Quiz 9: Developing New Products and Managing the Product Life Cycle
Barbie Doll: The environmental forces which a marketer must consider while marketing Barbie Doll in international market are socio-cultural and political/legal/regulatory. These factors are important to be considered because even though Barbie Doll is one of the best known brands globally but still there are some countries where it would have to make some adjustments in the dolls before entering them. Many Islamic countries consider these dolls too offensive. Beer: The primary environmental forces to be considered by a beer manufacturing company should be: • Political/legal/regulatory: The companies should analyse that the international market which they intend to enter do not have any legal or regulatory restrictions on beer consumption. • Competitive forces: Analysing competition in the international market is very critical for the organizations because if the competition is tough then the marketing strategies should be formulated accordingly. Financial services: The environmental forces to be considered by a financial services firm are: • Economic: Financial services firm should look at the prevailing economic conditions such as monetary and fiscal policies of the country they want to enter. • Competitive forces: There is a huge competition in the financial services sector in most of the markets and therefore competition should be thoroughly analysed before entering into any foreign market. Television sets: The primary environmental forces which are important for any television manufacturing firm while entering a foreign market are: Technological forces: Organizations should analyse the foreign markets for the prevailing technologies in the television industry and must try to offer something better to the consumers in those market so that they may stay ahead of the competition. Competitive forces: Analysing competition in the international market is very critical for the organizations because the competition in this industry is pretty tough and therefore the marketing strategy should be formulated in such a way so competitive threat can be minimized.
SB plan to go global to adopt untapped market because local market reached to the saturation point. And there is no scope of further business expansion. SB use global strategy for their business expansion and introduce their product in new market. New market with same product required market development. For developing a new market it is important to understand following things: • Cultural of the country • political interference in business matters • Social mood of the people • Local taste Every country or geographical region has their own taste, culture, sociocultural environment and political barrier. If a company come with globalization concept, it is important for the company to understand local market. And develop their concept without hurting their sociocultural environment of that country. For developing such scenario it is required to customize global concept into local. So the customization and globalization works together.
Domestic marketing: It is the process of selling a company's products and services in the manufacturer's home country. Language barriers do not generally exist in domestic marketing and collection and interpretation of the data on domestic marketing trends and customer demand is much faster and easier to perform. Risks associated with domestic marketing are lesser and it also require lesser financial resources as comparison to international marketing. International marketing: It is the process of marketing and selling company's product in more than one country. In other words, it is an application of marketing concepts across countries. The process of international marketing is very complex and risky and requires a large amount of financial resources. Based on the above two definitions, we can differentiate between domestic and international marketing in following ways: 1) Domestic marketing is the process of selling in the manufacturer's local market while international marketing is the sales and promotion of goods across countries. 2) Domestic marketing is less risky in comparison to international marketing. 3) Domestic marketing in comparison to international marketing wants lesser financial resources. 4) Domestic marketing generally deals with only one type of customers whereas international marketing pacts with diverse sets of customers with varying tastes.