International Marketing Principles and Practice Module 2-1 PDF

Lesson II: INTERNATIONAL MARKETING- PRINCIPLES AND PRACTICE The Marketing Concept Marketing classifies definitions into three basic attitudes and this called as group one, group two and group three. Group one - This describe that a producer is doing something that involves consumers as no...

Lesson II: INTERNATIONAL MARKETING- PRINCIPLES AND PRACTICE The Marketing Concept Marketing classifies definitions into three basic attitudes and this called as group one, group two and group three. Group one - This describe that a producer is doing something that involves consumers as nothing more significant than pawns in a game with profit as the end goal. Goals stated of different authors: - The income-producing side of the business. - Mcnair, Brown, Leighton & Englent - The process of determining consumer demand for a product or service, motivating its sale, and distributing it into ultimate consumption at a profit. - L. Brech. - The planning, executing and evaluating of the external factors related to a company’s profit objectives. - G. M. E. Ule and D. W. Ewing (Ed) - The primary management function which organizes and directs the aggregate of business activities involved in converting customer purchasing power into effective demand for a specific product or service and in moving the product or service to the final customer or user so as to achieve company set profit or other objectives. - L. W. Rodger Group two - This describes that the producer is doing something for the consumers rather than to them but still doing it to suit their own purpose. - Getting the right goods to the right people in the right places at the right time and the right price. – Anon - Marketing development is systematic forward planning so as to ensure matching of resources to fit market trends and to ensure continued growth for the enterprise. - R. Glasser - The total system of interacting business activities designed to plan, price, promote and distribute want-satisfying products and services to present and potential customers. - W. J. Stanton - The activity that can keep in constant touch with an organization’s consumers, read their needs and build a program of communications to express the organization’s purpose. - Kotler & Levy Group three - These definitions move us significantly forward by introducing the idea that there is an element of willingness on the part of consumers as well as producers to join in the process. The authors seen that marketing is a transaction of some kind and it stated below: - The economic process by means of which goods and services are exchanged and their values determined in terms of money prices. - Duddy & Revzan - Selling is preoccupied with the seller’s need to convert his product into cash; marketing with the idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating, delivering and finally consuming it. - T. Levitt - The business activities involved in the transfer of goods or the acquisition of services. - R. Webster - The organization and performance of those business activities that facilitate the exchange of goods and services between maker and user. - L. W. Rodger - All activities intended to stimulate or serve demand. - G. A. Fisk - The medium through which the material goods and culture of a society are transmitted to its members. - E. J. Kelley The Exchange Process The Marketing Process Marketing process - refers to a process includes ways in which value can be created for the customers to satisfy their requirements. It involves planning, execution, and assessment. There’s a fact the elements of a concept of marketing: Customer oriented company - is that all of a marketing company’s activities are centered around the needs of the consumer and the whole process starts by finding out what the customer wants. Product oriented company - this is the opposite of a customer-oriented company which attempts to produce what it chooses to produce and then sell it into the market. Marketing is about making what we can sell, not selling what we can make. All of this is not because we like to please our customers, which of course we do, but primarily based on the fact that a satisfied customer is a more profitable customer. PRODUCTION SELLING PROFIT THROUGH SALES VOLUME Selling - starts with production followed by the need to sell enough to make a profit. It is totally a one- way process. Marketing starts with market research in order to identify current market needs and profits from a satisfied customer. It is based on continuous feedback from the customer and adaptation by the company to changes in consumer demand. 4P’s of Marketing Important strategic decisions which successful companies make can be categorized into the four elements of: 1. PRODUCT - refers to the actual good or service being offered to meet the customer’s needs. It includes decisions about design, features, quality, branding, and variations. - In international marketing, companies may need to adapt their products to meet local tastes, cultural preferences, legal regulations, or market conditions. 2. PLACE or DISTRIBUTION - refers to the distribution channels and locations where a product or service is made available to consumers. It encompasses the entire process of getting the product from the manufacturer to the customer, ensuring that it is accessible at the right time and in the right location.  - International marketers must determine the most effective way to deliver products which might involve partnerships with local distributors, retailers, or establishing their own distribution network. 3. PRICE - This involves determining how much customers will pay for the product. Pricing strategies may vary based on factors like market demand, competition, and product costs. - Pricing strategies in international markets can be influenced by factors such as local economic conditions, purchasing power, tariffs, taxes, and exchange rates. 4. PROMOTION - covers the methods used to communicate and promote the product to the target audience. This can involve advertising, sales promotions, public relations, and digital strategies. - promotional strategies may need to be adapted to resonate with local cultures, languages, and media habits There are other structures for the elements of the mix, notably the concept of the ‘7Ps’ which adds to the above: 5. PEOPLE - refers to all the individuals involved in the product or service delivery including employees, management, and even customers. - in international marketing, people help bridge the gap between the company and its global customers, ensuring that services and communication are both culturally relevant and effective. 6. PROCESS - refers to the procedures, mechanisms, and flow of activities involved in delivering a product or service to the customer. It ensures that the product or service is consistently delivered in a way that meets customers’ expectations. - in international marketing, its refers to the steps and procedures a company uses to deliver its products or services efficiently and effectively on a global scale. 7. PHYSICAL - refers to the tangible elements that elements that support the delivery of a service or product, especially in service-based industries. It is particularly important in marketing because unlike physical products, services are intangible and cannot be seen or touched before they are consumed. Physical evidence helps to make the service more concrete in the eyes of customers. - in international marketing, when business expand internationally, they must ensure that their tangible elements reflect the brand consistently across diverse regions while also adapting local preferences.