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TARGET MARKET 4P's - Coggle Diagram

- - - - Tradition, social structure, language, religion and education
    - - In highly developed countries, demand a lot of extra performance attributes
      - In less developed countries, prefer more basic products
    - - National differences can force firms to customize the marketing mix
- - - - 1.1 Concentrated retail system: a FEW retailers supply most of the market (common in DEVELOPED COUNTRIES)
      - 1.2 Fragmented retail system: MANY retailers. No one of which has a major share of the market. (common in DEVELOPING COUNTRIES)
    - - 2.1 Short channel: when the producer SELL DIRECTLY to the consumer. (common with CONCENTRATED systems)
      - 2.2 Long channel: when the producer sells through an IMPORT AGENT, a wholesaler and a retailer. (common with FRAGMENTED retail systems
    - - The quality of retailers are GOOD in most DEVELOPED countries but VARIABLES AT BEST in LESS DEVELOPED countries
    - - How difficult it is for outsiders to access. Such as Japan's system
- - - - Direct selling
      - Sales promotion
      - Direct marketing
      - Advertising
  - - - It has significant economic advantages
      - Creative talent is scarce
      - Brand names are global
    - - Cultural differences among nations are significant
      - Advertising regulations limit standardized advertising
- - - - SMALL change in price produces a LARGE change in demand
    - - LARGE change in price produces only a SMALL change in demand
  - - - Use profit gained in one market to support aggressive pricing designed to drive competitors out in another market
      - After competitors have left, the firm will raise prices
    - - A firm's pricing strategy in one market may have an impact on a rival's pricing
      - Managers should centrally monitor pricing decisions
    - - Price low worldwide to build global sales volume
      - Firms have a cost advantage relative to firms further up the curve