By Applying Marketing Mix Tools, Explain How Companies Should Adapt Their Global Marketing Strategies to Maximise Sales.

Only available on StudyMode
  • Download(s) : 554
  • Published : February 28, 2013
Open Document
Text Preview
McCarthy’s four Ps classifications have been widely implemented in commercial business for decades ( Walter. W& Bulte.C, 1992). Marketing mix is one of the most significant tactics, which can be used to control the market by companies to satisfy consumers’ demands and influence them to purchase their products. Marketing mix has developed into seven Ps from producer-oriented views to customer views. This paper will only discuss the implication for four Ps in international market. In order to fulfil both long term and short-term goal, the company need to determine their target market and then plan the optimal strategies and using the marketing mix. Theses strategies should depend on different conditions of environment, competitors, internal strengths and other factors. However, when companies expand their scales internationally, marketing mix strategies have to be analysed, and adjustment implemented when necessary. In other words, companies have to consider the concepts of standardization and adaptation. This paper will explain the usage of the four elements, which refers to product, price, place and promotion in the marketing mix tool to explain how global strategies are adapted in international companies to maximise the sales. This will be supported by some practical examples and examine to what degree are global companies standardizing and adapting their strategies to cope with cross-country differences in the marketing environment. When companies decide to launch their products abroad, a fundamental issue has to be determined whether they should create standardized marketing mix that applies to countries all around the world or propose some adjustments to deal with unique demands of local markets. The decision would also have great impact on the sale performance. The optimal strategies of entering global markets have been discussed as early as 1961 (Vignali, 1999). There are two main categories of global strategy, which refer to standardization, using the same strategies throughout different countries, and adaptation, which means changing strategies according to different preferences and needs in a particular region (Kokemuller, n.d.). Supporters of standardization claim that the demand and customer requirements have increased in similarity across global markets and regions; therefore, standardizations of marketing mix strategies should be able to provide customers with relative lower price and consistency. Levitt (1983) stated that concentrating on desire of masses will lead global companies to long-term success and avoiding expressing concern about the detailed preferences of small target groups is necessary. If companies choose adaptable strategies, which have to adjust their products in every country, they will not have the capacity to offer such low prices as standardized products. This would result in less competition and barrier to the expanding the scale of companies in the long run. However, supporters of adaptation argue that different languages, climates, ethnicities, and regulations would limit the marketers. Some factors are even difficult to measure, such as cultures, values and customs that companies need to familiarise themselves with, in order to predict the differences in taste and preferences. Adjusted products may satisfy the needs of consumers in different countries better and generate greater revenues even though the cost may increase due to product modification. Therefore, when companies are under the conditions of expanding to foreign countries, products often need to be adjusted (Czinkota& Ronkainen in Nordstrand& Öhman, 2005). Also, customizing the products to reasonable extent is a core aspect of adaptation strategy. Calantone, Cavusgil, Schmidt and Shin (2004) state that in order to succeed in competitive international market, the adapted product must bring companies sufficient incremental revenue to balance the cost of adaptation; the company has to satisfy the customers’ wants...
tracking img