Question one
Critically evaluate how international companies can apply and make practical use of the strategic theory and model of ‘Ansoff’s Matrix’ in terms of market penetration, and market development, for ONE of the following products; hand soap or paper towels.
It is usually challenging for international companies to adopt necessary tools that will work with excellent marketing strategy. One of the most common forms of marketing tools is Ansoff’s Matrix. The main aim of the tool is aid the business in determining its products, as well as the market growth strategy. Ansoff’s growth matrix bears suggestions that businesses will always attempt to grow depending on whether it aims at marketing the new or existing sets of products.
This matrix has been divided into four main sections of market penetration, product development, market development and diversification. For an international company that manufactures hand soap, Ansoff’s matrix may be extremely vital.
One of the elements that may be extremely vital for hand soaps in this matrix is market penetration. This is a marketing strategy that aims at selling existing products into existing markets. Hand soaps are extremely common commodities that are used in everyday life of a human being.
While trying to penetrate the soap into the market, there are certain objectives that have to be achieved. As the manufacturer, the main aim is to increase the market share for the hand soap. This may be achieved through various steps. The soap must be sold in favorable prices that equal to the prevailing market prices or slightly lower. It must be matched with extensive advertisement of the soap through international media like satellite television as well as social sites. Extensive sales promotion may be extended to all corners of the world with critical emphasis on the untapped market.
Following definition of the uniqueness of the hand soap, the company should secure exclusive dominance of growth markets for the product. Although, there are a good deal of competitors, the hand soap continuously advance in terms of fame among customers through exclusive promotional strategies. Excellent pricing strategy needs be adopted to attract more customers.
The other phase of the Asoff’s Matrix that may be exclusively useful is market development. This is the name for the form of growth strategy where a business tries to sell its existing products into new markets. Market development for hand soaps may be carried out in various ways. One of the ways is the establishment of new geographical markets. For example, the soap may be exported into regions where it has never been sold before. The market may also be developed through new packages that would make the soap more attractive and thus would fetch a wider market for the soap.
The manufacturer of hand soap may also develop new channels of distribution that would make the product reach an extensive large group of people. For example, e-commerce may be introduced in order to trade the product over the internet. Also, sales may be extended through the use of mail orders as sales techniques. It is also upon the manufacturer of the hand soap to consider using variant pricing policies that would attract different classes of customers in order to create new segments in the market.
Question 2
In marketing products across international markets, the product manager can decide to adapt their products physically and culturally. Discuss and critically assess the process.
When dealing with international businesses it is extremely significant to consider such values as adaptation. This may be defined as the means through which a product or service is exclusively prepared to suit certain characteristics in the business community. Among the most common forms are physical and cultural adaptations for commodities as well as services.
Although physical adaptation may be extremely wide, it is an exclusively significant element in the enhancement for the market of a product. Physical adaptation of a product is influential to the market share of a product in various ways. The world is exposed to adverse physical challenges. In most cases, these forces are transformed in to the nature of the products. While designing products it is extremely vital to consider the environment of the market which is being targeted by a particular company. With proper understanding of the environment of the target market, the company will manufacture products that will fit the market as well pose extensive challenge to the goods that already exist in the market. Different countries have different environments. Therefore, the company will manufacture goods that are likely to withstand physical characteristics of the target market. For example, a cloth manufacturing company will have to manufacture extremely heavy clothes for winter seasons in Europe. The same company will be required t manufacture clothes that light and comfortable to be worn during dry periods in desert places like Egypt.
Therefore, when the company chooses to search a way through which it may penetrate various markets it must ensure that its products are adapted to physical conditions, which are defined by the environment, the humidity of the place, as well as rainfall expectations of the target market.
Cultural adaptation is the definition for respect to various beliefs that people conform to based on their locality. Culture determination is one of the most critical elements that are usually considered during marketing. Following different cultural values found in different countries, international companies must be considerate of cultural adaptation. This is where they have to manufacture products that are culturally acceptable to the target market.
Different cultures attach different meanings to variant elements. For example, different words, labels, and numbers may have different meanings on variant cultures. This means that it would be wise for a company willing to extend its market to new places to first get conversant with the culture of the region. At international level, there are extremely many cultural values. Therefore, the manufacturer must develop an outstanding platform on which any product that he or she will manufacture with the aim of selling in the target land is culturally adapted to the target market. If a product fails to confine to some of the beliefs of a given region, it is likely that the product will not attract sales in the new market. Even if the slightest of the cultural beliefs is ignored, the product may fetch no market in the new region.
Question 3
Critically evaluate how your entry, with selected strategies into a developed foreign market might differ from entry into a relatively untapped market.
The first strategy that would be unique to an already developed market is timely entry. It is extremely vital to understand that any market is usually influenced by various forces that needs be considered before joining the market. This dictates that before entry extensive research on the market needs be conducted. One of the elements that need be considered before entry is the nature of the goods that the organization is willing to sell in the market. The organization must have identified need for the product in the market and is ready to sell the product. This is the process of gathering information about the suppliers and service providers in the market. It is also referred to as market transaction. For example, understanding market behavior for seasonal products would determine the availability of raw materials during certain times. Prices differ from one country to the other. Therefore, it would be extremely wise for the foreign company to understand the price structure for the new market.
The second market entry strategy that may also be defined by research conducted on the market before entry is acquisition. Before, joining the already established market it would be extremely wise to evaluate the most influential organizations or sellers in the market. This may be individuals who sell complementary products or subsidies. This would pave way for the first strategy referred to as acquisition. This is a business strategy where a business is fully acquired by another organization to enhance business for the two organizations. It becomes extremely easy for the organization to access the already saturated market through the name of the acquiring organization that is already established. Despite the name used in an untapped market sales are guaranteed provided there is a need that has been identified among customers. For example, a strong domestic company may acquire the foreign company to assist it in accessing favorable registration process unlike at a case where foreign company opts to register on itself.
The third strategy that may be used in the entry to a foreign market that is already developed is the formation of an alliance. This is a business strategy through which different organizations may assess their capabilities and their ability to acquire the intended resources to make outstanding products. Since different organizations have different capabilities, combining with another organization passes an extensively critical force to each of organizations as they can now work together as one giant company. In this case, a new name of operations may be invented, or one of the names may be used in the operations depending on the agreements between organizations. Combining with another organization means the market share has been reduced to extremely small share. For example, new Companies manufacturing detergents and beauty products may form an alliance that would allow them fetch a wide share in the already developed market. A foreign company may also force form an alliance with a domestic organization that may easily access governmental services.
Question 4A
With the ability of international businesses to broadcast advertisements globally, using satellite television, critically assess if this will lead to more or less standardization of television advertisements.
It is evident that television advertisements are forces to reckon with in modern advertisement. Most international organizations have considered use of satellite televisions as an advertisement agency. The extensive use of satellite television in marketing has become extremely common, and it is desired that advertisement agency may continue being used. Continuous extensive advertisements by international organizations on satellite television will lead to more standardization on television advertisements. This may take place in different ways.
It is clearly understood that the brand of a product defines its prevalence among consumers as well as develops some uniqueness which makes it identifiable among various brands that may exist in any market. With continuous advertisements on satellite television, a brand for marketing a given product will be intrigued among different people in the various parts of the world. A company will be in a position to operate under a brand that is globally recognized. As it is well renowned, the brand of an organization is a key determinant of the kind of market that a product is going to access. This extends the reliability of television advertisement.
As it is well known, the world is a home for different people with different traits, which may be represented by the different languages that are used in different sections of the country. There are various satellite televisions that are watched in different countries. This means that the advertiser must look for a message that will be exhaustively informative and attractive to the viewer. However, satellite televisions have been extremely critical on this point, and they have extended the necessary expertise to ensuring that the message that is passed to all individuals in the globe about particular products is alike. Therefore, advertisements in satellite televisions have enhanced standardization of television advertisements. For example, the language used in Russia is not the same language used in Europe. They are both characterized with different languages that have to be uniquely represented in any advertisement through satellite televisions thus enhancing standardization of television advertisements.
Question 4B
Critically assess the problems facing the international marketer in using satellite television as a medium.
Although, there are various advantages that come with the use of satellite televisions, there are equal measures of challenges that international organizations are likely to face as they conduct their advertisements through satellite televisions.
One of the challenges is language. In most cases, advertisements in satellite televisions will be carried out in the most common international languages. The globe is defined by a set of international languages. It is not obvious that all sections of the world are familiar with one of the international languages. In some countries, there are countries that do not have even the slightest idea of international language. They only understand their mother tongue. It becomes extremely difficult for such people to understand certain advertisement thus leading to low customer level. For example, in Africa deserts people are not conversant with any international language. Thus communicating to such individuals about a given product becomes extremely challenging.
Satellite televisions are usually connected through networks which are not available in less developed as well as developing countries.
Although, satellite televisions consider ethical standards while coming up with advertisements, they cannot satisfy all ethical standards in the world as defined by different countries. At some point, they will defile certain ethical principles in a country. This may make the government of the country ban the advertisement completely in the country. For example, Arab countries are usually sensitive to sexual matters, and they believe they should not be discussed openly.
