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Product Life Cycle
o Products pass through several stages of development in its life from introduction to decline.
|Introduction||l The product is new in the market.l Sales are still low and increasing. l Promotion is needed to increase the sales and make it aware widely.
l Product is still not profitable.
|Growth||l The product is established in the market.l Sales begin to grow rapidly.l The product becomes very profitable.
l The business needs to seek new opportunities and enlarge the market.
|Maturity||l The product has a stable market share.l The growth levels off in the sales. l Sales have reached the top.
l Competitors have entered the market.
l The business needs to consider new product development or innovate the product.
|Decline||l Sales decline.l Consumers have changed their taste or styles. l New products have to be produced by competitors
l Businesses have to develop new products or improve the old product with new technology or simply give up the product.
Most important element because it is the only mix which generates a turnover.
Must take into account:
- Production costs
- Target group and willingness to pay
Business sets a low price to increase sales and market share
Business sets an initial high price and then slowly lowers the price to make the product available to a wider maker.
Setting a price in comparison with competitors.
Product line pricing
Pricing different product within the same product range at different price points.
Business bundles a group of products at a reduces price
Price set high to reflect the exclusiveness of product
Optimize your international business strategy, adapt your marketing mix!
Tools available to a business to gain the reaction it is seeking from its target market using a combination of variables that a business uses to carry out its strategy and meet the customer’s need. Using the 4 P’s!
3 P’s of Service Marketing
A Different Perspective: The 4 C’s
Factors that influence making a choice of a marketing mix:
Consider the type of product being sold, for example a high tech. equipment the business needs to emphasize the product and its quality rather than promotion.
The market sold to, for example for consumer markets, promotion may be emphasized.
The degree of competition is also important. If the competition is to high, price needed to be emphasized in order to gain some advantages in the market.
Depending on the position of the business in the industry it will have more freedom to choose the marketing mix.
The stage of product life cycle in which a product is, is the promotion is in the introduction stage is will need more promotion.
Marketing Target – Which is our target
- Price of a pack of 20 cigarettes varies heavily around the world. The least expensive price is $0.98 USD in Pakistan, while the most expensive is $16.11 USD in Australia.
- Governments of each countries can choose to place higher or lower excise taxes, import duties, and sales taxes on cigarettes, hence affecting the price of a pack of Marlboro cigarettes.
- Some national governments have taken action to increase taxes on cigarettes in order to decrease people’s consumption of them. A 10% increase in cigarette prices reduces demand by 2-6% in high-income countries and by 2-8% in low and middle-income countries
- The degree of a nation’s wealth also affects the price of Marlboro cigarettes in that country. Australian citizens have a fairly high average monthly income of 7,121 AUD (6578.38 USD), so they are able to afford higher priced goods.
- The average monthly income of Pakistani citizens, however, is 82,618 PKR (835.37 USD), so Marlboro needs to alter its product prices so residents of Pakistan can readily afford its products.
- lowest retail price of iPhone 5s is in the United States at $707 USD (519.09 euros) including taxes
- iPhone 5s is most expensive in Brazil, where it has a retail price of 2,799 reais, which is equivalent to $1259.56 USD (924.79 euros)
- The great difference in price is largely due to variances in taxes and import duties in different countries. Brazil, for example, has a very high import duty of 60%. Since iPhones are manufactured by an American company, there are no import duties on Apple products, hence the price is the lowest.
- The global average price for Heineken is is 2.67 USD. Ranges from the lowest price in South Africa of 0.78 USD to the highest price in France of 6.87 USD.
- Table with different prices around the world: http://www.humuch.com/prices/Heineken-1-bottle/______/503
- In order to be successful in a certain country, Heineken has to adjust its product prices to accommodate for the average salaries and the degree of wealth of the country’s citizens.
- For example, the average monthly net income of French residents is 2128 euros, while in South Africa it is 27,116 zars, which is equivalent to 1928.98 euros.
- Varying import taxes for alcohol around the world also contribute to the discrepancy in prices of Heineken in different countries
• Ford models and designs are targeted to varying needs of global customers. However, they have recently began to shift from a model of complete adaptation to one of global standardization with minor local adaptations.
• More large, automatic cars offered in American market and more compact, manual cars offered in European market due to increased urbanization and city driving.
• The Fiesta subcompact, launched in 2008, was the first true world car developed by Ford Motor Co. under its One Ford product plan. In 2011, Ford followed up with its second world car, the Focus compact.
• Most Popular Ford Models in Europe: Ford Fiesta and Ford Focus
• Most Popular Ford Models in United States: Ford F-Series and Ford Escape
McDonald’s has more than $40 billion in sales from 30,000 outlets around the world. In order to cater to local tastes and culinary traditions, and often in respect of particular laws or religious beliefs, McDonald’s offers regionalized versions of its menu among and within different countries. As a result, products found in one country or region may not be found in McDonald’s restaurants in other countries.
Uses flatbreads and grilled chicken. During the month of Ramadan, a special menu is offered for the breaking of the fast, including special localities such as dates, milk, and harira.
Items include Shaka Shaka Chicken served in a paper pouch with seasonings, the Fillet-O-Ebi with a fried shrimp patty, and the Teriyaki McBurger. A breakfast option is a hot dog with the works. Other offerings include sour plum sauce and green tea flavored milkshakes.
Variety of deli sandwiches and a line of sandwich rolls with fillings. Other specialties include curry flavored sauce, sweet chili sauce, mozzarella dippers, and pies with mincemeat.
Many sandwiches made like bocadillos and include egg, bacon, and salchicha. Other specialties include gazpacho, a tomato based soup from Spain.
Many dishes include sausage such as the McCurrywurst with sausage, tangy tomato sauce, and curry powder. For breakfast there is a choice of bread rolls or croissants with ham and cheese or sweet sauces
Products are certified halal by a Turkish company. Specialties include McTurco, a type of kebab with chicken or beef, Mediterranean plate with egg, feta cheese and English muffin and the Turkish drink Ayran.
Uses thigh fillet rather than breast meat. Breakfast includes pasta soups with sausage or chicken. Other specialties include soft serve ice cream in azuki bean, mung bean, and pineapple flavors, burgers with rice patties, shrimp burgers, wasabi filets, cups of corn, and fries flavored with seaweed, chargrill, or French onion.
Food products are certified halal. Beef and pork not served because of religious beliefs. Only animal products available are chicken and fish. Vegetarian specialties include McAloo Tikki Burger made of potatoes, peas, and spices and McCurry Pan with veggies and cheese. Meat and vegetarian meals are served in separate areas due to religious laws.
Does not serve fish. Specialties include Flaming Hot Dorito quarter pounder and McBurrito. Breakfast options include McMollete, and English muffin spread with beans and topped with a slice of melted cheese and pico de gallo.
Mattel has altered doll to fit local tradition and style. On the website each Barbie has their own description which begins by saying hello in her native language, defining aspects of her country and culture, and describing her outfit in detail.
White kimono with beautiful orange, green, and gold floral print. A matching purse completes the look, along with hair styled in an exotic updo accented with a silvery hair ornament.
Traditional blue dress and striped apron with golden trim, braids, stockings and “wooden” clogs. Includes bunny.
Cowgirl with lacy ruffles and a colorful sash at her waist. Knee-high black boots and a black hat to complete the look. Includes Chilean Fox Terrier friend .
Outfit inspired by the “Red Serge,” the uniform of the Canadian Mounted Police. Beneath her wide-brimmed hat she wears a red tunic, dark blue breeches with yellow stripe, brown “leather” belt and riding boots.
Wears a bright pink ruffled dress with colorful lace and ribbon accents. Includes Chihuahua.
Wears a pink minidress features a metallic pink bodice with a sweetheart neckline and silver straps and a lighter pink skirt with three ruffled layers trimmed with sliver.
Wears a pair of stunning golden earrings and an ornately stitched kaftan trimmed in sequins and golden brocade.
Adorned in a saffron-yellow sari with a matching hajib-like veil. Golden shoes, “gold” bangles and bold touches of red complete the traditional look. Includes monkey.
“Barbie dolls of the world collection”
Product adaptation in Africa and The Middle East
- Sale of mobile phones in Africa and Middle East have increased because of the expansion of local and regional economies
- Nokia is aware that emerging markets in Africa represent a huge expanding opportunity. Their strategy for the African market is to produce affordable devices with specialized adaptations for local consumers, many of who are first time users.
- Nokia announced the launching of two phones specially designed for Africa. The Nokia 1100 and Nokia 1600 are easy to use and have an intuitive interface.
- Nokia 1100 has black and white display and Nokia 1600 has a 65,000 color display but both devices come in various colors.
- The devices support polyphonic ringtones, have pre-installed games and features like Speaking Clock.
- Nokia said the inclusion of a flashlight, FM radio and Swahili language options have pushed sales.