Developing Global Strategic Plans
Strategic planning is the process of determining how to move to a desire future state, in other words were do you want your company to go or to be. Strategic Planning forces a business to analyze the whole organization and the environment in which it operates. This is a very important thing for a business to have in mind and normally it requires evaluating the environment, identifying long term objectives, and developing the plans to reach those objectives. While strategic planning is a wide view, tactical planning is more narrowly focused and more short-term, as the book describes it.
Once a company has a well established strategic plan, it allows the business to respond better to problems and change direction in response to a changing environment. International business are more likely to have problems and difficulties due to the different cultures and culture changes that they deal with; Therefore, it is very important for an international business to have a well established strategic plan.
The mission statement defines the purpose of an organization, who they are, how they feel, what they do. It provides direction, commits resources, inspires individuals and focuses activities. The mission statement guides the development of a company strategy.
The SWOT analysis are the strengths, weaknesses, opportunities and threats of an company. The strengths and weaknesses are inside the company, and the opportunities and threats are outside, like the market for example, the competitors etc.
International Mark Strategies
A placid environment is where there is very little change in the market for example. Business operating under this environment can develop a strategic plan for loner time periods. And turbulent environment is when the environment changes often and unpredictable. Businesses operating under this type of environment must develop shorter strategic plans because they never know what might happen or how long is it going to take to their environment to change.
In a joint venture, two or more businesses create anew business to pursue a strategic goal.
A foreign direct investment is the purchase of assets in a foreign country by a business. This could include the purchase of land or property for example.
A wholly owned subsidiary, is an independent company owned by a parent company.
Global Entrepreneurship
An entrepreneur is a person who undertakes a new venture. They are typically seen as individuals who are willing to take on a risk of starting a new business. The book estates that there are a number of facts that affect the development of entrepreneurship: personal property ownership, investment capital, government regulations and entreatingly culture.
A business incubator is a a physical facility set up to offer office or factory space at a reduced price. They also offer staff support and consulting services. I think this is a great tool for new companies, is a good start.
Tuesday, September 22, 2009
Tuesday, September 15, 2009
Elastic and Inelastic products
I think that a perfect example for an elastic demand product is a washer machine. A washer machine is something you really need but that lasts for a long time, you don't have to purchase it frequently. If a better one comes out and it's too expensive you can wait until the prices go down a little and then get a new one. Gas on the other hand is a perfect example for an inelastic demand product, is something you have to buy no matter what -unless you are close to the metro, which will not be the case on my example. If the prices go up, as much as it bother us we still have to fill up the tank to go to school or to class.
Chapter 10
International Exchange
The chapter describes money as a medium of exchange used by society. This means that money only has a value because we believe in it, if we think about it is just a piece of paper with a number, the face of an important person and a weird smell.
A hard currency has the confidence of international traders, they typically come from economically and politically stable countries like US dollars, pounds, euro and Swiss franc. Soft currency on the other hand, is not acceptable for international exchange.
The law of supply and demand
Demand is the quantity of a good or service that consumers are willing and able to buy depending on the price. And supply is the quantity that producers are willing to offer at a given price. For example is the demand curve shifts to the right and the supply curve stays the same, the units sold will increase and the market price will increase as well. But if we change this and the demand curve stays the same and the supple curve shifts to the right the units sold will still increase but the market price will decrease.
Currency exchange rate
An exchange rate is the ration of how much one currency is worth in terms of another currency. for example $1.00 American dollar is equal to $2,500 Colombian pesos.
International Pricing and Payments
Price is thew amount of money, goods, and services needed to obtain something. It should be given in a rational way, not just charge something because you feel that it should cost that much. There should be a study and statistics behind the given price to make sure that the quantity given is is justified and fair.
The process of setting a price for a global market is based on a number of factors. The price floor is the first one and is the lowest price that a company can charge and still cover costs. The price ceiling on the other hand, is the maximum price that can be charged in a market and it's set by the value costumers see in the product and the Price the competition charges.
Pricing strategies
Penetration pricing is when a company sets a low price compared to competitors. Walmart for example. Skim pricing is known as a temporary strategy where a company sets a high price for a short time. Like the cellphone companies for example, when a new phone is coming out they charge hundreds of dollars for it and after the boom, companies usually they lower the prices. Market pricing is used when competitive products already exist in the marketplace. Prices can be higher or lower than the market average depending on the product's competitive advantage. Prestige pricing is when a company sets a high price throughout the life of a product like Mercedes for example, they want to show they are a luxury car that not everyone can afford.
Balance of Payments
The Elasticity demand describes the relationship between changes in the product's price and the product's demand. The elasticity of demand tells us how much the quantity demanded changes when the price changes. The elasticity of demand measures the responsiveness of quantity demanded to changes in the price charged.
A letter to credit is a financial document used to guarantee a payment, this is a very common method used for international marketing.
Balance of Payments is a record of all transactions made between one particular country and all other countries during a specified period of time. If more currency flows into a country than flows out it is considered to have a positive BOP, if its the other way around it has a negative BOP. There are two major balance of payments components: Current accounts -purchase of goods and tangible products, and financial accounts -financial transactions like loans, stocks, or buying and selling of companies.
A central bank serves as the government's bank and is responsible for a country's monetary policy and an export-import bank are dependent banks established by governments to finance or insure the exporters.
The chapter describes money as a medium of exchange used by society. This means that money only has a value because we believe in it, if we think about it is just a piece of paper with a number, the face of an important person and a weird smell.
A hard currency has the confidence of international traders, they typically come from economically and politically stable countries like US dollars, pounds, euro and Swiss franc. Soft currency on the other hand, is not acceptable for international exchange.
The law of supply and demand
Demand is the quantity of a good or service that consumers are willing and able to buy depending on the price. And supply is the quantity that producers are willing to offer at a given price. For example is the demand curve shifts to the right and the supply curve stays the same, the units sold will increase and the market price will increase as well. But if we change this and the demand curve stays the same and the supple curve shifts to the right the units sold will still increase but the market price will decrease.
Currency exchange rate
An exchange rate is the ration of how much one currency is worth in terms of another currency. for example $1.00 American dollar is equal to $2,500 Colombian pesos.
International Pricing and Payments
Price is thew amount of money, goods, and services needed to obtain something. It should be given in a rational way, not just charge something because you feel that it should cost that much. There should be a study and statistics behind the given price to make sure that the quantity given is is justified and fair.
The process of setting a price for a global market is based on a number of factors. The price floor is the first one and is the lowest price that a company can charge and still cover costs. The price ceiling on the other hand, is the maximum price that can be charged in a market and it's set by the value costumers see in the product and the Price the competition charges.
Pricing strategies
Penetration pricing is when a company sets a low price compared to competitors. Walmart for example. Skim pricing is known as a temporary strategy where a company sets a high price for a short time. Like the cellphone companies for example, when a new phone is coming out they charge hundreds of dollars for it and after the boom, companies usually they lower the prices. Market pricing is used when competitive products already exist in the marketplace. Prices can be higher or lower than the market average depending on the product's competitive advantage. Prestige pricing is when a company sets a high price throughout the life of a product like Mercedes for example, they want to show they are a luxury car that not everyone can afford.
Balance of Payments
The Elasticity demand describes the relationship between changes in the product's price and the product's demand. The elasticity of demand tells us how much the quantity demanded changes when the price changes. The elasticity of demand measures the responsiveness of quantity demanded to changes in the price charged.
A letter to credit is a financial document used to guarantee a payment, this is a very common method used for international marketing.
Balance of Payments is a record of all transactions made between one particular country and all other countries during a specified period of time. If more currency flows into a country than flows out it is considered to have a positive BOP, if its the other way around it has a negative BOP. There are two major balance of payments components: Current accounts -purchase of goods and tangible products, and financial accounts -financial transactions like loans, stocks, or buying and selling of companies.
A central bank serves as the government's bank and is responsible for a country's monetary policy and an export-import bank are dependent banks established by governments to finance or insure the exporters.
Saturday, September 12, 2009
Discussion question 6
Before talking about my funny urban legend I wanted to ask a question...The other day I was parking my car at my office garage and as I was walking to the elevators I saw something I hated!!! Maybe this was a controversy some time ago but honestly is the first time I see it... I saw a car...Dodge and the name of the model was Magnum!!! I hated totally hated it!!! it's funny because we all know what magnum is and the car is a vivid representation of it ew! lol its huge and long... I wanted to ask what you guys think about it because I honestly hated it! I think that is such an inappropriate name for a car! no? am I being tooo conservative here??
Anyways! my urban legend is similar to this story, the same topic I think. In 1971 Ford introduced a new car called the Ford Pinto (it lasted until 1980), the car had a lot of problems itself and Ford got in a lot of trouble mainly because the car tended to erupt in flame in rear-end collisions. Besides all the manufacturing problems the car had in America, sales didn't do well in Brazil either... why? because Pinto is Brazilian slang for "small male genitals", after causing a marketing disaster on this country, the company had to rename and completely rebadge all the cars with a the new name: the Corcel, which means horse or steed.This problem is not a myth, it really happened.
I also found this interesting International/Intercultural mistakes:
Nova = “no go”
Pinto = “small genitals”
Puffs = “homosexuals”
Mist Stick = “manure stick”
Got Milk = “are you lactating?”
Sources
http://www.i18nguy.com/translations.html
http://www.time.com/time/specials/2007/article/0,28804,1658545_1658498_1657866,00.html
http://www.localizationworks.com/cgi/doc.cgi?fauxpas.html
Tuesday, September 8, 2009
Chapter 9
Chapter 9 talks about International Promotional Strategies, International Advertising, and International Selling Strategies.
A promotion is any type of communication designed to inform, remind, or persuade customers about a company and their goods and services. It is normally followed by the AIDA process, which is making the audience aware of the companies advantages and product benefit. Once you know about the good things a product has you then gain some interest in the product, followed by the desire and finally the action to buy it.
Promotional campaigns are designed based on The International Communications Process. First it starts with the sender who encodes the message, using language and symbols to design it. Once the message is encoded, it is the delivered through communication channels to be decoded or interpreted by the receiver. Once the receiver -consumer, decodes the information, the receivers reaction, in other word the feedback should be received by the sender. In my opinion the feedback is the most important part of this process because it's what tells you if the information you sended was successfully decoded by the consumer, if not, it means that your communication process failed and that you need to work on it. Noise is anything that interferes with communication.
Promotional media are the vehicles or channels used to pass the information to the market or the audience. It may be broadcast, print, outdoor, and the big boom now a days electronic media.
Advertising is any form of paid promotion. It is a good tool to use to crate awareness and interest. There are 8 steps to have in mind when developing and advertising campaign: Identify the target audience, set communication goals, develop an advertising budget, develop a media strategy, create the ads, develop the media schedule, implement the plan, evaluate the campaign.
Product placement is when you pay to advertise your product into some other media. Like Eddie Bauer and Ford vehicles for example or Cover Girls and America's Next Top Model.
Publicity, on the other hand is non-paid advertising like PR for example.
A media schedule is a calendar that says when are the ads going to be played and in what different media. This is a great tool for marketers to be on top of the ad campaign, tracking media exposure, and analyzing what works and what doesn't. Not ever media channel works for every product, this is a great tool to recognize what works and what doesn't and to figure out how successfully the campaign is.
When crating advertising it is important to know that there are two types of advertisements, organizational ads and product ads. Organizational ads promote the brand image, and the product ads promote a single product.
Selling Strategies
Personal Selling involves face to face interaction between a seller and a buyer. It is a successful tool because it allows immediate two-way communication. It follows a process that includes: an approach, sales presentation, answering objections, closing the sale, and follow-up.
Every sales person gets compensated with a sales commission which generally is a percentage of the total sale.
A sales promotion is an inactive way to sell am product. The most common ones are coupons, rebates, or a premium when you get an additional product sold. This action is normally used to create an incentive to buy, get consumers attention, interest and desire to buy the product. Victoria Secret's free underwear coupon for example. Every month I get on the mail a postcard with a little business card size coupon giving out a free gift. I go to the store thinking that I am only going to claim my free gift and once I am there I end up spending at least $30.00
Integrating marketing communication is a planning process that integrates all the elements form the promotional mix to ensure that all marketing communication efforts send a consistent message to customers.
A promotion is any type of communication designed to inform, remind, or persuade customers about a company and their goods and services. It is normally followed by the AIDA process, which is making the audience aware of the companies advantages and product benefit. Once you know about the good things a product has you then gain some interest in the product, followed by the desire and finally the action to buy it.
Promotional campaigns are designed based on The International Communications Process. First it starts with the sender who encodes the message, using language and symbols to design it. Once the message is encoded, it is the delivered through communication channels to be decoded or interpreted by the receiver. Once the receiver -consumer, decodes the information, the receivers reaction, in other word the feedback should be received by the sender. In my opinion the feedback is the most important part of this process because it's what tells you if the information you sended was successfully decoded by the consumer, if not, it means that your communication process failed and that you need to work on it. Noise is anything that interferes with communication.
Promotional media are the vehicles or channels used to pass the information to the market or the audience. It may be broadcast, print, outdoor, and the big boom now a days electronic media.
Advertising is any form of paid promotion. It is a good tool to use to crate awareness and interest. There are 8 steps to have in mind when developing and advertising campaign: Identify the target audience, set communication goals, develop an advertising budget, develop a media strategy, create the ads, develop the media schedule, implement the plan, evaluate the campaign.
Product placement is when you pay to advertise your product into some other media. Like Eddie Bauer and Ford vehicles for example or Cover Girls and America's Next Top Model.
Publicity, on the other hand is non-paid advertising like PR for example.
A media schedule is a calendar that says when are the ads going to be played and in what different media. This is a great tool for marketers to be on top of the ad campaign, tracking media exposure, and analyzing what works and what doesn't. Not ever media channel works for every product, this is a great tool to recognize what works and what doesn't and to figure out how successfully the campaign is.
When crating advertising it is important to know that there are two types of advertisements, organizational ads and product ads. Organizational ads promote the brand image, and the product ads promote a single product.
Selling Strategies
Personal Selling involves face to face interaction between a seller and a buyer. It is a successful tool because it allows immediate two-way communication. It follows a process that includes: an approach, sales presentation, answering objections, closing the sale, and follow-up.
Every sales person gets compensated with a sales commission which generally is a percentage of the total sale.
A sales promotion is an inactive way to sell am product. The most common ones are coupons, rebates, or a premium when you get an additional product sold. This action is normally used to create an incentive to buy, get consumers attention, interest and desire to buy the product. Victoria Secret's free underwear coupon for example. Every month I get on the mail a postcard with a little business card size coupon giving out a free gift. I go to the store thinking that I am only going to claim my free gift and once I am there I end up spending at least $30.00
Integrating marketing communication is a planning process that integrates all the elements form the promotional mix to ensure that all marketing communication efforts send a consistent message to customers.
Chapter 8
Chapter 8 talks about International channel design. A channel distribution is the path used to move a product from their source to the consumer. Distribution is a very important thing to have in mind when promotion a product, you might have the best brand and best quality but if you don't distribute your product successfully, you don't have anything.
There are a number of steps or intermediaries for a product to go from the manufacturer to the customer or consumer. A marketing intermediary is an independent business (agents, brokers, wholesalers) in charge of dealing with flow of goods and services from producers to consumers.
The channel designers are the ones who distribute systems to minimize total costs. The total cost concept is the final amount of costs when designing a channel of distribution. A channel captain the one who organizes and distributes the systems reducing the chance for conflict.
When international marketers have clients in other countries they need to send the products to them, this process is called exporting, shipping a product for another part of the world to trade it or sell it. There are a couple of important steps that need to be taken into consideration when exporting a product: preparing products for shipment -making sure they are protected and sealed, arranging all the documentation, and planning the shipping and delivery of products.
Importing, on the other hand is receiving a product from another country.
Indirect exporting is when a business uses brokers or agents help find customers and export products. It may increase the total cost of the sell since there are additional fees that need to be payed. Direct exporting is when the same company is in charge of finding the markets and exporting the products.
Customs is like a product immigration. it controls the products entering the country. Products get inspected making sure that they are legal and have the right documentation. Companies have to pay customs fees in this process. Custom broker is an intermediary that helps products move through customs.
International Retailing.
A retail is a member of the channel of distribution that sells to the end users or a consumer. There are 4 different types of retail stores, specialty stores, a smaller that specializes on a specific product. MAC Cosmetics for example is a store that only sales cosmetics, you will never find a dress for sell on a MAC store. General merchandise, department stores for example, the book says that general merchandise stores have both products width and depth. Convenience stores, have a limited inventory like a 7-Eleven for example. Vending machines are located everywhere and sell mostly sodas and packaged meals like Doritos of Pretzels.
E-Commerce is a huge boom now a days, is buying stuff online, like Amazons.com. It's very convinient because you can buy whatever you want without leaving your house.
Malls or shopping centers are buildings that host a variety of stores. There are different types of shopping centers or malls. Upscale shopping malls like Galleria where you find stores like Hugo Boss or Neiman Marcus or little shopping centers where you can buy unexpensive clothes like Old Navy.
There are a number of steps or intermediaries for a product to go from the manufacturer to the customer or consumer. A marketing intermediary is an independent business (agents, brokers, wholesalers) in charge of dealing with flow of goods and services from producers to consumers.
The channel designers are the ones who distribute systems to minimize total costs. The total cost concept is the final amount of costs when designing a channel of distribution. A channel captain the one who organizes and distributes the systems reducing the chance for conflict.
When international marketers have clients in other countries they need to send the products to them, this process is called exporting, shipping a product for another part of the world to trade it or sell it. There are a couple of important steps that need to be taken into consideration when exporting a product: preparing products for shipment -making sure they are protected and sealed, arranging all the documentation, and planning the shipping and delivery of products.
Importing, on the other hand is receiving a product from another country.
Indirect exporting is when a business uses brokers or agents help find customers and export products. It may increase the total cost of the sell since there are additional fees that need to be payed. Direct exporting is when the same company is in charge of finding the markets and exporting the products.
Customs is like a product immigration. it controls the products entering the country. Products get inspected making sure that they are legal and have the right documentation. Companies have to pay customs fees in this process. Custom broker is an intermediary that helps products move through customs.
International Retailing.
A retail is a member of the channel of distribution that sells to the end users or a consumer. There are 4 different types of retail stores, specialty stores, a smaller that specializes on a specific product. MAC Cosmetics for example is a store that only sales cosmetics, you will never find a dress for sell on a MAC store. General merchandise, department stores for example, the book says that general merchandise stores have both products width and depth. Convenience stores, have a limited inventory like a 7-Eleven for example. Vending machines are located everywhere and sell mostly sodas and packaged meals like Doritos of Pretzels.
E-Commerce is a huge boom now a days, is buying stuff online, like Amazons.com. It's very convinient because you can buy whatever you want without leaving your house.
Malls or shopping centers are buildings that host a variety of stores. There are different types of shopping centers or malls. Upscale shopping malls like Galleria where you find stores like Hugo Boss or Neiman Marcus or little shopping centers where you can buy unexpensive clothes like Old Navy.
Chapter 7
Chapter seven talks about International Product Strategies. A product is something you offer to the market that satisfies a want or a need. It is divided in two, things you can feel and see or a warranty, after sale service, delivery credit and so on, this are called services.
International marketers need to design a product that can either be standard and meet all markets need or be able to make adaptations to meet special market needs.
A brand on the other hand is the name, word, or design that identifies a product, service, or company. It is the first thing a customer sees and what -if it's good, will remind on their mind for a long time. Once you use this brand to create an image is called product position, in other word what do you customers think when they think about your brand? Volvo... security, Mercedes... luxurious. Advertising is the number one tool companies rely on to gain their brand image.
Brand equity is the additional value that a brand name brings to a product or a company, but then the grey market can come and completely destroy the brand dominance by selling their product outside an established authorized distribution system because their prices are normally cheaper when they are not sold by an authorized dealer. Louis Vuitton can be a perfect example for this. There are so many grey market places out there that sell fake or stolen purses that made the brand accessible for everyone. LV is a high-end brand that is not affordable to everyone, after all this little illegal stores or dealers selling the brand in every spot of the city it became a common brand and it lost it's exclusiveness since everyone was wearing it.
In Colombia there's a very famous saying (I'm translating so it might sound weird) "everything comes through the eyes" sounds weird I know! but it means that at the beginning everything is physical... let's say you are at a bar and see a cute guy, you don't know if he is a good guy or a bad person, all you know is that he is hot and you want him to talk to you and buy you a drink. The same theory applies to the packaging and design of a product. If you go to a store to buy a product you are not familiar with, the first thing that is going to catch you attention is the packaging, if it looks cheap, you are not going to waste your time looking at it you pass it and walk towards the one that looks nice and eye-catching. The book says that product design can have a strong impact on product image and sales.
Finding the name for a brand is also a very important process. It needs to be unique and the most important thing to have in mind is that it needs to have the same meaning in every language. Some words can mean something in English but have a complete different meaning in Spanish or French.
A price is what a consumer pays to get a product, it is normally money but in some cases people or companies uses barter which means exchanging something to get something. At my work for example we barter ads with other organizations, instead of paying approx. 1500 to place an ad on their magazine we give then in return an exhibit space on our conference for example in that way neither has to pay and we both get what we want.
A purchasing power parity determines how much of a product a currency can buy in a country, this is something that an international marketer has to have in mind when pricing a product.
Raw materials are unprocessed products used to make other products, like chemicals, minerals and agricultural products. Component parts are pieces that are partially completed by a manufacturer and sold to another one.
The chapter also talks about business markets and how they differ from consumer markets. They are operated by a derived demand, the demand that comes from the end purchaser. Raw materials are never sold directly to a retailer for example. It first needs to be sold to a manufacturer to create component parts, and so on until it's ready to be sold to retails.
An industrial market is a type of market that has different characteristics that impact international marketing strategies. Classification, Industrial buyers, relationship development and international orientation.
Commodity products are goods that you cannot differentiate easily like grains, minerals, and petroleum for example.
International service marketing has four characteristics: intangibility indicates that a service cannot be physically possessed. As I mentioned before, there are two types of products, tangible and intangible, a service is an intangible product, something you cannot see or feel, it can be offered like a warranty but cannot be touched like a car. Inseparability, suggests that service businesses cannot be separated from their providers. Heterogeneity, means that a service can vary from provider to provider. And perishability, means that services cannot be stored, they can be very time dependant. Sometimes hiring someone from an developing country to work for you might be cheaper but the time that it would take that person to get to your country might not be worth the wait.
ISO stands for International Organization of Standardization, a set of global quality standards.
International marketers need to design a product that can either be standard and meet all markets need or be able to make adaptations to meet special market needs.
A brand on the other hand is the name, word, or design that identifies a product, service, or company. It is the first thing a customer sees and what -if it's good, will remind on their mind for a long time. Once you use this brand to create an image is called product position, in other word what do you customers think when they think about your brand? Volvo... security, Mercedes... luxurious. Advertising is the number one tool companies rely on to gain their brand image.
Brand equity is the additional value that a brand name brings to a product or a company, but then the grey market can come and completely destroy the brand dominance by selling their product outside an established authorized distribution system because their prices are normally cheaper when they are not sold by an authorized dealer. Louis Vuitton can be a perfect example for this. There are so many grey market places out there that sell fake or stolen purses that made the brand accessible for everyone. LV is a high-end brand that is not affordable to everyone, after all this little illegal stores or dealers selling the brand in every spot of the city it became a common brand and it lost it's exclusiveness since everyone was wearing it.
In Colombia there's a very famous saying (I'm translating so it might sound weird) "everything comes through the eyes" sounds weird I know! but it means that at the beginning everything is physical... let's say you are at a bar and see a cute guy, you don't know if he is a good guy or a bad person, all you know is that he is hot and you want him to talk to you and buy you a drink. The same theory applies to the packaging and design of a product. If you go to a store to buy a product you are not familiar with, the first thing that is going to catch you attention is the packaging, if it looks cheap, you are not going to waste your time looking at it you pass it and walk towards the one that looks nice and eye-catching. The book says that product design can have a strong impact on product image and sales.
Finding the name for a brand is also a very important process. It needs to be unique and the most important thing to have in mind is that it needs to have the same meaning in every language. Some words can mean something in English but have a complete different meaning in Spanish or French.
A price is what a consumer pays to get a product, it is normally money but in some cases people or companies uses barter which means exchanging something to get something. At my work for example we barter ads with other organizations, instead of paying approx. 1500 to place an ad on their magazine we give then in return an exhibit space on our conference for example in that way neither has to pay and we both get what we want.
A purchasing power parity determines how much of a product a currency can buy in a country, this is something that an international marketer has to have in mind when pricing a product.
Raw materials are unprocessed products used to make other products, like chemicals, minerals and agricultural products. Component parts are pieces that are partially completed by a manufacturer and sold to another one.
The chapter also talks about business markets and how they differ from consumer markets. They are operated by a derived demand, the demand that comes from the end purchaser. Raw materials are never sold directly to a retailer for example. It first needs to be sold to a manufacturer to create component parts, and so on until it's ready to be sold to retails.
An industrial market is a type of market that has different characteristics that impact international marketing strategies. Classification, Industrial buyers, relationship development and international orientation.
Commodity products are goods that you cannot differentiate easily like grains, minerals, and petroleum for example.
International service marketing has four characteristics: intangibility indicates that a service cannot be physically possessed. As I mentioned before, there are two types of products, tangible and intangible, a service is an intangible product, something you cannot see or feel, it can be offered like a warranty but cannot be touched like a car. Inseparability, suggests that service businesses cannot be separated from their providers. Heterogeneity, means that a service can vary from provider to provider. And perishability, means that services cannot be stored, they can be very time dependant. Sometimes hiring someone from an developing country to work for you might be cheaper but the time that it would take that person to get to your country might not be worth the wait.
ISO stands for International Organization of Standardization, a set of global quality standards.
Subscribe to:
Posts (Atom)
