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Business and Marketing Policies - Coggle Diagram
Business and Marketing Policies
Modern Marketing and its Environment
International Perspective
International markets give rise to very attractive opportunities, but competition is intense.
Marketing activities designed to facilitate the exchange of a company's goods and/or services in a foreign country.
**The 4 P's of Marketing
Price
If you define your price by cost, add up all the above costs: Product, promotion and distribution.
If you set your price by market, research how much similar goods and services cost and make a decision.
take into account a wide margin if you plan to promote with discounts.
Promotion
Define whether you will deliver your products directly or through distributors.
Select if you will sell in warehouse or home delivery
Define, if you are using commercial premises, where it will be located.
Product
Define what needs you satisfy for your customers
Remember that it can be a product, service or combination of them.
List the features and find the benefit to the customer of each feature.
Define your nuclear and extended product. The core product is exclusively the product. The extended product includes the added value, warranties, additional services.
Plaza
.
You can advertise in telephone directories.
Telemarketing to offer your services or products.
As part of the promotion you can advertise on radio, television and newspapers.
Participation in trade fairs.
Importance of Marketing in the global economy
It is to organize voluntary and competitive exchange in such a way as to ensure an efficient match between supply and demand of products and services.
In organizations, the importance of marketing is appreciated since its considerations must be integrated into short and long term planning.
Importance of marketing in service companies, it should be specified that services consist of activities that are the object of transactions.
Nature and scope of Marketing
It is the combination of knowledge and techniques aimed at understanding and influencing the market.
Promotion and Advertising
Campaign concept. Institutional and product advertising
.
Product Advertising
It refers to the one that seeks to influence and stimulate the market on a specific product, which in turn can be considered direct action.
International Advertising
It seeks to generate appreciation and liking for the organization so it is not intended to sell a product.
Campaign concept
It is a coordinated series of promotional activities that are organized around a theme and whose purpose is to meet a specific goal in a given period.
Differences and advantages between promotion and advertising
Sales promotion covers a wide variety of short-term incentives aimed at changing consumers, the trade and the company's own salespeople.
Different types of media. Characteristics, coverage and cost
.
Direct Mailings: Allows you to target your message to a very specific audience. It is a very expensive medium. Messages can be personalized.
Radio: your message moves with your audience. They can be heard at work, on the beaches, in the bathtub, in the store.
Internet: Costs are independent of audience size. Messages can be updated quickly. Internet ads can be interactive.
Open Television: offers all the visual, sound, movement, color and effect alternatives. It is one of the most expensive alternatives due to all the expenses involved.
Magazines: printed on good quality paper in color and photo reproduction. The selection of a specific audience is much easier. It has greater permanence. The cost is higher.
Cable TV: Limited reach. May have inexperienced production team.
Newspapers are published daily and reach a wide and diverse audience. There is no limit to space in newspapers.
Presentation techniques. Type of audience. Sequencing. Message and closing.
The presentation should be attractive, light, not too long, as it is not a question of overloading the other party.
Formation of objectives, Identify the audience, Structure, Sequential argument, the end.
The Product
Similarities and differences between products and services
Similarity
Some tangible elements are required to deliver the service and bring the benefit to the customer.
They combine to offer something that is of value to someone.
Essentially tangible products have service components that become very important.
**Differences
Variability: Services are stored variable because they depend on who, when and where they are provided.
Customer-supplier interaction: Because both the supplier and the customer are present when the service is produced, it essentially becomes marketing.
Inseparability: Services are generally produced and consumed at the same time.
Perishability: Services cannot be stored or inventoried.
Intangibility: Services are intangible because they cannot be seen, tasted, touched, felt, heard or smelled before they are purchased.
Life cycle of the product or service
Differences
Growth phase:** Called the market acceptance stage, with rapid increase in market size.
Maturity stage:
Every launch policy aims to reach this stage.
Launching or introduction phase:
is the stage where the conception, definition and experimental period of the product is fixed.
**It can be said that when a product reaches this phase, it has to remain in it for the minimum time possible and always in a transitory way because sales go into decline.
Packaging
Techniques to develop packages and packaging inserting in them the company's advertising, taking into account the perception that the final receiver of the packaging will have of the advertised company.
Supply- and demand-driven product changes
In economics, the Law of Supply and Demand is the price formation mechanism; it establishes that the market price of a good or service is that for which supply and demand are equal.
Product approach and development
Invention or adaptation. It is a product of man's creativity related to the technical application of scientific principles.
Product development. This is the main function of this sub-area. The idea generated in product development must become a product/service.
Research. There is basic and applied research. Companies conduct applied research, i.e., research aimed at finding solutions to product/service problems.
Prices
.
**Break-even point of sale analysis
It is a financial tool that allows to determine the moment in which sales will exactly cover costs, expressed in values, percentages and/or units, and it also shows the magnitude of the company's profits or losses.
Implications of fixed costs and variable costs
Variable costs are those that change in proportion and sales.
Fixed costs are those that do not change in direct proportion to sales and whose amount and recurrence is practically constant, such as rent, salaries, depreciation and amortization.
Concept of elasticity
Elasticity of supply: Seeks to measure the impact on the supply of a product or service given a variation in its price.
Elasticity of demand: The degree to which the quantity demanded (Q) responds to price variations (P) in the market.
Elasticity seeks to measure the impact, or the degree of variations in product demands or supplies given different price variations.
Different pricing methods
The prices considered are those derived from the consideration of internal factors.
Target return pricing: The company determines the price that would produce its cash rate of return on investment.
Pricing by prevailing rate: The company bases its pricing primarily on the prices of its competitors.
Overpricing: The elementary method of pricing is to add a standard price premium to the cost of the product.
Pricing based on cost escalations: determines prices using only the costs directly attributable to a specific production.
This section describes the approach to pricing based on market conditions.
Strange pricing: can create the illusion that a product is less expensive for the buyer than it really is.
Line pricing: the practice of marketing merchandise at a limited number of prices.
Quality pricing: When buyers are unable to judge the quality of the product, either by examining it for themselves, or as a result of previous experience with it.
Typical prices: In some markets and in the case of certain low-cost products such as sweets, roots and tubers, and in some cases staples, there is widespread resistance to modest price increases.
Pricing on a psychological as well as economic basis and marketers must take these into account when making pricing decisions.
Determination of a pricing strategy
Within the range of possible prices determined by market demand and the company's costs, the company must take into account the costs, prices and possible reactions of competitors.
Marketplace
.
Foreign debt. Effect on our markets
.
This term refers to the money owed by States as subjects.
Consequence of debt
These are states in which the situation of a large part of the population makes social spending essential for the country's development.
Debt has become a source of transferring resources from the communities that need them most to developed countries.
The most indebted countries lack the infrastructure and social services to improve the living conditions of their people.
When impoverished countries become deeply indebted, their economies deteriorate profoundly.
Also relevant are the social diversionary effects that loans have had and continue to have on adjustment programs.
Integration problems
Sacrifice of some national needs: Globalization of strategy often requires that one or more countries abandon strategies, products, etc.
Increased risk of creating competitiveness: Attempting competitive measures may mean sacrificing revenues, profits or competitive position in some countries.
Less sensitivity to customer needs: Standardization of products can result in a product that does not leave customers fully satisfied.
Increased risk due to currency fluctuations.
Increased administrative costs: Globalization can cause substantial administrative costs due to increased coordination and reporting requirements.
Competitive forces analysis
All competition depends on five competitive forces that interact in the business world:
Negotiating power with suppliers.
Negotiating power with customers.
Rivalry among new competitors
Negotiating power with customers.
Threats from new entrants
Effect of globalization on the economic, social and political
Social Effect: The cultural identity of the different peoples is currently homogenizing or generalizing according to certain common guidelines on the way to a standardized culture.
Political effect: Globalization, with its different faces, with the opportunities it opens up and the damage it causes, is opening up beyond a large part of the decision-making capacity of national states.
Economic Impact: Most of this process has focused on macroeconomic aspects, privatization of public enterprises and reduction of social policies.
Distribution channels
Characteristics
To be flexible so that its use does not close the way to any other
Do not allow any weak link in a channel if the product is to be successful.
Always start from consumption when performing the analysis and go along the way.
Constantly evolving.
Give the company access to the predetermined market share.
To be in line with the basic objectives of the marketing program.
Type
Distribución Selectiva:
Es adecuado para los bienes de comparación y para el equipo y accesorio industrial.
Exclusive Distribution:
The supplier agrees to sell its product only to a wholesale or retail intermediary in a given market.
Intensive Distribution:
A producer sells its product through the stores available in the market where the public is likely to look for it.
Distribution channels. Classification
.
**Distribution channels of industrial goods is when various channels are available to reach the organizations that incorporate the products into their manufacturing process.
**They are very simple in relation to physical products and their location in relation to the potential market is of great importance.
Distribution channel of consumer goods.
It is the delivery of perishable products through various distribution channels into the hands of consumers.
Importance in the marketing cycle
An effective means of physical distribution can lower costs and increase customer satisfaction by making a competitive difference.