Principles of marketing Ch 5: Managing Marketing Mix Elements

1.Define and classify products/ product mix

2.Explain the importance and role of product development;

3.Discuss marketing channel concept, examine the structure and function of the distribution and
materials management
4.Describe the role of promotion mix and identify factors affecting the choice of promotion

5.Analyze the importance of pricing and examine key factors that may influence marketers
1.Define and classify products/ product mix

A product is a tangible or intangible item that is offered for sale to consumers. It can be a physical
object, such as a car or a book, or it can be a service, such as consulting or education. Products can also
be classified based on their level of tangibility, durability, and whether they are consumer goods or
industrial goods.

Product mix refers to the complete range of products that a company offers for sale. It includes all the
products that a company produces or sells, including variations in size, color, and other features. A
company's product mix can be divided into several categories, including:

1. Product line: A group of related products that are sold under the same brand name. For example,
Nike's product line includes shoes, clothing, and accessories.

2. Product width: The number of different product lines that a company offers. For example, Procter &
Gamble has a wide product width because it offers many different types of consumer goods.

3. Product depth: The number of variations within each product line. For example, Apple's product
depth includes different models of iPhones and MacBooks.

In addition to these categories, companies may also offer complementary products that are designed to
be used together with their main products. For example, a printer manufacturer may offer ink cartridges
as complementary products to its printers.

Overall, a company's product mix is an important aspect of its marketing strategy because it determines
the range of products that are available to customers and helps to differentiate the company from its
competitors.

2.Explain the importance and role of product development;

Product development is a crucial process for any business that wants to remain competitive and
relevant in the market. It involves creating new products or improving existing ones to meet the
changing needs and preferences of customers. The importance of product development can be seen in
the following ways:
1. Meeting customer needs: Product development helps businesses to create products that meet the
specific needs and preferences of their target customers. By understanding what customers want,
businesses can develop products that are more likely to be successful in the market.

2. Staying ahead of competitors: In today's fast-paced business environment, it is essential to stay ahead
of competitors by offering innovative products that stand out from the crowd. Product development
allows businesses to differentiate themselves from their competitors and gain a competitive advantage.

3. Increasing revenue: Developing new products or improving existing ones can help businesses to
increase their revenue by attracting new customers and retaining existing ones. A successful product can
generate significant revenue for a business, making product development a critical factor in its success.

The role of product development is to identify opportunities for new products or improvements to
existing ones, conduct market research to understand customer needs and preferences, design and
develop prototypes, test and refine the product, and finally launch it into the market. The process
involves collaboration between different departments within a business, including marketing, research
and development, engineering, and manufacturing.

In conclusion, product development is essential for businesses that want to remain competitive and
relevant in the market. It helps them to meet customer needs, stay ahead of competitors, and increase
revenue. By following a structured product development process, businesses can create successful
products that meet the changing needs of their customers.

3.Discuss marketing channel concept, examine the structure and function of the distribution and
materials management

Marketing channel concept refers to the process of creating a path for goods and services to reach the
end consumer. It involves a series of intermediaries that facilitate the movement of products from the
manufacturer to the final consumer. The marketing channel concept is also known as the distribution
channel or supply chain.

The structure of the distribution channel includes various intermediaries such as wholesalers, retailers,
agents, and brokers. These intermediaries help in the movement of goods from the manufacturer to the
final consumer. Wholesalers purchase goods in bulk from manufacturers and sell them to retailers who
then sell them to consumers. Agents and brokers act as intermediaries between buyers and sellers and
facilitate transactions.

The function of distribution management is to ensure that products are delivered to customers
efficiently and effectively. This involves managing inventory levels, transportation, warehousing, and
order processing. Materials management, on the other hand, involves managing the flow of materials
from suppliers to manufacturers and then to customers.

Effective distribution and materials management can help companies reduce costs, improve customer
service, and increase profitability. By optimizing their supply chain, companies can ensure that they have
the right products in the right place at the right time.
In conclusion, marketing channel concept is an essential aspect of any business that deals with physical
products. It involves a series of intermediaries that facilitate the movement of goods from
manufacturers to consumers. Distribution and materials management are critical functions that help
companies optimize their supply chain and improve their bottom line.

4.Describe the role of promotion mix and identify factors affecting the choice of promotion.

The promotion mix is a combination of various promotional tools used by companies to communicate
with their target audience and create awareness about their products or services. The promotion mix
includes advertising, personal selling, sales promotion, public relations, and direct marketing.

Advertising is a paid form of communication that uses various media channels such as television, radio,
print, and online platforms to reach a large audience. Personal selling involves face-to-face interaction
between the salesperson and the customer to persuade them to buy the product or service. Sales
promotion includes short-term incentives such as discounts, coupons, and contests to encourage
customers to make a purchase. Public relations involves building a positive image of the company
through media coverage and other communication channels. Direct marketing involves reaching out to
customers directly through mail, email, or telemarketing.

The choice of promotion mix depends on various factors such as the nature of the product or service,
target audience, budget, and marketing objectives. For example, if the product is targeted towards a
niche audience, personal selling may be more effective than advertising. Similarly, if the company has a
limited budget, it may choose to focus on sales promotion rather than advertising.

Another factor that affects the choice of promotion is the stage of the product life cycle. In the
introduction stage, companies may focus on advertising and public relations to create awareness about
the product. In the growth stage, personal selling may be more effective in persuading customers to buy
the product. In the maturity stage, companies may use sales promotion to maintain market share.

In conclusion, the promotion mix is an important aspect of a company's marketing strategy. The choice
of promotion mix depends on various factors such as the nature of the product or service, target
audience, budget, and marketing objectives.

5.Analyze the importance of pricing and examine key factors that may influence marketers

Pricing is a crucial element in marketing as it directly affects the profitability of a business. It is the
process of determining the value of a product or service and setting a price that will attract customers
while generating revenue for the company. Pricing strategies can vary depending on the industry,
competition, target market, and other factors.

One key factor that influences pricing is the cost of production. Companies need to consider the
expenses incurred in creating and delivering their products or services. This includes raw materials, labor
costs, overhead expenses, and other related costs. The price should be set high enough to cover these
costs while still being competitive in the market.
Another factor that affects pricing is the target market. Companies need to understand their customers'
needs and preferences to determine how much they are willing to pay for a product or service. For
example, luxury brands can charge higher prices because their target market is willing to pay more for
exclusivity and quality.

Competition is also an important factor in pricing decisions. Companies need to analyze their
competitors' pricing strategies and adjust their prices accordingly. If a company charges significantly
higher prices than its competitors, it may lose customers. On the other hand, if it charges significantly
lower prices, it may be perceived as offering lower quality products or services.

In addition to these factors, external factors such as economic conditions, government regulations, and
social trends can also influence pricing decisions. For example, during an economic recession, companies
may need to lower their prices to remain competitive and attract customers.

In conclusion, pricing is a critical element in marketing that requires careful consideration of various
factors such as production costs, target market preferences, competition, and external factors. By
setting the right price, companies can attract customers while generating revenue for their business.

International Marketing

CH 1: Concepts of International marketing

1. Explain the importance of viewing international marketing management strategies from a global
perspective

2. Understand the strategic implications of competition in different countries.

3.Recognize the trends in International Trade;

1. Explain the importance of viewing international marketing management strategies from a global
perspective

International marketing management strategies are crucial for businesses that operate in multiple
countries. It involves developing and implementing marketing plans that cater to the needs of customers
in different regions, taking into account cultural, economic, and political differences. Viewing these
strategies from a global perspective is essential for several reasons.

Firstly, a global perspective allows businesses to identify opportunities and challenges in different
markets. By analyzing market trends and consumer behavior across various regions, companies can
develop effective marketing strategies that resonate with their target audience. This approach also helps
businesses to identify potential risks and challenges that may arise due to cultural or political
differences.
Secondly, a global perspective enables businesses to create a consistent brand image across different
markets. By developing a unified marketing message that resonates with customers worldwide,
companies can build brand recognition and loyalty. This approach also helps businesses to maintain
their competitive edge by staying ahead of the curve in terms of market trends and consumer
preferences.

Finally, a global perspective is essential for businesses that want to expand their operations into new
markets. By understanding the unique needs and preferences of customers in different regions,
companies can tailor their products and services to meet local demand. This approach also helps
businesses to navigate regulatory and legal requirements in different countries, ensuring compliance
with local laws and regulations.

In conclusion, viewing international marketing management strategies from a global perspective is

critical for businesses that operate in multiple countries. It enables companies to identify opportunities
and challenges in different markets, create a consistent brand image, and expand their operations into
new regions.

2. Understand the strategic implications of competition in different countries.

Competition in different countries can have significant strategic implications for businesses operating in
those markets. Understanding the competitive landscape is crucial for companies to develop effective
strategies that can help them gain a competitive advantage and succeed in the market.

One of the key factors that determine the level of competition in a country is the market structure. In
some countries, there may be a few dominant players that control a significant share of the market,
while in others, there may be many small players competing for market share. The level of competition
can also vary depending on the industry and product category.

Another important factor that affects competition is the regulatory environment. Some countries have
strict regulations that limit competition, while others have more relaxed regulations that encourage
competition. For example, in some countries, there may be restrictions on foreign ownership or
investment, which can limit the number of players in the market.

Cultural factors can also play a role in determining the level of competition in a country. In some
cultures, there may be a greater emphasis on collaboration and cooperation rather than competition,
which can affect how businesses operate and compete in those markets.

Understanding the strategic implications of competition in different countries requires businesses to

conduct thorough market research and analysis. This includes analyzing market structure, regulatory
environment, cultural factors, and other relevant factors that can impact competition.
One strategic implication of competition in different countries is the need for businesses to adapt their
strategies to local market conditions. This may involve developing products or services that are tailored
to local preferences or adjusting pricing strategies to reflect local market conditions.

Another strategic implication is the need for businesses to develop strong partnerships and alliances
with local players. This can help them gain access to local knowledge and expertise, as well as
distribution networks and other resources that can help them compete more effectively.

Finally, businesses operating in different countries need to be aware of potential risks and challenges
associated with competition. This includes understanding local laws and regulations, managing cultural
differences, and dealing with local competitors who may have significant advantages in the market.

In conclusion, competition in different countries can have significant strategic implications for
businesses. Understanding the competitive landscape and adapting strategies to local market conditions
are crucial for companies to succeed in these markets.

3.Recognize the trends in International Trade;

International trade refers to the exchange of goods and services between countries. Over the years,
there have been several trends in international trade that have shaped the global economy.

One of the most significant trends in international trade is globalization. Globalization has led to
increased interconnectedness between countries, making it easier for businesses to trade across
borders. This trend has been facilitated by advancements in technology, transportation, and
communication. As a result, businesses can now access new markets and customers, leading to
increased competition and innovation.

Another trend in international trade is the rise of emerging markets. Countries such as China, India, and
Brazil have experienced rapid economic growth over the past few decades, leading to an increase in
their share of global trade. These emerging markets offer new opportunities for businesses looking to
expand their operations.

The third trend in international trade is the increasing importance of services trade. While goods trade
still dominates international trade, services such as finance, tourism, and telecommunications are
becoming increasingly important. This trend has been driven by advancements in technology and the
growth of the digital economy.

Overall, these trends in international trade have had a significant impact on the global economy, shaping
business strategies and government policies around the world.

Ch 2: International Marketing Environment

1.Differentiate an approach and framework for identifying and analysing the important cultural and
environmental factors.
2.Analyse International Marketing environment;

1.Differentiate an approach and framework for identifying and analysing the important cultural and
environmental factors.

Approach and framework for identifying and analyzing important cultural and environmental factors:

Identifying and analyzing important cultural and environmental factors is crucial for businesses,
organizations, and individuals to understand the impact of these factors on their operations, decision-
making processes, and overall success. Here are some approaches and frameworks that can be used to
identify and analyze these factors:

1. PESTLE Analysis: PESTLE stands for Political, Economic, Sociocultural, Technological, Legal, and
Environmental factors. This framework helps in identifying the external factors that can affect an
organization or business. It provides a comprehensive view of the macro-environmental factors that can
impact the organization's operations.

2. SWOT Analysis: SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. This framework
helps in identifying the internal strengths and weaknesses of an organization as well as external
opportunities and threats. It provides a holistic view of the organization's current position in the market.

3. Hofstede's Cultural Dimensions: Hofstede's Cultural Dimensions theory identifies six cultural
dimensions that can help in understanding how culture affects behavior in different countries. These
dimensions include Power Distance, Individualism vs Collectivism, Masculinity vs Femininity, Uncertainty
Avoidance, Long-term vs Short-term Orientation, and Indulgence vs Restraint.

4. Cultural Intelligence: Cultural Intelligence (CQ) is the ability to understand different cultures and adapt
to them effectively. It involves being aware of one's own cultural biases and understanding how they can
affect interactions with people from different cultures.

5. Environmental Scanning: Environmental scanning involves monitoring the external environment for
changes that can affect an organization or business. This includes keeping track of trends, competitors,
regulations, and other factors that can impact operations.

In conclusion, identifying and analyzing important cultural and environmental factors requires a
comprehensive approach that takes into account both internal and external factors. By using
frameworks such as PESTLE and SWOT analysis, Hofstede's Cultural Dimensions, Cultural Intelligence,
and Environmental Scanning, businesses and organizations can gain a better understanding of the
impact of these factors on their operations.

2.Analyse International Marketing environment;

International marketing environment refers to the external factors that affect a company's ability to
operate in foreign markets. These factors can be political, economic, social, technological, legal, and
environmental. Understanding the international marketing environment is crucial for companies that
want to expand their operations globally.

Political factors: Political factors refer to the government policies and regulations that affect
international trade. These policies can include tariffs, quotas, and trade agreements. Political instability
in a country can also affect a company's ability to operate in that country.

Economic factors: Economic factors refer to the economic conditions of a country that affect
international trade. These conditions can include inflation rates, exchange rates, and economic growth.
Companies need to consider these factors when deciding whether to enter a new market or expand
their operations in an existing market.

Social factors: Social factors refer to the cultural and social norms of a country that affect international
trade. These norms can include language, religion, and social customs. Companies need to understand
these norms to effectively market their products and services in a foreign market.

Technological factors: Technological factors refer to the technological infrastructure of a country that
affects international trade. These factors can include internet penetration rates, mobile phone usage,
and access to technology. Companies need to consider these factors when developing their marketing
strategies for a foreign market.

Legal factors: Legal factors refer to the laws and regulations of a country that affect international trade.
These laws can include intellectual property laws, labor laws, and environmental regulations. Companies
need to comply with these laws when operating in a foreign market.

Environmental factors: Environmental factors refer to the natural environment of a country that affects
international trade. These factors can include climate change, natural disasters, and pollution levels.
Companies need to consider these factors when developing their supply chain strategies for a foreign
market.

In conclusion, understanding the international marketing environment is crucial for companies that
want to expand their operations globally. By considering political, economic, social, technological, legal,
and environmental factors, companies can develop effective marketing strategies for foreign markets.

Ch 3: Market Entry Decision

1.Identify idea in seeking market opportunities outside the home country

2.Explain the various international market entry modes/strategies.

1.Identify idea in seeking market opportunities outside the home country

Expanding market opportunities outside the home country is a strategic move that many businesses
consider to increase their revenue and growth potential. This idea involves exploring new markets,
identifying potential customers, and adapting to local cultures and regulations.

One of the main reasons why businesses seek market opportunities outside their home country is to
diversify their customer base and reduce dependence on a single market. By expanding globally,
businesses can tap into new markets with different needs and preferences, which can help them
increase sales and revenue. Additionally, entering new markets can also provide access to new
resources, such as raw materials or talent, which can improve the company's competitiveness.

Another benefit of seeking market opportunities outside the home country is that it can help businesses
mitigate risks associated with economic downturns or political instability in their home country. By
having a presence in multiple markets, businesses can spread their risk and minimize the impact of any
negative events in one market.

However, expanding globally also comes with challenges. Businesses need to understand the local
culture, language, and regulations to be successful in a foreign market. They may also face competition
from established local players who have a better understanding of the market.

To succeed in seeking market opportunities outside the home country, businesses need to conduct
thorough research and analysis to identify potential markets and customers. They should also develop a
comprehensive strategy that takes into account cultural differences, regulatory requirements, and
logistics.

In conclusion, seeking market opportunities outside the home country is a viable strategy for businesses
looking to expand their customer base and reduce risk. However, it requires careful planning and
execution to overcome the challenges associated with entering a foreign market.

2.Explain the various international market entry modes/strategies.

International market entry modes/strategies refer to the different ways in which a company can enter a
foreign market. These strategies are important for companies looking to expand their operations
globally and can vary depending on factors such as the company's size, resources, and the target
market's characteristics. The following are some of the most common international market entry
modes/strategies:

1. Exporting: This is the simplest and most common way for companies to enter foreign markets. It
involves producing goods or services in one country and selling them in another. Exporting can be done
directly by the company or through intermediaries such as distributors or agents.

2. Licensing: This strategy involves allowing a foreign company to use a company's intellectual property
(IP) such as patents, trademarks, or copyrights in exchange for royalties or fees. Licensing is a low-risk
way for companies to enter foreign markets as it requires minimal investment.
3. Franchising: This strategy involves granting a foreign company the right to use a company's business
model, brand, and operating system in exchange for fees and royalties. Franchising is similar to licensing
but involves more control over how the business is run.

4. Joint ventures: This strategy involves partnering with a local company in the target market to create a
new entity that both companies own and control. Joint ventures allow companies to share risks and
resources while gaining access to local knowledge and expertise.

5. Direct investment: This strategy involves establishing a wholly-owned subsidiary or acquiring an

existing company in the target market. Direct investment gives companies full control over their
operations but requires significant investment and carries higher risks.

6. Strategic alliances: This strategy involves forming partnerships with other companies in the target
market to achieve specific goals such as sharing resources, technology, or distribution channels.

In conclusion, there are various international market entry modes/strategies that companies can use to
expand their operations globally. The choice of strategy depends on factors such as the company's size,
resources, and the target market's characteristics.

Ch 4: Product Policy Decisions

Ch 5: Promotion strategy in international context

Ch 6: Pricing and Terms of payment

Ch 7: Distribution Strategy in international context

1.Recognize multinational companies and their international business operation;

2.Explain the various approaches of marketing mix strategies in the international Market context;
3.Discuss the formality of export/Import, International finance, insurance (risk management) and quality
control.
1.Recognize multinational companies and their international business operation;

Multinational companies are corporations that operate in multiple countries around the world. These
companies have a global presence and engage in international business operations to expand their
reach and increase profits. Some of the most well-known multinational companies include:

1. Apple Inc.: Apple is an American technology company that designs, develops, and sells consumer
electronics, computer software, and online services. The company has a global presence with retail
stores in over 25 countries and manufacturing facilities in China, Ireland, and the United States.

2. Coca-Cola Company: Coca-Cola is an American multinational beverage corporation that produces and
sells soft drinks, juices, and other non-alcoholic beverages. The company operates in over 200 countries
worldwide and has manufacturing facilities in more than 50 countries.
3. Toyota Motor Corporation: Toyota is a Japanese multinational automotive manufacturer that designs,
manufactures, and sells cars, trucks, and other vehicles. The company has a global presence with
manufacturing facilities in over 30 countries and sales operations in more than 170 countries.

Other notable multinational companies include Microsoft Corporation, Samsung Electronics Co., Ltd.,
Procter & Gamble Co., and Nestle S.A.

These companies engage in international business operations such as exporting products to foreign
markets, establishing subsidiaries or joint ventures with local companies, and acquiring foreign firms to
expand their operations globally. They also face unique challenges such as navigating different legal
systems, cultural differences, and currency fluctuations.

2.Explain the various approaches of marketing mix strategies in the international Market context;

Marketing mix strategies refer to the set of tactics and tools that a company uses to promote its
products or services in the market. In the international market context, companies need to adapt their
marketing mix strategies to suit the local market conditions and cultural differences. There are several
approaches to marketing mix strategies in the international market context, including:

1. Standardization approach: This approach involves using the same marketing mix strategy across all
markets. The idea behind this approach is that a standardized approach can help reduce costs and
improve efficiency. However, this approach may not be suitable for all markets, as cultural differences
and local market conditions may require a different approach.

2. Adaptation approach: This approach involves adapting the marketing mix strategy to suit the local
market conditions and cultural differences. This approach recognizes that different markets have
different needs and preferences, and therefore requires a customized approach. This approach can help
companies better connect with their target audience and improve their chances of success in the local
market.

3. Localization approach: This approach involves developing a completely new marketing mix strategy
for each local market. This approach recognizes that each market is unique and requires a tailored
approach. This approach can be expensive and time-consuming, but it can also help companies achieve
greater success in the local market.

4. Glocalization approach: This approach involves combining elements of standardization and adaptation
approaches to create a hybrid strategy that is both global and local. This approach recognizes that some
elements of the marketing mix can be standardized across all markets, while others need to be adapted
to suit local market conditions.

In conclusion, there are several approaches to marketing mix strategies in the international market
context, including standardization, adaptation, localization, and glocalization. Companies need to
carefully consider their target audience, cultural differences, and local market conditions when
developing their marketing mix strategies.

3.Discuss the formality of export/Import, International finance, insurance (risk management) and quality
control.

Export/import, international finance, insurance (risk management), and quality control are all critical
components of international trade. The formality of these aspects varies depending on the country,
industry, and type of product being traded.

Export/import formalities involve complying with regulations and laws related to the movement of
goods across borders. This includes obtaining necessary licenses and permits, completing customs
declarations, and adhering to trade agreements. The level of formality can vary greatly depending on
the country and product being traded. For example, exporting agricultural products may require more
documentation than exporting manufactured goods.

International finance formalities involve managing currency exchange rates, payment methods, and
financing options for international transactions. This includes understanding the risks associated with
currency fluctuations and choosing appropriate payment methods such as letters of credit or wire
transfers. The level of formality in international finance can be complex and requires expertise in
financial management.

Insurance (risk management) formalities involve protecting against potential losses due to unforeseen
events such as natural disasters or political instability. This includes obtaining insurance coverage for
goods in transit and ensuring compliance with local insurance regulations. The level of formality in
insurance can vary depending on the type of product being traded and the level of risk associated with
the destination country.

Quality control formalities involve ensuring that products meet specific standards and regulations for
safety, quality, and performance. This includes conducting inspections, testing products, and obtaining
necessary certifications. The level of formality in quality control can vary depending on the industry and
product being traded.

In conclusion, export/import, international finance, insurance (risk management), and quality control
are all critical components of international trade that require varying levels of formality depending on
the country, industry, and type of product being traded.