The main functions of promotion are namely: to inform, pursue and remind the customers about your company’s product. Promotional mix is very important for creating and capturing the target market. It facilitates in creating competitive brand positioning and brand awareness. Designing a suitable promotional mix is critical and considered a key success factor. Designing a promotional mix becomes more complex when company plans to launch the product in international markets. Many cultural, legal and consumer behavioral factors need to be taken into consideration before launching the product in international market.
Tropical (Pvt) Ltd. is based in Multan and engaged in fruits’ business. Multan is famous for good quality mangoes and oranges. Initially company launched its product in the local market while supplying to hotels and leading stores. The Tropical (Pvt) Ltd. got a marked success while capturing a worthy market share in the local market. Now company is planning to launch its product in the foreign market. Mangoes and oranges have a great potential market in foreign countries.
1: What factors Tropical (Pvt) Ltd should consider before entering in international market? (Mention at least 5 considerations of foreign markets) 10 marks
According to my point of view folloing factors Tropical (Pvt) Ltd should consider before entering in international market
1) What business you want to inMeans: continue with the same or diverse depending upon market opportunity
2) GrowthMarketers also need to consider the growth of the particular market
3) SegmentationDepending upon the internal and external factors company need to decide its target segment, which can give maximum growth to the company
4) Government policiesSome countries are less acceptable while some are more flexible. Cots
5) Raw materialsBasic need: from where you can have access of material.It also include your employees, so decide can you own right resources at right time and at economical rate, can you get required human capital depending upon company requirement.
6) Advertisement strategiesIdentify cultural, psychological factors, geographical, demographical and many more. The strategies which are suitable to India may not be same to America or European market.
7) Geographical factorsIncome, segment, education and many more such factors should be consider
2: Discuss at least five such promotional mix strategies which this company may devise while planning to launch this new product in the international market? 10 marks
A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organisations promotional mix strategy can consist of:
Types of promotion
|Advertising:||Any non personal paid form of communication using any form of mass media.|
|Public relations||Involves developing positive relationships with the organisation media public. The art of good public relations is not only to obtain favorable publicity within the media, but it is also involves being able to handle successfully negative attention.|
|Sales promotion:||Commonly used to obtain an increase in sales short term. Could involve using money off coupons or special offers.|
|Personal selling:||Selling a product service one to one|
|Direct Mail||Is the sending of publicity material to a named person within an organisationDirect mail allows an organisation to use their resources more effectively by allowing them to send publicity material to a named person within their target segment. By personalising advertising, response rates increase thus increasing the chance of improving sales. Listed below are links to organisation who’s business involves direct mail.|
|Internet Marketing||Promoting and selling your services online using various forms of online marketing techniques such as banner advertisments, videos or social media.|
|Sponsorship||Where you pay an organisation to use your brand or logo. This organisation usually has a high profile so that you know that your brand will be seen by a large audience. Most common use of sponsorship is with sporting events. The 2012 Olympics being held in London is being sponsored by a number of organisations such as Mcdonalds and Coca-Cola as the event will attract a world wide audience that will run into hundreds of millions.|
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