Marketing Stategies 3 (Extended Marketing Mix) Flashcards
(15 cards)
Extended Mix + Other Points
People, processes, physical evidence
E Marketing
Global Marketing
- Global branding
- Standardisation
- Customisation
- Global Pricing
- Competitive Positioning
People
Essential for businesses to use qualified, competent employees
People element refer to quality of interaction between customer and staff
Processes
Refers to flow of activities that business will follow to deliver service
Behind efficient delivery systems is a well planned and organised processes
Any business that has inefficient processes will lose customers and damage reputation
Physical Evidence
Emvironment in which the service will be delivered and any materials needed to carry it out E.g Calling cards, business logo and website
E Marketing (Electronic)
Practise of using the internet to perform marketing activities
Technology has driven the push to market products to customers worldwide
Consumers seeking convenience of online shopping will purchase from overseas retailer and bypass local businesses (risk to AUS business)
Faster, more efficient way of doing business, attracting new customers
Global marketing
Global Branding
Standardisation
Customisation
Global Pricing
Competitive Positioning
Global Marketing - Global Branding
Worldwide use of a name, term, symbol or logo to identify products (e.g maccas)
Cost effective
- One ad for multiple locations
Provides uniform worldwide image
Successful brand can be linked with new products introduced
- Customers trust new products
Global Marketing - Standardisation Approach
Product is used and needs it satisifed are the same worldwide
Marketing mix will be the same in all markets (1 plan fits all)
Provides
- Cost savings
- Achieving economies of scale
- Research costs reduced
- Promotion strategies can be standardised
Global Marketing - Customisation
Business may modify or develop a marketing mix in overseas markets
Customised Approach
- Assumes product and needs it satisfies are different between countries
Marketing plan is customised according to economic, politcal, sociocultural features of target country
Global Marketing - Combination of Standardisation and Customisation Example
Maccas
Offering different products that appeal to local tastes in each country
- E.g Pinapple cups in Hawaii, noodles in Phillipines
Global Marketing - Global Pricing
Major challenges facing transational corporations is global pricing
- How to coordinate pricing policy worldwide
Global price strategy is a major determinant of profits
- Customised, mixed customised, or standard worldwide price
Global Pricing - Customised Pricing
Based on cost plus method - Covering cost of exporting worldwide products
Global Pricing - Market Customised
Prices are set according to local market conditions
Prices may be lowered in a high-competition market to remain competitive
- Opposite too
- Especially where businesses have a monopoly
Global Pricing - Standard worldwide price
Charging customers the same price for a product anywhere worldwide
- Only works if foregin marketing costs are kept low and don’t drag down profits
Risks: Local businesses undercutting standardised price or change in exchange rate affecting importation
Global Pricing - Competitive Positioning
How a business will differentiate its products in the marketing environment
Must show how its products are better
Avoid competing on price only, should strive for product leadership, customer relations, and operational excellence
