Business Test I may be cooked for

What is Marketing

It involves all activites needed to get goods/services from the orignal producer to the consumer

What are some activities involved in marketing

Market research, Product development, pricing, advertising, sales

The primary goal of all marketing activites is

To sell the output of production

What does marketing typically fail with

A lack of consistiency, all interactions between consumer and business must feel the same

Marketing Kebab key example

Business Card

Advertising

Website

Social media

Pricing

Product

Marketing strategy and focus

What are the 4 P’s of marketing

Price, Promotion, Product, Place

What are the 2 C’s

Consumers and Competition

What is Marketing Mix

4 P’s and 2 C’s

Remarkable key example

Being something that people want to talk about. State your position in 8 words or you dont have a position

Seth Godin

American business author and marketing guru who applies the idea of being remarkable in a different way

How does Godin apply the idea of being remarkable

In the past, effective marketing could sell even the most ordinary product or service, but that era is over. Now you have to actually create something that is remarkable

Remarkable brands are ones that

Have high customer loyalty and motivate consumers to talk about them

Price

The biggest international challenge is determining price and managing costs.

Question: Can the people in the export country afford the product

Price Example

Oreas are sold in smaller packages at a lower cost in China

Markup Pricing

A percentage increase is added to the cost to make it, and that is the profit.

For example, a $12 item being sold for $15. Products with consistend demand have lower markups.

Penetration Pricing

Products are introduced at a lower cost and then raised one people try it and they grow a fan base.

Price Skimming

Products are introduced into a market at a higher price than the competition to seem like its better quality. The price becomes lower later as a market is established.

Premium Pricing

Price is set higher that competitors to seem luxury and the price is never lowered

Discount Pricing

Often used in B2B to reward high volume purchases and build loyaly with wholesaler retailer. For example you offer 2/10 net 30 = 2% discount if paid in 10 days, otherwise full amount due in 30 days

Psychological Pricing

Try and have customers make an emotional decision rather than a logical one

Promotion

There are 3 ways to promote internationally.

Existing ads

Translating ads into appropriate language

Create brand new ad or campaign

Use Existing ads

Works in countries with similiar languages and cultures and it can save costs while reaching more customers

Translating ads into appropriate language

Use voiceovers and directly translate. However translations might not always be accurate and it can lead to mistakes. (KFC Finger looking good to Eat your fingers off)

Create brand new Ad or campaign

Best for tailoring messages to certain cultures. Clickstream data as well meaning targeted ads based on e-commerce data

Product

In traditonal marketing products includes all decisions about

features, function, design, packaging, warranty

Modification is required to adapt to foreign cultures

Weight

For example the US uses Imperial while we us Metric. Product packaging must change for largest trading partner

Colour

colours have a different meaning in different cultures and marketers need to understand differences for packaging and product design

Legal requirements

Product packaging must account for enviromental impact. Denmark for example charges extra taxes on disposable cutlery, plastic bags, and pesticides.

Language requirements

Language must be translated into the language of the export country and Countries like Canada, Switzerland, and India require 2 or more languages on packages

Labelling and Ingredients

Countries have different rules on warnings, pictures, location of production and igredienets

Style

What is fashionable in one country might be very embarassing or offensive somewhere else

Place

Refers to where products are sold and depends on the customer

What are the 2 strategies of place

Business to consumer and Business to business

Traditonal supply chain

Some products have a short supply chain and are sold directly to consumers but most require intermediaries like producers and importers

Specialty distribution channel

Vending machines - Convenient

Trade shows - Manufacturers and distributors in specific industrys rent spaces and set up booths to sell

E-commerce - Revolutionzed international business

Logistics

The acquisition, transportation, and storage of materials from the point of origin to the point of consumption

What does logistics focus on for a business

Getting the right product to the right person at the right time

Production Logistics

Ensure that each machine and workstation in manufacturing plant has the right material in the right quantity, quality, and at the right point in time

Business logistics

Ensure raw and finished materials flow through each part of the business and to the end consumer through a network of computer terminals, transportation links and storage facilities

Forward Logistics

Is the most common form of logistics and it involves the process of delivering from producer to consumers

Reverse logistics

Focuses on the activities that occur after the product has been sold and received by the customer

Reverse - Returns

Businesses must inspect returns and decide what to do with it

Reverse - Recalls

Faulty or potentially hazardous products must be replace and/or repaired at the business cost

Reverse - Repair

Products may or may not be covered under warranty

Reverse - Repackaging

Recalled products may be suitable for resale as refurbished, after specific mods

Reverse - Recycling

The need to dispose of a repair/recycled products that cannot be repaired or refurbished

Supply chaing management

Involves the management of Info, Materials, and Finances as products move between intermediaries and to the end consumer

Good supply chain management

Reduces inventory, Tries to have products available only when needed, and reduces costs

What are the 6 links in the supply chain

Inventory, storage, cashflow, supplier, info, physical distribution

Vertical integration

When a company expands to control all or most of the supply chain

Horizantal Integration

When a company expands by purchasing its competitors

What are some advantages of uber eats

Convenience for consumers, creates jobs, variety, promos

What are some disadvantages of uber eats

60% markup if you were to just get it in store, restaurants have to buy more packaging which is bad for them and the environement, restaurants barely make profit, restaurants have to pay a fee to get on plus percentage of orders

2014 Avacados key example

Lime prices increased by nearly 300% due to drug cartels in Mexico

Oil prices

Oil prices can fluctuate grratly, sometimes in a short time. The decision to offshore or onshore depends on price and distance to travel and both political and environmental factors affect prices

Currency fluctuations

Dealing with various currencies is unavoidable in international business but the fluctuation risk can be managed

How are exchange rate fluctuations best managed

By including a baseline rate acecptable to both sides or even changing suppliers but that could disrupt the supply chain

Weather and Natural Disasters

Flooding and hurricanes can cause shipment delays and production slowdowns

Politcal Instability

Doing business with companies in countries with political instability can result in delays due to Excessive security, armed conflict, new taxes, or new government regulations. Tensions between countries can also influence business costs and market access (Tariff wars between trump and trudeau affected beef and metal industries)

Piracy (Somalia)

Most piracy activity in recent years has occurred in the area of Somalia

Piracy in that area cost billions of dollars between 2005 and 2013