’s cheeks, but tears from his own eyes dropped on his son’s face.

GOD IS MERCIFUL:  In this poem the poet points out that God is always kind and merciful to man but man often fails to follow the commands of his creator. He provides man with all the simple joys of life. Yet there are some who do not fear God even on their death bed. God knows that though we had been disobeying His commands and enjoying ourselves with worldly things, yet He forgives us.

CONCLUSION: The father hopes that as he has forgiven his son God would pardon him for his childishness. He prayed all night with the feeling that God is merciful and He would forgive him.

Moral: As the saying goes ‘To err is human; to forgive is divine’ we should forgive the mistakes of people and live friendly with all. God is merciful on us and he forgives those people who forgive the mistakes of human beings.

 

 

ummary

“My Last Duchess” is narrated by the duke of Ferrara to an envoy (representative) of another nobleman, whose daughter the duke is soon to marry. These details are revealed throughout the poem, but understanding them from the opening helps to illustrate the irony that Browning employs.

At the poem’s opening, the duke has just pulled back a curtain to reveal to the envoy a portrait of his previous duchess. The portrait was painted by Fra Pandolf, a monk and painter whom the duke believes captured the singularity of the duchess’s glance. However, the duke insists to the envoy that his former wife’s deep, passionate glance was not reserved solely for her husband. As he puts it, she was “too easily impressed” into sharing her affable nature.

His tone grows harsh as he recollects how both human and nature could impress her, which insulted him since she did not give special favor to the “gift” of his “nine-hundred-years-old” family name and lineage. Refusing to deign to “lesson” her on her unacceptable love of everything, he instead “gave commands” to have her killed.

The duke then ends his story and asks the envoy to rise and accompany him back to the count, the father of the duke’s impending bride and the envoy’s employer. He mentions that he expects a high dowry, though he is happy enough with the daughter herself. He insists that the envoy walk with him “together” – a lapse of the usual social expectation, where the higher ranked person would walk separately – and on their descent he points out a bronze bust of the god Neptune in his collection.

Analysis

“My Last Duchess,” published in 1842, is arguably Browning’s most famous dramatic monologue, with good reason. It engages the reader on a number of levels – historical, psychological, ironic, theatrical, and more.

The most engaging element of the poem is probably the speaker himself, the duke. Objectively, it’s easy to identify him as a monster, since he had his wife murdered for what comes across as fairly innocuous crimes. And yet he is impressively charming, both in his use of language and his affable address. The ironic disconnect that colors most of Browning’s monologues is particularly strong here. A remarkably amoral man nevertheless has a lovely sense of beauty and of how to engage his listener.

In fact, the duke’s excessive demand for control ultimately comes across as his most defining characteristic. The obvious manifestation of this is the murder of his wife. Her crime is barely presented as sexual; even though he does admit that other men could draw her “blush,” he also mentions several natural phenomena that inspired her favor. And yet he was driven to murder by her refusal to save her happy glances solely for him. This demand for control is also reflected in his relationship with the envoy. The entire poem has a precisely controlled theatrical flair, from the unveiling of the curtain that is implied to precede the opening, to the way he slowly reveals the details of his tale, to his assuming of the envoy’s interest in the tale (“strangers like you….would ask me, if they durst, How such a glance came there”), to his final shift in subject back to the issue of the impending marriage. He pretends to denigrate his speaking ability – “even had you skill in speech – (which I have not),” later revealing that he believes the opposite to be true, even at one point explicitly acknowledging how controlled his story is when he admits he “said ‘Fra Pandolf’ by design” to peak the envoy’s interest. The envoy is his audience much as we are Browning’s, and the duke exerts a similar control over his story that Browning uses in crafting the ironic disconnect.

In terms of meter, Browning represents the duke’s incessant control of story by using a regular meter but also enjambment (where the phrases do not end at the close of a line). The enjambment works against the otherwise orderly meter to remind us that the duke will control his world, including the rhyme scheme of his monologue.

To some extent, the duke’s amorality can be understood in terms of aristocracy. The poem was originally published with a companion poem under the title “Italy and France,” and both attempted to explore the ironies of aristocratic honor. In this poem, loosely inspired by real events set in Renaissance Italy, the duke reveals himself not only as a model of culture but also as a monster of morality. His inability to see his moral ugliness could be attributed to having been ruined by worship of a “nine-hundred-years-old name.” He is so entitled that when his wife upset him by too loosely bestowing her favor to others, he refused to speak to her about it. Such a move is out of the question – “who’d stoop to blame this kind of trifling?” He will not “stoop” to such ordinary domestic tasks as compromise or discussion. Instead, when she transgresses his sense of entitlement, he gives commands and she is dead.

Another element of the aristocratic life that Browning approaches in the poem is that of repetition. The duke’s life seems to be made of repeated gestures. The most obvious is his marriage – the use of the word “last” in the title implies that there are several others, perhaps with curtain-covered paintings along the same hallway where this one stands. In the same way that the age of his name gives it credence, so does he seem fit with a life of repeated gestures, one of which he is ready to make again with the count’s daughter.

And indeed, the question of money is revealed at the end in a way that colors the entire poem. The duke almost employs his own sense of irony when he brings up a “dowry” to the envoy. This final stanza suggests that his story of murder is meant to give proactive warning to the woman he is soon to marry, but to give it through a backdoor channel, through the envoy who would pass it along to the count who might then pass it to the girl. After all, the duke has no interest in talking to her himself, as we have learned! His irony goes even further when he reminds the envoy that he truly wants only the woman herself, even as he is clearly stressing the importance of a large dowry tinged with a threat of his vindictive side.

But the lens of aristocracy undercuts the wonderful psychological nature of the poem, which is overall more concerned with human contradictions than with social or economic criticism. The first contradiction to consider is how charming the duke actually is. It would be tempting to suggest Browning wants to paint him as a weasel, but knowing the poet’s love of language, it’s clear that he wants us to admire a character who can manipulate language so masterfully. Further, the duke shows an interesting complication in his attitudes on class when he suggests to the envoy that they “go Together down,” an action not expected in such a hierarchical society. By no means can we justify the idea that the duke is willing to transcend class, but at the same time he does allow a transgression of the very hierarchy that had previously led him to have his wife murdered rather than discuss his problems with her.

Also at play psychologically is the human ability to rationalize our hang-ups. The duke seems controlled by certain forces: his own aristocratic bearing; his relationship to women; and lastly, this particular duchess who confounded him. One can argue that the duke, who was in love with his “last duchess,” is himself controlled by his social expectations, and that his inability to bear perceived insult to his aristocratic name makes him a victim of the same social forces that he represents. Likewise, what he expects of his wives, particularly of this woman whose portrait continues to provide him with fodder for performance, suggests a deeper psychology than one meant solely for criticism.

The last thing to point out in the duke’s language is his use of euphemism. The way he explains that he had the duchess killed – “I gave commands; Then all smiles stopped together” – shows a facility for avoiding the truth through choice of language. What this could suggest is that the duchess was in fact guilty of greater transgression than he claims, that instead of flirtation, she might have physically or sexually betrayed him. There’s certainly no explicit evidence of this, but at the same time, it’s plausible that a man as arrogant as the duke, especially one so equipped with the power of euphemism, would avoid spelling out his disgrace to a lowly envoy and instead would speak around the issue.

Finally, one can also understand this poem as a commentary on art. The duke remains enamored with the woman he has had killed, though his affection now rests on a representation of her. In other words, he has chosen to love the ideal image of her rather than the reality, similar to how the narrator of “Porphyria‘s Lover” chose a static, dead love than one destined to change in the throes of life. In many ways, this is the artist’s dilemma, which Browning explores in all of his work. As poet, he attempts to capture contradiction and movement, psychological complexity that cannot be pinned down into one object, and yet in the end all he can create is a collection of static lines. The duke attempts to be an artist in his life, turning a walk down the hallway into a performance, but he is always hampered by the fact that the ideal that inspires his performance cannot change.

 

 

This poem is loosely based on historical events involving Alfonso, the Duke of Ferrara, who lived in the 16th century. The Duke is the speaker of the poem, and tells us he is entertaining an emissary who has come to negotiate the Duke’s marriage (he has recently been widowed) to the daughter of another powerful family. As he shows the visitor through his palace, he stops before a portrait of the late Duchess, apparently a young and lovely girl. The Duke begins reminiscing about the portrait sessions, then about the Duchess herself. His musings give way to a diatribe on her disgraceful behavior: he claims she flirted with everyone and did not appreciate his “gift of a nine-hundred-years- old name.” As his monologue continues, the reader realizes with ever-more chilling certainty that the Duke in fact caused the Duchess’s early demise: when her behavior escalated, “[he] gave commands; / Then all smiles stopped together.” Having made this disclosure, the Duke returns to the business at hand: arranging for another marriage, with another young girl. As the Duke and the emissary walk leave the painting behind, the Duke points out other notable artworks in his collection.

 

“My Last Duchess” Summary

• The speaker (the Duke of Ferrara) directs the attention of a guest to a painting of his former wife, the Duchess of Ferrara, which hangs on the wall.The Duke praises the painting for looking so lifelike and then remarks on how hard the painter, Fra Pandolf, worked hard on it. The duke asks the guest to sit and look at the work. The duke then explains that he deliberately mentioned the name of the painter, because strangers like the emissary always look at the duchess’s painted face—with its deep, passionate, and earnest glance—and turn to the duke (and only the duke, since only he pulls back the curtain that reveals the painting) and act as though they would ask, if they dared, how an expression like that came into her face. The duke reiterates that the guest isn’t the first person to ask this question.

The duke continues by saying that it wasn’t only his presence that brought that look into the painted eyes of the duchess or the blush of happiness into her painted cheek; he suggests that perhaps Fra Pandolf had happened to compliment her by saying “her shawl drapes over her wrist too much” or “paint could never recreate the faint half-blush that’s fading on her throat.” The duke insists that the former duchess thought that polite comments like those were reason enough to blush, and criticizes her, in a halting way, for being too easily made happy or impressed. He also claims that she liked everything and everyone she saw, although his description suggests that she was ogling everyone who crossed her path. The duke objects that, to his former duchess, everything was the same and made her equally happy, whether it was a brooch or present from him that she wore at her chest, the sun setting in the West, a branch of cherries which some interfering person snapped off a tree in the orchard for her, or the white mule she rode on around the terrace. He claims that she would say the same kind words or give the same blush in response to all of them. The duke also objects to her manner of thanking men, although he struggles to describe his concerns. Specifically, he complains that she values his pedigree and social position (his 900-year-old name) as equally important to anyone else’s gifts to her.

The duke rhetorically asks whether anyone would actually lower themselves enough to argue with someone about their behavior. The duke imagines a hypothetical situation in which he would confront the former duchess: he says that even if he were good with words and were able to clearly say, “This characteristic of yours disgusts me,” or, “Here you did too little or too much”—and if the former duchess had let herself be degraded by changing, instead of being stubborn and making excuses— that even then the act of confronting her would be beneath him, and he refuses to ever lower himself like that.

The duke then returns to his earlier refrain about his former wife’s indiscriminate happiness and complains to his guest that, while the duchess did smile at him whenever they passed, she gave everyone else the same smile as well. The duke explains that she began smiling at others even more, so he gave orders and all her smiles stopped forever, presumably because he had her killed. Now she only lives on in the painting.

The duke then asks the guest to stand up and to go with him to meet the rest of the guests downstairs. He also says that the Count, revealed here as the guest’s master and the father of the duke’s prospective bride-to-be, is so known for his generosity in matters of money that no request the duke could make for a dowry could be turned down. The duke also adds quickly that he has always insisted since the beginning of their discussions that the Count’s beautiful daughter, and not the dowry, is his primary objective.

The duke ends his speech by demanding that he and the Count’s emissary go downstairs together, and on their way, he directs the emissary’s attention to a statue of the God Neptune taming a seahorse, which is a rare work of art that Claus of Innsbruck cast in bronze specifically for him.

 

 

·        The Objectification of Women

“My Last Duchess” is a dramatic monologue in which the Duke of Ferrara tells the messenger of his potential wife’s family about his previous wife, the “last” duchess of the poem’s title. Using a painting of that former duchess as a conversation piece, he describes what he saw as her unfaithfulness, frivolity, and stubbornness, and implies that he prefers her as a painting rather than as a living woman. Throughout the poem, the duke reveals his belief that women are objects to be controlled, possessed, and discarded. In many ways, this reflects the thinking of Browning’s own era, when Victorian social norms denied women the right to be fully independent human beings. Through this portrayal of the duke, Browning critiques such a viewpoint, presenting sexism and objectification as dehumanizing processes that rob women of their full humanity.

The duke’s treatment of the painting reflects his treatment of women as objects to be owned. His description of the painting as a “piece” and a “wonder” portray it as a work of art rather than a testament to a former love. By repeating the name of the painter (the famous “Fra Pandolf) three times in the first 16 lines of the poem, he again implies that he values the painting because of its status as an object that shows off his (that is, the duke’s) wealth and clout. The painting is meant to aggrandize the duke rather than honor the woman it portrays.

This is made even clearer by the fact that the duke has placed this painting in a public area of his palace so he can proudly display it to guests, whom he invites to “sit and look at her” much like a museum curator would direct visitors to a famous work of art in a gallery. Such an attitude is reflected yet again when he tells the messenger that the Count’s “fair daughter’s self [… is his] object”: he intends to make his new bride another one of his possessions. Women, in the duke’s mind, are simply ornamental objects for men rather than actual people in their own right.

The poem thus implies that the duke finds his former wife’s actions unforgivable because they reflected her status as an independent person rather than an inanimate possession. Her crimes appear to be not sexual or romantic infidelity, but rather being happy (“too soon made glad,”), appreciative of others (she considered the duke’s “gift of a nine-hundred-years-old name / With anybody’s gift”), self-confident (she wouldn’t “let / Herself be lessoned”), and willing to stand up for herself (she “plainly set / Her wits to [his]”). The duke, however, appears to believe that a husband owns his wife, and therefore has the right to dictate her feelings and to be the sole recipient of her happiness, kindness, and respect; any indication that she has thoughts or feelings of her own are unacceptable.

Ultimately, the poem heavily implies that the duke was so vexed by the idea that his former wife had an inner life of her own that he had the “last duchess” killed. Of course, the duke avoids explicitly confessing to assassinating his wife, and Browning himself allegedly once said in an interview that the duke may have simply had her sent to a convent. Regardless, the outcome is the same: there is no “last duchess” present in the poem to speak for herself and give her side of the story. The poem thus underscores how objectifying women ultimately silences them, robbing them of their voices and autonomy.

Social Status, Art, and Elitism

Though the poem doesn’t outright condemn the duke, it does suggest that he’s a brutish figure whose social status is in no way a reflection of any sort of moral worth. The duke repeatedly draws his guest’s attention to his wealth and power, and issues veiled threats about what happens to those who don’t put a high enough price on his social standing. Through the duke, the poem takes a subtle jab at the snobbery of the upper class, suggesting the shallowness of an elitist society that bestows respect based on things like having a good family name or owning fancy artwork. Instead, the poem reveals the various ways in which powerful men like the duke may use such markers of status simply to manipulate—and dominate—those around them.

The duke repeatedly reminds the messenger of the power in his title. He does this in part by mentioning the famous artists (Fra Pandolf and Claus of Innsbruck) who created works especially for him, but also by mentioning his “nine-hundred-years-old name.” The duke then moves quickly from intimidation to intimated threats when he hints that he had his former wife killed for not valuing his status sufficiently: he objects that she “ranked” his “nine-hundred-years-old name / With anybody’s gift” and so he “gave commands” that “stopped” her “smiles.”

Since the duke and his potential father-in-law, the Count, are about to sit down to discuss the fiancée’s dowry, they will put a price on exactly how much his name is worth. Consequently, the duke’s claim that the Count’s generosity is “ample warrant”—that the Count will give him a substantial amount of money for the daughter’s dowry—can actually be read as a veiled threat: the duke implies that, if the in-laws want their daughter to live, they will value his name and pay him a large sum.

Immediately before beginning negotiations with the prospective in-laws, the duke also tells the emissary to admire a statue of Neptune “taming a sea-horse,” made by a famous sculptor. The duke emphasis the statue’s aesthetic merit as a means of imbuing himself with more importance: the statue is a “rarity” and was created just for him.

This moment has nothing to do with the duke emphasizing his refined tastes and his appreciation of art. Instead, again, it serves as a warning: Neptune was the Roman god of the sea, and the statue depicts this god forcefully subduing a creature who challenged him. By drawing the emissary’s attention to this statue before the negotiation, the duke implies that he himself is a godlike figure like Neptune, who will tame the emissary and the Count just as he did the former duchess. The trappings of upper-class status are again mainly a means for the duke to bully people.

The duke’s seemingly refined manner and opulent surroundings are thus no indication that he’s any better than those with lesser means—or that he’s even a decent person at all. Through this depiction, the poem offers a subtle rebuke of elitism and the upper class. To men like the duke, beauty is not something to be valued and appreciated; instead, it is only something to dominate.

Control and Manipulation

Closely tied to the duke’s repeated emphasis on his social status and his objectification of women is his clear desire for control. By treating women as objects to be possessed, the duke can more readily dominate them; similarly, by drawing attention to his title and social clout, the duke can intimidate others into following his commands. Yet the poem also draws attention to quieter forms of control, as the duke dictates everything from the flow of conversation with his guest to the choreography of the scene itself. Through these forms of asserting dominance, the poem suggests the power—and danger—of such inconspicuous manipulation, which is made all the more insidious by its subtly.

The duke uses his social status—indicated by his ancient name and opulent artwork—to intimidate and threaten his guest. More discreetly, however, Browning also shows the duke controlling the conversation via its physical setting. The duke has staged the area with the duchess’s painting: the painting is behind a curtain so he can limit who can view it, thereby reminding his audience that he can give and take away whatever he wants. He has also placed a seat in front of the painting so he can command visitors to sit while he tells the story of his former wife, a power dynamic that literally elevates him above anyone else in the room.

The duke likewise controls the flow of the conversation. He never gives the messenger a chance to speak, and once goes so far as to pretend that the messenger has asked a question (“not the first / Are you to turn and ask thus”) even though the messenger himself remains silent. This action gives the messenger the illusion of being an active participant in the conversation without having any actual agency in it whatsoever.

Most intriguingly, there is nothing improvisatory about the duke’s words, even when he trips over them. He comments that “strangers” who have seen the painting have asked him about the former duchess’s expression, and that the messenger is “not the first” to inquire. The duke’s insistence that others have asked about the duchess’s expression suggests that he has given this spiel about his wife’s supposedly inappropriate behavior to others. It is hard to believe, therefore that his interjections about his inarticulateness (“how shall I say?” or “somehow—I know not how”) are genuine hesitations: if he has given this speech before, then presumably he knows what to say and how. In other words, his actions contradict his stated lack of expertise. The improvised nature of the duke’s speech, then, with its self-interruptions and hesitations, might all be an act. He is so committed to controlling others that he seemingly rehearses even his moments of self-deprecation and seeming uncertainty. He says he doesn’t have any “skill in speech”—meaning he’s not a good talker—but this clearly isn’t the case.

By having the duke deliver the dramatic monologue to the emissary, addressed throughout the poem as “you,” Browning forces his readers to experience the duke’s manipulation to better understand how abuse of power operates. This form of address can encourage readers to imagine how they themselves would respond in such a situation: would they notice the manipulation and feel resentful, or would it slip past as they found themselves convinced by the duke’s subtle coercion?

 

 

Line-by-Line Explanation & Analysis of “My Last Duchess”

·        Lines 1-5

From the poem’s opening line, Browning shows the duke of Ferrara’s obsession with possessing and objectifying women. The duke is describing a painting of his former wife rather than the woman herself, but he still describes the painting itself as “my last Duchess,” thereby eroding the differences between the art and the woman who inspired it. Both are essentially the same in the duke’s mind, or at least he’d prefer it if this were so.

The duke personifies the painting throughout this passage, both by saying “there she stands,” as though the duchess herself and not her image in the painting is standing against the wall, and “will’t please you sit and look at her,” instead of asking the messenger to look at “it” or “the painting.” This again suggests that he views the woman and the work of art as one and the same.

The duke also makes it clear that he cares for the status the painting can give him and not for the nostalgia or memories about his former wife. He remarks on the artistry of the painting in seeming so lifelike (“looking as if she were alive”), rather than on missing her, since the woman herself as we will soon find out, has died. Likewise, he describes the artwork as “a piece” and “a wonder,” and brags about how “busily” the famous Fra Pandolf worked to paint it, in a move calculated to impress the emissary with the quality of his art collection and therefore his wealth. It’s also worth noting that, although the duke focuses on Fra Pandolf’s hands, there’s no mention of his former wife’s hands—or, in fact, of any part of her body in this section, an absence that suggests the duke’s interest in the painting’s monetary rather than sentimental worth.

These lines also reveal the duke’s subtle control of conversations and physical spaces. The duke is clearly guiding the emissary through his estate and art collection like a tour guide, telling him what to admire, what to think about it, and even when to sit. By having the emissary sitting while he stands, the duke literally elevates himself above his guest and shows him the power hierarchy that he tries to preserve in all his interactions with others.

The poem’s opening also shows that Browning is controlling the meter and rhyme scheme of the poem as carefully as the duke controls the conversation and the space: when read aloud, the poem sounds almost conversational in tone, and people are often surprised to realize it consists of iambic pentameter rhyming couplets. The many enjambed lines (such as lines 2 and 3: “I call / That piece a wonder, now”) make sentences extend well beyond the confines of the lines and the frequent caesuras introduce natural pauses into the middle of lines (as with “Looking as if she were alive.” in line 2). By having so many caesuras and so few end-stopped lines, Browning deemphasizes the lines themselves, with their five feet and their rhyming couplets. He instead creates a style that sounds more akin to prose.

 

marketing management short answers

Marketing research is “the process or set of processes that links the producers, customers, and end users to the marketer through information used to identify and define marketing opportunities and problems

Market research is a critical tool in helping companies understand what consumers want, develop products that those consumers will use, and maintain a competitive advantage over other companies in their industry.

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“The systematic gathering, recording and analysis of data about problems relating to the marketing of goods and services” —The American Marketing Association.

“The systematic objective and exhaustive research for and study of the facts relevant to any problem in the field of marketing.” —Richard Crisp

Definition: The Marketing Information System refers to the systematic collection, analysis, interpretation, storage and dissemination of the market information, from both the internal and external sources, to the marketers on a regular, continuous basis.

Definition: The marketing information system refers to the use of technology for the arrangement of the relevant data related to the market, sales, promotion, price, competition and allocation of goods and service. This information is acquired after a proper analysis and understanding of the marketing environment to ensure effective decision making in the organization.

Marketing Information System (MIS) is a permanent arrangement (system or setup) for provision of regular availability of relevant, reliable, adequate, and timely information for making marketing decisions.

UNIT-2

1. Product

 

In general, a product is defined as a “thing produced by labor or effort” or the “result of an act or a process. ” The word “product” stems from the verb “produce”, from the Latin prōdūce(re) “(to) lead or bring forth. ” Since 1575, the word “product” has referred to anything produced.

In marketing, a product is an object or system made available for consumer use; it is anything that can be offered to a market to satisfy the desire or need of a customer. ^[1] Product is also something that is commercially floatable. In retailing, products are often referred to as merchandise, and in manufacturing, products are bought as raw materials and then sold as finished goods. A service is also regarded to as a type of product.

1. Philip Kotler:

“Product is anything that can be offered to someone to satisfy a need or a want.”

2. William Stanton:

“Product is complex of tangible and intangible attributes, including packaging, colour, price, prestige, and services, that satisfy needs and wants of people.”

3. W. Alderson:

“Product is a bundle of utilities, consisting of various product features and accompanying services.”

 

 

2. Branding

The process involved in creating a unique name and image for a product in the consumers’ mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers.

 

Branding is a process of creating a unique image or name or logo or symbol or combination of any of these for a specific product in consumer’s mind which differentiates it from competitor’s products. It is the perceived emotional image of a company and is effective way for communication between two parties-buyers and sellers. Branding is a bit complicated and represents the corporate image.

 

3. Elements of Marketing Mix

Marketing mix is a set of actions a business takes to build and market its product or service to its customers.

It helps to make sure that you are able to offer your customers the right product, at the right time and at the right place for the right price.

Elements of Marketing Mix

The elements of marketing mix are often called the four P’s of marketing.

1. Product
2. Price
3. Place
4. Promotion

Lately three more P’s have been added to the marketing mix. They are as follows:

• People – The individuals involved in the sale and purchase of products or services come under people.
• Process – Process includes the various mechanisms and procedures which help the product to finally reach its target market
• Physical Evidence – With the help of physical evidence, a marketer tries to communicate the USP’s and benefits of a product to the end users

 

4. Product Levels

 Kotler’s Five Product Level model are:

1. Core benefit:
   The fundamental need or want that consumers satisfy by consuming the product or service. For example, the need to process digital images.
2. Generic product:
   A version of the product containing only those attributes or characteristics absolutely necessary for it to function. For example, the need to process digital images could be satisfied by a generic, low-end, personal computer using free image processing software or a processing laboratory.
3. Expected product:
   The set of attributes or characteristics that buyers normally expect and agree to when they purchase a product. For example, the computer is specified to deliver fast image processing and has a high-resolution, accurate colour screen.
4. Augmented product:
   The inclusion of additional features, benefits, attributes or related services that serve to differentiate the product from its competitors. For example, the computer comes pre-loaded with a high-end image processing software for no extra cost or at a deeply discounted, incremental cost.
5. Potential product:
   This includes all the augmentations and transformations a product might undergo in the future. To ensure future customer loyalty, a business must aim to surprise and delight customers in the future by continuing to augment products. For example, the customer receives ongoing image processing software upgrades with new and useful features.

This model provides businesses with a proven method for structuring their product portfolio to target various customer segments. This enables them to analyse product and customer profitability in a structured way and a business’ sales processes can be aligned to its customer needs and help focus other operational processes around its customers.

 

5. Packaging

Definition: The Packaging refers to all those activities related to designing, evaluating and producing the container for a product. Simply, the box-like container, wherein the product is stored to protect it from any physical damage and at the same time attracting the customer through its appeal is called as packaging.

Definition: The wrapping material around a consumer item that serves to contain, identify, describe, protect, display, promote and otherwise make the product marketable and keep it clean

UNIT-3

1. Promotion Mix

The term ‘promotional mix’ is used to refer to the combination of different kinds of promotional tools used by a firm to advertise and sell its products.

 

The main promotional tools or activities which make up promotion mix are personal selling, advertising, publicity and sales promotion. These are also known as elements of promotion mix.

Philip Kotler opines, “A company’s total marketing communication mix also called promotion mix consists of specific blends of advertising, personal selling, sales promotion, public relations and direct marketing tools that the company use to pursue its advertising and marketing objectives.”

 

Gary Armstrong defines promotion mix as, “A company’s promotional mix includes advertising, personal selling, sales promotion, public relations, direct marketing. It also includes product design, shape, package, colour, label etc., as all these communicate something to buyer.”

 

2. Advertisement

Definition: Advertising is a means of communication with the users of a product or service. Advertisements are messages paid for by those who send them and are intended to inform or influence people who receive them, as defined by the Advertising Association of the UK.

 

Advertising is the action of calling public attention to an idea, good, or service through paid announcements by an identified sponsor.

According to Kotler –

Advertising is any paid form of non-personal presentation & promotion of ideas, goods, or services by an identified sponsor.

According to the Advertising Association of the UK –

Advertising is any communication, usually paid-for, specifically intended to inform and/or influence one or more people.

 

3. Sales Promotion

Sales promotion is a marketing strategy where the product is promoted using short-term attractive initiatives to stimulate its demand and increase its sales.

This strategy is usually brought to use in the following cases –

• to introduce new products,
• sell out existing inventories,
• attract more customers, and
• to lift sales temporarily.

American Marketing Association defines sales promotion as –

Media and nonmedia marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve product availability.

 

4. Sales Process

A sales process is a set of repeatable steps that a sales person takes to take a prospective buyer from the early stage of awareness to a closed sale.

 

Typically, a sales process consists of 5-7 steps: Prospecting, Preparation, Approach, Presentation, Handling objections, Closing, and Follow-up.

 

6. Advertisement Layout

 

An advertisement layout can be defined as the systematic design

of size, color scheme, graphics, object and text placement to send

intended message to the target audience.

Layout may be defined as the arrangement of the various elements of advertising such as illustration, text matter, product and name of the company. A good advertisement is a combination of both copy and art.

 

According to Sandage and Fryburger, “The plan of an advertisement, detailing the arrangement of various parts and relative spatial importance of each is referred to as layout”.

 

UNIT-4

1. Distribution Mix

The distribution mix is an important part of the marketing mix, ensuring that the right product gets to the right place at the right time. There are five major components in the distribution mix – inventory, warehousing, communication, unitization (including packaging) and transport. Each of these steps will involve different things depending on your type of business.

 

A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer. Distribution channels can include wholesalers, retailers, distributors, and even the Internet.

a distribution channel can also be referred to as a set of interdependent intermediaries that help make a product available to the end customer.

2. Warehouse

A warehouse is a large building where raw materials or manufactured goods are stored until they are exported to other countries or distributed to shops to be sold.

 

Warehousing is the act of storing goods that will be sold or distributed later. While a small, home-based business might be warehousing products in a spare room, basement, or garage, larger businesses typically own or rent space in a building that is specifically designed for storage.

 

3. Transportation

Modern trade and industry transportation depend largely on transport. Improved means of transportation have increased the trade by leaps and bounds. It aids in marketing functions by creating place utility to goods, helps in effectuating possession utility and contributes manufacturing process in creating form utility.

Transportation is indispensible function of marketing. Transportation provides the physical means of carrying goods and persons from one place to another. In other words, it is concerned with carrying the goods from the places of production to the places of their consumption.

Transportation creates place utility and regularises supply from one place to another. Transportation greatly facilitates the performance of marketing functions like buying, assembling, selling, storage and warehousing etc. The entire economy and its development is dependent on a well- knit system of transportation.

 

4. Distribution of cost Analysis

is a technique which examines in detail all the costs incurred in purchasing, selling and delivery of goods to the customer.

It is an assembling of the various items of distribution cost into meaningful classifications and their comparison in this form with alternative expenditures and with related sales volumes and gross margin. More specifically,  it is a technique used by individual business concerns for the determination of costs and profits for various segments of the business.

5. Cost Analysis

he process of examining the cost of doing something in order to make comparisons and to plan for the future

Definition: In economics, the Cost Analysis refers to the measure of the cost – output relationship, i.e. the economists are concerned with determining the cost incurred in hiring the inputs and how well these can be re-arranged to increase the productivity (output) of the firm.

 

Thus, the cost analysis is pivotal in business decision-making as the cost incurred in the input and output is to be carefully understood before planning the production capacity of the firm.

UNIT-5

1. Marketing Strategies

A marketing strategy refers to a business’s overall game plan for reaching prospective consumers and turning them into customers of the products or services the business provides. A marketing strategy contains the company’s value proposition, key brand messaging, data on target customer demographics, and other high-level elements.

 

A marketing strategy is all of a company’s marketing goals and objectives combined into a single comprehensive plan. it is designed to promote a good or service and make a profit.

A good marketing strategy helps companies identify their best customers. It also helps them understand consumers’ needs. With a good strategy, it is possible to implement the most effective marketing methods.

 

2. Marketing of services

Services marketing is a broad category of marketing strategies focused on selling anything that is not a physical product. This includes everything from personal services like medical care and spa treatments, to the rental of vehicles and spaces, to experiences like concerts and dance lessons. Any method that can communicate a service’s appeal and benefits to customers is a valid approach, including informational content, promotional deals, advertisements, and many other kinds of marketing materials.

Service marketing is marketing based on relationship and value. It may be used to market a service or a product. With the increasing prominence of services in the global economy, service marketing has become a subject that needs to be studied separately. Marketing services is different from marketing goods because of the unique characteristics of services namely, intangibility, heterogeneity, perishabil­ity and inseparability.

In most countries, services add more economic value than agriculture, raw materials and manu­facturing combined. In developed economies, employment is dominated by service jobs and most new job growth comes from services.

Some examples of services that need service marketing strategies are: medical services, legal services, online services, dental services, human resources services, consulting services, business services, automotive services, web site services, and so on.

3. Consumer Protection

Consumer protection is the practice of safeguarding buyers of goods and services, and the public, against unfair practices in the marketplace. Consumer protection measures are often established by law. Such laws are intended to prevent businesses from engaging in fraud or specified unfair practices in order to gain an advantage over competitors or to mislead consumers. They may also provide additional protection for the general public which may be impacted by a product (or its production) even when they are not the direct purchaser or consumer of that product. For example, government regulations may require businesses to disclose detailed information about their products—particularly in areas where public health or safety is an issue, such as with food or automobiles.

Consumer protection is linked to the idea of consumer rights and to the formation of consumer organizations, which help consumers make better choices in the marketplace and pursue complaints against businesses.

Thus, The basic aim of the Consumer Protection is to save the rights of the consumers by establishing authorities for timely and effective administration and settlement of consumers’ disputes.

 

4. Global Market

The market in which goods and services of one country are traded (purchased or sold) to people of other counties.

 

global marketing is defined as the process of adjusting the marketing strategies of your company to adapt to the conditions of other countries. Global marketing involves planning, producing, placing, and promoting a business’ products or services in the worldwide market.

 

Global marketing can be defined as “marketing on a worldwide scale, in different countries, reconciling or taking commercial advantage of global operational differences, similarities, and opportunities in order to meet global objectives”. Basically, when a firm sells the same products to the global market, then it is known as Global marketing. An example would be Samsung Galaxy S series, which is globally marketed and not customized as per the market it is being sold in.

 

5. Competitor

A competitor is a person, business, team, or organization that competes against you or your company. If somebody is trying to beat you in a race, that person is your competitor.

 

Definition: Competitors

Any person or entity that is in the same industry or a similar industry, or which offers a product similar to that of another person or entity, is called its competitor. The presence of competitors make the market competitive, driving down the prices and margins on goods and services, as the competitors attempt to gain a larger market share by competing on prices i.e. lowering its prices more than its rival.

 

 

 

all 5 units of international marketing notes

SECTTIO

SECTTION-B

UNIT-1

1. What is international markets? Write the essentials of international marketing.

International marketing is the application of marketing principles in more than one country, by companies overseas or across national borders. International marketing is based on an extension of a company’s local marketing strategy, with special attention paid to marketing identification, targeting, and decisions internationally.

 

 

According to the American Marketing Association (AMA) “international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.”

Cateora (1997) defines international marketing as performance of business activities that direct the flow of company’s goods and services to consumers in more than one nation for profit.

Jain (1989) refers to international marketing as exchanges across national boundaries for the satisfaction of human needs and wants.

Terpestra (1972) looks upon international marketing as marketing carried on across the national boundaries.

Keegan (1997) comprehends that international marketing as going beyond the export marketing and becoming more involved in the marketing environment in which it is doing business.

 

Essentials of Intenational Marketing:

 

1. Identifying Global Customer Needs

International marketing research is conducted to determine the customer needs possessed by the customers belonging to the different markets, it becomes easy to understand similarities and dissimilarities in customer groups across countries.

Example: US company desires to sell washing machines in Europe, then US company must ha ve clear idea about how European wash their clothes i.e. they wash their clothes at high temperature at 60 degree centigrade compare to US.

Therefore, companies must clear analyze market segments across countries before placing their products at international level.

 

2. Satisfying Global Customers

When needs vary across countries and regions then, a company to satisfy global customers must adapt products, services and elements of the marketing mix. To reduce prices, a company must decide is it necessary to design a product at less manufacturing costs or produce it in a country where it is easier to achieve the target of less manufacturing costs.

There is a need for well-designed distribution and logistics system to make easy availability of goods and services at point-of-sale in adequate level of quantities.

Companies must provide the facility of global customer database and information systems to satisfy the needs of global customers by responding in accordance with their needs and purchasing decisions.

 

3. Being Better than the Competition

Companies must struggle against both the domestic and the global competitors. Companies must evaluate, monitor and respond to global competition by providing better value, developing superior brand image and product positioning, low prices, high quality, wide range of products, appreciable performance and superior distribution advertising and service.

Competitors are composed of state-owned enterprises, other multinationals and domestic firms with different targets like market share over profits.

 

4. Coordinating Marketing Activites

International marketing introduces a new level of complexity that takes place due to company’s coordinates their marketing activities across nations. There is involvement of this processes like centralization, delegation, standardization and local responsiveness to coordinate and integrate marketing strategies and introduce them across countries, regions and global market.

 

5. Recognizing the Constraints of the World Environment

When firms desire to enter the global market then, they must possess the ability to manage cultural and economic variance due to marketing infrastructure variances, financial restrictions due to exchange-rate variation and inflation-rate variation and influence of governmental policies, protectionist and industrial policies. All these aspects may generate complexities for companies towards market entry.

 

Further, international marketing covers some more activities that are listed below:

1. Exporting
2. Overseas manufacturing
3. Working with local partners
4. Licensing and franchising overseas
5. Imparting even, from foreign subcontractors
6. Counter trade.

International marketing for example, is engaged in exporting products to few countries then a company becomes an international marketer because it is directly involved in foreign markets by participating in specific activities like pricing, promotion, after sales service and manufacturing.

 

 

2. What is Global Marketing ? explain briefly about the various decisions associated with Global Marketing.

Ans:

Meaning:

Global Markets are the markets where the buying and selling of goods and services occurs between two or more nations.

 

Global Marketing:

“Global Marketing” refers to marketing done across various countries rather than just focusing on marketing in the home country. The firms involved in global marketing, to market their products and services in foreign countries. The needs wants, preference and buying behavior of target customers differ from country to country and this makes the task of global marketing difficult. Global marketing is the last stage in the process internationalization of business and marketing as a challenge because global marketing involves planning a marketing strategy which is applicable and acceptable to all countries.

 

Global Marketing Decisions

The five steps involved in developing a global marketing program are as follows,

Step1: Identifying target market and place of customers.

Step 2: Product Planning for global markets.

Step 3: Pricing for global markets.

Step 4: Deciding the mode of entry into the global markets.

Step 5 : Promoting products/services in global markets/foreign markets.

Decision are taken at each step and these decisions are collectively known as global marketing decisions.

 

Step1: Identifying target market

In the first step, marketer need to identify the target market. Developed countries would be the profitable markets for developing countries because developed countries have more purchasing power, great infrastructure facilities and encourages imports. After identifying markets in order to find out what products have to be offered at each market. Due to development in technology locating foreign buyers has become an easy task. For example, with the help of internet, marketers today are able to locate and communicate with foreign buyers without making personal visits to foreign countries.

 

Step 2: Product Planning for Global Markets

In global marketing, product markets differ from one another in terms of demand patterns and customers view point about the product benefits. A marketer who wants to market its products in the global markets is required to identify the significance of product planning, decide which alternative has to be chosen i.e., product adaptation or standardization and design a plan for cross country segmentation. Product adaptation is a process wherein global product is localized. Standardization leads to development of product which reserves same level of demand from various product market segments.

Step 3: Pricing for Global Markets

            Deciding the product prices in the global markets is a crucial task. A marketer need to find out minimum and maximum export prices. After this negotiation on product prices takes place between exporter and importer. In case of products having differential value can be sold at higher prices in the foreign markets. Few non-price factors which have to be taken into consideration in global marketing are,

1. Product differentiation
2. Industrial goods
3. Consumer goods
4. Engineering products etc.

These factors influence the pricing decisions in global marketing.

Step 4: Deciding the Mode of Entry into the Global Markets

The two modes available to enter the global markets are

1. Direct Exporting: in direct exporting, product manufacturer take decision to export its products directly to global markets without taking any help from export house/trading houses.

 

2. Indirect exporting: In indirect exporting, manufacturer export its product to foreign markets/global markets indirectly i.e., through trading houses. Few government trading organizations such as MMTC, state trading corporation and national small industries corporation are working as export houses.

 

Step 5: Promoting Product/Services in the Global Markets

            A company which wants to go for direct exporting must make efforts to create awareness in the customers regarding the product. Compared to domestic marketing, promoting products in global markets is a complicated task. Some of the methods used for promoting products in the global markets are advertising; direct Mailing, trade fairs and exhibitions, sales promotion and personal selling. Among all these methods, advertising is the best method to promote products in the global markets.

 

3. Explain the environmental factors of international marketing?

Definitions:

1. 1. International marketing environment is a set of controllable (internal) and uncontrollable (external) forces or factors that affect international marketing. International marketing mix is prepared in light of this environment.
2. International marketing environment consists of global forces, such as economic, social, cultural, legal, and geographical and ecological forces, that affect international marketing decisions.
3. International marketing environment for any marketer consists of internal, domestic, and global marketing forces affecting international marketing mix.

The formulation of market strategy is mainly dependent on both the internal as well as the external forces i.e., firm-related and market related forces. Internal environment and external environment helps to make strategic decisions related to the marketing environment. For example, based on internal and external environment aspects, company undertakes strategic decisions,

1. The competencies required to enter the foreign market.
2. Type of the marketing strategy required to adopt while entering the foreign market.
3. The most suitable strategies for implementing the product, pricing, promotion and distribution decisions.

Thus, there exists differences in the national and international marketing strategy in the marketing environment.

Environment of Global Marketing

Any company dealing or enters into global markeing should undertake the following:

1. Internal environment
2. Domestic environment
3. Foreign environment
4. Global environment

 

1. Internal Environment:

Firm related factors are termed as “internal environment”. For example, company’s ability to carry out international business and operations relies mainly on its internal aspects such as, mission and vision of the company, the attitude, capabilities and commitment of the senior executives and all the employees in the company, organizational structure, decision-taking and implementing aspects, financial, and other resources and capabilities.

Doing international business calls for restricted production and delivery schedules, commitment towards quality, effective and faster response to customer requirements, cost competitiveness, innovativeness and so on.

 

1. Domestic Environment:

When a company desires to carry-out its business in foreign countries it tends to follow the home-country environment in the foreign countries.

Domestic factors are related to the economy of the nation. Overall economic, social and cultural, demographic, political and legal, and other domestic aspects constitute domestic environment for international marketing. This environment affects international marketing mix in several ways.

Important domestic factors include:

 

1. Political climate/stability/philosophy
2. Government approach and attitudes toward international trade

iii. Legal system and business ethics

1. Availability and quality of infrastructural facilities
2. Availability and quality of raw-materials
3. Functioning of institutions and availability of facilities

vii. Technological factors

viii. Ecological factors, etc.

• Foreign Environment:

Foreign Environment implies environment related to the foreign market wherein, the elements of business environment varies between different markets.

For instance, US business environment is entirely different from the business environment of China, Russia, Middle East or other regions.

However, there is greater differentiation/variations of business environment even within a foreign country which is mainly due to rules and regulations applied for foreign trade and investment and other identical policies which are used to monitor and governs the business. Moreover, there exist variations among socio-cultural, demographic, economic and natural factors within and between the countries.

1. Global Environment:

Global factors that are related to the international business often referred to as global environment. These global factors include, the WTO principles and agreements, international conventions/treaties/agreements/declarations/protocols so on, business and economic situation influence of main developments such as war, considerable fluctuations in the oil prices, opinion of other countries etc.

Certain development also have global impact on the foreign trade, such as, considerable fluctuations in the price of crude-oil, the occurance of global economic crisis which spread throughout the year 2008, followed by a sharp decline in global trade in 2009, war or other political development.

An Indian company when desires to enter the global market should adopt the internationally acceptable standards and practices appropriate for different areas. For example, increase of accounting and reporting governances especially when it aims to enter the international capital market or enter into foreign collaboration, a company must adopt US GAAO (General Accepted Accounting Principles) for the issue of ADRs/GDRs.

 

4. How do you identify the international consumer needs?

A customer need is a motive that prompts a customer to buy a product or service. Ultimately, the need is the driver of the customer’s purchase decision. Companies often look at the customer need as an opportunity to resolve or contribute surplus value back to the original motive.

Researching customers

Successful businesses make profits by understanding their customers and identifying their needs. Good customer research helps you choose products, tailor your marketing, and develop sales tactics for the people in your market based on reliable, accurate information.

Customer research should be part of your overall market research and should be conducted regularly. While your market research looks broadly at your customers, competition and industry to identify who you will market to, customer research provides more in-depth information on the needs, wants, expectations and behaviours of your customers.

By identifying information about your consumers such as where they work, what they read and where they look at advertising, you can improve the strategies you use to attract them. It is also important to understand their purchasing behaviour and attitudes with regards to brands and products. Testing new product or marketing concepts with potential customers is also a good way to prepare for a launch to see if your work has potential to translate to success.

Identifying your customers’ needs and preferences allows you to tailor the strategies and tactics you use in your marketing plan. This will help you to:

• attract more customers
• set the best price for your products
• create the right marketing message
• increase how much your customers spend
• increase how often your customers spend
• increase your sales
• decrease your costs
• refine your approach to customer service.

Identifying  international customer needs:

International marketing research is conducted to determine the customer needs possessed by the customers belonging to the different markets; it becomes easy to understand similarities and dissimilarities in customer groups across countries.

Identifying customer needs

Before you start promoting your business you need to know what your customers want and why. Good customer research helps you work out how to convince your customers that they need your products and services.

Identify your customers

The first step of customer research is identifying your customers. Your market research should help you understand your potential customers. Further customer research can help you develop a more detailed picture of them and understand how to target them. It will also highlight key characteristics your customers share, such as:

• gender
• age
• occupation
• disposable income
• residential location
• recreational activities.

Understand why they shop

Once you’ve identified who your customers are, you can find out what motivates them to buy products and services. For example, consider if they make decisions based on:

• work demands
• family needs
• budget pressures
• social or emotional needs
• brand preferences.

Identify preferred shopping methods

As well as understanding why they shop, you will also want to understand how they shop. To learn about your customers’ preferred method and means of shopping, consider if they:

• shop online, over the phone or in stores
• make spontaneous or carefully considered buying decisions.

Consider their spending habits

Different types of customers will be willing to spend different amounts. Find out what financial capacity and spending habits your customers have. For example, consider:

• their average income
• the portion of their income they spend on the type of products or services you sell
• if they budget.

Find out what they think of you

Learn about your customers’ views and expectations of your business and rivals. For example, find out what they think of your:

• products and services
• customer service
• competitors

A customer needs is used in product development and branding to provide an in-depth analysis of the customer to ensure that the product or message offers the benefits, attributes, and features needed to provide the customer with value.

 

UNIT-2

1. What is meant by product? Explain new product development process and its key accepts in designing a product in context of International Market.

Ans:

Product:

” The word “product” stems from the verb “produce”, from the Latin prōdūce(re) “(to) lead or bring forth. ” Since 1575, the word “product” has referred to anything produced.

In marketing, a product is anything that can be offered to a market that might satisfy a want or need. In retail, products are called merchandise. In manufacturing, products are purchased as raw materials and sold as finished goods. Commodities are usually raw materials such as metals and agricultural products, but the term can also refer to anything widely available in the open market. In project management, products are the formal definition of the project deliverables that form the objectives of the project.

A product is composed of tangible/physical attributes like weight, dimensions and materials and intangible attributes such as fragrance, density and so on. Example: an automobile is composed of 3,000 pounds of metal or plastic measuring 190” Long, 75” wide and 59” high.

Definition:

A product is defined as the collection of physical, psychological, service, tangible, symbolic and intangible attributes which has created satisfaction as well as benefits to the buyer or the user.

A product is any good, service, or idea that can be offered to a market to satisfy a want or need.

Philip Kotler defines a product as anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need includes physical objects, services, persons, places, organizations and ideas.

New product development :

New Products are the products which are introduced for first time in the market. The marketer outlines the development process of new product fo0r successfully introducing the products in the competitive market.

Stages in new product development :

1. Idea generation

The first step in new-product development is idea generation.

New ideas can be generated by:

1. Conducting marketing research to find out the consumers’ needs and wants.
2. Inviting suggestions from consumers.
3. Inviting suggestions from employees.
4. Brainstorming suggestions for new-product ideas.
5. Searching in different markets viz., national and international markets for new-product ideas.
6. Getting feedback from agents or dealers about services offered by competitors.
7. Studying the new products of the competitors.

 

2. Idea screening

 

Most companies have a “Idea Committee.” This committee studies all the ideas very carefully. They select the good ideas and reject the bad ideas.

Before selecting or rejecting an idea, the following questions are considered or asked:

1. Is it necessary to introduce a new product?
2. Can the existing plant and machinery produce the new product?
3. Can the existing marketing network sell the new product?
4. When can the new product break even?

If the answers to these questions are positive, then the idea of a new-product development is selected else it is rejected. This step is necessary to avoid product failure.

 

3. Concept testing

 

Concept testing is done after idea screening. It is different from test marketing.

In this stage of concept testing, the company finds out:

1. Whether the consumers understand the product idea or not?
2. Whether the consumers need the new product or not?
3. Whether the consumers will accept the product or not?

Here, a small group of consumers is selected. They are given full information about the new product. Then they are asked what they feel about the new product. They are asked whether they like the new product or not. So, concept testing is done to find out the consumers’ reactions towards the new product. If most of the consumers like the product, then business analysis is done.

 

4. Business analysis

Business analysis is a very important step in new-product development. Here, a detailed business analysis is done. The company finds out whether the new product is commercially profitable or not.

Under business analysis, the company finds out…

1. Whether the new product is commercially profitable or not?
2. What will be the cost of the new product?
3. Is there any demand for the new product?
4. Whether this demand is regular or seasonal?
5. Are there any competitors of the new product?
6. How the total sales of the new product be?
7. What will be the expenses on advertising, sales promotion, etc.?
8. How much profit the new product will earn?

So, the company studies the new product from the business point of view. If the new product is profitable, it will be accepted else it will be rejected.

 

5. Product development

 

At this stage, the company has decided to introduce a new product in the market. It will take all the necessary steps to produce and distribute the new product. The production department will make plans to produce the product. The marketing department will make plans to distribute the product. The finance department will provide finance for introducing the new product. The advertising department will plan the advertisements for the new product. However, all this is done as a small scale for Test Marketing.

 

6. Test marketing

 

Test marketing means to introduce the new product on a very small scale in a very small market. If the new product is successful in this market, then it is introduced on a large scale. However, if the product fails in the test market, then the company finds out the reasons for its failure. It makes necessary changes in the new product and introduces it again in a small market. If the new product fails again the company will reject it.

Test marketing reduces the risk of large-scale marketing. It is a safety device. It is very time-consuming. It must be done especially for costly products.

 

7. Commercialization

If the test marketing is successful, then the company introduces the new product on a large scale, say all over the country. The company makes a large investment in the new product. It produces and distributes the new product on a huge scale. It advertises the new product on the mass media like TV, Radio, Newspapers, and Magazines, etc.

 

8. Review of market performance

The company must review the marketing performance of the new product.

It must answer the following questions:

1. Is the new product accepted by the consumers?
2. Are the demand, sales and profits high?
3. Are the consumers satisfied with the after-sales-service?
4. Are the middlemen happy with their commission?
5. Are the marketing staffs happy with their income from the new product?
6. Is the Marketing manager changing the marketing mix according to the changes in the environment?
7. Are the competitors introducing a similar new product in the market?

The company must continuously monitor the performance of the new product. They must make necessary changes in their marketing plans and strategies else the product will fail.

 

 

2. Describe various steps of promotional program.

 

Marketing Communication or promotion plays a very important role in marketing, both domestic and international. Even if a product is very good, it may not achieve full success unless the promotion is appropriate and adequate.

 

promotion refers to how marketers combine a range of marketing communication methods

to execute their marketing activities. Different methods of marketing communication have distinct advantages and complexities, and it requires skill and experience to deploy them effectively.

 

Steps of promotional program:

             The different steps involved in the promotional programme are as follows:

1. Identifying the target market
2. Determining and setting objectives
3. Developing the message for right communication effects and
4. Selecting the communication mix

 

Step 1: Identifying the target market

            Target market is an important aspect based on which the communication mix is decided. The target market should be identified after through research. In this step, the consumers having the same characters are identified and accordingly the segmentation is done. For example, in a tourism industry, the visitors characteristics are examined, clear market segment is identified and then, buying decision factors are identified.

Step 2: Determining and Setting Objectives

            In the second step, the objectives are determined and set. It is very essential to clearly define the marketing objectives in order to design and use an effective form of promotion.

Step 3: Developing the Message for Right Communication Effects

            The message acts as an instrument/device to change or transform a suspect customer to prospect customer. Thus, an effective message is designed to attain the desired objectives of the promotional efforts.

The success of the promotional campaign relies on the promotional message. The promotional campaign must communicate a message which build-up the customer’s confidence and increases the possibility of purchase. The convincing words which are mostly used by the marketers while creating the message and are found very effective by the research conducted by the university of Yale are: save, health, love, proven, discover, you, easy, results, safety, guarantee, money etc. thus, the promotional campaign increases the awareness and creates a positive image of the service which in turn affects the demand of the service.

Step 4: Selecting the Communication Mix

            For selecting an appropriate communication mix, it is very essential to follow the criteria mentioned below:

• Overall marketing objectives
• Nature of the service
• Characteristics of target market
• Nature and attitude of intermediaries
• Action of competitors
• Cost efficiency
• Integration and feasibility with other marketing elements.
• Effective implementation
• Legal, managerial and ethical consideration.

Guidelines for Service Communication

• Tangible clues must be given for perceiving the service and for making it understandable. Example: ICICI makes use of an umbrella for symbolizing protection.
• Regular communication must be done with the target audience by using logos, signs, packaging, etc.
• The firm should make a promise which is possible to be delivered.
• The word-of-mouth communication must be used as a means to convey message as it is commonly used by the consumers in services.

In case of services, the employees are concouraged  to deliver the promise and attain zero percent defection of customers which needs high employee-customer interaction in a             user-friendly manner.

 

3.What is Marketing Research? Explain its features and process in detail.

International Marketing Research

 

Introduction

 

Today the environment in modern business arena is highly uncertain and rapidly changing. Advances in communications and information systems technology are further accelerating the pace of change. Expansion of business operations from home country toward other countries is making the uncertainty more prominent and stronger. This may be due to cultural, political, and legal differences. This makes it increasingly critical for management to keep abreast of changes and to collect timely and pertinent information to adapt strategy and market tactics in expanding local markets. As a consequence, international marketing research becomes essential for effective decision making when organizations start to internationalize toward foreign markets.

 

Definition of Marketing Research

 

According to American Marketing Association – “Marketing Research is the systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services”.

 

According to Philip Kotler – “Marketing research is a systematic problem analysis, model building and fact finding for the purpose of improved decision-making and control in the marketing of goods and services”.

 

According to Paul Green and Donald Tull – “Marketing research is the systematic and objective search for, and analysis of, information relevant to the identification and solution of any problem in the field of marketing”.

 

According to David Luck, Donald Taylor, and Hugh Wales – “Marketing Research is the application of scientific methods in the solution of marketing problems”.

 

Definition of International Marketing Research

 

International marketing research is the systematic design, collection, recording, analysis, interpretation, and reporting of information pertinent to a particular marketing decision facing a company operating internationally.

 

International Market Research is a particular discipline of Market Research, focusing on certain geographical areas.

 

International Market Research is concerned with consumer goods, but also with any resource or service within a value chain which will be commercially utilized or further processed – which is the area of industrial goods and B2B-Marketing.

International Marketing Research Process

Conduct preliminary research – Do some preliminary research on your topic of interest. For this you can go online and search existing survey reports related to your topic of interest. the searched reports may not be too specific to your requirement, but it might give you some ideas on how to go about your primary research.

 

Features of Marketing Research:

(1) Intensive Study- It involves systematic and intensive study of a marketing problem.

(a) Planned Process- We have planned procedure of investigation and analysis.

(b) Orderly Investigation- The procedure of marketing research has clearly-defined steps in proper sequence or order.

(c) Intensive Investigation- All the relevant factors involved in a marketing problem are observed closely.

(2) Scientific Approach- Marketing research adopts scientific method and objectivity in the solution of a marketing problem.

(a) Rational Outlook- Researcher or analyst has an objective attitude — rational outlook based on reason and logic.

(b) Defined Purpose- The purpose of inquiry and the problem under investigation are clearly defined.

(c) Accuracy- Accuracy (exactness) in calculation, in observation and in reporting is strictly ensured.

(d) Standardised Process- Marketing research process is standardised and can be repeated exactly in solving all problems.

(e) Scientific Attitude- The researcher has an open mind, critical attitude, creativity, absolute honesty and integrity — the hallmarks of scientific attitude and approach.

(3) Decision Tool- Marketing research is a tool for decision-making and control in the marketing of goods.

 

 Marketing Research Process:

Marketing research helps in arriving at the decision or solutions for various marketing problems.

The research process involves different stages which are:

1. Problem Formulation:

Formulation of the problem is the first step in the marketing research process. Unless and until the problem is well defined, there is no use of the research work. Well defined and formulated problems can be solved very easily and appropriately. The problem should be defined neither too broadly nor too narrowly. Problems may be of different type i.e. operating (recurring) problem or non-operating (non­recurring) problem.

Recurring problems includes problems relating to sales expenses, sales forecasting, sales volume, product quality, product line, price policy etc. Non-recurring or non-operating problems relate to problems such as change in consumption pattern, price changes, product innovation, changes in competitive forces etc.

2. Research Design:

A research design is the framework or blue print for conducting the market research project. Once the specific research objective has been defined, it is essential to arrive at the correct hypothesis, data collection method, sampling plan and research design instrument.

Formulating a research design involves following steps:

1. Define the information which is required.
2. Analysis of the secondary data.

iii. Qualitative research.

1. Method of collecting data.
2. Measurement and scaling procedure.
3. Questionnaire design.

vii. Sampling process and sample size.

viii. Plan of data analysis.

3. Data Collection:

Data can be collected from both primary and secondary sources. Primary data is the data which is collected for the first time with research purpose in mind. It is the first hand information. Secondary data is the data already collected by some other person for some other research problem. Primary data can be collected through different method – observation method or communication method. Interviews may be conducted either personal or through telephone or any other method to collect the required information.

4. Data Analysis:

Analysis of the raw data is very essential to arrive at the conclusion.

This analysis involves three phases, they are:

1. Classifying the data
2. Data summarization

iii. Advanced data analysis tools and techniques to highlight inter­relationship and quantitative significance.

1. Classifying the Data:

Classification of data includes editing, coding, transcription and verification of data. The most commonly used techniques here are quantitative, qualitative, geographical and chronological.

Quantitative classification are for quantitative data like number of units, number of respondents. Qualitative classification is for qualitative data like occupation, types of family etc. Geographical classification is the one where geographical location is used to classify the data. Chronological classification is on the basis of the time period when event took place.

1. Data Summarization:

For summarization of data various techniques are there like mean, median, mode, range, variance, standard deviation, mean deviation.

iii. Advanced Data Analysis Tools and Techniques:

This includes advanced method for analysing the data like factor analysis, discriminate analysis, correlation, regression, multiple regression.

5. Report Presentation and Recommendations:

A normal report includes the following:

(1) Title of the report

(2) Summary of conclusion

(3) Sample and characteristics

(4) Findings and observations

(5) Questionnaire

(6) Appendices

(7) Recommendation made may be accepted or rejected.

 

4.Define Advertisement? Explain in detail Advertisement with its objectives, types, importance and advantages?

Advertising is the action of calling public attention to an idea, good, or service through paid announcements by an identified sponsor.

Definition: 

According to Kotler –

Advertising is any paid form of non-personal presentation & promotion of ideas, goods, or services by an identified sponsor.

According to the Advertising Association of the UK –

Advertising is any communication, usually paid-for, specifically intended to inform and/or influence one or more people.

A simpler (and modern) definition of advertising can be – A paid communication message intended to inform people about something or to influence them to buy or try something.

Advertising is a means of communication with the users of a product or service. Advertisements are messages paid for by those who send them and are intended to inform or influence people who receive them, as defined by the Advertising Association of the UK.

An advertorial is a form of advertisement in a newspaper, magazine or a website which involves giving information about the product in the form of an article. Usually, a brand pays the publisher for such an article.

Definition of International Advertising
International advertising entails dissemination of a commercial message to target audiences in more than one country. Target audiences differ from country to country in terms of how they perceive or interpret symbols or stimuli, respond to humor or emotional appeals, as well as in levels of literacy and languages spoken. How the advertising function is organized also varies. In some cases, multinational firms centralize advertising decisions and budgets and use the same or a limited number of agencies worldwide. In other cases, budgets are decentralized and placed in the hands of local subsidiaries, resulting in greater use of local advertising agencies.
International advertising can, therefore, be viewed as a communication process that takes place in multiple cultures that differ in terms of values, communication styles, and consumption patterns. International advertising is also a business activity involving advertisers and the advertising agencies that create ads and buy media in different countries. The sum total of these activities constitutes a worldwide industry that is growing in importance. International advertising is also a major force that both reflects social values, and propagates certain values worldwide.

Characteristics Of Advertising

• Paid Form: Advertising requires the advertiser (also called sponsor) to pay to create an advertising message, to buy advertising media slot, and to monitor advertising efforts.
• Tool For Promotion: Advertising is an element of the promotion mixof an organization.
• One Way Communication: Advertising is a one-way communication where brands communicate to the customers through different mediums.
• Personal Or Non-Personal: Advertising can be non-personal as in the case of TV, radio, or newspaper advertisements, or highly personal as in the case of social media and other cookie-based advertisements.

 

Advertising activities can also be categorized into 5 types based on the advertisement medium used. These types of advertisements are:

• Print Advertising:Newspaper, magazines, & brochure advertisements, etc.
• Broadcast Advertising:Television and radio advertisements.
• Outdoor Advertising:Hoardings, banners, flags, wraps, etc.
• Digital Advertising:Advertisements displayed over the internet and digital devices.
• Product/Brand Integration:Product placements in entertainment media like TV show, YouTube video, etc.

Objectives Of Advertising

There are 3 main objectives of advertising. These are:

To Inform

Advertisements are used to increase brand awareness and brand exposure in the target market. Informing potential customers about the brand and its products is the first step towards attaining business goals.

To Persuade

Persuading customers to perform a particular task is a prominent objective of advertising. The tasks may involve buying or trying the products and services offered, to form a brand image, develop a favourable attitude towards the brand etc.

To Remind

Another objective of advertising is to reinforce the brand message and to reassure the existing and potential customers about the brand vision. Advertising helps the brand to maintain top of mind awareness and to avoid competitors stealing the customers. This also helps in the word of mouth marketing.

Other objectives of advertising are subsets of these three objectives. These subsets are:

• Brand Building
• Increasing Sales
• Creating Demand
• Engagement
• Expanding Customer Base
• Changing Customers’ attitudes, etc.

 

Importance Of Advertising

To The Customers

• Convenience: Targeted informative advertisements make the customer’s decision making process easier as they get to know what suits their requirements and budget.
• Awareness: Advertising educates the customers about different products available in the market and their features. This knowledge helps customers compare different products and choose the best product for them.
• Better Quality: Only brands advertise themselves and their products. There are no advertisements for unbranded products. This ensures better quality to the customers as no brand wants to waste money on false advertising.

 

To The Business

• Awareness:Advertising increases the brand and product awareness among the people belonging to the target market.
• Brand Image: Clever advertising helps the business to form the desired brand imageand brand personality in the minds of the customers.
• Product Differentiation: Advertising helps the business to differentiate its product from those of competitors’ and communicate its features and advantages to the target audience.
• Increases Goodwill: Advertising reiterates brand vision and increases the goodwill of the brand among its customers.
• Value For Money: Advertising delivers the message to a wide audience and tends to be value for money when compared to other elements of the promotion mix.

Advantages Of Advertising

• Reduces Per-Unit Cost: The wide appeal of advertisements increases the demand for the product which benefits the organization as it capitalizes on the economies of scale.
• Helps In Brand Building: Advertisements work effectively in brand building. Brands who advertise are preferred over those which doesn’t.
• Helps In Launching New Product:Launching a new product is easy when it is backed by an advertisement.
• Boosts Up Existing Customers’ Confidence In The Brand:Advertisements boosts up existing customers’ confidence in the brand as they get a feeling of pride when they see an advertisement of the product or the brand they use.
• Helps In Reducing Customer Turnover:Strategic advertisements for new offers and better service helps reduce customer turnover.
• Attracts New Customers:Attractive advertisements help the brand in gaining new customers and expanding the business.
• Educates The Customers:Advertisements inform the customers about different products existing in the market and also educates them in what they should look for in an apt product.

Disadvantages Of Advertising

• Increases The Costs:Advertising is an expense to the business and is added to the cost of the product. This cost is eventually borne by the end consumer.
• Confuses The Buyer:Too many advertisements with similar claims often confuses the buyer in what to buy and should he buy the product or not.
• Is Sometimes Misleading:Some advertisements use smart strategies to mislead the customers.
• Only For Big Businesses:Advertising is a costly affair and only big businesses can afford it. This makes small businesses out of competition with big businesses who get to enjoy a monopoly in the market.
• Encourages The Sale Of Inferior Products:Effective advertisements even lead to the sale of inferior products which aren’t good for the consumers.

 

 

UNIT-3

1. Distinguish international marketing and Domestic marketing?

Marketing is defined as the set of activities which are undertaken by the companies to provide satisfaction to the customers through value addition and making good relations with them, to increase their brand value. It identifies and converts needs into products and services, so as to satisfy their wants.

 

There are two types of marketing namely, domestic and international marketing. Domestic marketing is when commercialization of goods and services are limited to the home country only. On the other hand, International marketing, as the name suggests, is the type of marketing which is stretched across several countries in the world, i.e. the marketing of products and services is done globally. In this article excerpt you can find the difference between domestic and international marketing in detail.

 

	Difference between International Marketing and Domestic Marketing
	Basis		Domestic Marketing		International Marketing
Definition		“It is concerned with the marketing practises within the researchers or Marketers home country (domestic market).”		“It is the performance of business activities designed to plan, price, promote and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit.”
Business operation		In  a single country		More than one country
Role of Politics		Political factors are of minor importance.		Political factors play a vital role.
Languages & Cultures		One language and culture.		Many languages and difference in cultures.
Financial Climate		Uniform financial climate. Less Capital is Required		Variety of financial climate. Huge Capital is Required
Risk Involved		Normal risk is involved.		Higher risks of different nature are involved.
Control of Marketing Activities		Control of marketing activities is easy as compared to international activities.		Control of marketing activities is difficult because of different factors like – regional, cultural, political, etc.
Government interference		Less		Comparatively high
Payment		Minimum payment and credit risks.		Considerable payment and credit risks.
Familiarity		Well familiarity with domestic market.		Lack of Familiarity with foreign markets, research becomes Essential.
Knowledge Requirement		Management knowledge is required.		Specific management knowledge and competence is required.
Use of Technology		Limited		Sharing and use of latest techonology.
Product Mix		Product mix is decided keeping in view the satisfaction and more sales.		Product mix is decided according to foreign market.
Product Planning and Development		Product planning and development according to domestic market.		Product planning and development according to foreign market.
Focus		Focus of interest is on general information.		Focus of interest is on strategic emphasis.
Market Aspect		Market is much more homogeneous and different segments.		Different or diverse markets fragmented in nature
Research		Required but not to a very high level.		Deep research of the market is required because of less knowledge about the foreign markets.

 

 

2. What are the different stages of international product life cycle (IPLC)? Explain in detail international product promotion.

International product life cycle:

 

Product life cycle theory divides the marketing of a product into four stages: introduction, growth, maturity and decline. When product life cycle is based on sales volume, introduction and growth often become one stage. For internationally available products, these three remaining stages include the effects of outsourcing and foreign production. When a product grows rapidly in a home market, it experiences saturation when low-wage countries imitate it and flood the international markets. Afterward, a product declines as new, better products or products with new features repeat the cycle.

 

General Theory

When a product is first introduced in a particular country, it sees rapid growth in sales volume because market demand is unsatisfied. As more people who want the product buy it, demand and sales level off. When demand has been satisfied, product sales decline to the level required for product replacement. In international markets, the product life cycle accelerates due to the presence of “follower” economies that rarely introduce new innovations but quickly imitate the successes of others. They introduce low-cost versions of the new product and precipitate a faster market saturation and decline.

Growth

An effectively marketed product meets a need in its target market. The supplier of the product has conducted market surveys and has established estimates for market size and composition. He introduces the product, and the identified need creates immediate demand that the supplier is ready

to satisfy. Competition is low. Sales volume grows rapidly. This initial stage of the product life cycle is characterized by high prices, high profits and wide promotion of the product. International followers have not had time to develop imitations. The supplier of the product may export it, even into follower economies.

 

Maturity

In the maturity phase of the product life cycle, demand levels off and sales volume increases at a slower rate. Imitations appear in foreign markets and export sales decline. The original supplier may reduce prices to maintain market share and support sales. Profit margins decrease, but the business remains attractive because volume is high and costs, such as those related to development and promotion, are also lower.

 

Decline

 

In the final phase of the product life cycle, sales volume decreases and many such products are eventually phased out and discontinued. The follower economies have developed imitations as good as the original product and are able to export them to the original supplier’s home market, further depressing sales and prices. The original supplier can no longer produce the product competitively but can generate some return by cleaning out inventory and selling the remaining products at discontinued-items prices.

International Product Promotion Strategies

Companies develop marketing strategies to build a loyal customer base, to build relationships with those customers and to create value for the customer. Effective product and promotion strategies are essential in making sure your product is readily accessible in the global marketplace. Special considerations are necessary when marketing to global customers such as international issues of technology, transportation and regulation.

Extension

A straight product extension is presenting your product to a global marketplace without any changes. Some products are globally known and need no additional product or promotion changes. People want the product on a global basis, and once it is made available to them, it is purchased without having to create any additional marketing or promotion strategies.

Adaptation

Production and promotion adaptation strategies are used in a global market for a product that may be popular but needs to be adapted to meet local customs and demand. For example, customers of less affluent countries may need a product of similar quality that has been downscaled to be more affordable to purchase. Technology products must be altered to meet the specific language of the country being marketed to.

Invention

Another product and promotion strategy is inventing a new product to meet the needs of a particular country. For example, consumers in crowded commuting conditions might need a laptop product that better fits their travel situation, a more compact version of the typical laptop. This strategy also could take on the form of reinventing a popular product to meet the needs of a particular country or world region.

Pricing Considerations

Global product and promotion strategies must take into consideration the economic conditions of the country where products are introduced. For example, a price that might be discounted in the United States would be considered too high for poorer countries or perhaps not high enough in rich countries. To combat prices being too high in less affluent countries, a company could make a smaller or less complex version at a lower price.

3. Role of export marketing in international trade.

 

ROLE OF EXPORT MARKETING IN INTERNATIONAL TRADE

 

TRADE Transfer of ownership of goods or services. Trade is sometimes loosely called commerce or financial transaction or barter. INTERNATIONAL TARDE International trade is the exchange of capital, goods, and services across international borders. EXPORT In International Trade, “exports” refers to selling goods and services produced in the home country to other countries. The seller of such goods and services is referred to as an “exporter“. IMPORT In International Trade, “imports” refers to buying goods and services produced in a foreign country to other countries. The buyer of such goods and services is referred to an “importer”. EXPORT MARKETING

 

Export marketing means exporting goods to other countries of the world as per the procedures framed by the exporting country as well as by the importing country. Export marketing has wider economic significance as it offers various advantages to the national economy. It has bought back several nations back from the dead. DEFINITION According to B. S. Rathor “Export marketing includes the management of marketing activities for products which cross the national boundaries of a country”. “Export marketing means marketing of goods and services beyond the national boundaries”.

 

FEATURES

 

1. Systematic Process – Export marketing is a systematic process of developing and distributing goods and services in overseas markets. The export marketing manager needs to undertake various marketing activities, such as marketing research, product design, branding, packaging, pricing, promotion

 

2. Large Scale Operations – Normally, export marketing is undertaken on a large scale. Emphasis is placed on large orders in order to obtain economies in large sole production and distribution of goods.

 

3. Dominance of Multinational Corporations – Export marketing is dominated by MNCs, from USA, Europe and Japan. They are in a position to develop worldwide contacts through their network and conduct business operations efficiently and
4. Trade barriers – Export marketing is not free like internal marketing. There are various trade barriers because of the protective policies of different countries. Tariff and non-tariff barriers are used by countries for restricting

 

5. Documentation – Export marketing is subject to various documentation formalities. Exporters require various documents to submit them to various authorities like bill of

 

Need / Importance of Export Marketing at the National Level:

 

• Earning foreign exchange – Exports bring valuable foreign exchange to the exporting country, which is mainly required to pay for import of capital goods, raw materials, spares and components as well as importing advance technical

 

• International Relations – Almost all countries of the world want to prosper in a peaceful environment. One way to maintain political and cultural ties and peace with other countries is through international

 

• Balance of payment – Large – scale exports solve BOP problem and enable countries to have favourable BOP position. The deficit in the BOT and BOP can be removed through large-scale exports.

 

• Reputation in the world – A country which is foremost in the field of exports, commands a lot of respect, goodwill and reputation from other

 

• Employment Opportunities – Export trade calls for more production. More production opens the doors for more employment opportunities, not only in export sector but also in allied sector like banking, insurance etc.

 

Need / Importance of export marketing at Business / Enterprise Level

 

• Reputation – An organization which undertakes exports can become famous not only in the export markets, but also in the home market. For example, firms like Phillips, , Sony, coca cola, Pepsi, enjoy international

 

• Optimum Production – A company can export its excess production after meeting domestic demand. Thus, the production can be carried on up to the optimum product
• Spreading of Risk – A firm engaged in domestic as well as export marketing can spread its marketing risk in two parts. The loss is one part (i.e. in one area of marketing) can be compensated by the profit earned in the other part /

 

• Higher profits – Exports enable a business enterprise to earn higher prices for goods. If the exporters offer quality products, they can charge higher prices than those charged in the home market and thereby raise the profit

 

CHALLENGES TO EXPORT MARKETING

 

1. Technological differences- The developed countries are equipped with sophisticated technologies less developed countries, on the other hand, lack technical knowledge and latest equipments.

 

2. Reduction in export Incentives– Over the years, the Govt. of India has reduced export incentives such as withdrawal of income tax benefits for majority of exporters. The reduction in export incentives de-motivates exporters

 

3. Several competitions in global marketing– Export marketing is highly competitive. Indian exporters face three-faced competition while

 

4. Problem of product standards– Developed countries insist on high product standards from developing countries like India. The products from developing countries are subject to product tests in the importing

 

5. Problem in preparing Documents– Export involves a large number of documents. The exporter will have to arrange export documents required in his country and also all the documents as mentioned in the documentary letter of credit. In India, there are as many as 25

 

IMPORTANCE OF EXPORT MARKETING

 

• Increased Sales and Profits. Selling goods and services to a market the company never had before boost sales and increases revenues. Additional foreign sales over the long term, once export development costs have been covered, increase overall

 

• Enhance Domestic Competitiveness Most companies become competitive in the domestic market before they venture in the international arena. Being competitive in the domestic market helps companies to acquire some strategies that can help them in the international

 

• Gain Global Market Shares. By going international companies will participate in the global market and gain a piece of their share from the huge international

 

• Selling to multiple markets allows companies to diversify their business and spread their risk. Companies will not be tied to the changes of the business cycle of domestic market or of one specific country.
• Lower Per Unit Costs. Capturing an additional foreign market will usually expand production to meet foreign demand. Increased production can often lower per unit costs and lead to greater use of existing

 

4. Explain the concept of Internal Marketing. Also describe international marketing Strategies.

Internal marketing is the promotion of a company’s objectives, products and services to employees within the organization. The purpose is to increase employee engagement with the company’s goals and fostering brand advocacy.

 

Employees who are enthusiastic about their company and its offerings are likely to share that enthusiasm with their social networks. As a result, internal marketing can be an effective part of external branding and marketing efforts. However, internal marketing can only go so far since an employee’s attitude toward the organization is affected by every element of that individual’s experience working for the business. Keeping employees happy and engaged is important to external marketing efforts as well.

Common internal marketing efforts include:

• Ensuring that all employees know that their contributions are essential to the company’s success.
• Educating all employees about the company’s products and services.
• Reinforcing the concept that customers are, when all is said and done, the source of employees’ salaries.
• Providing adequate salaries and benefits, plus a pleasant work environment.
• Encouraging employee input on corporate policies, management and operation – including criticism.
• Acting on employee suggestions that have merit and publicly acknowledging the value of the input.
• Confirming that the corporate mandate and objectives are clearly described and disseminated throughout the organization.
• Providing opportunities for advancement, professional development and promotion.
• Ensuring that the corporate culture is consistent with work-life balance.
• Fostering communication and collaborationamong employees through various methods from formalized settings and to casual areas for gathering, such as lounges.

 

Internal marketing operates on the idea that customer opinions of a company are based on their experiences with the business, not just with the products. By treating employees as “internal customers”, internal marketing helps employees align with the company’s vision and operations. In turn, they provide their customers with a consistent and valuable experience. Internal marketing campaigns are often lead by a company’s human resources department, which is responsible for distributing information and providing training on the company’s objectives and strategies.

 

International Marketing Strategies

Marketing can be defined as a process of creating, delivering and communicating the value of a product or service by an organizational function to the customers for the purpose of selling the product or service in ways that also benefit the organization and its shareholders. In international marketing, also known as global marketing, the organizations find out the needs of the customers in foreign countries so that marketing is carried out across the national borderlines for providing the sustomers the required entities at right place and at the right time. In this strategy the organizations adopts techniques that are the extensions used in the home country. It includes market identification and market targeting, selection of entry mode, marketing mix decision and strategic decisions in order to compete in the international markets.

When creating a worldwide marketing plan, every organization needs to formulate its international marketing strategies. It involves a five step procedure. This includes market assessment product strategy, price strategy, place strategy and promotion strategy. The factors to be considered while formulating an international marketing strategy are briefly discussed below:

Market Assessment

This include a five step screening procedure:

1. The first step is the identification of the customers’ needs and to list out the items.
2. After listing out the basic items, the list is shortened in the next step by screening by analyzing the financial and economic condition of various potential markets.
3. Under the third steps, before entering any potential market the organization considers the legal and political forces of the host country.
4. In the similar way, under the fourth step also the organizations should consider the socio-cultural forces of potential markets.
5. If the organization finds a choice between two or more countries, then at the fifth step they should consider the markets where the competitions are less.

After all the screening steps, in the final selection the organization arranges trips to the actual locations where their executives can evaluate the potential markets for providing overseas goods and services.

Product strategy

Product strategy varies depending on the goods and the customers. To sell a particular product in a country some modifications are required in the product or its marketing strategy according to the requirements of the market.

Pricing Strategy

To price a product depend on many factors like the cost of raw materials, cost of developing the product, cost of transportation of the product etc. while pricing product government regulations, legal forces are also some of the limiting factors.

Place Strategy

While selling a product the multinational organizations should keep in mind to choose a place that is most convenient for the customers. To distribute the product so that it reaches the customers the organizations should fix proper distribution channels. The manner, by which the product is distributed, on the other hand, is influenced by the competitions in the market for similar types of product.

Promotion strategy

To stimulate the demand of a particular product or a service, a company adopts many strategies to attract the customers. Some strategies may be through advertisement and personal selling. By adopting such strategies multinational enterprises promote their goods and services in different countries.

Types of International Marketing Strategies

1. Individualized Marketing Strategy

Individualized marketing, as its name suggests, focuses each and every targeted market in detail which requires the company to gather an extensive amount of research data. Therefore, to maintain the balance between the profit and the costs involved in that research, the focus is kept to, just, two or three countries. Furthermore, a revised version of the product is created to match the needs of all the individual markets by keeping economic, political and social factors in the notice.

2. Global Marketing Strategy

Promoting a brand globally enables it to create a unified version of the product by ignoring most or nearly all of the differences between different countries is known as global marketing. Application of such international marketing strategies takes place just because of the reason that the world is now acting like a global village where customers are having a standardized taste and their ideas of assessing a product are getting more and more similar. This strategy cuts the costs of research significantly, but promotion needs enormous efforts to get the word for your product deep down in the markets.

These international marketing strategies are also known as Global Marketing Strategies and almost used in all over the world as marketing product or brand globally.

Tools for International Marketing Strategies

Even though the market gets bigger and bigger as the number of targeted countries increases, but the tools used for promotion are same.

1. Advertisements

One of the most powerful marketing tools that can help you achieve your dream of converting your product to sales is advertising it through different means. Put the word for your product in international newspapers, radio channels, anything that can get a poster on it and most importantly, the Internet because it houses hundreds of other means of marketing your brands like emails, websites, and many others. Furthermore, you can also run a contest for which entrants will have to share the news about your brand to their friends and family.

2. Price Promotions

The best way to get a buzz of the product is by putting up some promotions. Either you can give your product sales a huge boost through discounts or by giving your customers some timed trial or you can couple up your product with a freebie for every purchase.

3. Make use of tradeshows

There are many types of products that customers do not buy until they have tested by themselves especially cars. Actually, they are looking for the experience of the product to be purchased and that’s where tradeshows come into play. The company invites its customers to the trade show and let them experience the full potential of the brand.

4. B2B Marketing

B2B is an unusual tactic often used by bigger enterprises is to spread the word among individuals and organizations alike which allow them to sell their product to other commercial businesses, institutions, and other agencies, which can then either use this product or resell it.

5. Inbound marketing

Making use of the requests, for the new products, often made by the customers can undoubtedly lead to additional sales of services that you currently have. For example, when a customer contacts the bank to check the account balance, the bank’s contact center takes advantage of the chance and offers its customers to apply for any other service.

1. Outbound marketing

Reaching out to individual target groups is a lot more fruitful than addressing the whole world, since it lets the potential customers know that a particular business exists and can be a lot more advantageous to our cause. For this purpose, a list of prospects is developed that can provide a starting point for the brand and this list is, then, further refined to concentrate the search for new customers. The same was the case of Microsoft when it spread the word of its accounting software.

 

 

UNIT-4

1. Discuss the development of International Marketing?

 

Definition: Market development is a strategic step taken by a company to develop the existing market rather than looking for a new market. The company looks for new buyers to pitch the product to a different segment of consumers in an effort to increase sales.

 

 

 

The development of International Marketing

Global Marketing is an extension and new vision of international marketing and it is being used since 1980’s.

• Domestic Marketing

Marketing activities of the firm specifically targeting the needs and wants of single market i.e., the firms domestic/home market and is often referred to as ‘domestic marketing’ and the firm here face individual set of issues related to economic, competitive and marketing aspects. Domestic marketing mainly focuses on a single set of national customers, even though it is serving the several segments of single market.

Segment 1

Eg: Single country                              Segment 2

(India)                                         Segment 3

 

• Export Marketing : This take place when a company sells its products to another company/country which is beyond the range of the domestic operations i.e., firms produce products in one country and sells them in other country. The biggest change of export marketing is to appropriately select those market or countries which are offering growth opportunities by conducting market research, identifies appropriate product modifications which are in accordance with the needs of export market and introduce an export channel that helps the company to market its products abroad.

 

Eg: Japan                    India

(Dual-country export marketing)

 

• International Marketing:

A company is said to have engaged in international marketing when it has surpassed the export marketing and is directly engaged in local marketing within a specific country. Such companies also establish their own sales subsidiaries along with the introduction of marketing strategies especially meant for the foreign markets.

 

Companies are required to take appropriate decisions regarding the adjustment of marketing strategy i.e., how to sell, advertise, and distribute products that fulfills the demands of new market. Companies must have clear idea and understanding about the varied cultural, economic and political environments to operate successfully in the world markets.

 

Eg: from Canada to many other countries

 

• Multinational Marketing: Multinational marketing is an outcome of multinational corporation (MNC). MNCs make huge investments in the form of assets across countries and operates in many foreign countries. Such companies make use of multidomestic  strategies to remain competitive in market and to act locally wherever they operates.

            The main issue faced by a multinational marketer is to identify and to adopt the appropriate marketing strategy for a single county. However, multinational fail to gain competitive advantage form their global size while making agreements with their suppliers and distributors.

 

• Pan-regional marketing:

Dis-economics of scale which afflicts individualized marketing strategies that is designed in accordance with the local environment because companies have started focusing on strategies related to large regions. Regional strategies include many markets like pan-European strategies for Europe which is an outcome of regional, political and economic integration.

This form of integration also found in countries like United States, Canada and Mexico. Companies with regional strategies in marketing operations tries to synergize in one region to achieve increased efficiency.

• Global Marketing: International companies are already awake of the opportunities existing for economics of scale and increased competition at higher level with which the companies can control and created for a product, service or a company which is applicable to all types of markets. Global marketers face few challenges while preparing marketing strategies that is suitable for the countries throughout the globe and they must have clear idea and view about cultural, economic and political environment of different countries. Managing the global marketing needs expertise and talented global marketers and managers to achieve success in global markets.

 

2. Discuss the scope and reasons for entering into Global Marketing.

 

Scope of Global Marketing:

 

The  global marketing has a wider scope. The marketing is a managerial activity, which helps in transferring the goods and services from the producer to the customer. An effective global marketing carryout marketing activities across various counties regions and across the globe. It acts as a means for entering the global markets by.

1. Starting a subsidiary or branch in foreign country for processing packaging, assembly or manufacturing with the help of the direct investment.
2. Negotiating licensing so that the foreign enterprises are given the right to utilize the exporting are given the right to utilize the exporting company’s processes, patents or trademarks with the financial investment or without the financial investment.

• Developing joint venture in foreign countries for the purpose of manufacturing or marketing.

1. Providing the consultancy services and taking up the turnkey projects in foreign countries.
2. Undertaking sub-contracting and counter trade.
3. Importing goods to carry out export production.

Reasons for Firms Entering Global Markets

There are several reasons for the firms to enter global market apart from the purpose of just serving global customers. These reasons are as follows,

1. Bulk Sales: by entering into the global markets, the firm can sell the goods in bulk. The global orders are bigger than the orders of domestic markets which enables the firm to use its capacity and attain the economies of scale of operations.
2. Relative Profitablity: The profit rates that are earned from global business are higher than the profit earned from domestic sales.
3. Inadequate Domestic Demand: The domestic demands level over the time period is not sufficient for utilizing the installing capacity effectively. The global business helps in providing adequate mechanism for using the unused capacity. This will in turn help in decreasing the cost and enhancing the firms’ profitability. Establishing the expanding global markets gives a level of protection to the company against the domestic economic slow down.
4. Decreasing Business Risks: An expanded global business assists in reducing the fluctuations in the firms’ overall activities. If a company is selling products in different makes then the downward fluctuations in sales in one market. Which can be domestic market will be balanced by the upward fluctuation in sales in other markets.
5. Legal Restrictions for internal Growth: some restrictions are imposed by the government on the growth and expansion of the company with in the domestic market so as to attain specific social objectives. For making the overseas investments, there will not be any restrictions or if the additional capacity of the company is utilized for exports, then the restrictions can be removed even in domestic markets. In such cases the company can inspect the export operations, as it provides a way for attaining the corporate growth. In this way, the business activities were carried out in India, before the industrial licensing was virtually eliminated.
6. Obtaining Imported Inputs: The countries need export to make payment for importing the materials, processes or technology which are unavailable with in their national borders. The government may be forced to levy export obligations on the firms, specifically those which needs imported inputs.
7. Social Responsibility: In many situations, the businessmen feel responsible to make their contribution towards the foreign exchange reserves of the country by improving their exports, as this helps them to establish their image in the domestic market. They also consider exporting as a way to achieve status and prestige.
8. Increased Productivity: Enhanced productivity is needed for the firm’s survival. It is very essential for the firm to improve production rate and search export markets. In today’s rapidly changing environment, large firms must spend a significant amount of money on the activities of research and development. In order to meet the expenses of research and development, huge markets are required and exports become a necessity.
9. Technological Improvement: Entering the export markets will help the firms,
10. To select innovative product ideas and to make additions to product lines
11. To enhance its products

• To minimize the cost

1. To find new product’s application

Thus, the above mentioned were the reasons for globalization.

1. Discuss International marketing system.

 

2. Challenges in managing international distribution strategies.

Challenges in managing an international distribution strategies:

 

Many companies today distribute goods throughout their local region or across the country with considerable success, and some may be considering expanding into an international market to increase sales. The fact is that managing international distribution channels can be profitable and rewarding for many companies, but it can also be challenging on several different levels. By spending some time analyzing what is involved in managing international distribution channels, you may make a more informed decision about expansion that is right for your company.

 

The Right Market for Your Products

 

First, you should carefully consider the benefit associated with finding an international market that is similar to your own. Reaching into international markets can be difficult to do because your products may appeal to a different target audience, marketing messages may be skewed when they reach a foreign audience or are translated into a foreign language and more. Examples of similar international markets that may be compatible include New Zealand and Australia or Singapore, Malaysia and Hong Kong. Do your research and find out if the desired market does have a demand for your goods. Choosing the right international market is imperative for success as your company expands. Talk to local retailers and their customers to establish if the market is worth the investment.

Other Logistical Concerns

 

In addition to selecting the right international market to invest in, there are other logistical concerns to consider when managing international distribution channels. For example, you must consider if you will sell your goods online or through local retailers.

 

Selling Online to International Markets

 

Online distribution only requires you to ship goods overseas direct to the customer. But international freight can cause issues and lost stock can be a time consuming nightmare to deal with. Consider insurance.

 

Supplying International Retailers

 

While selling big orders to international retailers sounds good it also brings with it some administrative issues. The lack of transparency, trust and distance between you and the retailer can cause communication issues and in a lot of cases the retailer will ignore your account leaving you with little hope in recovering what’s owed to you.

 

Get in front of you desired retailers as much as possible. Establish a good business  relationship with them before entering into a risky business deal. Consider getting a local distributor. Someone who can go door knocking when it comes time to do the debt collection.

 

Managing Multiple Currencies

 

You must also navigate the challenges associated with working with multiple currencies. Fluctuating currencies rates are not manageable on spreadsheets. Consider a good cloud based inventory management and sales management system to handle this for you.

 

As you can see, there are many factors to consider when you are evaluating the pros and cons of managing international distribution channels. Thanks to innovations in technology, shipping services and more, expanding a company’s operations into international areas is easier to do than ever before, and many companies are finding great levels of success from these efforts. However, you do want to carefully consider each of these points so that you make the best decision possible for your business.

 

 

Management of physical distribution of goods:

 

• Order Processing:

 

A company receives orders from other companies, middlemen, or directly from customers through mail, e-mail, fax, phone, or salesmen. Order processing is an importation component of the distribution system. It is considered as a key to customer service and satisfaction.

 

Order processing mainly includes:

 

1. Receiving order

 

2. Recording order

 

3. Filing order

 

4. Executing order or assembling of products for dispatch

 

5. Credit and

 

Thus, it concerns with processing the orders quickly, accurately, and efficiently. The time period from the receipt of an order to the date of dispatch of products must be as short as possible. Ideally, the order recycle time should be completed within 8 days. But, the use of computer and computer networks, for speedy and accurate order processing, can save time, money and efforts for the company and increases customer satisfaction. It is often called as electronic data processing that minimizes possibility of error and omission. Every firm should establish the standard order procedure.

 

The physical distribution must be customer-oriented. It starts with customer order. Note that order processing affects customer service in two ways – reordering time (interval between two orders) and consistency of delivery time (delivering products within the fixed time). Rapid order processing enables a company to attain economy in other areas of physical distribution.

 

The person in charge of order processing must be careful for following aspects:

 

1. Assembling product must be exactly as per demand of customers in terms of quantity, quality, features, and

 

2. Execution must be as quick as
3. The dispatch must be in appropriate mode of

 

4. Credit discount and other allied benefits must be offered as per

 

5. Assessing the effectiveness of order processing. That includes feedback and follow-up.

 

(2)    Warehousing:

 

In today’s context, production is made in expectation of demand. Therefore, products are to be stored or preserved safely for the future demand. And also, all the production is not sold directly. Warehousing plays an important role for balancing demand and supply. For example, most of the agricultural products are produced seasonally, but have demand throughout the year.

 

It facilitates both continuous production and continuous marketing of the production. Warehousing service can contribute to customer satisfaction. Be clear that storage and warehousing are not similar terms, though are closely related.

 

Storage is marketing activity that involves holding and preserving products from the time of their production until their sale. Warehousing embraces storage plus a broad range of functions, such as assembling, breaking the bulk, dispatching as per need of middlemen, sorting/classification, providing market intelligence, preparing product for reshipping, etc. Warehousing involves more activities.

 

Classification of Warehouses:

 

Warehouses may be classified on two bases, on the basis of commodity and on the basis of ownership. Let’s have overview of different warehouses.

 

On the Basis of Commodity:

 

On the basis of commodity stored, there can be:

 

1. Special Commodity Warehouses provide facility for storing special types of commodities, e.g., cotton warehouses, potato warehouses, grain warehouses, tanks for liquid products, explosive product warehouses,

 

2. Cold Storage Warehouses provide facility for storing perishable products, e.g., fish, flowers, vegetable, fruits,

 

Many companies set up their distribution centers in each of regions around the market and integrate its distribution network with them for smooth, safe, and speedy delivery of products. The latest technology is used for maximum consumer benefits. Warehouses offer a number of direct advantages to manufacturers and sellers, and indirect advantages to customers.

 

(3)    Transportation:

 

Transportation is one of the core components of distribution system. It consists of moving or transferring products from producers to final users. Transportation involves two parties, carriers and shippers. Carriers are those companies that provide transportation facilities to others, such as the Western Railway, Indian Airline, Indian Shipping Companies, and many other private carriers provide transportation services by road, rail, water, air and underground pipes.

 

Shippers are those organisations and individuals such as manufacturers, middlemen, customers, and others to whom the carriers provide transportation services. For different modes of transportation, various regulatory bodies deal with various issues related to transportation of products. The Central and the State Governments have formulated a lot of Acts or legal provision to regulate transportation activities in the country.

 

The main regulatory bodies may include:

 

1. The Civil Aviation Department, for air

 

1. The Shipping Corporation of India, for water

 

• The Oil and Natural Gas Commission, for pipeline

 

1. The Road Transport Corporation of the state, for land or road carriers

 

1. The Railway Authorities, for rail transportation,

 

Transportation plays a crucial role in today’s global marketing. It creates the place utility. In brief, transportation has positive impact in every facet of economic, social, and cultural development of the society. The key issues in transportation are type, costs, time, speed, risk, suitability, and availability. Marketer should take transportation decision carefully.

 

 

UNIT-5

1. Why does organization go for Global Marketing?

Global marketing is more than simply selling a product internationally. Rather, it includes the whole process of planning, producing, placing, and promoting a company’s products in a worldwide market. Large businesses often have offices in the foreign countries they market to; but with the expansion of the Internet, even small companies can reach customers throughout the world.

Global marketing is “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives”.

Global marketing is also a field of study in general business management that aims to market products, solutions and services to customers locally, nationally, and internationally.

8 Reasons Why Companies Go Global are:

1. Domestic Market Saturated,
2. Domestic Market Small,
3. Slow Growth of Domestic Market,
4. Suppliers follow their Customers Internationally,
5. Competitive Pressures,
6. Attractive Cost Structures Globally,
7. Growth Rate and Potential,
8. Compete Successfully in Domestic Market.

Traditionally many companies have stayed focused in their domestic markets and have refrained from competing globally. They know their domestic markets better and understand that they have to make fundamental changes in the way they work to be able to compete globally.

But increasingly companies are choosing or are being forced to sell their products in markets other than their domestic markets. It has become imperative for most companies to compete in foreign markets.

1. Domestic markets are saturated and there is pressure to raise sales and profits. Most companies have very ambitious sales and profit targets. If such figures have to be realized, companies have to move out of their domestic markets.
2. Domestic markets are small. Companies which have ambitions to become big will have to look for bigger markets outside their boundaries.

iii. Domestic markets are growing slowly. Most companies are no longer content to grow incrementally. If such companies have to achieve high growth rates, they have to obtain some of their sales from international markets.

1. In some industries like advertising, customers want their suppliers to have international presence so that suppliers can contribute in most of the markets where the buyer is operating. For instance, a multinational will choose an advertising agency which has a presence in all the markets where the multinational is selling its product. The customer does not want the hassle of hiring a separate advertising agency for each of its markets. This process will be replicated in more industries.

A multinational company seeking materials and equipment’s would want its supplier to supply to all its international manufacturing locations. The supplier is forced to develop competencies and resources at many international locations to be able to serve the international manufacturing locations of its buyer.

1. Some companies will have to move out of their domestic markets when their competitors have done so, if they want to maintain their market share. If the competitor is allowed to pursue its international growth alone, the competitor is likely to plough back some of the earnings from its international operations to the domestic market, making it difficult for the companies which refrained from pursuing international markets, to focus on the domestic market. In other cases, a domestic player would start operations in the home country of its global competitor, to divert the attention and resources of its competitor towards operations at home to safeguard its home market.
2. Developed markets have high cost structures and companies may move their operations to regions and countries where costs of production are lower. Once a company starts operating in a geographical region, it becomes easier and profitable to market their products in that area.

vii. Countries and regions are at different stages of development, and their growth rates and potential are different. Companies do not like to concentrate all their efforts in limited regions and want to spread out their risk. Such companies will look for markets which are likely to behave differently from their existing ones in terms of economic parameters like growth rate, size, affluence of customers, stage of market development, etc.

A company would not like all its markets to be under recession or inflation simultaneously, and would not like all its markets to be in mature stage, or in growth stage. Having different type of markets will make revenues and profits more consistent. The investment requirements would also be more balanced.

viii. Even if a company decides to concentrate on its domestic market, it will not be allowed to pursue its goals unhindered. Multinational companies will enter its market and make a dent in its market share and profit. The company has no choice but to enter foreign markets to maintain its market share and growth.

1. Companies are realizing that it is no longer an option to stay put in one’s domestic market. The ability to compete successfully in domestic markets will depend upon their ability to match the resources and competencies of multinational companies, with whom they have to compete in their domestic markets.

And once they decide to take on the multinational companies on their home turf, they have to improve their resources and competencies to be able to match those of the multinational companies. They will also learn about the ways of operation of multinational companies. This experience will be helpful when they have to protect their domestic markets against the multinational companies.

The boundary between a company’s domestic market and other markets is getting blurred. Only a company which is internationally competitive can protect its domestic market. No market is or will be protected from incursion by multinational companies. A company’s only choice is to go global, even if its prime interest is to protect its domestic turf.

 

 

 

 

2. Explain in detail International Marketing plan. Aspects in International Marketing planning?

INTERNATIONAL MARKETING PLAN

 

Planning involves where the organisation would like to be and how to get there, which involves goal setting and strategy determination. As already pointed out earlier, the marketing plan must be developed at two levels i.e. at the country level and the corporation level.

At the country level the marketing plan resembles any domestic marketing plan in the sense that it lays down the strengths, weaknesses of the organisation and opportunities and threats faced by it. It proceeds to define the organisation objective along with the assumptions. Having undertaken the above steps it lays down the broad action plan, the organisation structure and control system necessary for accomplishing the above plan.

The international marketing plan is more than a mere integration of the country plans, for it seeks to direct and co-ordinate the activities of the corporation on a global basis and at country levels. This involves a number of variables viz.

Knowledge of the market

Knowledge of the product

Knowledge of the marketing systems

International Marketing Plan Definition

An international marketing plan is a marketing plan aimed at global expansion of product sales and brand recognition.

In essence, international marketing is aimed at customizing or tailoring products, marketing, and sales tactics at the international market they are expanding into. Rather than broadcasting the same media advertisements to multiple countries, each country/market segment receives different marketing messages to appeal to that particular community.

 

 

The corporation must decide how it will obtain information about all these variables on a global and country basis. This information will then be formalised into a marketing plan to provide guidance to each country manager. Below table gives a comparison of domestic planning and international planning.

 

Sl. No.	DOMESTIC PLANNING	INTERNATIONAL PLANNING
1.	Single language(generally) and nationality	Multilingual/multinational/multicultural factors
2	Relatively homogeneous market	Fragmented and diverse markets
3.	Data available, usually accurate and collection easy	Data collection a large task requiring significantly higher budgets and personnel allocation
4.	Political factors relatively unimportant	Political factors frequently vital
5.	Relatively stable business environment	Multiple environments, many of which are highly unstable (but may be highly profitable)
6.	Uniform financial climate	Variety of financial climates ranging from conservative to wildly inflationary
7.	Single currency	Currencies differing in stability and real value
8.	Business “rules of the game” mature and understood	Rules diverse, changeable and unclear
9.	Management generally accustomed to sharing responsibilities and using financial controls	Management frequently unautonomous and unfamiliar with budgets and controls.

 

The International marketing plan

Companies and organizations plan to compete effectively in world markets will need a clear and well-focused international marketing plan that is based on a thorough understanding of the markets in which the company is introducing its products. The challenge, then, of international marketing is to ensure that any international strategy has the discipline of thorough research, and an understanding and accurate evaluation of what is required to achieve the competitive advantage. As such, the decision sequence in international marketing is much larger than that of domestic markets. As noted in the next “Integrated marketing”, it is also more complicated.

 The decision sequence in international marketing

The corporate level

We begin at the corporate level, where firms decide whether to become involved in international markets and determine the resources they are willing to commit. Thus, this stage is primarily concerned with the analysis of international markets. Decisions here will be dependent on matching the results of that analysis with the company’s objectives. These objectives, in turn, will be determined by the many motivating factors we have discussed in the earlier sections. The level of resources that the company is willing to commit should be determined by the strategy that is needed to achieve the objectives that have been set.

The business level

Business-level considerations begin with the assessment of the stakeholders involved in the business. It is important to clearly identify the different stakeholder groups, understand their expectations, and evaluate their power, because the stakeholders provide the broad guidelines within which the firm operates. In the case of international marketing, it is particularly important to address the concerns of the stakeholders in the host company.

Conducting a situation analysis in an international setting is a bit more extensive. It not only includes the normal assessment of external environmental factors and resources /capabilities, it also includes a determination of the level of commitment exhibited by the business, as well as possible methods of entry. It is important, too, to evaluate the capacity of the firm to be flexible, adaptable, and proactive, as these are the attributes necessary, for success in a highly competitive and rapidly changing world.

Undoubtedly, environmental factors have received the most attention from marketers considering international markets.

 

 

3. Explain the importance of developing International Marketing planning.

Developing an International Marketing Plan

It can be a daunting task to actually begin developing an international marketing plan. We have written a list of required details for developing an international/export marketing plan in a previous post, which highlights the most important details. These are the overarching details to keep in mind:

• Research: You need to know the foreign market you are entering inside and out. International country research is two-fold though:

1. Initial Screening
2. In-Depth Country Analysis

In initial screening involves deciding which company you should move your product marketing efforts to. In-depth country analysis should be performed by overseas analysts or experienced international marketing personnel.

• State Your Objectives: Objectives can be boiled down to your international objectives and market objectives. Be able to answer questions of why the expansion is necessary, why you chose this location, what market segments you plan on working on, and how you want to stand against your international competitors in a few years from today.
• Identify Your Budget: Eventually, dreams need to meet reality. Your company’s budget will largely dictate the strategy you set in place. It wouldn’t be a bad idea to identify your budget before brainstorming market research, foreign country screening, and stating objectives.

 

Importance of International Marketing 

International marketing, as opposed to global marketing, is incredibly important to boost your company’s international image for a few reasons.

1)  Increases Focus

International marketing increases a brand’s focus on a marketing message. Since every marketing message, media advertisement, and media channel is selected based on careful market research, brands are able to demonstrate more intentionality in their marketing decisions.

2)  More Marketing Expertise and Personnel

Unlike global marketing where all decisions are made from personnel at the company’s headquarters, international marketing generally calls for more marketing employees and research teams. The obvious drawback to this is the added salary expense, but for the most part, the added employees frees up HQ marketing personnel from execution of the marketing plan and keeps them more focused on managing and strategizing.

3)  Brand Authority

One of the major importances of international marketing is creating brand authority in a variety of different markets. The key to note here is the difference between brand awareness and brand authority. Suppose a well-established American company begins broadcasting their messages to multiple coun19tries. Just because Brazil sees their ad all the time doesn’t mean that it holds any relevance for their situation. Thus, while the company’s brand awareness may soar, their brand authority remains low in Brazil and high only in America. This all has to do with specialization and market research in each foreign country. An increased understanding of a culture, customized message, and a detailed country-specific marketing plan all work together to create stronger brand authority.

Conclusion

International marketing plans are incredibly important for anyone who wants to get into the world of international business. Keeping in mind, there is a difference between global and international marketing. After having a clear understanding of the two and deciding which is best for your business model, you can begin working on your objectives and country of interest.

 

 

 

4. Difference between domestic and International Marketing

Difference between domestic and international marketing:

 

	Basis		Domestic Marketing		International Marketing
Definition		“It is concerned with the marketing practises within the researchers or Marketers home country (domestic market).”		“It is the performance of business activities designed to plan, price, promote and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit.”
Role of Politics		Political factors are of minor importance.		Political factors play a vital role.
Languages & Cultures		One language and culture.		Many languages and difference in cultures.
Financial Climate		Uniform financial climate.		Variety of financial climate.
Risk Involved		Normal risk is involved.		Higher risks of different nature are involved.
	c
	Basis		Domestic Marketing		International Marketing
Definition		“It is concerned with the marketing practises within the researchers or Marketers home country (domestic market).”		“It is the performance of business activities designed to plan, price, promote and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit.”
Role of Politics		Political factors are of minor importance.		Political factors play a vital role.
Languages & Cultures		One language and culture.		Many languages and difference in cultures.
Financial Climate		Uniform financial climate.		Variety of financial climate.
Risk Involved		Normal risk is involved.		Higher risks of different nature are involved.

 

 

 

 

 

 

 

Control of Marketing Activities	Control of marketing activities is easy as compared to international activities.	Control of marketing activities is difficult because of different factors like – regional, cultural, political, etc.
Payment	Minimum payment and credit risks.	Considerable payment and credit risks.
Familiarity	Well familiarity with domestic market.	Lack of Familiarity with foreign markets, research becomes essential.
Knowledge Requirement	Management knowledge is required.	Specific management knowledge and competence is required.
Product Mix	Product mix is decided keeping in view the satisfaction and more sales.	Product mix is decided according to foreign market.
Product Planning and Development	Product planning and development according to domestic market.	Product planning and development according to foreign market.
Focus	Focus of interest is on general information.	Focus of interest is on strategic emphasis.
Market Aspect	Market is much more homogeneous and different segments.	Different or diverse markets fragmented in nature

 

 

 

Case Study -3

SECTION C

 

1. A five star hotel has consulted you to find out the reasons for decline in their repeated customers. On observation you found that the service mix is good and when you interacted with the customers, they expressed satisfaction in this background: a) what could be the probable reason for the decline in the repeated customers?

 

Ans: Reasons for Decline in Repeated Customers

1.Loyalty Problems: When companies institute a systematic process for “listening” to customers and the market, they are less likely to have serious loyalty problems. Customers are not shy; they openly share their concerns and problems, directly or indirectly letting an organization know when they are considering defecting. It may happen that customers are getting better services and prices at other five star hotels.

2.Misconception About Price: There is a misconception that price is the primary cause for customer attrition. While price is a contributing factor, particularly in the current environment where most customers – consumers or businesses – perceive the majority of products and services is the primary differentiator. But the term “service” encompasses all aspects of a customer’s relationship with a company –from the initial touch , through the sale, product performance, ongoing support , and replacement.

3.Contact Center: The contact centre plays a crucial role in retaining customers throughout the customers life cycle , particularly at the pivotal point when a customer is reconsidering the value proposition of the hotels products and services. If the receptionists and managers are well-trained, empowered to act, and have the necessary systems and data to determine the right actions, they will be able to retain at-risk customers by meeting or exceeding their expectations.

 

 

 

 

2. How will you do the media planning and selection for a new soft drink to be introduced in the market?

Ans: Media planning and selection for New Soft Drink “Lime Cool”

1. Target Audience: a target audience is the primary group of people that something, usually an advertisement is aimed at appealing to. A target audience can be people of a certain age group, gender, marital status etc. The Lime Cool can be targeted on the basis of age (25-18) and occupation like working people (age greater than 25) middle income and higher income group. The Lime Cool basically can target college students as they are more fond of such drinks.
2. Media Objectives: the objective of the media planning is to initiate strong awareness about the launch of Lime Cool and to win market shares over out top functional drinks competitor, such as Coca Cola and PepsiCo. The prime objective of the media plan are strategically centred on 3 criteria:
   1. To create a strong consumer awareness towards a completely new soft drink.
   2. To establish a wide brand recognition through the capture of market shares in the functional drinks segment.
   3. To become the top market leader in that particular segment within the forecasted sales figures.
3. Media Strategy: the new soft drink company would spent a considerable amount on advertising its product Lime Cool. Besides print advertising, the company would put up large number of hoardings and kiosks. It was trying to set up a thematic campaign to build stronger brand equity for Lime Cool. Vans with Lime Cool logos roam the city, handing out brochers about the company and its services to all customers in famous places like Jantar Mantar. Lime Cool can formulate an advertising campaign which may rope in famous movie actors as celebrity endorsement is a suitable way to promote the brand and is an effective tool for expanding market share.
4. Budget Considerations: their total advertising budget can be somewhere closer to 150 Crores annually nation wide. One of the more important decisions in the development of media strategy can be determined  by how well it delivers the message to the audience with the lowest cost and the least waste.
5. Reach and Frequency: Lime Cool is a brand that is planed to be marketed through entire company. The soft drink company should use geographic weighting in their campaign to determine in which regions of the country the advertising campaign would be effective. The company found that the consumers in the Northwest and Midwest regions have indexes over 100. In contrast, the South and West regions have indexes below 100 and are less likely to purchase the drink. So the advertising would be more heavily weighted in regions with higher indexes to keep the sales high.
6. Media Selection: due to the popularity among Indian youth of the internet, it is a medium the company would intend to use to reach the target audience. The various media re as followed used to target audience are as follows:
   1. TV: TV is an excellent medium to advertise the new soft drink with the maximum amount of reach and frequency.
   2. Radio: the company’s second preferred medium is radio, indicating that the target audience is more likely to listen to the radio than to read the newspaper or a magazine.
   3. Internet: the internet is a very cost efficient and low cost medium for advertising which is why we are incorporating into our media mix.
   4. Newspaper and Magazines: in efforts to expand the brand’s reach and frequency company would add print advertising to the Lime Cool’s media mix.

 

7. Media Scheduling: Advertising media scheduling is the process of choosing the most cost-effective media for advertising, to achieve the required coverage and number of exposures in a target audience. The advertisement of new soft drink must be telecasted frequently throughout the day but initially at prime time at high frequency, as the target audience sits in time at high frequency, as the target audience sits in front of the television at night, this will also reduce wastage. Sponsoring of television serials with high TRPs can be another technique used under media scheduling. TV news channels, Star Plus, Zee, IPL, first page of leading newspaper cab be used to give an ad during the initial phase of the launch.
8. Media Buying: now all this stage media operations department takes over for the implementation of media plan. All formulated media strategies should be implemented so that they could generate the favorable response for the other tools of promotion and could be combined with them. The implementation of the media plan requires media buying, i.e., buying time and space in the various selected media. The buying of media is handled by the advertising agency on behalf of the advertiser.

 

3. The Panthers are self-priming rotary vane pumps with cast iron pump bodies for diesel transfer only. They are fitted with internal, 100 micorn filters, which are easily accessible for cleaning. panther pump is planning to set-up a direct distribution network to sell electric motors and pumps. Discuss.

Ans: One Possible Solution:

Panther pump is planning to set-up a direct distribution network to sell electric motors and pumps. Direct distribution network is the shortest channel, to which Panther pump can easily adopt for distribution of goods or services. In this system, goods move directly from the producer to the consumers without any middleman or a merchant. Panther pump chooses the direct distribution network due to the following reasons:

1. If the buyers prefer direct marketing
2. If the competitors are following direct marketing.
3. If the firm has adequate financial resources for investing in the marketing.
4. Non-availability of suitable middlemen to handle the product.
5. If the firm has marketing expertise
6. If the firm is able to perform the marketing activities at a reasonable cost

This is one of the oldest method of distribution, which was being widely used by producers to sell goods and services prior to the advent of industrial revolution. Under direct channel of distribution network, the manufacturer can adopt one of the following methods of selling:

1. Selling at Manufacturer’s Plant: this is otherwise known as direct selling. It is one of the earliest , easiest and cheapest method of distribution of goods. Under this system, the goods are sold by the producers directly to the consumers. Direct selling is generally preferred in case of perishable products like bread, milk, ice cream, fish, meat, egg, vegetables and agricultural products, etc. these products are directly sold to the consumers because they lose their value or become unfit for use if they are stored or transacted for long.
2. Door to Door sales: salesmen employed by the manufacturers call at the door of customers. They move door to door. This system works better when a new product is introduced into the market. Dealers may not have knowledge of the goods or they need a good margin of profit or they do not want to stock unknown products; for them this system is good. Selling under this system may be costly but when the market is known, it can be reduced. But, at the initial stage, when the market is unaware of the product even at higher cost, this system is better.

3.Sales by Mail Order Method: it is a system by which products are sold fee consumers. The post-office plays a significant role. This system is also known as shopping by post or mail order business or selling by post. It is impersonal Belling, branding, grading, standardizing, packing etc., facilitating the growth of this system. Customers are approached by sending catalogues, price lists, pamphlets, etc., by post. Advertising adds further speed in the selling e.g., books, drugs, watches, toys, small appliances, clolthes, seeds, jewellery etc.

4. Sales by Opening own Shops : it is common that producers of perishable and non-perishable goods sell their products to customers, by opening their own retail shops. It is also common that manufacturers of clothes, foot ware, certain electrical equipments etc., can push the goods quickly through retail shops and can offer satisfactory service to customers, thereby building goodwill. It also facilitates the producers to study the market trends, fashion preferred by buyers and style trend of people. This system offers a two way communication and the price is regulated.

Along with its advantage, it also have some disadvantage to which panther pump should consider before adopting direct distribution network., these disadvantages are as follows:

1. It is un economical to have a direct contact with the customers, who are countless and scattered all over.
2. It is not possible for a direct contact with the multi-millions of potential customers for the products.
3. Manufacturers, generally, may not have talent of salesmanship.

 

N-B

UNIT-1

1. What is international markets? Write the essentials of international marketing.

International marketing is the application of marketing principles in more than one country, by companies overseas or across national borders. International marketing is based on an extension of a company’s local marketing strategy, with special attention paid to marketing identification, targeting, and decisions internationally.

 

 

According to the American Marketing Association (AMA) “international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.”

Cateora (1997) defines international marketing as performance of business activities that direct the flow of company’s goods and services to consumers in more than one nation for profit.

Jain (1989) refers to international marketing as exchanges across national boundaries for the satisfaction of human needs and wants.

Terpestra (1972) looks upon international marketing as marketing carried on across the national boundaries.

Keegan (1997) comprehends that international marketing as going beyond the export marketing and becoming more involved in the marketing environment in which it is doing business.

 

Essentials of Intenational Marketing:

 

1. Identifying Global Customer Needs

International marketing research is conducted to determine the customer needs possessed by the customers belonging to the different markets, it becomes easy to understand similarities and dissimilarities in customer groups across countries.

Example: US company desires to sell washing machines in Europe, then US company must ha ve clear idea about how European wash their clothes i.e. they wash their clothes at high temperature at 60 degree centigrade compare to US.

Therefore, companies must clear analyze market segments across countries before placing their products at international level.

 

2. Satisfying Global Customers

When needs vary across countries and regions then, a company to satisfy global customers must adapt products, services and elements of the marketing mix. To reduce prices, a company must decide is it necessary to design a product at less manufacturing costs or produce it in a country where it is easier to achieve the target of less manufacturing costs.

There is a need for well-designed distribution and logistics system to make easy availability of goods and services at point-of-sale in adequate level of quantities.

Companies must provide the facility of global customer database and information systems to satisfy the needs of global customers by responding in accordance with their needs and purchasing decisions.

 

3. Being Better than the Competition

Companies must struggle against both the domestic and the global competitors. Companies must evaluate, monitor and respond to global competition by providing better value, developing superior brand image and product positioning, low prices, high quality, wide range of products, appreciable performance and superior distribution advertising and service.

Competitors are composed of state-owned enterprises, other multinationals and domestic firms with different targets like market share over profits.

 

4. Coordinating Marketing Activites

International marketing introduces a new level of complexity that takes place due to company’s coordinates their marketing activities across nations. There is involvement of this processes like centralization, delegation, standardization and local responsiveness to coordinate and integrate marketing strategies and introduce them across countries, regions and global market.

 

5. Recognizing the Constraints of the World Environment

When firms desire to enter the global market then, they must possess the ability to manage cultural and economic variance due to marketing infrastructure variances, financial restrictions due to exchange-rate variation and inflation-rate variation and influence of governmental policies, protectionist and industrial policies. All these aspects may generate complexities for companies towards market entry.

 

Further, international marketing covers some more activities that are listed below:

1. Exporting
2. Overseas manufacturing
3. Working with local partners
4. Licensing and franchising overseas
5. Imparting even, from foreign subcontractors
6. Counter trade.

International marketing for example, is engaged in exporting products to few countries then a company becomes an international marketer because it is directly involved in foreign markets by participating in specific activities like pricing, promotion, after sales service and manufacturing.

 

 

2. What is Global Marketing ? explain briefly about the various decisions associated with Global Marketing.

Ans:

Meaning:

Global Markets are the markets where the buying and selling of goods and services occurs between two or more nations.

 

Global Marketing:

“Global Marketing” refers to marketing done across various countries rather than just focusing on marketing in the home country. The firms involved in global marketing, to market their products and services in foreign countries. The needs wants, preference and buying behavior of target customers differ from country to country and this makes the task of global marketing difficult. Global marketing is the last stage in the process internationalization of business and marketing as a challenge because global marketing involves planning a marketing strategy which is applicable and acceptable to all countries.

 

Global Marketing Decisions

The five steps involved in developing a global marketing program are as follows,

Step1: Identifying target market and place of customers.

Step 2: Product Planning for global markets.

Step 3: Pricing for global markets.

Step 4: Deciding the mode of entry into the global markets.

Step 5 : Promoting products/services in global markets/foreign markets.

Decision are taken at each step and these decisions are collectively known as global marketing decisions.

 

Step1: Identifying target market

In the first step, marketer need to identify the target market. Developed countries would be the profitable markets for developing countries because developed countries have more purchasing power, great infrastructure facilities and encourages imports. After identifying markets in order to find out what products have to be offered at each market. Due to development in technology locating foreign buyers has become an easy task. For example, with the help of internet, marketers today are able to locate and communicate with foreign buyers without making personal visits to foreign countries.

 

Step 2: Product Planning for Global Markets

In global marketing, product markets differ from one another in terms of demand patterns and customers view point about the product benefits. A marketer who wants to market its products in the global markets is required to identify the significance of product planning, decide which alternative has to be chosen i.e., product adaptation or standardization and design a plan for cross country segmentation. Product adaptation is a process wherein global product is localized. Standardization leads to development of product which reserves same level of demand from various product market segments.

Step 3: Pricing for Global Markets

            Deciding the product prices in the global markets is a crucial task. A marketer need to find out minimum and maximum export prices. After this negotiation on product prices takes place between exporter and importer. In case of products having differential value can be sold at higher prices in the foreign markets. Few non-price factors which have to be taken into consideration in global marketing are,

1. Product differentiation
2. Industrial goods
3. Consumer goods
4. Engineering products etc.

These factors influence the pricing decisions in global marketing.

Step 4: Deciding the Mode of Entry into the Global Markets

The two modes available to enter the global markets are

1. Direct Exporting: in direct exporting, product manufacturer take decision to export its products directly to global markets without taking any help from export house/trading houses.

 

2. Indirect exporting: In indirect exporting, manufacturer export its product to foreign markets/global markets indirectly i.e., through trading houses. Few government trading organizations such as MMTC, state trading corporation and national small industries corporation are working as export houses.

 

Step 5: Promoting Product/Services in the Global Markets

            A company which wants to go for direct exporting must make efforts to create awareness in the customers regarding the product. Compared to domestic marketing, promoting products in global markets is a complicated task. Some of the methods used for promoting products in the global markets are advertising; direct Mailing, trade fairs and exhibitions, sales promotion and personal selling. Among all these methods, advertising is the best method to promote products in the global markets.

 

3. Explain the environmental factors of international marketing?

Definitions:

1. 1. International marketing environment is a set of controllable (internal) and uncontrollable (external) forces or factors that affect international marketing. International marketing mix is prepared in light of this environment.
2. International marketing environment consists of global forces, such as economic, social, cultural, legal, and geographical and ecological forces, that affect international marketing decisions.
3. International marketing environment for any marketer consists of internal, domestic, and global marketing forces affecting international marketing mix.

The formulation of market strategy is mainly dependent on both the internal as well as the external forces i.e., firm-related and market related forces. Internal environment and external environment helps to make strategic decisions related to the marketing environment. For example, based on internal and external environment aspects, company undertakes strategic decisions,

1. The competencies required to enter the foreign market.
2. Type of the marketing strategy required to adopt while entering the foreign market.
3. The most suitable strategies for implementing the product, pricing, promotion and distribution decisions.

Thus, there exists differences in the national and international marketing strategy in the marketing environment.

Environment of Global Marketing

Any company dealing or enters into global markeing should undertake the following:

1. Internal environment
2. Domestic environment
3. Foreign environment
4. Global environment

 

1. Internal Environment:

Firm related factors are termed as “internal environment”. For example, company’s ability to carry out international business and operations relies mainly on its internal aspects such as, mission and vision of the company, the attitude, capabilities and commitment of the senior executives and all the employees in the company, organizational structure, decision-taking and implementing aspects, financial, and other resources and capabilities.

Doing international business calls for restricted production and delivery schedules, commitment towards quality, effective and faster response to customer requirements, cost competitiveness, innovativeness and so on.

 

1. Domestic Environment:

When a company desires to carry-out its business in foreign countries it tends to follow the home-country environment in the foreign countries.

Domestic factors are related to the economy of the nation. Overall economic, social and cultural, demographic, political and legal, and other domestic aspects constitute domestic environment for international marketing. This environment affects international marketing mix in several ways.

Important domestic factors include:

 

1. Political climate/stability/philosophy
2. Government approach and attitudes toward international trade

iii. Legal system and business ethics

1. Availability and quality of infrastructural facilities
2. Availability and quality of raw-materials
3. Functioning of institutions and availability of facilities

vii. Technological factors

viii. Ecological factors, etc.

• Foreign Environment:

Foreign Environment implies environment related to the foreign market wherein, the elements of business environment varies between different markets.

For instance, US business environment is entirely different from the business environment of China, Russia, Middle East or other regions.

However, there is greater differentiation/variations of business environment even within a foreign country which is mainly due to rules and regulations applied for foreign trade and investment and other identical policies which are used to monitor and governs the business. Moreover, there exist variations among socio-cultural, demographic, economic and natural factors within and between the countries.

1. Global Environment:

Global factors that are related to the international business often referred to as global environment. These global factors include, the WTO principles and agreements, international conventions/treaties/agreements/declarations/protocols so on, business and economic situation influence of main developments such as war, considerable fluctuations in the oil prices, opinion of other countries etc.

Certain development also have global impact on the foreign trade, such as, considerable fluctuations in the price of crude-oil, the occurance of global economic crisis which spread throughout the year 2008, followed by a sharp decline in global trade in 2009, war or other political development.

An Indian company when desires to enter the global market should adopt the internationally acceptable standards and practices appropriate for different areas. For example, increase of accounting and reporting governances especially when it aims to enter the international capital market or enter into foreign collaboration, a company must adopt US GAAO (General Accepted Accounting Principles) for the issue of ADRs/GDRs.

 

4. How do you identify the international consumer needs?

A customer need is a motive that prompts a customer to buy a product or service. Ultimately, the need is the driver of the customer’s purchase decision. Companies often look at the customer need as an opportunity to resolve or contribute surplus value back to the original motive.

Researching customers

Successful businesses make profits by understanding their customers and identifying their needs. Good customer research helps you choose products, tailor your marketing, and develop sales tactics for the people in your market based on reliable, accurate information.

Customer research should be part of your overall market research and should be conducted regularly. While your market research looks broadly at your customers, competition and industry to identify who you will market to, customer research provides more in-depth information on the needs, wants, expectations and behaviours of your customers.

By identifying information about your consumers such as where they work, what they read and where they look at advertising, you can improve the strategies you use to attract them. It is also important to understand their purchasing behaviour and attitudes with regards to brands and products. Testing new product or marketing concepts with potential customers is also a good way to prepare for a launch to see if your work has potential to translate to success.

Identifying your customers’ needs and preferences allows you to tailor the strategies and tactics you use in your marketing plan. This will help you to:

• attract more customers
• set the best price for your products
• create the right marketing message
• increase how much your customers spend
• increase how often your customers spend
• increase your sales
• decrease your costs
• refine your approach to customer service.

Identifying  international customer needs:

International marketing research is conducted to determine the customer needs possessed by the customers belonging to the different markets; it becomes easy to understand similarities and dissimilarities in customer groups across countries.

Identifying customer needs

Before you start promoting your business you need to know what your customers want and why. Good customer research helps you work out how to convince your customers that they need your products and services.

Identify your customers

The first step of customer research is identifying your customers. Your market research should help you understand your potential customers. Further customer research can help you develop a more detailed picture of them and understand how to target them. It will also highlight key characteristics your customers share, such as:

• gender
• age
• occupation
• disposable income
• residential location
• recreational activities.

Understand why they shop

Once you’ve identified who your customers are, you can find out what motivates them to buy products and services. For example, consider if they make decisions based on:

• work demands
• family needs
• budget pressures
• social or emotional needs
• brand preferences.

Identify preferred shopping methods

As well as understanding why they shop, you will also want to understand how they shop. To learn about your customers’ preferred method and means of shopping, consider if they:

• shop online, over the phone or in stores
• make spontaneous or carefully considered buying decisions.

Consider their spending habits

Different types of customers will be willing to spend different amounts. Find out what financial capacity and spending habits your customers have. For example, consider:

• their average income
• the portion of their income they spend on the type of products or services you sell
• if they budget.

Find out what they think of you

Learn about your customers’ views and expectations of your business and rivals. For example, find out what they think of your:

• products and services
• customer service
• competitors

A customer needs is used in product development and branding to provide an in-depth analysis of the customer to ensure that the product or message offers the benefits, attributes, and features needed to provide the customer with value.

 

UNIT-2

1. What is meant by product? Explain new product development process and its key accepts in designing a product in context of International Market.

Ans:

Product:

” The word “product” stems from the verb “produce”, from the Latin prōdūce(re) “(to) lead or bring forth. ” Since 1575, the word “product” has referred to anything produced.

In marketing, a product is anything that can be offered to a market that might satisfy a want or need. In retail, products are called merchandise. In manufacturing, products are purchased as raw materials and sold as finished goods. Commodities are usually raw materials such as metals and agricultural products, but the term can also refer to anything widely available in the open market. In project management, products are the formal definition of the project deliverables that form the objectives of the project.

A product is composed of tangible/physical attributes like weight, dimensions and materials and intangible attributes such as fragrance, density and so on. Example: an automobile is composed of 3,000 pounds of metal or plastic measuring 190” Long, 75” wide and 59” high.

Definition:

A product is defined as the collection of physical, psychological, service, tangible, symbolic and intangible attributes which has created satisfaction as well as benefits to the buyer or the user.

A product is any good, service, or idea that can be offered to a market to satisfy a want or need.

Philip Kotler defines a product as anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need includes physical objects, services, persons, places, organizations and ideas.

New product development :

New Products are the products which are introduced for first time in the market. The marketer outlines the development process of new product fo0r successfully introducing the products in the competitive market.

Stages in new product development :

1. Idea generation

The first step in new-product development is idea generation.

New ideas can be generated by:

1. Conducting marketing research to find out the consumers’ needs and wants.
2. Inviting suggestions from consumers.
3. Inviting suggestions from employees.
4. Brainstorming suggestions for new-product ideas.
5. Searching in different markets viz., national and international markets for new-product ideas.
6. Getting feedback from agents or dealers about services offered by competitors.
7. Studying the new products of the competitors.

 

2. Idea screening

 

Most companies have a “Idea Committee.” This committee studies all the ideas very carefully. They select the good ideas and reject the bad ideas.

Before selecting or rejecting an idea, the following questions are considered or asked:

1. Is it necessary to introduce a new product?
2. Can the existing plant and machinery produce the new product?
3. Can the existing marketing network sell the new product?
4. When can the new product break even?

If the answers to these questions are positive, then the idea of a new-product development is selected else it is rejected. This step is necessary to avoid product failure.

 

3. Concept testing

 

Concept testing is done after idea screening. It is different from test marketing.

In this stage of concept testing, the company finds out:

1. Whether the consumers understand the product idea or not?
2. Whether the consumers need the new product or not?
3. Whether the consumers will accept the product or not?

Here, a small group of consumers is selected. They are given full information about the new product. Then they are asked what they feel about the new product. They are asked whether they like the new product or not. So, concept testing is done to find out the consumers’ reactions towards the new product. If most of the consumers like the product, then business analysis is done.

 

4. Business analysis

Business analysis is a very important step in new-product development. Here, a detailed business analysis is done. The company finds out whether the new product is commercially profitable or not.

Under business analysis, the company finds out…

1. Whether the new product is commercially profitable or not?
2. What will be the cost of the new product?
3. Is there any demand for the new product?
4. Whether this demand is regular or seasonal?
5. Are there any competitors of the new product?
6. How the total sales of the new product be?
7. What will be the expenses on advertising, sales promotion, etc.?
8. How much profit the new product will earn?

So, the company studies the new product from the business point of view. If the new product is profitable, it will be accepted else it will be rejected.

 

5. Product development

 

At this stage, the company has decided to introduce a new product in the market. It will take all the necessary steps to produce and distribute the new product. The production department will make plans to produce the product. The marketing department will make plans to distribute the product. The finance department will provide finance for introducing the new product. The advertising department will plan the advertisements for the new product. However, all this is done as a small scale for Test Marketing.

 

6. Test marketing

 

Test marketing means to introduce the new product on a very small scale in a very small market. If the new product is successful in this market, then it is introduced on a large scale. However, if the product fails in the test market, then the company finds out the reasons for its failure. It makes necessary changes in the new product and introduces it again in a small market. If the new product fails again the company will reject it.

Test marketing reduces the risk of large-scale marketing. It is a safety device. It is very time-consuming. It must be done especially for costly products.

 

7. Commercialization

If the test marketing is successful, then the company introduces the new product on a large scale, say all over the country. The company makes a large investment in the new product. It produces and distributes the new product on a huge scale. It advertises the new product on the mass media like TV, Radio, Newspapers, and Magazines, etc.

 

8. Review of market performance

The company must review the marketing performance of the new product.

It must answer the following questions:

1. Is the new product accepted by the consumers?
2. Are the demand, sales and profits high?
3. Are the consumers satisfied with the after-sales-service?
4. Are the middlemen happy with their commission?
5. Are the marketing staffs happy with their income from the new product?
6. Is the Marketing manager changing the marketing mix according to the changes in the environment?
7. Are the competitors introducing a similar new product in the market?

The company must continuously monitor the performance of the new product. They must make necessary changes in their marketing plans and strategies else the product will fail.

 

 

2. Describe various steps of promotional program.

 

Marketing Communication or promotion plays a very important role in marketing, both domestic and international. Even if a product is very good, it may not achieve full success unless the promotion is appropriate and adequate.

 

promotion refers to how marketers combine a range of marketing communication methods

to execute their marketing activities. Different methods of marketing communication have distinct advantages and complexities, and it requires skill and experience to deploy them effectively.

 

Steps of promotional program:

             The different steps involved in the promotional programme are as follows:

1. Identifying the target market
2. Determining and setting objectives
3. Developing the message for right communication effects and
4. Selecting the communication mix

 

Step 1: Identifying the target market

            Target market is an important aspect based on which the communication mix is decided. The target market should be identified after through research. In this step, the consumers having the same characters are identified and accordingly the segmentation is done. For example, in a tourism industry, the visitors characteristics are examined, clear market segment is identified and then, buying decision factors are identified.

Step 2: Determining and Setting Objectives

            In the second step, the objectives are determined and set. It is very essential to clearly define the marketing objectives in order to design and use an effective form of promotion.

Step 3: Developing the Message for Right Communication Effects

            The message acts as an instrument/device to change or transform a suspect customer to prospect customer. Thus, an effective message is designed to attain the desired objectives of the promotional efforts.

The success of the promotional campaign relies on the promotional message. The promotional campaign must communicate a message which build-up the customer’s confidence and increases the possibility of purchase. The convincing words which are mostly used by the marketers while creating the message and are found very effective by the research conducted by the university of Yale are: save, health, love, proven, discover, you, easy, results, safety, guarantee, money etc. thus, the promotional campaign increases the awareness and creates a positive image of the service which in turn affects the demand of the service.

Step 4: Selecting the Communication Mix

            For selecting an appropriate communication mix, it is very essential to follow the criteria mentioned below:

• Overall marketing objectives
• Nature of the service
• Characteristics of target market
• Nature and attitude of intermediaries
• Action of competitors
• Cost efficiency
• Integration and feasibility with other marketing elements.
• Effective implementation
• Legal, managerial and ethical consideration.

Guidelines for Service Communication

• Tangible clues must be given for perceiving the service and for making it understandable. Example: ICICI makes use of an umbrella for symbolizing protection.
• Regular communication must be done with the target audience by using logos, signs, packaging, etc.
• The firm should make a promise which is possible to be delivered.
• The word-of-mouth communication must be used as a means to convey message as it is commonly used by the consumers in services.

In case of services, the employees are concouraged  to deliver the promise and attain zero percent defection of customers which needs high employee-customer interaction in a             user-friendly manner.

 

3.What is Marketing Research? Explain its features and process in detail.

International Marketing Research

 

Introduction

 

Today the environment in modern business arena is highly uncertain and rapidly changing. Advances in communications and information systems technology are further accelerating the pace of change. Expansion of business operations from home country toward other countries is making the uncertainty more prominent and stronger. This may be due to cultural, political, and legal differences. This makes it increasingly critical for management to keep abreast of changes and to collect timely and pertinent information to adapt strategy and market tactics in expanding local markets. As a consequence, international marketing research becomes essential for effective decision making when organizations start to internationalize toward foreign markets.

 

Definition of Marketing Research

 

According to American Marketing Association – “Marketing Research is the systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services”.

 

According to Philip Kotler – “Marketing research is a systematic problem analysis, model building and fact finding for the purpose of improved decision-making and control in the marketing of goods and services”.

 

According to Paul Green and Donald Tull – “Marketing research is the systematic and objective search for, and analysis of, information relevant to the identification and solution of any problem in the field of marketing”.

 

According to David Luck, Donald Taylor, and Hugh Wales – “Marketing Research is the application of scientific methods in the solution of marketing problems”.

 

Definition of International Marketing Research

 

International marketing research is the systematic design, collection, recording, analysis, interpretation, and reporting of information pertinent to a particular marketing decision facing a company operating internationally.

 

International Market Research is a particular discipline of Market Research, focusing on certain geographical areas.

 

International Market Research is concerned with consumer goods, but also with any resource or service within a value chain which will be commercially utilized or further processed – which is the area of industrial goods and B2B-Marketing.

International Marketing Research Process

Conduct preliminary research – Do some preliminary research on your topic of interest. For this you can go online and search existing survey reports related to your topic of interest. the searched reports may not be too specific to your requirement, but it might give you some ideas on how to go about your primary research.

 

Features of Marketing Research:

(1) Intensive Study- It involves systematic and intensive study of a marketing problem.

(a) Planned Process- We have planned procedure of investigation and analysis.

(b) Orderly Investigation- The procedure of marketing research has clearly-defined steps in proper sequence or order.

(c) Intensive Investigation- All the relevant factors involved in a marketing problem are observed closely.

(2) Scientific Approach- Marketing research adopts scientific method and objectivity in the solution of a marketing problem.

(a) Rational Outlook- Researcher or analyst has an objective attitude — rational outlook based on reason and logic.

(b) Defined Purpose- The purpose of inquiry and the problem under investigation are clearly defined.

(c) Accuracy- Accuracy (exactness) in calculation, in observation and in reporting is strictly ensured.

(d) Standardised Process- Marketing research process is standardised and can be repeated exactly in solving all problems.

(e) Scientific Attitude- The researcher has an open mind, critical attitude, creativity, absolute honesty and integrity — the hallmarks of scientific attitude and approach.

(3) Decision Tool- Marketing research is a tool for decision-making and control in the marketing of goods.

 

 Marketing Research Process:

Marketing research helps in arriving at the decision or solutions for various marketing problems.

The research process involves different stages which are:

1. Problem Formulation:

Formulation of the problem is the first step in the marketing research process. Unless and until the problem is well defined, there is no use of the research work. Well defined and formulated problems can be solved very easily and appropriately. The problem should be defined neither too broadly nor too narrowly. Problems may be of different type i.e. operating (recurring) problem or non-operating (non­recurring) problem.

Recurring problems includes problems relating to sales expenses, sales forecasting, sales volume, product quality, product line, price policy etc. Non-recurring or non-operating problems relate to problems such as change in consumption pattern, price changes, product innovation, changes in competitive forces etc.

2. Research Design:

A research design is the framework or blue print for conducting the market research project. Once the specific research objective has been defined, it is essential to arrive at the correct hypothesis, data collection method, sampling plan and research design instrument.

Formulating a research design involves following steps:

1. Define the information which is required.
2. Analysis of the secondary data.

iii. Qualitative research.

1. Method of collecting data.
2. Measurement and scaling procedure.
3. Questionnaire design.

vii. Sampling process and sample size.

viii. Plan of data analysis.

3. Data Collection:

Data can be collected from both primary and secondary sources. Primary data is the data which is collected for the first time with research purpose in mind. It is the first hand information. Secondary data is the data already collected by some other person for some other research problem. Primary data can be collected through different method – observation method or communication method. Interviews may be conducted either personal or through telephone or any other method to collect the required information.

4. Data Analysis:

Analysis of the raw data is very essential to arrive at the conclusion.

This analysis involves three phases, they are:

1. Classifying the data
2. Data summarization

iii. Advanced data analysis tools and techniques to highlight inter­relationship and quantitative significance.

1. Classifying the Data:

Classification of data includes editing, coding, transcription and verification of data. The most commonly used techniques here are quantitative, qualitative, geographical and chronological.

Quantitative classification are for quantitative data like number of units, number of respondents. Qualitative classification is for qualitative data like occupation, types of family etc. Geographical classification is the one where geographical location is used to classify the data. Chronological classification is on the basis of the time period when event took place.

1. Data Summarization:

For summarization of data various techniques are there like mean, median, mode, range, variance, standard deviation, mean deviation.

iii. Advanced Data Analysis Tools and Techniques:

This includes advanced method for analysing the data like factor analysis, discriminate analysis, correlation, regression, multiple regression.

5. Report Presentation and Recommendations:

A normal report includes the following:

(1) Title of the report

(2) Summary of conclusion

(3) Sample and characteristics

(4) Findings and observations

(5) Questionnaire

(6) Appendices

(7) Recommendation made may be accepted or rejected.

 

4.Define Advertisement? Explain in detail Advertisement with its objectives, types, importance and advantages?

Advertising is the action of calling public attention to an idea, good, or service through paid announcements by an identified sponsor.

Definition: 

According to Kotler –

Advertising is any paid form of non-personal presentation & promotion of ideas, goods, or services by an identified sponsor.

According to the Advertising Association of the UK –

Advertising is any communication, usually paid-for, specifically intended to inform and/or influence one or more people.

A simpler (and modern) definition of advertising can be – A paid communication message intended to inform people about something or to influence them to buy or try something.

Advertising is a means of communication with the users of a product or service. Advertisements are messages paid for by those who send them and are intended to inform or influence people who receive them, as defined by the Advertising Association of the UK.

An advertorial is a form of advertisement in a newspaper, magazine or a website which involves giving information about the product in the form of an article. Usually, a brand pays the publisher for such an article.

Definition of International Advertising
International advertising entails dissemination of a commercial message to target audiences in more than one country. Target audiences differ from country to country in terms of how they perceive or interpret symbols or stimuli, respond to humor or emotional appeals, as well as in levels of literacy and languages spoken. How the advertising function is organized also varies. In some cases, multinational firms centralize advertising decisions and budgets and use the same or a limited number of agencies worldwide. In other cases, budgets are decentralized and placed in the hands of local subsidiaries, resulting in greater use of local advertising agencies.
International advertising can, therefore, be viewed as a communication process that takes place in multiple cultures that differ in terms of values, communication styles, and consumption patterns. International advertising is also a business activity involving advertisers and the advertising agencies that create ads and buy media in different countries. The sum total of these activities constitutes a worldwide industry that is growing in importance. International advertising is also a major force that both reflects social values, and propagates certain values worldwide.

Characteristics Of Advertising

• Paid Form: Advertising requires the advertiser (also called sponsor) to pay to create an advertising message, to buy advertising media slot, and to monitor advertising efforts.
• Tool For Promotion: Advertising is an element of the promotion mixof an organization.
• One Way Communication: Advertising is a one-way communication where brands communicate to the customers through different mediums.
• Personal Or Non-Personal: Advertising can be non-personal as in the case of TV, radio, or newspaper advertisements, or highly personal as in the case of social media and other cookie-based advertisements.

 

Advertising activities can also be categorized into 5 types based on the advertisement medium used. These types of advertisements are:

• Print Advertising:Newspaper, magazines, & brochure advertisements, etc.
• Broadcast Advertising:Television and radio advertisements.
• Outdoor Advertising:Hoardings, banners, flags, wraps, etc.
• Digital Advertising:Advertisements displayed over the internet and digital devices.
• Product/Brand Integration:Product placements in entertainment media like TV show, YouTube video, etc.

Objectives Of Advertising

There are 3 main objectives of advertising. These are:

To Inform

Advertisements are used to increase brand awareness and brand exposure in the target market. Informing potential customers about the brand and its products is the first step towards attaining business goals.

To Persuade

Persuading customers to perform a particular task is a prominent objective of advertising. The tasks may involve buying or trying the products and services offered, to form a brand image, develop a favourable attitude towards the brand etc.

To Remind

Another objective of advertising is to reinforce the brand message and to reassure the existing and potential customers about the brand vision. Advertising helps the brand to maintain top of mind awareness and to avoid competitors stealing the customers. This also helps in the word of mouth marketing.

Other objectives of advertising are subsets of these three objectives. These subsets are:

• Brand Building
• Increasing Sales
• Creating Demand
• Engagement
• Expanding Customer Base
• Changing Customers’ attitudes, etc.

 

Importance Of Advertising

To The Customers

• Convenience: Targeted informative advertisements make the customer’s decision making process easier as they get to know what suits their requirements and budget.
• Awareness: Advertising educates the customers about different products available in the market and their features. This knowledge helps customers compare different products and choose the best product for them.
• Better Quality: Only brands advertise themselves and their products. There are no advertisements for unbranded products. This ensures better quality to the customers as no brand wants to waste money on false advertising.

 

To The Business

• Awareness:Advertising increases the brand and product awareness among the people belonging to the target market.
• Brand Image: Clever advertising helps the business to form the desired brand imageand brand personality in the minds of the customers.
• Product Differentiation: Advertising helps the business to differentiate its product from those of competitors’ and communicate its features and advantages to the target audience.
• Increases Goodwill: Advertising reiterates brand vision and increases the goodwill of the brand among its customers.
• Value For Money: Advertising delivers the message to a wide audience and tends to be value for money when compared to other elements of the promotion mix.

Advantages Of Advertising

• Reduces Per-Unit Cost: The wide appeal of advertisements increases the demand for the product which benefits the organization as it capitalizes on the economies of scale.
• Helps In Brand Building: Advertisements work effectively in brand building. Brands who advertise are preferred over those which doesn’t.
• Helps In Launching New Product:Launching a new product is easy when it is backed by an advertisement.
• Boosts Up Existing Customers’ Confidence In The Brand:Advertisements boosts up existing customers’ confidence in the brand as they get a feeling of pride when they see an advertisement of the product or the brand they use.
• Helps In Reducing Customer Turnover:Strategic advertisements for new offers and better service helps reduce customer turnover.
• Attracts New Customers:Attractive advertisements help the brand in gaining new customers and expanding the business.
• Educates The Customers:Advertisements inform the customers about different products existing in the market and also educates them in what they should look for in an apt product.

Disadvantages Of Advertising

• Increases The Costs:Advertising is an expense to the business and is added to the cost of the product. This cost is eventually borne by the end consumer.
• Confuses The Buyer:Too many advertisements with similar claims often confuses the buyer in what to buy and should he buy the product or not.
• Is Sometimes Misleading:Some advertisements use smart strategies to mislead the customers.
• Only For Big Businesses:Advertising is a costly affair and only big businesses can afford it. This makes small businesses out of competition with big businesses who get to enjoy a monopoly in the market.
• Encourages The Sale Of Inferior Products:Effective advertisements even lead to the sale of inferior products which aren’t good for the consumers.

 

 

UNIT-3

1. Distinguish international marketing and Domestic marketing?

Marketing is defined as the set of activities which are undertaken by the companies to provide satisfaction to the customers through value addition and making good relations with them, to increase their brand value. It identifies and converts needs into products and services, so as to satisfy their wants.

 

There are two types of marketing namely, domestic and international marketing. Domestic marketing is when commercialization of goods and services are limited to the home country only. On the other hand, International marketing, as the name suggests, is the type of marketing which is stretched across several countries in the world, i.e. the marketing of products and services is done globally. In this article excerpt you can find the difference between domestic and international marketing in detail.

 

	Difference between International Marketing and Domestic Marketing
	Basis		Domestic Marketing		International Marketing
Definition		“It is concerned with the marketing practises within the researchers or Marketers home country (domestic market).”		“It is the performance of business activities designed to plan, price, promote and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit.”
Business operation		In  a single country		More than one country
Role of Politics		Political factors are of minor importance.		Political factors play a vital role.
Languages & Cultures		One language and culture.		Many languages and difference in cultures.
Financial Climate		Uniform financial climate. Less Capital is Required		Variety of financial climate. Huge Capital is Required
Risk Involved		Normal risk is involved.		Higher risks of different nature are involved.
Control of Marketing Activities		Control of marketing activities is easy as compared to international activities.		Control of marketing activities is difficult because of different factors like – regional, cultural, political, etc.
Government interference		Less		Comparatively high
Payment		Minimum payment and credit risks.		Considerable payment and credit risks.
Familiarity		Well familiarity with domestic market.		Lack of Familiarity with foreign markets, research becomes Essential.
Knowledge Requirement		Management knowledge is required.		Specific management knowledge and competence is required.
Use of Technology		Limited		Sharing and use of latest techonology.
Product Mix		Product mix is decided keeping in view the satisfaction and more sales.		Product mix is decided according to foreign market.
Product Planning and Development		Product planning and development according to domestic market.		Product planning and development according to foreign market.
Focus		Focus of interest is on general information.		Focus of interest is on strategic emphasis.
Market Aspect		Market is much more homogeneous and different segments.		Different or diverse markets fragmented in nature
Research		Required but not to a very high level.		Deep research of the market is required because of less knowledge about the foreign markets.

 

 

2. What are the different stages of international product life cycle (IPLC)? Explain in detail international product promotion.

International product life cycle:

 

Product life cycle theory divides the marketing of a product into four stages: introduction, growth, maturity and decline. When product life cycle is based on sales volume, introduction and growth often become one stage. For internationally available products, these three remaining stages include the effects of outsourcing and foreign production. When a product grows rapidly in a home market, it experiences saturation when low-wage countries imitate it and flood the international markets. Afterward, a product declines as new, better products or products with new features repeat the cycle.

 

General Theory

When a product is first introduced in a particular country, it sees rapid growth in sales volume because market demand is unsatisfied. As more people who want the product buy it, demand and sales level off. When demand has been satisfied, product sales decline to the level required for product replacement. In international markets, the product life cycle accelerates due to the presence of “follower” economies that rarely introduce new innovations but quickly imitate the successes of others. They introduce low-cost versions of the new product and precipitate a faster market saturation and decline.

Growth

An effectively marketed product meets a need in its target market. The supplier of the product has conducted market surveys and has established estimates for market size and composition. He introduces the product, and the identified need creates immediate demand that the supplier is ready

to satisfy. Competition is low. Sales volume grows rapidly. This initial stage of the product life cycle is characterized by high prices, high profits and wide promotion of the product. International followers have not had time to develop imitations. The supplier of the product may export it, even into follower economies.

 

Maturity

In the maturity phase of the product life cycle, demand levels off and sales volume increases at a slower rate. Imitations appear in foreign markets and export sales decline. The original supplier may reduce prices to maintain market share and support sales. Profit margins decrease, but the business remains attractive because volume is high and costs, such as those related to development and promotion, are also lower.

 

Decline

 

In the final phase of the product life cycle, sales volume decreases and many such products are eventually phased out and discontinued. The follower economies have developed imitations as good as the original product and are able to export them to the original supplier’s home market, further depressing sales and prices. The original supplier can no longer produce the product competitively but can generate some return by cleaning out inventory and selling the remaining products at discontinued-items prices.

International Product Promotion Strategies

Companies develop marketing strategies to build a loyal customer base, to build relationships with those customers and to create value for the customer. Effective product and promotion strategies are essential in making sure your product is readily accessible in the global marketplace. Special considerations are necessary when marketing to global customers such as international issues of technology, transportation and regulation.

Extension

A straight product extension is presenting your product to a global marketplace without any changes. Some products are globally known and need no additional product or promotion changes. People want the product on a global basis, and once it is made available to them, it is purchased without having to create any additional marketing or promotion strategies.

Adaptation

Production and promotion adaptation strategies are used in a global market for a product that may be popular but needs to be adapted to meet local customs and demand. For example, customers of less affluent countries may need a product of similar quality that has been downscaled to be more affordable to purchase. Technology products must be altered to meet the specific language of the country being marketed to.

Invention

Another product and promotion strategy is inventing a new product to meet the needs of a particular country. For example, consumers in crowded commuting conditions might need a laptop product that better fits their travel situation, a more compact version of the typical laptop. This strategy also could take on the form of reinventing a popular product to meet the needs of a particular country or world region.

Pricing Considerations

Global product and promotion strategies must take into consideration the economic conditions of the country where products are introduced. For example, a price that might be discounted in the United States would be considered too high for poorer countries or perhaps not high enough in rich countries. To combat prices being too high in less affluent countries, a company could make a smaller or less complex version at a lower price.

3. Role of export marketing in international trade.

 

ROLE OF EXPORT MARKETING IN INTERNATIONAL TRADE

 

TRADE Transfer of ownership of goods or services. Trade is sometimes loosely called commerce or financial transaction or barter. INTERNATIONAL TARDE International trade is the exchange of capital, goods, and services across international borders. EXPORT In International Trade, “exports” refers to selling goods and services produced in the home country to other countries. The seller of such goods and services is referred to as an “exporter“. IMPORT In International Trade, “imports” refers to buying goods and services produced in a foreign country to other countries. The buyer of such goods and services is referred to an “importer”. EXPORT MARKETING

 

Export marketing means exporting goods to other countries of the world as per the procedures framed by the exporting country as well as by the importing country. Export marketing has wider economic significance as it offers various advantages to the national economy. It has bought back several nations back from the dead. DEFINITION According to B. S. Rathor “Export marketing includes the management of marketing activities for products which cross the national boundaries of a country”. “Export marketing means marketing of goods and services beyond the national boundaries”.

 

FEATURES

 

1. Systematic Process – Export marketing is a systematic process of developing and distributing goods and services in overseas markets. The export marketing manager needs to undertake various marketing activities, such as marketing research, product design, branding, packaging, pricing, promotion

 

2. Large Scale Operations – Normally, export marketing is undertaken on a large scale. Emphasis is placed on large orders in order to obtain economies in large sole production and distribution of goods.

 

3. Dominance of Multinational Corporations – Export marketing is dominated by MNCs, from USA, Europe and Japan. They are in a position to develop worldwide contacts through their network and conduct business operations efficiently and
4. Trade barriers – Export marketing is not free like internal marketing. There are various trade barriers because of the protective policies of different countries. Tariff and non-tariff barriers are used by countries for restricting

 

5. Documentation – Export marketing is subject to various documentation formalities. Exporters require various documents to submit them to various authorities like bill of

 

Need / Importance of Export Marketing at the National Level:

 

• Earning foreign exchange – Exports bring valuable foreign exchange to the exporting country, which is mainly required to pay for import of capital goods, raw materials, spares and components as well as importing advance technical

 

• International Relations – Almost all countries of the world want to prosper in a peaceful environment. One way to maintain political and cultural ties and peace with other countries is through international

 

• Balance of payment – Large – scale exports solve BOP problem and enable countries to have favourable BOP position. The deficit in the BOT and BOP can be removed through large-scale exports.

 

• Reputation in the world – A country which is foremost in the field of exports, commands a lot of respect, goodwill and reputation from other

 

• Employment Opportunities – Export trade calls for more production. More production opens the doors for more employment opportunities, not only in export sector but also in allied sector like banking, insurance etc.

 

Need / Importance of export marketing at Business / Enterprise Level

 

• Reputation – An organization which undertakes exports can become famous not only in the export markets, but also in the home market. For example, firms like Phillips, , Sony, coca cola, Pepsi, enjoy international

 

• Optimum Production – A company can export its excess production after meeting domestic demand. Thus, the production can be carried on up to the optimum product
• Spreading of Risk – A firm engaged in domestic as well as export marketing can spread its marketing risk in two parts. The loss is one part (i.e. in one area of marketing) can be compensated by the profit earned in the other part /

 

• Higher profits – Exports enable a business enterprise to earn higher prices for goods. If the exporters offer quality products, they can charge higher prices than those charged in the home market and thereby raise the profit

 

CHALLENGES TO EXPORT MARKETING

 

1. Technological differences- The developed countries are equipped with sophisticated technologies less developed countries, on the other hand, lack technical knowledge and latest equipments.

 

2. Reduction in export Incentives– Over the years, the Govt. of India has reduced export incentives such as withdrawal of income tax benefits for majority of exporters. The reduction in export incentives de-motivates exporters

 

3. Several competitions in global marketing– Export marketing is highly competitive. Indian exporters face three-faced competition while

 

4. Problem of product standards– Developed countries insist on high product standards from developing countries like India. The products from developing countries are subject to product tests in the importing

 

5. Problem in preparing Documents– Export involves a large number of documents. The exporter will have to arrange export documents required in his country and also all the documents as mentioned in the documentary letter of credit. In India, there are as many as 25

 

IMPORTANCE OF EXPORT MARKETING

 

• Increased Sales and Profits. Selling goods and services to a market the company never had before boost sales and increases revenues. Additional foreign sales over the long term, once export development costs have been covered, increase overall

 

• Enhance Domestic Competitiveness Most companies become competitive in the domestic market before they venture in the international arena. Being competitive in the domestic market helps companies to acquire some strategies that can help them in the international

 

• Gain Global Market Shares. By going international companies will participate in the global market and gain a piece of their share from the huge international

 

• Selling to multiple markets allows companies to diversify their business and spread their risk. Companies will not be tied to the changes of the business cycle of domestic market or of one specific country.
• Lower Per Unit Costs. Capturing an additional foreign market will usually expand production to meet foreign demand. Increased production can often lower per unit costs and lead to greater use of existing

 

4. Explain the concept of Internal Marketing. Also describe international marketing Strategies.

Internal marketing is the promotion of a company’s objectives, products and services to employees within the organization. The purpose is to increase employee engagement with the company’s goals and fostering brand advocacy.

 

Employees who are enthusiastic about their company and its offerings are likely to share that enthusiasm with their social networks. As a result, internal marketing can be an effective part of external branding and marketing efforts. However, internal marketing can only go so far since an employee’s attitude toward the organization is affected by every element of that individual’s experience working for the business. Keeping employees happy and engaged is important to external marketing efforts as well.

Common internal marketing efforts include:

• Ensuring that all employees know that their contributions are essential to the company’s success.
• Educating all employees about the company’s products and services.
• Reinforcing the concept that customers are, when all is said and done, the source of employees’ salaries.
• Providing adequate salaries and benefits, plus a pleasant work environment.
• Encouraging employee input on corporate policies, management and operation – including criticism.
• Acting on employee suggestions that have merit and publicly acknowledging the value of the input.
• Confirming that the corporate mandate and objectives are clearly described and disseminated throughout the organization.
• Providing opportunities for advancement, professional development and promotion.
• Ensuring that the corporate culture is consistent with work-life balance.
• Fostering communication and collaborationamong employees through various methods from formalized settings and to casual areas for gathering, such as lounges.

 

Internal marketing operates on the idea that customer opinions of a company are based on their experiences with the business, not just with the products. By treating employees as “internal customers”, internal marketing helps employees align with the company’s vision and operations. In turn, they provide their customers with a consistent and valuable experience. Internal marketing campaigns are often lead by a company’s human resources department, which is responsible for distributing information and providing training on the company’s objectives and strategies.

 

International Marketing Strategies

Marketing can be defined as a process of creating, delivering and communicating the value of a product or service by an organizational function to the customers for the purpose of selling the product or service in ways that also benefit the organization and its shareholders. In international marketing, also known as global marketing, the organizations find out the needs of the customers in foreign countries so that marketing is carried out across the national borderlines for providing the sustomers the required entities at right place and at the right time. In this strategy the organizations adopts techniques that are the extensions used in the home country. It includes market identification and market targeting, selection of entry mode, marketing mix decision and strategic decisions in order to compete in the international markets.

When creating a worldwide marketing plan, every organization needs to formulate its international marketing strategies. It involves a five step procedure. This includes market assessment product strategy, price strategy, place strategy and promotion strategy. The factors to be considered while formulating an international marketing strategy are briefly discussed below:

Market Assessment

This include a five step screening procedure:

1. The first step is the identification of the customers’ needs and to list out the items.
2. After listing out the basic items, the list is shortened in the next step by screening by analyzing the financial and economic condition of various potential markets.
3. Under the third steps, before entering any potential market the organization considers the legal and political forces of the host country.
4. In the similar way, under the fourth step also the organizations should consider the socio-cultural forces of potential markets.
5. If the organization finds a choice between two or more countries, then at the fifth step they should consider the markets where the competitions are less.

After all the screening steps, in the final selection the organization arranges trips to the actual locations where their executives can evaluate the potential markets for providing overseas goods and services.

Product strategy

Product strategy varies depending on the goods and the customers. To sell a particular product in a country some modifications are required in the product or its marketing strategy according to the requirements of the market.

Pricing Strategy

To price a product depend on many factors like the cost of raw materials, cost of developing the product, cost of transportation of the product etc. while pricing product government regulations, legal forces are also some of the limiting factors.

Place Strategy

While selling a product the multinational organizations should keep in mind to choose a place that is most convenient for the customers. To distribute the product so that it reaches the customers the organizations should fix proper distribution channels. The manner, by which the product is distributed, on the other hand, is influenced by the competitions in the market for similar types of product.

Promotion strategy

To stimulate the demand of a particular product or a service, a company adopts many strategies to attract the customers. Some strategies may be through advertisement and personal selling. By adopting such strategies multinational enterprises promote their goods and services in different countries.

Types of International Marketing Strategies

1. Individualized Marketing Strategy

Individualized marketing, as its name suggests, focuses each and every targeted market in detail which requires the company to gather an extensive amount of research data. Therefore, to maintain the balance between the profit and the costs involved in that research, the focus is kept to, just, two or three countries. Furthermore, a revised version of the product is created to match the needs of all the individual markets by keeping economic, political and social factors in the notice.

2. Global Marketing Strategy

Promoting a brand globally enables it to create a unified version of the product by ignoring most or nearly all of the differences between different countries is known as global marketing. Application of such international marketing strategies takes place just because of the reason that the world is now acting like a global village where customers are having a standardized taste and their ideas of assessing a product are getting more and more similar. This strategy cuts the costs of research significantly, but promotion needs enormous efforts to get the word for your product deep down in the markets.

These international marketing strategies are also known as Global Marketing Strategies and almost used in all over the world as marketing product or brand globally.

Tools for International Marketing Strategies

Even though the market gets bigger and bigger as the number of targeted countries increases, but the tools used for promotion are same.

1. Advertisements

One of the most powerful marketing tools that can help you achieve your dream of converting your product to sales is advertising it through different means. Put the word for your product in international newspapers, radio channels, anything that can get a poster on it and most importantly, the Internet because it houses hundreds of other means of marketing your brands like emails, websites, and many others. Furthermore, you can also run a contest for which entrants will have to share the news about your brand to their friends and family.

2. Price Promotions

The best way to get a buzz of the product is by putting up some promotions. Either you can give your product sales a huge boost through discounts or by giving your customers some timed trial or you can couple up your product with a freebie for every purchase.

3. Make use of tradeshows

There are many types of products that customers do not buy until they have tested by themselves especially cars. Actually, they are looking for the experience of the product to be purchased and that’s where tradeshows come into play. The company invites its customers to the trade show and let them experience the full potential of the brand.

4. B2B Marketing

B2B is an unusual tactic often used by bigger enterprises is to spread the word among individuals and organizations alike which allow them to sell their product to other commercial businesses, institutions, and other agencies, which can then either use this product or resell it.

5. Inbound marketing

Making use of the requests, for the new products, often made by the customers can undoubtedly lead to additional sales of services that you currently have. For example, when a customer contacts the bank to check the account balance, the bank’s contact center takes advantage of the chance and offers its customers to apply for any other service.

1. Outbound marketing

Reaching out to individual target groups is a lot more fruitful than addressing the whole world, since it lets the potential customers know that a particular business exists and can be a lot more advantageous to our cause. For this purpose, a list of prospects is developed that can provide a starting point for the brand and this list is, then, further refined to concentrate the search for new customers. The same was the case of Microsoft when it spread the word of its accounting software.

 

 

UNIT-4

1. Discuss the development of International Marketing?

 

Definition: Market development is a strategic step taken by a company to develop the existing market rather than looking for a new market. The company looks for new buyers to pitch the product to a different segment of consumers in an effort to increase sales.

 

 

 

The development of International Marketing

Global Marketing is an extension and new vision of international marketing and it is being used since 1980’s.

• Domestic Marketing

Marketing activities of the firm specifically targeting the needs and wants of single market i.e., the firms domestic/home market and is often referred to as ‘domestic marketing’ and the firm here face individual set of issues related to economic, competitive and marketing aspects. Domestic marketing mainly focuses on a single set of national customers, even though it is serving the several segments of single market.

Segment 1

Eg: Single country                              Segment 2

(India)                                         Segment 3

 

• Export Marketing : This take place when a company sells its products to another company/country which is beyond the range of the domestic operations i.e., firms produce products in one country and sells them in other country. The biggest change of export marketing is to appropriately select those market or countries which are offering growth opportunities by conducting market research, identifies appropriate product modifications which are in accordance with the needs of export market and introduce an export channel that helps the company to market its products abroad.

 

Eg: Japan                    India

(Dual-country export marketing)

 

• International Marketing:

A company is said to have engaged in international marketing when it has surpassed the export marketing and is directly engaged in local marketing within a specific country. Such companies also establish their own sales subsidiaries along with the introduction of marketing strategies especially meant for the foreign markets.

 

Companies are required to take appropriate decisions regarding the adjustment of marketing strategy i.e., how to sell, advertise, and distribute products that fulfills the demands of new market. Companies must have clear idea and understanding about the varied cultural, economic and political environments to operate successfully in the world markets.

 

Eg: from Canada to many other countries

 

• Multinational Marketing: Multinational marketing is an outcome of multinational corporation (MNC). MNCs make huge investments in the form of assets across countries and operates in many foreign countries. Such companies make use of multidomestic  strategies to remain competitive in market and to act locally wherever they operates.

            The main issue faced by a multinational marketer is to identify and to adopt the appropriate marketing strategy for a single county. However, multinational fail to gain competitive advantage form their global size while making agreements with their suppliers and distributors.

 

• Pan-regional marketing:

Dis-economics of scale which afflicts individualized marketing strategies that is designed in accordance with the local environment because companies have started focusing on strategies related to large regions. Regional strategies include many markets like pan-European strategies for Europe which is an outcome of regional, political and economic integration.

This form of integration also found in countries like United States, Canada and Mexico. Companies with regional strategies in marketing operations tries to synergize in one region to achieve increased efficiency.

• Global Marketing: International companies are already awake of the opportunities existing for economics of scale and increased competition at higher level with which the companies can control and created for a product, service or a company which is applicable to all types of markets. Global marketers face few challenges while preparing marketing strategies that is suitable for the countries throughout the globe and they must have clear idea and view about cultural, economic and political environment of different countries. Managing the global marketing needs expertise and talented global marketers and managers to achieve success in global markets.

 

2. Discuss the scope and reasons for entering into Global Marketing.

 

Scope of Global Marketing:

 

The  global marketing has a wider scope. The marketing is a managerial activity, which helps in transferring the goods and services from the producer to the customer. An effective global marketing carryout marketing activities across various counties regions and across the globe. It acts as a means for entering the global markets by.

1. Starting a subsidiary or branch in foreign country for processing packaging, assembly or manufacturing with the help of the direct investment.
2. Negotiating licensing so that the foreign enterprises are given the right to utilize the exporting are given the right to utilize the exporting company’s processes, patents or trademarks with the financial investment or without the financial investment.

• Developing joint venture in foreign countries for the purpose of manufacturing or marketing.

1. Providing the consultancy services and taking up the turnkey projects in foreign countries.
2. Undertaking sub-contracting and counter trade.
3. Importing goods to carry out export production.

Reasons for Firms Entering Global Markets

There are several reasons for the firms to enter global market apart from the purpose of just serving global customers. These reasons are as follows,

1. Bulk Sales: by entering into the global markets, the firm can sell the goods in bulk. The global orders are bigger than the orders of domestic markets which enables the firm to use its capacity and attain the economies of scale of operations.
2. Relative Profitablity: The profit rates that are earned from global business are higher than the profit earned from domestic sales.
3. Inadequate Domestic Demand: The domestic demands level over the time period is not sufficient for utilizing the installing capacity effectively. The global business helps in providing adequate mechanism for using the unused capacity. This will in turn help in decreasing the cost and enhancing the firms’ profitability. Establishing the expanding global markets gives a level of protection to the company against the domestic economic slow down.
4. Decreasing Business Risks: An expanded global business assists in reducing the fluctuations in the firms’ overall activities. If a company is selling products in different makes then the downward fluctuations in sales in one market. Which can be domestic market will be balanced by the upward fluctuation in sales in other markets.
5. Legal Restrictions for internal Growth: some restrictions are imposed by the government on the growth and expansion of the company with in the domestic market so as to attain specific social objectives. For making the overseas investments, there will not be any restrictions or if the additional capacity of the company is utilized for exports, then the restrictions can be removed even in domestic markets. In such cases the company can inspect the export operations, as it provides a way for attaining the corporate growth. In this way, the business activities were carried out in India, before the industrial licensing was virtually eliminated.
6. Obtaining Imported Inputs: The countries need export to make payment for importing the materials, processes or technology which are unavailable with in their national borders. The government may be forced to levy export obligations on the firms, specifically those which needs imported inputs.
7. Social Responsibility: In many situations, the businessmen feel responsible to make their contribution towards the foreign exchange reserves of the country by improving their exports, as this helps them to establish their image in the domestic market. They also consider exporting as a way to achieve status and prestige.
8. Increased Productivity: Enhanced productivity is needed for the firm’s survival. It is very essential for the firm to improve production rate and search export markets. In today’s rapidly changing environment, large firms must spend a significant amount of money on the activities of research and development. In order to meet the expenses of research and development, huge markets are required and exports become a necessity.
9. Technological Improvement: Entering the export markets will help the firms,
10. To select innovative product ideas and to make additions to product lines
11. To enhance its products

• To minimize the cost

1. To find new product’s application

Thus, the above mentioned were the reasons for globalization.

1. Discuss International marketing system.

 

2. Challenges in managing international distribution strategies.

Challenges in managing an international distribution strategies:

 

Many companies today distribute goods throughout their local region or across the country with considerable success, and some may be considering expanding into an international market to increase sales. The fact is that managing international distribution channels can be profitable and rewarding for many companies, but it can also be challenging on several different levels. By spending some time analyzing what is involved in managing international distribution channels, you may make a more informed decision about expansion that is right for your company.

 

The Right Market for Your Products

 

First, you should carefully consider the benefit associated with finding an international market that is similar to your own. Reaching into international markets can be difficult to do because your products may appeal to a different target audience, marketing messages may be skewed when they reach a foreign audience or are translated into a foreign language and more. Examples of similar international markets that may be compatible include New Zealand and Australia or Singapore, Malaysia and Hong Kong. Do your research and find out if the desired market does have a demand for your goods. Choosing the right international market is imperative for success as your company expands. Talk to local retailers and their customers to establish if the market is worth the investment.

Other Logistical Concerns

 

In addition to selecting the right international market to invest in, there are other logistical concerns to consider when managing international distribution channels. For example, you must consider if you will sell your goods online or through local retailers.

 

Selling Online to International Markets

 

Online distribution only requires you to ship goods overseas direct to the customer. But international freight can cause issues and lost stock can be a time consuming nightmare to deal with. Consider insurance.

 

Supplying International Retailers

 

While selling big orders to international retailers sounds good it also brings with it some administrative issues. The lack of transparency, trust and distance between you and the retailer can cause communication issues and in a lot of cases the retailer will ignore your account leaving you with little hope in recovering what’s owed to you.

 

Get in front of you desired retailers as much as possible. Establish a good business  relationship with them before entering into a risky business deal. Consider getting a local distributor. Someone who can go door knocking when it comes time to do the debt collection.

 

Managing Multiple Currencies

 

You must also navigate the challenges associated with working with multiple currencies. Fluctuating currencies rates are not manageable on spreadsheets. Consider a good cloud based inventory management and sales management system to handle this for you.

 

As you can see, there are many factors to consider when you are evaluating the pros and cons of managing international distribution channels. Thanks to innovations in technology, shipping services and more, expanding a company’s operations into international areas is easier to do than ever before, and many companies are finding great levels of success from these efforts. However, you do want to carefully consider each of these points so that you make the best decision possible for your business.

 

 

Management of physical distribution of goods:

 

• Order Processing:

 

A company receives orders from other companies, middlemen, or directly from customers through mail, e-mail, fax, phone, or salesmen. Order processing is an importation component of the distribution system. It is considered as a key to customer service and satisfaction.

 

Order processing mainly includes:

 

1. Receiving order

 

2. Recording order

 

3. Filing order

 

4. Executing order or assembling of products for dispatch

 

5. Credit and

 

Thus, it concerns with processing the orders quickly, accurately, and efficiently. The time period from the receipt of an order to the date of dispatch of products must be as short as possible. Ideally, the order recycle time should be completed within 8 days. But, the use of computer and computer networks, for speedy and accurate order processing, can save time, money and efforts for the company and increases customer satisfaction. It is often called as electronic data processing that minimizes possibility of error and omission. Every firm should establish the standard order procedure.

 

The physical distribution must be customer-oriented. It starts with customer order. Note that order processing affects customer service in two ways – reordering time (interval between two orders) and consistency of delivery time (delivering products within the fixed time). Rapid order processing enables a company to attain economy in other areas of physical distribution.

 

The person in charge of order processing must be careful for following aspects:

 

1. Assembling product must be exactly as per demand of customers in terms of quantity, quality, features, and

 

2. Execution must be as quick as
3. The dispatch must be in appropriate mode of

 

4. Credit discount and other allied benefits must be offered as per

 

5. Assessing the effectiveness of order processing. That includes feedback and follow-up.

 

(2)    Warehousing:

 

In today’s context, production is made in expectation of demand. Therefore, products are to be stored or preserved safely for the future demand. And also, all the production is not sold directly. Warehousing plays an important role for balancing demand and supply. For example, most of the agricultural products are produced seasonally, but have demand throughout the year.

 

It facilitates both continuous production and continuous marketing of the production. Warehousing service can contribute to customer satisfaction. Be clear that storage and warehousing are not similar terms, though are closely related.

 

Storage is marketing activity that involves holding and preserving products from the time of their production until their sale. Warehousing embraces storage plus a broad range of functions, such as assembling, breaking the bulk, dispatching as per need of middlemen, sorting/classification, providing market intelligence, preparing product for reshipping, etc. Warehousing involves more activities.

 

Classification of Warehouses:

 

Warehouses may be classified on two bases, on the basis of commodity and on the basis of ownership. Let’s have overview of different warehouses.

 

On the Basis of Commodity:

 

On the basis of commodity stored, there can be:

 

1. Special Commodity Warehouses provide facility for storing special types of commodities, e.g., cotton warehouses, potato warehouses, grain warehouses, tanks for liquid products, explosive product warehouses,

 

2. Cold Storage Warehouses provide facility for storing perishable products, e.g., fish, flowers, vegetable, fruits,

 

Many companies set up their distribution centers in each of regions around the market and integrate its distribution network with them for smooth, safe, and speedy delivery of products. The latest technology is used for maximum consumer benefits. Warehouses offer a number of direct advantages to manufacturers and sellers, and indirect advantages to customers.

 

(3)    Transportation:

 

Transportation is one of the core components of distribution system. It consists of moving or transferring products from producers to final users. Transportation involves two parties, carriers and shippers. Carriers are those companies that provide transportation facilities to others, such as the Western Railway, Indian Airline, Indian Shipping Companies, and many other private carriers provide transportation services by road, rail, water, air and underground pipes.

 

Shippers are those organisations and individuals such as manufacturers, middlemen, customers, and others to whom the carriers provide transportation services. For different modes of transportation, various regulatory bodies deal with various issues related to transportation of products. The Central and the State Governments have formulated a lot of Acts or legal provision to regulate transportation activities in the country.

 

The main regulatory bodies may include:

 

1. The Civil Aviation Department, for air

 

1. The Shipping Corporation of India, for water

 

• The Oil and Natural Gas Commission, for pipeline

 

1. The Road Transport Corporation of the state, for land or road carriers

 

1. The Railway Authorities, for rail transportation,

 

Transportation plays a crucial role in today’s global marketing. It creates the place utility. In brief, transportation has positive impact in every facet of economic, social, and cultural development of the society. The key issues in transportation are type, costs, time, speed, risk, suitability, and availability. Marketer should take transportation decision carefully.

 

 

UNIT-5

1. Why does organization go for Global Marketing?

Global marketing is more than simply selling a product internationally. Rather, it includes the whole process of planning, producing, placing, and promoting a company’s products in a worldwide market. Large businesses often have offices in the foreign countries they market to; but with the expansion of the Internet, even small companies can reach customers throughout the world.

Global marketing is “marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives”.

Global marketing is also a field of study in general business management that aims to market products, solutions and services to customers locally, nationally, and internationally.

8 Reasons Why Companies Go Global are:

1. Domestic Market Saturated,
2. Domestic Market Small,
3. Slow Growth of Domestic Market,
4. Suppliers follow their Customers Internationally,
5. Competitive Pressures,
6. Attractive Cost Structures Globally,
7. Growth Rate and Potential,
8. Compete Successfully in Domestic Market.

Traditionally many companies have stayed focused in their domestic markets and have refrained from competing globally. They know their domestic markets better and understand that they have to make fundamental changes in the way they work to be able to compete globally.

But increasingly companies are choosing or are being forced to sell their products in markets other than their domestic markets. It has become imperative for most companies to compete in foreign markets.

1. Domestic markets are saturated and there is pressure to raise sales and profits. Most companies have very ambitious sales and profit targets. If such figures have to be realized, companies have to move out of their domestic markets.
2. Domestic markets are small. Companies which have ambitions to become big will have to look for bigger markets outside their boundaries.

iii. Domestic markets are growing slowly. Most companies are no longer content to grow incrementally. If such companies have to achieve high growth rates, they have to obtain some of their sales from international markets.

1. In some industries like advertising, customers want their suppliers to have international presence so that suppliers can contribute in most of the markets where the buyer is operating. For instance, a multinational will choose an advertising agency which has a presence in all the markets where the multinational is selling its product. The customer does not want the hassle of hiring a separate advertising agency for each of its markets. This process will be replicated in more industries.

A multinational company seeking materials and equipment’s would want its supplier to supply to all its international manufacturing locations. The supplier is forced to develop competencies and resources at many international locations to be able to serve the international manufacturing locations of its buyer.

1. Some companies will have to move out of their domestic markets when their competitors have done so, if they want to maintain their market share. If the competitor is allowed to pursue its international growth alone, the competitor is likely to plough back some of the earnings from its international operations to the domestic market, making it difficult for the companies which refrained from pursuing international markets, to focus on the domestic market. In other cases, a domestic player would start operations in the home country of its global competitor, to divert the attention and resources of its competitor towards operations at home to safeguard its home market.
2. Developed markets have high cost structures and companies may move their operations to regions and countries where costs of production are lower. Once a company starts operating in a geographical region, it becomes easier and profitable to market their products in that area.

vii. Countries and regions are at different stages of development, and their growth rates and potential are different. Companies do not like to concentrate all their efforts in limited regions and want to spread out their risk. Such companies will look for markets which are likely to behave differently from their existing ones in terms of economic parameters like growth rate, size, affluence of customers, stage of market development, etc.

A company would not like all its markets to be under recession or inflation simultaneously, and would not like all its markets to be in mature stage, or in growth stage. Having different type of markets will make revenues and profits more consistent. The investment requirements would also be more balanced.

viii. Even if a company decides to concentrate on its domestic market, it will not be allowed to pursue its goals unhindered. Multinational companies will enter its market and make a dent in its market share and profit. The company has no choice but to enter foreign markets to maintain its market share and growth.

1. Companies are realizing that it is no longer an option to stay put in one’s domestic market. The ability to compete successfully in domestic markets will depend upon their ability to match the resources and competencies of multinational companies, with whom they have to compete in their domestic markets.

And once they decide to take on the multinational companies on their home turf, they have to improve their resources and competencies to be able to match those of the multinational companies. They will also learn about the ways of operation of multinational companies. This experience will be helpful when they have to protect their domestic markets against the multinational companies.

The boundary between a company’s domestic market and other markets is getting blurred. Only a company which is internationally competitive can protect its domestic market. No market is or will be protected from incursion by multinational companies. A company’s only choice is to go global, even if its prime interest is to protect its domestic turf.

 

 

 

 

2. Explain in detail International Marketing plan. Aspects in International Marketing planning?

INTERNATIONAL MARKETING PLAN

 

Planning involves where the organisation would like to be and how to get there, which involves goal setting and strategy determination. As already pointed out earlier, the marketing plan must be developed at two levels i.e. at the country level and the corporation level.

At the country level the marketing plan resembles any domestic marketing plan in the sense that it lays down the strengths, weaknesses of the organisation and opportunities and threats faced by it. It proceeds to define the organisation objective along with the assumptions. Having undertaken the above steps it lays down the broad action plan, the organisation structure and control system necessary for accomplishing the above plan.

The international marketing plan is more than a mere integration of the country plans, for it seeks to direct and co-ordinate the activities of the corporation on a global basis and at country levels. This involves a number of variables viz.

Knowledge of the market

Knowledge of the product

Knowledge of the marketing systems

International Marketing Plan Definition

An international marketing plan is a marketing plan aimed at global expansion of product sales and brand recognition.

In essence, international marketing is aimed at customizing or tailoring products, marketing, and sales tactics at the international market they are expanding into. Rather than broadcasting the same media advertisements to multiple countries, each country/market segment receives different marketing messages to appeal to that particular community.

 

 

The corporation must decide how it will obtain information about all these variables on a global and country basis. This information will then be formalised into a marketing plan to provide guidance to each country manager. Below table gives a comparison of domestic planning and international planning.

 

Sl. No.	DOMESTIC PLANNING	INTERNATIONAL PLANNING
1.	Single language(generally) and nationality	Multilingual/multinational/multicultural factors
2	Relatively homogeneous market	Fragmented and diverse markets
3.	Data available, usually accurate and collection easy	Data collection a large task requiring significantly higher budgets and personnel allocation
4.	Political factors relatively unimportant	Political factors frequently vital
5.	Relatively stable business environment	Multiple environments, many of which are highly unstable (but may be highly profitable)
6.	Uniform financial climate	Variety of financial climates ranging from conservative to wildly inflationary
7.	Single currency	Currencies differing in stability and real value
8.	Business “rules of the game” mature and understood	Rules diverse, changeable and unclear
9.	Management generally accustomed to sharing responsibilities and using financial controls	Management frequently unautonomous and unfamiliar with budgets and controls.

 

The International marketing plan

Companies and organizations plan to compete effectively in world markets will need a clear and well-focused international marketing plan that is based on a thorough understanding of the markets in which the company is introducing its products. The challenge, then, of international marketing is to ensure that any international strategy has the discipline of thorough research, and an understanding and accurate evaluation of what is required to achieve the competitive advantage. As such, the decision sequence in international marketing is much larger than that of domestic markets. As noted in the next “Integrated marketing”, it is also more complicated.

 The decision sequence in international marketing

The corporate level

We begin at the corporate level, where firms decide whether to become involved in international markets and determine the resources they are willing to commit. Thus, this stage is primarily concerned with the analysis of international markets. Decisions here will be dependent on matching the results of that analysis with the company’s objectives. These objectives, in turn, will be determined by the many motivating factors we have discussed in the earlier sections. The level of resources that the company is willing to commit should be determined by the strategy that is needed to achieve the objectives that have been set.

The business level

Business-level considerations begin with the assessment of the stakeholders involved in the business. It is important to clearly identify the different stakeholder groups, understand their expectations, and evaluate their power, because the stakeholders provide the broad guidelines within which the firm operates. In the case of international marketing, it is particularly important to address the concerns of the stakeholders in the host company.

Conducting a situation analysis in an international setting is a bit more extensive. It not only includes the normal assessment of external environmental factors and resources /capabilities, it also includes a determination of the level of commitment exhibited by the business, as well as possible methods of entry. It is important, too, to evaluate the capacity of the firm to be flexible, adaptable, and proactive, as these are the attributes necessary, for success in a highly competitive and rapidly changing world.

Undoubtedly, environmental factors have received the most attention from marketers considering international markets.

 

 

3. Explain the importance of developing International Marketing planning.

Developing an International Marketing Plan

It can be a daunting task to actually begin developing an international marketing plan. We have written a list of required details for developing an international/export marketing plan in a previous post, which highlights the most important details. These are the overarching details to keep in mind:

• Research: You need to know the foreign market you are entering inside and out. International country research is two-fold though:

1. Initial Screening
2. In-Depth Country Analysis

In initial screening involves deciding which company you should move your product marketing efforts to. In-depth country analysis should be performed by overseas analysts or experienced international marketing personnel.

• State Your Objectives: Objectives can be boiled down to your international objectives and market objectives. Be able to answer questions of why the expansion is necessary, why you chose this location, what market segments you plan on working on, and how you want to stand against your international competitors in a few years from today.
• Identify Your Budget: Eventually, dreams need to meet reality. Your company’s budget will largely dictate the strategy you set in place. It wouldn’t be a bad idea to identify your budget before brainstorming market research, foreign country screening, and stating objectives.

 

Importance of International Marketing 

International marketing, as opposed to global marketing, is incredibly important to boost your company’s international image for a few reasons.

1)  Increases Focus

International marketing increases a brand’s focus on a marketing message. Since every marketing message, media advertisement, and media channel is selected based on careful market research, brands are able to demonstrate more intentionality in their marketing decisions.

2)  More Marketing Expertise and Personnel

Unlike global marketing where all decisions are made from personnel at the company’s headquarters, international marketing generally calls for more marketing employees and research teams. The obvious drawback to this is the added salary expense, but for the most part, the added employees frees up HQ marketing personnel from execution of the marketing plan and keeps them more focused on managing and strategizing.

3)  Brand Authority

One of the major importances of international marketing is creating brand authority in a variety of different markets. The key to note here is the difference between brand awareness and brand authority. Suppose a well-established American company begins broadcasting their messages to multiple coun19tries. Just because Brazil sees their ad all the time doesn’t mean that it holds any relevance for their situation. Thus, while the company’s brand awareness may soar, their brand authority remains low in Brazil and high only in America. This all has to do with specialization and market research in each foreign country. An increased understanding of a culture, customized message, and a detailed country-specific marketing plan all work together to create stronger brand authority.

Conclusion

International marketing plans are incredibly important for anyone who wants to get into the world of international business. Keeping in mind, there is a difference between global and international marketing. After having a clear understanding of the two and deciding which is best for your business model, you can begin working on your objectives and country of interest.

 

 

 

4. Difference between domestic and International Marketing

Difference between domestic and international marketing:

 

	Basis		Domestic Marketing		International Marketing
Definition		“It is concerned with the marketing practises within the researchers or Marketers home country (domestic market).”		“It is the performance of business activities designed to plan, price, promote and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit.”
Role of Politics		Political factors are of minor importance.		Political factors play a vital role.
Languages & Cultures		One language and culture.		Many languages and difference in cultures.
Financial Climate		Uniform financial climate.		Variety of financial climate.
Risk Involved		Normal risk is involved.		Higher risks of different nature are involved.
	c
	Basis		Domestic Marketing		International Marketing
Definition		“It is concerned with the marketing practises within the researchers or Marketers home country (domestic market).”		“It is the performance of business activities designed to plan, price, promote and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit.”
Role of Politics		Political factors are of minor importance.		Political factors play a vital role.
Languages & Cultures		One language and culture.		Many languages and difference in cultures.
Financial Climate		Uniform financial climate.		Variety of financial climate.
Risk Involved		Normal risk is involved.		Higher risks of different nature are involved.

 

 

 

 

 

 

 

Control of Marketing Activities	Control of marketing activities is easy as compared to international activities.	Control of marketing activities is difficult because of different factors like – regional, cultural, political, etc.
Payment	Minimum payment and credit risks.	Considerable payment and credit risks.
Familiarity	Well familiarity with domestic market.	Lack of Familiarity with foreign markets, research becomes essential.
Knowledge Requirement	Management knowledge is required.	Specific management knowledge and competence is required.
Product Mix	Product mix is decided keeping in view the satisfaction and more sales.	Product mix is decided according to foreign market.
Product Planning and Development	Product planning and development according to domestic market.	Product planning and development according to foreign market.
Focus	Focus of interest is on general information.	Focus of interest is on strategic emphasis.
Market Aspect	Market is much more homogeneous and different segments.	Different or diverse markets fragmented in nature

 

 

 

Case Study -3

SECTION C

 

1. A five star hotel has consulted you to find out the reasons for decline in their repeated customers. On observation you found that the service mix is good and when you interacted with the customers, they expressed satisfaction in this background: a) what could be the probable reason for the decline in the repeated customers?

 

Ans: Reasons for Decline in Repeated Customers

1.Loyalty Problems: When companies institute a systematic process for “listening” to customers and the market, they are less likely to have serious loyalty problems. Customers are not shy; they openly share their concerns and problems, directly or indirectly letting an organization know when they are considering defecting. It may happen that customers are getting better services and prices at other five star hotels.

2.Misconception About Price: There is a misconception that price is the primary cause for customer attrition. While price is a contributing factor, particularly in the current environment where most customers – consumers or businesses – perceive the majority of products and services is the primary differentiator. But the term “service” encompasses all aspects of a customer’s relationship with a company –from the initial touch , through the sale, product performance, ongoing support , and replacement.

3.Contact Center: The contact centre plays a crucial role in retaining customers throughout the customers life cycle , particularly at the pivotal point when a customer is reconsidering the value proposition of the hotels products and services. If the receptionists and managers are well-trained, empowered to act, and have the necessary systems and data to determine the right actions, they will be able to retain at-risk customers by meeting or exceeding their expectations.

 

 

 

 

2. How will you do the media planning and selection for a new soft drink to be introduced in the market?

Ans: Media planning and selection for New Soft Drink “Lime Cool”

1. Target Audience: a target audience is the primary group of people that something, usually an advertisement is aimed at appealing to. A target audience can be people of a certain age group, gender, marital status etc. The Lime Cool can be targeted on the basis of age (25-18) and occupation like working people (age greater than 25) middle income and higher income group. The Lime Cool basically can target college students as they are more fond of such drinks.
2. Media Objectives: the objective of the media planning is to initiate strong awareness about the launch of Lime Cool and to win market shares over out top functional drinks competitor, such as Coca Cola and PepsiCo. The prime objective of the media plan are strategically centred on 3 criteria:
   1. To create a strong consumer awareness towards a completely new soft drink.
   2. To establish a wide brand recognition through the capture of market shares in the functional drinks segment.
   3. To become the top market leader in that particular segment within the forecasted sales figures.
3. Media Strategy: the new soft drink company would spent a considerable amount on advertising its product Lime Cool. Besides print advertising, the company would put up large number of hoardings and kiosks. It was trying to set up a thematic campaign to build stronger brand equity for Lime Cool. Vans with Lime Cool logos roam the city, handing out brochers about the company and its services to all customers in famous places like Jantar Mantar. Lime Cool can formulate an advertising campaign which may rope in famous movie actors as celebrity endorsement is a suitable way to promote the brand and is an effective tool for expanding market share.
4. Budget Considerations: their total advertising budget can be somewhere closer to 150 Crores annually nation wide. One of the more important decisions in the development of media strategy can be determined  by how well it delivers the message to the audience with the lowest cost and the least waste.
5. Reach and Frequency: Lime Cool is a brand that is planed to be marketed through entire company. The soft drink company should use geographic weighting in their campaign to determine in which regions of the country the advertising campaign would be effective. The company found that the consumers in the Northwest and Midwest regions have indexes over 100. In contrast, the South and West regions have indexes below 100 and are less likely to purchase the drink. So the advertising would be more heavily weighted in regions with higher indexes to keep the sales high.
6. Media Selection: due to the popularity among Indian youth of the internet, it is a medium the company would intend to use to reach the target audience. The various media re as followed used to target audience are as follows:
   1. TV: TV is an excellent medium to advertise the new soft drink with the maximum amount of reach and frequency.
   2. Radio: the company’s second preferred medium is radio, indicating that the target audience is more likely to listen to the radio than to read the newspaper or a magazine.
   3. Internet: the internet is a very cost efficient and low cost medium for advertising which is why we are incorporating into our media mix.
   4. Newspaper and Magazines: in efforts to expand the brand’s reach and frequency company would add print advertising to the Lime Cool’s media mix.

 

7. Media Scheduling: Advertising media scheduling is the process of choosing the most cost-effective media for advertising, to achieve the required coverage and number of exposures in a target audience. The advertisement of new soft drink must be telecasted frequently throughout the day but initially at prime time at high frequency, as the target audience sits in time at high frequency, as the target audience sits in front of the television at night, this will also reduce wastage. Sponsoring of television serials with high TRPs can be another technique used under media scheduling. TV news channels, Star Plus, Zee, IPL, first page of leading newspaper cab be used to give an ad during the initial phase of the launch.
8. Media Buying: now all this stage media operations department takes over for the implementation of media plan. All formulated media strategies should be implemented so that they could generate the favorable response for the other tools of promotion and could be combined with them. The implementation of the media plan requires media buying, i.e., buying time and space in the various selected media. The buying of media is handled by the advertising agency on behalf of the advertiser.

 

3. The Panthers are self-priming rotary vane pumps with cast iron pump bodies for diesel transfer only. They are fitted with internal, 100 micorn filters, which are easily accessible for cleaning. panther pump is planning to set-up a direct distribution network to sell electric motors and pumps. Discuss.

Ans: One Possible Solution:

Panther pump is planning to set-up a direct distribution network to sell electric motors and pumps. Direct distribution network is the shortest channel, to which Panther pump can easily adopt for distribution of goods or services. In this system, goods move directly from the producer to the consumers without any middleman or a merchant. Panther pump chooses the direct distribution network due to the following reasons:

1. If the buyers prefer direct marketing
2. If the competitors are following direct marketing.
3. If the firm has adequate financial resources for investing in the marketing.
4. Non-availability of suitable middlemen to handle the product.
5. If the firm has marketing expertise
6. If the firm is able to perform the marketing activities at a reasonable cost

This is one of the oldest method of distribution, which was being widely used by producers to sell goods and services prior to the advent of industrial revolution. Under direct channel of distribution network, the manufacturer can adopt one of the following methods of selling:

1. Selling at Manufacturer’s Plant: this is otherwise known as direct selling. It is one of the earliest , easiest and cheapest method of distribution of goods. Under this system, the goods are sold by the producers directly to the consumers. Direct selling is generally preferred in case of perishable products like bread, milk, ice cream, fish, meat, egg, vegetables and agricultural products, etc. these products are directly sold to the consumers because they lose their value or become unfit for use if they are stored or transacted for long.
2. Door to Door sales: salesmen employed by the manufacturers call at the door of customers. They move door to door. This system works better when a new product is introduced into the market. Dealers may not have knowledge of the goods or they need a good margin of profit or they do not want to stock unknown products; for them this system is good. Selling under this system may be costly but when the market is known, it can be reduced. But, at the initial stage, when the market is unaware of the product even at higher cost, this system is better.

3.Sales by Mail Order Method: it is a system by which products are sold fee consumers. The post-office plays a significant role. This system is also known as shopping by post or mail order business or selling by post. It is impersonal Belling, branding, grading, standardizing, packing etc., facilitating the growth of this system. Customers are approached by sending catalogues, price lists, pamphlets, etc., by post. Advertising adds further speed in the selling e.g., books, drugs, watches, toys, small appliances, clolthes, seeds, jewellery etc.

4. Sales by Opening own Shops : it is common that producers of perishable and non-perishable goods sell their products to customers, by opening their own retail shops. It is also common that manufacturers of clothes, foot ware, certain electrical equipments etc., can push the goods quickly through retail shops and can offer satisfactory service to customers, thereby building goodwill. It also facilitates the producers to study the market trends, fashion preferred by buyers and style trend of people. This system offers a two way communication and the price is regulated.

Along with its advantage, it also have some disadvantage to which panther pump should consider before adopting direct distribution network., these disadvantages are as follows:

1. It is un economical to have a direct contact with the customers, who are countless and scattered all over.
2. It is not possible for a direct contact with the multi-millions of potential customers for the products.
3. Manufacturers, generally, may not have talent of salesmanship.