Follow Us

Investigate how the product, pricing, promotional and distribution approach differs in a variety of international contexts.



P6 Investigate how the product, pricing,  promotional, and distribution the approach differs in a variety of international contexts.

 

The rate of local enterprises of each country go for the international market is increasing continuously until today. But however, the rate of local enterprises success in the international market is Not really considerable. The international market contains a huge possible and profit, but it also many hidden risks and unpredictable. This is because the International market has about 11.2 billion of the people with different Characteristic, culture, language and So on, this has made the product development becomes harder and harder compares with local product development because it was hard and almost impossible to fit with everyone wants and need. However, many enterprises have chosen to use a segmentation strategy to divide and focus on a certain area of the international market to pursue the highest profit and to use the advantage more effective and efficient.

First focus on product adaptation. Product has differentiated into few types as convenience goods, speciality goods, shopping goods and So on. Each type of product has its own advantage and disadvantage. For example, convenience goods, widely available and purchased frequently, So when the convenience goods sale in the international market it should focus on the low-income group or the middle-income group and the price of convenience goods is also Not good to set up too expensive. This is because convenience goods are most suitable for the principle of small profits but quick turnover. Other than that, Product should be fit with consumer preferring So to attract the consumer and increase the sales. As an example, at the country of China which have more Chinese people, when Chinese new year, the product should be adapted with the colour of red or gold because this two colour is believed by the Chinese that Symbolizes blessing and nobility. When talking about price, there come about pricing strategy, we have two pricing strategy which is the market skimming strategy and market penetration strategy. Let us use the convenience goods as an example, which strategy suitable for it? Commonly it will be suitable with market penetration strategy, especially in the international market. In the international market, it has a much similar product which means the competition is bigger usually in the local market. When this type of situation has happened, market penetration may be an advantage because it provides a lower price to the consumer and it will attract the consumer to have the first try for a new-in product from foreign. This shall be helpful for convenience goods to construct stable fundamental to stay longer and stable in the foreign market. However, market skimming strategy is more suitable for speciality goods because of the unique Characteristic.


In the international market has too many types of people with different Characteristic. This is also mean that they have a different understanding of a different thing. This was very important because it will influence the effectiveness of advertising and promotion. Such as enterprises won't use the Japanese language when they sell the product at China because China people don't understand it and it Not fit with the culture of China, at last, it will just bring negative influence to the sales of the product and the failure of the business. Advertising is also the same, based on the cultural context, is it low or high context. For example, China is high context culture, so if the advertising is made with the more hidden message it should be known by the China people, but if enterprises do the same thing at the USA which is low context culture they may Not really understand what message that you actually want To tell them and at last the advertising was Not effective and fail.

 



More Info:
带你认识古代埃及社会 祭司与贵族
https://spotthewrld.blogspot.com/2020/12/blog-post_22.html

LOGISTIC CASE STUDY : NÜRNBERG AUGSBURG MASCHINENWERKE (N.A.M.) -ANSWER
https://spotthewrld.blogspot.com/2020/10/logistic-case-study-nurnberg-augsburg.htm

Malaysia Economy Subject Simple Note
https://spotthewrld.blogspot.com/2020/12/malaysia-economy-subject-simple-note.html

D3 Critically evaluate supply chain concepts, principles and processes, and their interrelationships with other areas of an organization.
https://spotthewrld.blogspot.com/2020/12/d3-critically-evaluate-supply-chain.html  


0 comments: