Important Product Decisions In International Marketing Management Marketing Essay

Marketing strategies are the concepts and techniques to increase the sales and achieve a sustainable competitive advantage. As burger fuel plans to open new store in India after achieving market in middle eastern countries. Burger Fuel should follow marketing strategies as given below.

1). Product Decisions-

A product is a physical good, service, idea, person or place that is capable of offering tangible and intangible attributes that individuals or organizations regard as so necessary, worthwhile, or satisfying that they’re prepared to exchange money, patronage or some other unit of value in order to acquire it. Product decision represents product chrematistics and different stages of life cycle.

Product decision should be as per the expectations of customer and as per their culture views. India is a more cultural market, where a anti culture product will effects all of the goodwill of the company. So, we should care about the ethical issues of India while taking product decision.

Important product decisions in international marketing management are:

A. Market segment decision.

B. Product mix decisions.

C. Product specifications.

D. Positioning and communication decisions.

A. Market Segment Decision:

The first product decision to be made is the market segment decision because all other decisions product mix decision, product specifications, and positioning and communications decisions depend upon the target market.

B. Product Mix Decision:

Product mix decision pertains to the type of products and product variants to be offered to the target market.

C. Product Specifications:

This involves specification of the details of each product items in the product mix. This includes factors like styling, shape, size and other attributes and factors like packaging and labeling.

D. Positioning and Communications Decisions:

Positioning is the image projected for the product. For example, burger may be positioned as veg burger, non veg burger, cream burger or egg burger. Communication refers to the promotional message designed for the product. Obviously, both positioning and marketing communication are very much interrelated. For the same product, sometimes the positioning and communication strategies differ between markets. For example, non veg burger is a low priced gin in the New Zealand(its home market); but when the company wanted to introduce it in the India it found that there was no room in the minds of the consumers for another low priced gin. So in the India the non veg burger was positioned as a high priced gin became very successful.

A product is defined as anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need includes physical objects, services, person, places organizations and ideas.

2). Pricing Decisions-

Pricing is the concept of determining what a organisation will receive in exchange for its products/service. Pricing factors are manufacturing cost, market place, competition, market condition, and quality of product in the presented market. Pricing is also a key variable in microeconomic price allocation theory. Pricing is a fundamental aspect of financial modeling and is one of the four P’s of the marketing mix. The other three aspects are product, promotion, and place. Price is the only revenue generating element amongst the four Ps, the rest being cost centers.

Pricing is the manual or automatic process of applying prices to purchase and sales orders, based on factors such as: a fixed amount, quantity break, promotion or sales campaign, specific vendor quote, price prevailing on entry, shipment or invoice date, combination of multiple orders or lines, and many others. Automated systems require more setup and maintenance but may prevent pricing errors. The needs of the consumer can be converted into demand only if the consumer has the willingness and capacity to buy the product. Thus pricing is very important in marketing.

Pricing managers have the perception that the process they use in setting domestic prices can be applied to international price setting. What works here has got to work there was how one pricing manager stated his feeling about international price setting. This ethnocentric approach can limit a firm’s opportunity to grow and be profitable in international markets. Using the most popular method of cost-plus price setting in foreign markets is too simplistic. Currency fluctuations, national and regional market regulations, cultural differences, global economic trends, and political differences all impact on how prices can be set in international markets. Each of them must be taken into consideration before a price is placed on a good/service.

International Factors to Consider While there are many factors that universally affect all pricing strategies; four are of particular concern to the international pricing manager. The first of these is governments interfere. It poses one of the greatest risks in international pricing determination, even if, there is only a threat of intervention. Government intervention can take on many forms, such as, monetary and price controls, anti-trust legislation, non-tariff trade barriers and financial reporting requirements. Countries with hyperinflation typically impose price controls. The implication for international pricing professionals operating in such markets is that they need to develop strategies that allow them to quickly increase selling prices in response to the competition. Other possible pricing strategies might also include transfer pricing.

Pricing decision is the second most important decision in Indian food market. Our targeted customer expect a reasonable price all of our product, as they can easily afford to buy and it can’t effect the budget of customers and as well as for the company.

As there are a lot of existing food centers in Indian market. So we should go for competitive pricing strategies for the simple cheap product and as well as we should keep some products in expensive class for high/rich segment customers.

3). Place (Distribution) Decision-

A channel is an institution through which goods and services are marketed. Channels give place and time utilities to consumers. In order to provide these and other services, channels charge a margin. The longer the channel the more margins are added. Channels are an integrative part of the marketer’s activities and as such are very important. They also give a very vital information flow to the exporter. The degree of control one has over a channel depends on the channel type which is employed. Whilst for developing countries(India), as stated earlier, channels are almost given, this is not always the case, and as exporting becomes more and more necessary, it will not always be the case. In deciding on channel design the following have to be considered carefully:

· Market needs and preferences.

· The cost of channel service provision.

· Incentives for channel members and methods of payment.

· The size of the end market to be served.

· Product characteristics required, complexity of product, price, perish ability, packaging.

· Middlemen characteristics – whether they will push products or be passive.

· Market and channel concentration and organization.

· Appropriate contractual agreements.

· Degree of control.

Indian market is very large and high growth market. As India is a developing country. So, chances of growth are more than a other developed/competitive country. One major positive point for the company is the in high growth market there are lots of options/channels available for franchises. It comes with high growth chances in Indian developing market.

For launching Burger Fuel in India we should go with franchisees. Initially we should go for big cities like New Delhi, Chandigarh, Mumbai, Banglore and after successful launching we would go for other nearby cities.

4). Promotion Decision-

D

Promotion/advertising is the major part of our food industry, in which our targeted customers are always affected by the advertising effectives. A high level of advertising always effect and motivate our targeted customers to convince them to buy our product.

Promotional tools-

Numerous tools can be used to influence consumer purchases:

Advertising-in or on newspapers, radio, television, billboards, busses, taxis, or the Internet.

Price promotions-products are being made available temporarily as at a lower price, or some premium is being offered for free.

Sponsorships.

Point-of-purchase-the manufacturer pays for extra display space in the store or puts a coupon right by the product.

Other method of getting the consumer’s attention-all the Gap stores in France may benefit from the prominence of the new store located on the Champs-Ely sees.

As per the market we can use different channels of promotion like Television Media, News papers, Promotion offers, references. As we have done survey on our selected test area, we should use high level of Television Media promotion and reference promotion offers like free discount coupons extra.

5). Integration and Link-

Integration is the concept of connecting and holding all the activities together. In burger fuel, all the activities of marketing should be liaison and work with each other.

Coordination and Control:-

Coordination- Coordination is the act of organizing, making different people or things work together for a goal or effect to fulfill desired goals in an organization. oordination is a managerial function in which different activities of the business are properly adjusted and interlinked. Coordination play a big role in burger fuel with its international presence in the globe.

Integration vertically involves the combination of two or more separate marketing or production components under common ownership or management. It can involve investments “forward” or “backward” in existing activities or investments in interlinked activities.

Integration horizontally means the linking of marketing or production separable at the same level in the system, for example, a group of retailers. Integration can bring a number of economies to food marketing systems:-

Production/logistical economies: integration can bring economies of bulk, transport and inventories.

Transaction cost economies: integration brings cost economies because the firm may become the sole supplier of goods and services to itself; these include bargaining costs, information system streamlining and centralized decision making.

Risk bearing advantages: vertical integration can overcome risk and uncertainty, i.e. by internalizing flows the organization can eliminate the risk of variability in supplies, outlets, and qualities and so on. More direct control over assets may enable the firm to invest in processing and marketing facilities which further enable the development of economies of scale. Typical examples include nuclear estates and out grower schemes.

Market imperfections: these can be “absorbed” often by vertically integrated organizations. Taxes, prices and exchange controls and other regulations may be “absorb

b. Controlling-

Control is about keeping things on track as per plan against objectives, removing and adding elements, reapportioning spend and resource as needed and informing plans for the following year. Control means keeping an eye on men (resource) money (budget) and minutes (time). The expected and the unexpected can all have a major impact.

There is no planning without control. Marketing control is the process of monitoring the proposed plans as they proceed and adjusting where necessary. If an objective states where you want to be and the plan sets out a road map to your destination, then control tells you if you are on the right route or if you have arrived at your destination.

Control involves measurement, evaluation, and monitoring. Resources are scarce and costly so it is important to control marketing plans. Control involves setting standards. The marketing manager will than compare actual progress against the standards. Corrective action (if any) is then taken. If corrective action is taken, an investigation will also need to be undertaken to establish precisely why the difference occurred.