Unit 3 - Marketing (last one)
3.8 Place
Place
about how products reaches its customers and consumers.
It is mainly concerned with how the product is distributed to be made available to consumers.
Importance of place in the marketing mix:
refers to location for consumers and business should develop strategies to get goods from their present location
enables businesses to come up with the best ways to distribute their products to consumers
intermediaries, such as wholesalers and retailers, helps businesses to store and market their products
growing global use of the internet is making it easier for businesses to reach a wide range of consumers directly with their products.
Distribution Channel
chain of people and businesses involved in taking the product from its initial location to the final consumer.
Types of distribution channels
Zero intermediary channel: product is sold directly from the producer to the consumer
One intermediary channel: retailer to sell the products to the producer to the consumer
Two intermediary channel: wholesalers and retailers are used by producers to sell the product to the consumer
3.9 Extended 7p's and E-commerce
The Extended 7p's
People
processes
Physical evidence
human capital, terms of skills, attitudes and abilities necessary in the production of goods and services
people add to the company's end result at every stage
policies and procedures pertaining to how an organization's product or service is provided and delivered
tangible or visible touch points that are observable to customers in a business
E-commerce
Advantages
Ubiquity: always available, 24/7
customization: customize experiences on a user-level (just in time ordering)
wider reach: anyone that is online can shop where you are
multimedia: use of several different tools can excite customers
universal standards: internet standards are the same everywhere
Drawbacks
production capacity: wider accessibility, company needs to be able to produce and ship at capacity
device-customization: platform needs to be fluid every single device can access it or you lose customers
system integration: platform is not well-connected to the stock system, can get delays in orders, leading to unhappy customers
maintenance and security: constant maintenance is needed, as well as security
3.10 International Marketing
International Marketing
the idea of products and whole business crossing geographical and political borders in order to expand their market
Methods of Entry
internet
direct investment
joint venture
exporting
piggybacking
international franchising
using en e-commerce and shipping products to outside of nation border
can be both direct or indirect. Direct company has control over its operations abroad. Indirect company hires an intermediary to make the sales in the other country
common form of indirect exporting, where companies uses a pre-existing distribution channel in the host country to sell products
when businesses sets up production plants in the host solely responsible for all of its actions and marketing
arrangement where two or more parties agree to invest in a particular business project.
business arrangement where the franchisor from the home country grants the franchisee from the host country the permission to operate the brand in that location
Benefits of INTL. marketing
amplified market
diversification
enhanced brand image
enhanced economies of scale
mutually beneficial business relationships
Drawbacks of INTL. marketing
economic challenges
political challenges
legal challenges
social challenges
technological challenges
cultural challenges
Implications with INTL. marketing
competition
changing consumer tastes and expecations
location decisions
economies of scale