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.
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