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Over View of Marketing Managament

Over View of Marketing Managament

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1

MARKETING MANAGEMENT
Prepared By:Dipa Shah Nikita Sanghvi Krishna Rajput Bharat Maheshwari Mitesh Shah Keyur Savalia

FLOW OF PRESENTATION
2

v
vINTRODUCTION vPRODUCT AND SERVICE vPRICING vPLACE vPROMOTION vGLOBAL BUSINESS v
v v

WHAT IS MARKETING ?
3

A Philosophy A Function A Management Orientation

A Set of Activities , including :

+

Products Services Pricing Promotion Distribution

WHAT IS MARKETING ?
4

The American Marketing Association Definition: Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.
 

FUNCTIONS OF MARKETING
5

Other Functiona l Areas Branding

Market Research

Developmen t

Product

Advertisi ng

Test Marketing

MARKETING

Sales Promotion

After Sale Service Personal Selling
Distributi on

Pricing Physical

NEEDS , WANTS & DEMANDS
6

ü üNeeds are basic human requirements which need to be fulfilled in order to survive. ü üThe needs become wants when they are directed to specific objects that may satisfy the need. ü üDemands are wants or desires backed by ability to pay & willingness to buy specific products. ü

MARKETERS , PROSPECTS & A MARKET
7

ü ü  üA Marketer is someone seeking a response from another party , called the prospect. ü ü üA Market is a group of people or organization , with needs or wants & with the ability & willingness to buy. ü ü ü ü ü ü

THE EXCHANGE CONCEPT
8

Exchange involves obtaining a desired product from someone by offering something in return.
At Least Two Parties Something of Value

cessary Conditions for Exchange

Ability to Communicate Offer

Freedom to Accept or Reject Desire to Deal With Other Part

CUSTOMER VALUE
9

Customer value is the bundle of benefits customers expect from a given product or service. Its no longer enough to satisfy the customer , you must delight them! Customers are value maximizers. Marketing is process of Value Creation between two entities through the process of transaction.


CUSTOMER SATISFACTION
10

Customer Satisfaction is a consumer’s feelings resulting from comparing a product’s outcome in relation to his/her expectations.
 


A

marketer must expectations.

meet

or

exceed

customer’s

 Focus

on keeping customers satisfied. solutions to customer’s problems.

 Provide

CUSTOMER RETENTION
11

Customer retention is about developing loyal customers & building long term relationships. The key to customer retention is customer satisfaction.


A Highly satisfied customer
 always stays loyal to the company .  pays less attention to competing brands

& is less sensitive to price.  Costs less to serve than new customers as the transactions are reutilized.  Talks favorably about the company & its products.

COMPANY ORIENTATIONS TOWARDS THE MARKETPLACE
12

Production Concept Production Concept Product Concept Product Concept Selling Concept Selling Concept Marketing Concept Marketing Concept

Consumers prefer products that are widely available and inexpensive Consumers favor products that offer the most quality, performance, or innovative features Consumers will buy products only if the company aggressively promotes/sells these products Focuses on needs/ wants of target markets & delivering value better than competitors

SOCIETAL MARKETING
13

Societal Marketing = Consumer Satisfaction + Company ‘ s Profits + Society’s well being

Societal Marketing Focuses on satisfying customer needs & wants while enhancing individual & societal well-being

MARKETING PROCESS

MARKETING ENVIRONMENT - INTERNAL
15

MARKETING ENVIRONMENT - EXTERNAL
16

MARKETING MIX
17

Marketing mix is a set of marketing variables that the firm uses to pursue its marketing objectives in the target market. E.Jerome McCarthy classified these variables ,which he called the four Ps of Marketing . è è è è PRODUCT PRICE PLACE PROMOTION

MARKETING MIX
18

Apart from the 4 Ps of Marketing , there have been attempts to develop an ‘extended marketing mix’ to better accommodate specific aspects of marketing. •People •Process • •Physical Environment

MARKETING ACTIVITIES
19

Gather, analyze, interpret information about environment Gather, analyze, interpret information about environment Understand organization’s mission and marketing’s role Understand organization’s mission and marketing’s role Conduct a market opportunity analysis Conduct a market opportunity analysis Develop a marketing strategy Develop a marketing strategy Implement the marketing strategy Implement the marketing strategy Evaluate marketing efforts and make changes Evaluate marketing efforts and make changes

CONSUMER BUYING BEHAVIOR
20

ü Consumer Buying Behavior refers to the buying behavior of final consumers (individuals & households) who buy goods and services for personal consumption. ü Study consumer behavior to answer: ü“How do consumers respond to marketing efforts the company might use?”

MODEL OF CONSUMER BEHAVIOR
Place Promotion Buyer’s Decision Process
tk er k ra aM M d n at g n ie d n a g n i S rh et h tO O it lS u m ir te i l u m i

Product 21 Price

Economic Technologic al Political Cultural

e y u B e R s ’u rB n o p s e s e y e R s ’ r n o p s e s

Product Choice Brand Choice Dealer Choice

e y u B ly B s ’u rB B k c a x o e l B s ’ r B k c a x o

Characterist ics Affecting Consumer Behavior Purchase Timing Purchase Amount

FACTORS AFFECTING CONSUMER BEHAVIOR
22

Culture Social Personal Psychological

Buyer Buyer

CULTURE FACTORS
  

Most basic cause of a person's wants and behavior. Values Perceptions

Social Class ith shared value systems based on a social class tend to exhibit similar •People within common life experiences. •Occupation onsumers •Income sumers •Education •Wealth

ae sl eo lR o R tn aa ts S d n sd u t a t S s u

iS c o S F lo a o tc c a s ra i F l o t c a s r

y lm ia m aF F y l i n au b sH en fa ib w ,s d sw d i, k ,d •H e f i s d i k , •u n el u lf fn y u b ,c rn ee cu eu sb u ,, rr ee ry • II e s u , r e r •n sr p u o rG G s p u o ee b m p ie h sb rm •M p i h s r •eM n er re ef fe en ce •R e c •eR
24

SOCIAL FACTORS

t s e r e t n I s n o i n i p O s i t i v i t c A s e

s e f i L I e l y t i t n e d i t a c i f n o
a n o s r e P & y t i l o C f l e S t p e c n a p u c c O n o i t n a e g A l i m a F d e f i L y e l c y C m o n o c E u t i S c i n o i t a

e g a t S

25

o s r e P n I l a n n e u l f s e c

PERSONAL FACTORS

PSYCHOLOGICAL FACTORS
26

Motivation
Self Actualization (Self-development)

Beliefs and Attitudes

Factors Social Needs (sense of belonging, love)
Safety Needs (security, protection)

Esteem Needs Psycholog (self-esteem, status) ical

Perception

Learning Physiological Needs
(hunger, thirst)

TYPES OF BUYING DECISIONS
27

S

High Involvement

Low Involvement

u t i b a H l a g n i y u B i v a h e B r o

i c u d e R y u B g n g n i

a n o s s i D e c n

i v a h e B r o

Few differences between brands

y t e i r a V g n i k e e S i v a h e B r o

l p m o C x e g n i y u B i v a h e B r o

Significant differences between brands

p t s o P h c r u B e s a v a h e r o i h c r u P D e s a i s i c e n o u l a v E n o i t a A f o a n r e t l s e v i t m r o f n I o i t a a e S n h c r d e e N o c e R i t i n g n o
28

THE BUYER DECISION PROCESS

THE BUYER DECISION PROCESS STEP 1. NEED RECOGNITION
29

Difference between an actual state and aadesired state Difference between an actual state and desired state

Need Recognition Need Recognition

Internal Stimuli Internal Stimuli

•Hunger •Hunger • • •Thirst •Thirst • • •A person’s normal •A person’s normal needs needs

External Stimuli External Stimuli
•TV advertising •TV advertising • • •Magazine ad •Magazine ad • • •Radio slogan •Radio slogan • • •Stimuli in the •Stimuli in the environment environment

THE BUYER DECISION PROCESS STEP 2. INFORMATION SEARCH
30

e p x E n e ix rE S lr a ie tp c ri u o s e n e S l a i t c r u o s e

m o C c rC e m S lm a io c rm u o s e c r e S l a i c r u o s e lP b u P o S c iu e c rb u s l o S c i e c r u s

o s rP e P le a n rr u o S s e c o s l a n r u o S s e c

•Family, friends, neighbors •Most influential source of information •Advertising, salespeople •Receives most information from these sources •Mass Media •Consumer-rating groups •Handling the product •Examining the product •Using the product

THE BUYER DECISION PROCESS STEP 3. EVALUATION OF ALTERNATIVES
31

Evaluation of Quality, Price, & Features Evaluation of Quality, Price, & Features Which attributes matter most to me? Which attributes matter most to me? What do IIbelieve about each available What do believe about each available brand? brand? Based on what I’m looking for, how satisfied Based on what I’m looking for, how satisfied would IIbe with each product? would be with each product? Choosing aaproduct (and brand) based on one Choosing product (and brand) based on one or more attributes. or more attributes.
Evaluation Procedures Evaluation Procedures Total Product Satisfaction Total Product Satisfaction Brand Beliefs Brand Beliefs Degree of Importance Degree of Importance

Product Attributes Product Attributes

THE BUYER DECISION PROCESS STEP 4. PURCHASE DECISION
32

Purchase Intention Purchase Intention Desire to buy the most preferred brand Desire to buy the most preferred brand Attitudes of others Unexpected situational factors

Purchase Decision Purchase Decision

THE BUYER DECISION PROCESS STEP 5. POST PURCHASE BEHAVIOUR
33

Consumer’s Expectations of Consumer’s Expectations of Product’s Performance Product’s Performance Product’s Perceived Performance

Satisfied Satisfied Customer Customer

Dissatisfied Customer Dissatisfied Customer
Cognitive Dissonance

p o d A n o id tA p o n o i t li a ir rT T l a u lE a v E o ia tv a n u l o i t a n e rt e tn n II te s e r t s rA a w A s e n e s r a w s e n e s

34

STAGES IN THE ADOPTION PROCESS

ADOPTION OF INNOVATIONS
35

Percentage of Adopters

Early Majority

Late Majority

Innovators

Early Adopters
13.5%

34%

34%

Laggards

16%

2.5%

Time of Adoption Late

Early

FLUENCES ON THE RATE OF ADOPTION OF NEW PRODUC
36

Communicability Can results be easily observed or described to others?

Relative Advantage Is the innovation superior to existing products?

Divisibility Can the innovation be used on a trial basis?

Product Characteristic s

Compatibility Does the innovation fit the values and experience of the target market?

Complexity Is the innovation difficult to understand or use?

STEPS IN SEGMENTATION, TARGETING, AND POSITIONING
37

6. Develop Marketing Mix for Each Target Segment Market 5. Develop Positioning Positioning for Each Target Segment 4. Select Target Segment(s) Market 3. Develop Measures Targeting of Segment Attractiveness 2. Develop Profiles of Resulting Segments Market Segmentation 1. Identify Bases for Segmenting the Market

o r c i M e k r a m g n i t u d o r P o t s t c h t t i u s e t s a t e n i f o s d i v i d o s l a u a c o l r s n o i t p m o c ( e s e t e l n e m g ) n o i t a t e r e f f i D o r p t n s t c u d b u s o t p u o r g h t i w s g e s n i s t n e m e h c i N k r a M g n i t e e r o m ( m g e s i t a t n e ) n o e r e f f i D o r p t n s t c u d n o o t m r o e e s e r o t n e m g s e m g e S a M t n n i t e k r g e m o s ( e m g e s o i t a t n ) n e m a S c u d o r p a o t t s n o c l l r e m u s M s s a M e k r a g n i t
38

e s o n ( t n e m g ) n o i t a

STEP 1. MARKET SEGMENTATION LEVELS OF MARKET SEGMENTATION

STEP 1. BASES FOR SEGMENTING CONSUMER MARKETS
39

Geographic
Nations, states, regions or cities

Demographic
Age, gender, family size and life cycle, or income

Psychographic
Social class, lifestyle, personality or

Behavioral
Occasions, benefits, uses, or responses

STEP 1. BASES FOR SEGMENTING BUSINESS MARKETS
40

Personal Characteristics

Demographics

Situational Factors Purchasing Approaches

Operating Characteristics

STEP 1. MARKET SEGMENTATION REQUIREMENTS
41

s a e M b a rM u e le s a b a r u e l e ff fi iD D te n e rf le a ir t n l a i s b u S ib tu n a tS ls a i t n a t l a o ic tA c A b a n e lt o i b a n e l e c c A b iA s s e lc e c b i s s e l

•Size, purchasing power, profiles of segments can be measured. •Segments must be effectively reached and served. •Segments must be large or profitable enough to serve. •Segments must respond differently to different marketing mix elements & actions. •Must be able to attract and serve the segments.

STEP 2. MARKET TARGETING EVALUATING MARKET SEGMENTS
42

 Segment Size and Growth

Analyze sales, growth rates and expected profitability.

Segment Structural Attractiveness

Consider effects of: Competitors, Availability of Substitute Products and, the Power of Buyers & Suppliers.

Company Objectives and Resources

Company skills & resources relative to the segment(s). Look for Competitive Advantages.

n ee m g eS S 3 tg n e m 3 t n ee m g eS S 2 tg n e m 2 t n ee m g eS S 1 tg n e m 1 t

n ee m g eS S 3 tg n e m 3 t n ee m g eS S 2 tg n e m 2 t n ee m g eS S 1 tg n e m 1 t

te ek kr ra aM M t

43

STEP 2. MARKET TARGETING MARKET COVERAGE STRATEGIES

C. Concentrated Marketing

am po m oC C yy nn a p te ek kr ra aM M gn ni it g

xi iM M x

B. Differentiated Marketing

tk er k ra aM M x it M g n ie 3 x i M g n i 3 tk er k ra aM M x it M g n ie 2 x i M g n i 2 tk er k ra aM M x it M g n ie 1 x i M g n i 1
A. Undifferentiated Marketing

aC p m o C y n a p m o y n aC p m o C y n a p m o y n aC p m o C y n a p m o y n

am po m oC C yy nn a p te ek kr ra aM M gn ni it g

xi iM M x

STEP 2. MARKET TARGETING CHOOSING A MARKET-COVERAGE STRATEGY
44

Company Resources Product Variability Product’s Stage in the Product Life Cycle Market Variability Competitors’ Marketing Strategies

STEP 3. POSITIONING FOR COMPETITIVE
45

ADVANTAGE

 Product’s Position - the place the product occupies in consumers’ minds relative to competing products; i.e. Volvo positions on “safety”. Marketers must: Plan positions to give products the greatest advantage Develop marketing mixes to create planned positions

STEPS TO CHOOSING AND IMPLEMENTING A POSITIONING STRATEGY
46

Step 1. Identifying a set of possible competitive advantages: Competitive Differentiation. Step 2. Selecting the right competitive advantage. Step 3. Effectively communicating and delivering the chosen position to the market.

m m o C c iC n u e lo b a m m c i n u e l b a rS e p u S rp o iu r e r o i

m e e rP P v ie tr p e m e v i t p e rf o ff fA A e lo b a d r e l b a d

47

SELECTING THE RIGHT COMPETITIVE ADVANTAGES

Criteria For Determining Which Differences to Promote

n is ti s iD D e v ii tt c n e v i t c

tf io fr o rP P e li b a t e l b a

o p m II to n a tp rm t n a t r

WHAT IS PRODUCT?
48

The end result of the manufacturing process, to be offered to the marketplace to satisfy a need or want.
 

LEVELS OF PRODUCT
49

TYPES OF CONSUMER PRODUCTS
50

TYPES OF INDUSTRIAL PRODUCTS
51

 

WHAT IS SERVICES?
52

 

Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.

CHARACTERISTICS OF SERVICE
53

Intangibility Inseparability Variability Perishability

Product design : Product design is the generation of ideas, 54 concept development, testing and manufacturing or implementation of a physical object. Product positioning : Product positioning is the consumer perception of a product or service as compared to it's competition. Product development : Improving an existing product or developing new kinds of products a set of activities beginning with the perception of a market opportunity and ending in the production, sale, and delivery of a product.

PRODUCT MIX
55

Product Mix means the total sum of all the product items and their variants offered by an organization e.g., books, videos, story hours, etc. Width – how many product lines a company has. - Length – how many products are there in a product line. - Depth – how many variants of each product exist within a product line. Consistency – how closely related the product lines are in end use.

NEW PRODUCT DEVELOPMENT PROCESS
56

      

Idea Generation and Screening Concept Development and Testing Marketing Strategy Business Analysis Product Development Test Marketing Commercialization

PRODUCT LIFE CYCLE
57

Product life cycle: progression of cycle products through introduction, growth, maturity, and decline stages

PRODUCT LIFE CYCLE
58

Introduction Stage
Low Sales High cost per customers

Growth Stage
Rapidly rising sales Average cost per customer

Maturity Stage
Peak sales

Decline Stage
Declining sales

SALES COSTS PROFITS MARKETING OBJECTIVES

Low cost per customers Low cost per customer

Negative Rising profit High profits Declining profits Create product awareness & Maximize market share Maximize profit while Reduce expenditure & trial defending market share milk the brand

PRODUCT

Offer a basic product

Offer product extensions, service, warranty Price to penetrate market Build intensive distribution

Diversify brand and models

Phase out weak items

PRICE DISTRIBUTION

Use cost-plus Build selective distribution

Price to match or best Cut price competitors Build more intensive distribution Go selective : Phase out unprofitable outlets

ADVERTISEMENT

Build product awareness among early adopters & dealers

Build awareness and interest in the mass market

Stress brand Reduced to level differences & benefits needed to retain hard-core loyal customers

Pricing
59

 

Price Factor to consider when setting prices

Customer value perception  Company and product cost  Other internal and external considerations affecting price decisions

60

Customer value perception (Value based pricing)

  

Good value pricing Value added pricing

Company and product cost (Cost based pricing)
61

rnal and external considerations affecting pri
62

63

Price Changes
64

Public policy and Pricing
65

Distribution Channel
66

üA marketing channel is a set of independent organizations that help make a product or service available for use or consumption by the consumer or business units. üChannel decision involves
  Long term Commitments Other marketing activities

ü

Role of Intermediaries
67

vGreater efficiency  Contacts  Experience  Scale of operation  Specialization vMatch supply and demand

v

Functions of Channel
68

vInformation vPromotion vMatching vNegotiation vPhysical distribution vFinancing vRisk management

Channel behavior and conflict
69

vBehavior- Inter dependent v vConflict  Vertical  Horizontal

Marketing Systems
70

 

Conventional Vertical Marketing Systems
Corporate  Contractual  Administered

lE a v E n ia tv a u h tl g a M e A re o ju r e tt la v in ti a n s e h t g a M e A r o j r e t l v i t a n s
s u lE c x E e v ix s u l c e v i b it rs ti s iD D ii tr u b i t u te c e lS e S e v il t c e e v i b it rs ti s iD D ii tr u b i t u s n e tn n II e v it s n e e v i b it rs ti s iD D ii tr u b i t u

n o n o

n o n o

n o n o

n e d II n it y fn ie td M g rv o ji a r e ty lf A in ti a n s e v M g r o j a r e t l A i t a n s e it te tS e S g n i t g n lA a n A n in z y o C g m u s n S re e v rs e N e c ia d e e s l n i z y o C g m u s n S r e v r e N e c i d e
71

n a h C lC e n e jh b O e v in ta c & s n o C a r tn s s tl n ie e j b O e v i t c & s n o C a r t s s t n i

Channel design decision

Channel management decision
72

FEEDBACK

a v E a u l n i t g

o M a v i t n i t g

l e S t c e g n i

Logistics
73

 

  

Involves supply chain Effective logistics- key to win and retain customer Logistic –major cost component Need created-Explosion in product varieties IT –distribution efficiencies

Goals of logistic systems
74

• Provide a Targeted Level of Customer Service at the Least Cost. • Maximize Profits, Not Sales. •

Logistic function
75

   

Design a system to minimize cost Warehousing Inventory management Transportation

Integrated logistic management
76

    

Concept Recognizes that Providing Better Customer Service and Trimming Distribution Costs Requires Teamwork, Both Inside the Teamwork Company and Among All the Marketing Channel Organizations. Cross functional team work Channel partnership Third party logistic.

Channel decisions
77

     

Direct or indirect channels Single or multiple channels Length of channel Types of intermediaries Number of intermediaries at each level Which intermediaries? Avoid intrachannel Conflicts

Retailing
78

 

  

Introduction Includes all the activities involved in selling products and services directly to final consumer for their personal use. Types of retailers classified on the basis of Amount of service offered Breadth and depth of product line Price changes.

Major Store Retailer Type
79

          

Specialty stores Department stores Super markets Convenience Stores Discount stores

Off price retailers Super stores Category killers

Retailer Marketing Decision
80

    

Target Market and positioning decision Product assortment and service decision Price decision Promotion decision Place decision

Wheel or retailing
81

A concept of retailing that states that new types of retailer usually begins as lowmargin, low- price ,low- status operations but later evolve into high-priced,higher service operations eventually become like the conventional retailers they replaced.

Wholesaling
82

Introduction  Includes all activities involved in selling goods and services to those buying for resale or business use.  Significance Key component of the distribution channel

Types of wholesalers
83

Merchant wholesalers

Full service wholesalers
 

Wholesale merchant Industrial distributor Cash-and-carry wholesaler Truck jobbers Drop shippers Rack jobbers Producers’ cooperative Mail-order wholesaler

Limited –service wholesaler
     

Brokers and Agents

 

Wholesaler market decision
84

 

Target market and positioning decision Marketing mix decision

Promotion Mix
Advertising Sales Promotion Public Relations and Publicity Personal Selling Direct and Interactive Marketing

Advertisement

I get people to know about my business so that it c

What is it?

Advertising is any Paid/Unpaid form of non personal presentation and promotion of ideas, goods or services by an identified Sponsor.

Best advertising is done by Satisfied customers

Advertising Objectives
Advertising objective is a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time INFORMATIVE INFORMATIVE Aims to create brand awareness and Knowledge of Persuasive Advertising REMINDER new REMINDER Aims to or new Features of existing features products create liking, preference, conviction and purchaseReinforcement of a Reinforcement product or service
Reminder Advertising Aims to stimulate repeat purchase of •Reinforcement Advertising Products and services Aims to convince current purchasers that they have made the right choice- cars

PERSUASIVE Informative PERSUASIVE Advertising

Advertisement

Thanda Matlab

Dimag Ki Batti JalaDe

Sales Promotion
Definition: Any activity or material used as a direct inducement to purchase Targeted toward: •Sales force •Wholesalers and retailers •Consumers

Sales Promotion Methods for Consumers
Product sampling, demonstrations

Coupons, refunds

Contests, games & sweepstakes

Multiple purchase offers, Frequent-user incentives

Classifying Types of Sales Promotion
Promotional pricing Non-price promotions Sampling

•Price reductions •Free goods •Tied offers •Money off next purchase

•Contests •Free gifts •Self-supporting offers •Multi-brand promos •Guarantees and added services

•Most effective in the early stages of a new product launch (#1 use for coupons) •Important for new products •Very expensive

Personal Selling
Interpersonal promotional process involving a seller’s person-to-person presentation to a prospective buyer Objective
Cultivating new clients Communication Selling Servicing Information gathering Allocating scarce resources

Examples of Personal Selling
Retail selling Field selling Telemarketing Inside selling

Process of Personal Selling
FOLLOWING UP CLOSING THE SALE HANDLING OBJECTIONS MAKING THE SALES PRESENTATION APPROACHING THE PROSPECT Pre approach : QUALIFYING PROSPECTS PROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS

Public Relations and Publicity

Direct Marketing
According to the Direct Marketing Association(DMA), direct marketing is defined an interactive marketing system that uses one or more advertizing media to affect a measurable response and/or transaction at any location.
Major Channels

Face-to-face selling Direct mail Catalog marketing Telemarketing Direct-response television marketing Kiosk marketing

Face-to-face selling

Direct Mail

Catalog Marketing

Telemarketing

Direct-response television marketing

Media Marketing

Kiosk Marketing

Global firm
105

A firm that, by operating in more than one countries and gains R&D, Production, Marketing, and Financial advantages in its costs and reputation that are not available to purely domain competitors.

Major International Marketing Decision
107

Market Entry Strategies
108

Among of Commitment, Risk, Control and Profit Potential

Whole channel concept for international marketing
109

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