BRAND

Brand: name, term, sign, symbol, design, or some combination that identifies the
products of a firm while differentiating them from the competitions

• Branding is the process of creating that identity.

• Buyers respond to branding by making repeat purchases because they identify the
item with the name of its producer.

Brand Loyalty

Brand recognition: Consumer awareness and identification of a brand.

Brand preference: Consumer reliance on previous experiences with a product to choose

that product again.

Brand insistence: Consumer refusals of alternatives and extensive search for desired
merchandise.

Types of Brands

Generic product: item characterized by plain label, with no advertising and no brand
name

Manufacturers’ brand or National Brand: brand name owned by a manufacturer or

other producer

Private brands: brand name placed on products marketed by wholesalers and retailers

Captive brands: national brands that are sold exclusively by a retail chain

Family brand: brand name that identifies several related products

Individual brand: unique brand name that identifies a specific offering within a firm’s
product line and that is not grouped under a family brand

The Role of Category and Brand Managers

Brand manager: Marketing professional charged with planning and implementing

marketing strategies and tactics for a brand

Category management: Product management system in which a category manager—

with profit and loss responsibility—oversees a product line.

BRAND IDENTIFICATION:

Brand name: part of a brand consisting of words or letters that form a name that
identifies and distinguishes a firm’s offering from those of its competitors

Brand mark: symbol or pictorial design that identifies a product

Generic name: branded name that has become a generically descriptive term for a class
of products (e.g., nylon, aspirin, kerosene, and zipper)

Trademark: legal protection which confers the exclusive right to user brand name, trade
mark, and any slogan or product name abbreviation

Trade Dress: visual cues used in branding to create an overall look

 The distinctive shape of Philips light bulbs and the McDonald’s arches
provide an example of trade dress

Developing Global Brand Names and Trademarks

Potentially an acute problem for international marketers

An excellent brand name or symbol in one country may prove disastrous in another
Trademarks that are effective in their home countries may fare less well in other cultures

Packaging

A package serves three major objectives:

 Protection against damage, spoilage, and pilferage

 Assistance in marketing the product
 Cost effectiveness

Labeling

 Label
 Universal Product Code (UPC)

Brand extension: application of a popular brand name to a new product in an unrelated

product category

Line extensions refers to new sizes, styles, or related products

Brand licensing: practice allowing other companies to use a brand name in exchange for
a payment

New Product Planning

As a firm’s offerings enter the maturity and decline stages of the product life cycle, it
must add new items to continue to prosper

 Alternative Product Development Strategies

 Product Development Strategies

  Product positioning: consumers’ perceptions of a product’s attributes,
uses, quality, and advantages and disadvantages in relation to those of
competing brands

 Cannibalization: a loss of sales of the current product due to competition

from a new product in the same line

Market- Product-
penetration development
strategy strategy

Market-
development
(Diversification
strategy
strategy)

The Consumer Adoption Process

 Adoption process: Stages that consumers go through in learning about a new

product, trying it, and deciding whether to purchase it again.
 Awareness
 Interest
 Evaluation
 Trial
 Adoption or rejection

 Consumer innovator: People who purchase new products almost as soon as the
products reach the market

 Diffusion process: Process by which new goods or services are accepted in the
marketplace

 Categories of Adopters Based on Relative Times of Adoption

 Identifying Early Adopters
 Substantial benefits may be obtained by locating the likely first buyers of
new products (innovators and early adopters)
 Suggestions for modifying the product may be obtained from these
individuals
 Acceptance or rejection of the innovation by innovators and early adopters
can help forecast sales
 Rate of Adoption Determinants
 Characteristics of a product innovation that influence its adoption rate
include:
 Relative advantage
 Compatibility
 Complexity
 Possibility of trial use
 Observability

 Organizing for New Product Development

 New-Product Committees

 New-Product Departments
  Product Managers

 Venture Teams
 Task forces

BRAND MANAGEMENT

The discipline of brand management was started at Procter & Gamble PLC as a result
of a famous memo by Neil H. McElroy.

Brand management is the application of marketing techniques to a specific product,

product line, or brand. It seeks to increase the product's perceived value to the customer
and thereby increase brand franchise and brand equity. Marketers see a brand as an
implied promise that the level of quality people have come to expect from a brand will
continue with present and future purchases of the same product. This may increase sales
by making a comparison with competing products more favorable. It may also enable the
manufacturer to charge more for the product. The value of the brand is determined by the
amount of profit it generates for the manufacturer. This results from a combination of
increased sales and increased price.

A good brand name should:

• be legally protectable
• be easy to pronounce
• be easy to remember
• be easy to recognize
• attract attention
• suggest product benefits (e.g.: Easy-Off) or suggest usage
• suggest the company or product image
• distinguish the product's positioning relative to the competition.

Premium Brand typically costs more than other products in the category.
Economy Brand is a brand targeted to a high price elasticity market segment.

Fighting Brand is a brand created specifically to counter a competitive threat. When a

company's name is used as a product brand name, this is referred to as corporate
branding. When one brand name is used for several related products, this is referred to as
family branding. When all a company's products are given different brand names, this is
referred to as individual branding. When a company uses the brand equity associated with
an existing brand name to introduce a new product or product line, this is referred to as
Brand Leveraging. When large retailers buy products in bulk from manufacturers and
put their own brand name on them, this is called private branding, store brand, or private
label. Private brands can be differentiated from Manufacturers' Brands (also referred to
as National Brands). When two or more brands work together to market their products,
this is referred to as Co-Branding. When a company sells the rights to use a brand name
to another company for use on a non-competing product or in another geographical area,
this is referred to as Brand Licensing.

Brand Rationalization refers to reducing the number of brands marketed by a company.

Companies tend to create more brands and product variations within a brand than
economies of scale suggest they should. Frequently they will create a specific product or
brand for each market that they target. They also do this to gain precious retail shelf space
(and also reduce the amount of shelf space allocated to competing brands). But this can
be a very inefficient strategy so a company may decide to rationalize their portfolio of
brands from time to time. They may also decide to rationalize their brand portfolio as part
of an overall corporate downsizing.

A recurring issue for brand managers is "How to build a consistent brand image while
keeping the message fresh and relevant." Most brand managers agree that it is easier and
less costly to build on the equity established in an existing brand than to start a new brand
from nothing. Repositioning a brand (sometimes called rebranding), wastes the brand
equity built up in the past, and also confuses the target market with multiple brand
positions. But old brand images may get stale with time. The challenge for the brand
manager is to revitalize the brand using the existing brand equity as leverage.
Positioning (marketing)

In marketing, positioning is the technique by which marketers try to create an image or

identity in the minds of their target market for its product, brand, or organization. It is the
'relative competitive comparison' your product occupies in a given market as perceived
by the target market.

Positioning is something (perception) that is done in the minds of the target market.

A product's position is how potential buyers see the product. Positioning is expressed
relative to the position of competitors. The term was coined in 1969 by Al Ries and Jack
Trout in the paper "Positioning" is a game people play in today’s me-too market place" in
the publication Industrial Marketing.

Re-positioning involves changing the identity of a product, relative to the identity of

competing products, in the collective minds of the target market.

De-positioning involves attempting to change the identity of competing products,

relative to the identity of your own product, in the collective minds of the target market.

Positioning statement
To (The Target), Brand (X) is the (Frame of Reference) which provides a (Point of
Difference)
Functional Benefit
• The convincing and visible reasons to believe that the brand is superior on its
stated point-of-difference
• The key drivers behind this point-of-difference
Emotional Benefit
• Personality of the brand
• The “characteristics” of the brand that help drive an emotional connection with
the target
 NEW BRAND DEVELOPMENT PROCESS
Because introducing new products on a consistent basis is important to the future success
of many organizations, marketers in charge of product decisions often follow set
procedures for bringing products to market. In the scientific area that may mean the
establishment of ongoing laboratory research programs for discovering new products
(e.g., medicines) while less scientific companies may pull together resources for product
development on a less structured timetable.

Step 1. IDEA GENERATION – The first step of new product development requires
gathering ideas to be evaluated as potential product options. For many companies idea
generation is an ongoing process with contributions from inside and outside the
organization. Many market research techniques are used to encourage ideas including:
running focus groups with consumers, channel members, and the company’s sales force;
encouraging customer comments and suggestions via toll-free telephone numbers and
website forms; and gaining insight on competitive product developments through
secondary data sources. One important research technique used to generate ideas is
brainstorming where open-minded, creative thinkers from inside and outside the
company gather and share ideas. The dynamic nature of group members floating ideas,
where one idea often sparks another idea, can yield a wide range of possible products that
can be further pursued.
Step 2. SCREENING – In Step 2 the ideas generated in Step 1 are critically evaluated
by company personnel to isolate the most attractive options. Depending on the number
of ideas, screening may be done in rounds with the first round involving company
executives judging the feasibility of ideas while successive rounds may utilize more
advanced research techniques. As the ideas are whittled down to a few attractive options,
rough estimates are made of an idea’s potential in terms of sales, production costs, profit
potential, and competitors’ response if the product is introduced. Acceptable ideas move
on to the next step.

Step 3. CONCEPT DEVELOPMENT AND TESTING – With a few ideas in hand the
marketer now attempts to obtain initial feedback from customers, distributors and its own
employees. Generally, focus groups are convened where the ideas are presented to a
group, often in the form of concept board presentations (i.e., storyboards) and not in
actual working form. For instance, customers may be shown a concept board displaying
drawings of a product idea or even an advertisement featuring the product. In some cases
focus groups are exposed to a mock-up of the ideas, which is a physical but generally
non-functional version of product idea. During focus groups with customers the marketer
seeks information that may include: likes and dislike of the concept; level of interest in
purchasing the product; frequency of purchase (used to help forecast demand); and price
points to determine how much customers are willing to spend to acquire the product

Step 4. BUSINESS ANALYSIS – At this point in the new product development process
the marketer has reduced a potentially large number of ideas down to one or two options.
Now in Step 4 the process becomes very dependent on market research as efforts are
made to analyze the viability of the product ideas. (Note, in many cases the product has
not been produced and still remains only an idea.) The key objective at this stage is to
obtain useful forecasts of market size (e.g., overall demand), operational costs (e.g.,
production costs) and financial projections (e.g., sales and profits). Additionally, the
organization must determine if the product will fit within the company’s overall mission
and strategy. Much effort is directed at both internal research, such as discussions with
production and purchasing personnel, and external marketing research, such as customer
and distributor surveys, secondary research, and competitor analysis.

Step 5. PRODUCT AND MARKETING MIX DEVELOPMENT – Ideas passing

through business analysis are given serious consideration for development. Companies
direct their research and development teams to construct an initial design or prototype of
the idea. Marketers also begin to construct a marketing plan for the product. Once the
prototype is ready the marketer seeks customer input. However, unlike the concept
testing stage where customers were only exposed to the idea, in this step the customer
gets to experience the real product as well as other aspects of the marketing mix, such as
advertising, pricing, and distribution options (e.g., retail store, direct from company,
etc.). Favorable customer reaction helps solidify the marketer’s decision to introduce the
product and also provides other valuable information such as estimated purchase rates
and understanding how the product will be used by the customer. Reaction that is less
favorable may suggest the need for adjustments to elements of the marketing mix. Once
these are made the marketer may again have the customer test the product. In addition to
gaining customer feedback, this step is used to gauge the feasibility of large-scale, cost
effective production for manufactured products.

Step 6. MARKET TESTING – Products surviving to Step 6 are ready to be tested as

real products. In some cases the marketer accepts what was learned from concept testing
and skips over market testing to launch the idea as a fully marketed product. But other
companies may seek more input from a larger group before moving to
commercialization. The most common type of market testing makes the product
available to a selective small segment of the target market (e.g., one city), which is
exposed to the full marketing effort as they would be to any product they could purchase.
In some cases, especially with consumer products sold at retail stores, the marketer must
work hard to get the product into the test market by convincing distributors to agree to
purchase and place the product on their store shelves. In more controlled test markets
distributors may be paid a fee if they agree to place the product on their shelves to allow
for testing. Another form of market testing found with consumer products is even more
controlled with customers recruited to a “laboratory” store where they are given shopping
instructions. Product interest can then be measured based on customer’s shopping
response. Finally, there are several high-tech approaches to market testing including
virtual reality and computer simulations. With virtual reality testing customers are
exposed to a computer-projected environment, such as a store, and are asked to locate and
select products. With computer simulations customers may not be directly involved at
all. Instead certain variables are entered into a sophisticated computer program and
estimates of a target market’s response are calculated.

Step 7. COMMERCIALIZATION – If market testing displays promising results the

product is ready to be introduced to a wider market. Some firms introduce or roll-out the
product in waves with parts of the market receiving the product on different schedules.
This allows the company to ramp up production in a more controlled way and to fine tune
the marketing mix as the product is distributed to new areas.

Managing Existing Products

Marketing strategies developed for initial product introduction almost certainly need to
be revised as the product settles into the market. While commercialization may be the
last step in the new product development process it is just the beginning of managing the
product. Adjusting the product’s marketing strategy is required for many reasons
including:

• Changing customer tastes

• Domestic and foreign competitors

• Economic conditions

• Technological advances

To stay on top of all possible threats the marketer must monitor all aspects of the
marketing mix and make changes as needed. Such efforts require the marketer to develop
and refine the product’s marketing plan on a regular basis. In fact, as we will discuss in a
later section of this tutorial, marketing strategies change as a product moves through time
leading to the concept called the Product Life Cycle (PLC).
 In s titu tio n a l M is s io n , V is io n , a n d S tr a te g ic P la n

T a r g e t A u d ie n c e D e fin itio n

D e m o g r a p h ic , P s y c h o g r a p h ic , H is to r y

M a rk e t R e se a rc h
A s s e s s T a r g e t A u d ie n c e N e e d s a n d E x p e c ta tio n s

T a r g e t A u d ie n c e S e g m e n ta tio n s

C r e a tio n o f M a r k e tin g M ix

P ro d u c t

P r ic e

P la c e

P r o m o tio n
INTRODUCTION
OF
COMPANY
 Chief Executive Mr. Shah Faisal
Haier was incorporated in 1984 only producing household refrigerators. Over the past 20
years, the company has witnessed significant prosperity and is now a transnational
organization widely recognized in the world community. Haier currently manufactures a
wide range of household electrical appliances, 15,100 varieties of items in 96 product
lines, and exports products to more than 100 countries. In 2004, Haier’s global sales hit
RMB100.9 billion and Haier brand, valued at RMB61.6 billion, topped all Chinese
trademarks at a nationwide survey. Haier was ranked first in the row of China’s Top 10
Global Brands August 30, 2005 on the Financial Times. Haier CEO Zhang Ruimin was
placed 26th of the World’s 50 Most Respected Business Leaders on 17th November, 2005
on Financial Times. Zhang Ruimin was ranked 6th of the Asia’s 25 Most Powerful People
in Business on Fortune in August, 2004 and first of the 25 Most Powerful Business
Leaders inside China on the Chinese Edition of Fortune in April 2005.
Haier’s international promotion framework encompasses global networks for design,
procurement, production, distribution and after-sales services. Haier has established 15
manufacture complexes, 30 overseas production factories, 8 design centers and 58,800
sales agents worldwide.

From Zhongyikang Statistics, Haier’s leadership position in Chinese home appliance

industry has been solidified by obtaining the domestic market share of 21% for overall
appliances, far ahead of all its competitors, 34% for white goods, exceeding globally
recognized domination line, and 14% for small electric appliances, overtaking all
previous competitive rivals.
In the world market, Haier has gained first place in the United States for sales of compact
refrigerators and wine coolers, in Iran for washing machines and Cyprus for air
conditioners.

From Euro-monitor Statistics, Haier is currently ranked fourth among the global white
goods makers by revenue and Haier’s goal is to play a leading role in the world white
goods industry.
On March 4, 2002, Haier unveiled its American headquarters in the landmark neo-
classical building, the former offices of the Greenwich Savings Bank, on Broadway,
Manhattan, New York, an indication that Haier had moved into a new phase for
globalization of product design, manufacture and sales and had a strong determination for
long-term development in the United States. On August 20, 2003, Haier erected an
electric billboard in the shopping district of Ginza, Tokyo, symbolizing that Haier’s
determination to reach Japanese marketplace.
Facing the challenges brought by E-commerce and China’s accession to the WTO, Haier
began a management restructuring program in 1998 backed by the efficient Haier
Market-chain System practice. During first 5 years, Haier focused on the organization
restructuring, management decentralizing with application of advanced information and
network systems in order fulfillment, Market-chain performance logistics, capital
operation, after-sales service, product inventory and operational cost reduction. During
second 5 year period from 2003, Haier carried out the SBU (strategic business unit)
management to stimulate the enthusiasm of every employee and to enhance Haier’s
competitiveness in global marketplace.
Over the past 20 years, Haier provided more than 100 million appliances to worldwide
consumers and paid cumulatively a total tax of RMB13.6 billion, of which RMB2 billion
in 2004, RMB5.5 million per day on average.

Haier has scheduled to finance 100 Project Hope primary schools, of which 47 are put
into operation. Haier has 51,000 full time employees and hires 175,000 contract service
personnel, providing a total of 230,000 job opportunities.
Haier’s management has been worldwide recognized. Haier’s experience has been
introduced in 16 case studies in business merger, financial management and corporate
culture by 7 foreign educational institutes, including Harvard University, University of
Southern California, Lausanne Management College, the European Business College and
Kobe University. Haier has been recommended to the EU Case Studies by Lausanne
Management College for Haier Market-chain Management.
Haier’s goal is to become a global recognizable brand.
 HAIER INTRODUCING NEW
BRAND IN INTERNATIONAL
MARKET

HAIER INTRODUCING NEW BRAND IN INTERNATIONAL

MARKET
1. PRODUCT:
Present Mobiles Range: Variety + Assortment
NEW BRAND HRT MAX

A bulletproof spec sheet sets it right in the thick of all-in-one action. Full-house
connectivity and multimedia prowess topped with a massive OLED screen to die for.

POSITIONING STATEMENT:

HAIER TECHNOLOGIES
TARGET: To all people with a message to communicate

BRAND: HRT MAX

FRAME: Is the way to communicate special feelings

DIFFERENCE: That always says the best about the send

SLOGAN: Talk your Talk

KEY FETHERS:

3G:
3G Stands for 3rd-generation. Analog cellular phones were the first generation. Digital
marked the second generation.
3G is loosely defined, but generally includes high data speeds, always-on data access, and
greater voice capacity. The high data speeds are possibly the most prominent feature, and
certainly the most hyped. They enable such advanced features as live, streaming video.
There are several different 3G technology standards. The most prevalent is UMTS, which
is based on WCDMA. (WCDMA and UMTS are often used interchangeably.)

Alarm:
An alarm feature which can be set for a specific time and date or can used as a daily
alarm.
If the phone has a calendar feature, the alarm feature may be integrated with that (in some
Motorola phones for example), so an alarm is simply a calendar event. Although some
phones with a calendar feature also have a separate alarm feature.
Alphanumeric Display:
A display capable of containing letters and numbers, but not graphics.

Bluetooth:
A wireless personal area network (PAN) specification that connects phones, computers,
appliances, etc. over short distances without wires by using low power radio frequencies.
Bluetooth allows you to leave your phone in your pocket, while talking on your phone
with a Bluetooth headset - with no wires. You can also exchange contact or scheduling
information with other Bluetooth-enabled phones nearby, or send such information to a
nearby Bluetooth-enabled printer.

Calendar:
Calendar feature allows you to store scheduling and event information in your phone.
Some phones also offer the ability to sound an alert to remind you of upcoming events.

CDMA:
Code Division Multiple Access. A type of digital wireless technology that allows large
amounts of voice and data to be transmitted on the same frequency. CDMA is second-
generation cellular technology (or 2G) and is available in Canada, the United States,
Pacific Asia, and Latin America. Most CDMA service providers will migrate to a high-
speed data technology called 1xRTT.
The CDMA phones are not listed on GSMArena.com.

Dual-band:
Phones that can switch between two different bands of frequencies.
In Europe Dual-band usually means GSM900/GSM1800 capable phone, while in USA it
might mean GSM850/GSM1900 or combination of two other bands.

EDGE:
Enhanced Data rates for Global Evolution. A technology being promoted by the TDMA
and GSM communities that is capable of both voice and 3G data rates up to 384 Kbps.
The standard is based on GSM standard and uses TDMA multiplexing technology.
EMS :
Enhanced Message Service. An extension of SMS that enables the sending of a
combination of simple melodies, images, sounds, animations and formatted text as a
message to another EMS-compatible phone

GPRS :
General Packet Radio Service. A packet-switched technology that enables high-speed
wireless Internet and other data communications. GPRS offers a tenfold increase in data
speed over previous technologies, up to 115kbit/s (in theory). Typical real-world speeds
are around 30-40 Kbps. Using a packet switching, subscribers are always connected and
always on-line.
GPRS is considered a 2.5G technology.

GPS :
Global Positioning System. A system of satellites, computers, and receivers that is able to
determine the latitude and longitude of a receiver on Earth by calculating the time
difference for signals from different satellites to reach the receiver.

GSM :
Global System for Mobile communications. The international digital radio standard
created by the European Telecommunications Standards Institute. GSM is currently the
dominant 2G digital mobile phone standard for most of the world.

HSCSD :
High Speed Circuit Switched Data. An enhancement to GSM networks that enables data
speeds to be boosted from 9.6 kbps in multiples up to 57.6 kbps.

IMEI :
International Mobile Equipment Identity. A unique serial number used on digital mobile
phones.

Infrared port (IrDA) :

Allows cell phones, PDAs, and other devices to connect to each other for various
purposes. Infrared is a wireless technology that uses a beam of invisible light to transmit
information.

Java (J2ME) :
Java 2 Micro Edition. A feature that allows the device to run specially-written
applications. J2ME applications can provide specific functions such as a tip calulator,
they can be games, or they can be custom-written corporate applications. Some phones
allow you to download new applications directly from Internet while others require a data
cable to transfer the applications from a PC.

LCD :
Liquid Crystal Display. LCD displays utilize two sheets of polarizing material with a
liquid crystal solution between them. An electric current passed through the liquid causes
the crystals to align so that light cannot pass through them.
Monochrome LCDs in phones usually have both a backlight and a reflective backing,
allowing them to be equally usable in both bright light and complete darkness.
Color LCDs come in many types. STN, TFT, and TFD are several common technologies
used.

Li-Ion battery :
Lithium-Ion type of battery, often used to power wireless communication devices.
Considered superior to NiCd and NiMH batteries - they are lighter weight, have a
relatively long cycle life and generally do not suffer from "memory" effect.

Li-Po battery :
Lithium Polymer type of battery. Similar to Li-Ion batteries, but slightely lighter and the
batteries can be molded to any shape.

MMS :
Multimedia Messaging Service. A further extension of SMS and EMS. MMS is designed
to make use of newer and quicker mobile transmission methods such as GPRS, HSCSD,
EDGE and UMTS, involving the attachment of multimedia extensions to messages, such
as video and sound.

OLED :
Organic Light-Emitting Diode. A next-generation display technology that consists of
small dots of organic polymer that emit light when charged with electricity. OLED
displays are thinner, lighter, brighter, cheaper to manufacture and consume less power
than the current LCD displays.

Polyphonic Ringtones :
Polyphonic ringtones can create multiple tones simultaneously. This produces a more
natural and realistic sound for melodies.

Predictive Text Input :

A technology which allows you to enter text by pressing only one key per letter. The
phone will automatically compare all of the possible letter combinations against a built-in
dictionary of words. The current Predictive Text Input implementations are T9, iTAP and
eZiText.

SIM :
Subscriber Identity Module. The smart card used in digital phones. It carries the user's
identity for accessing the network and receiving calls and also stores personal
infromation, such as phone directory and received SMS messages.

SMS :
Short Message Service. A service that enables subscribers to send short text messages
(usually about 160 characters) to and from mobile phones.

Speakerphone :
or Build-in Handsfree. Allows the phone to be used at a short distance, without the phone
being held next to the face.
STN:
Super Twisted Nematic. A type of LCD display technology. STN uses less power and is
less costly than TFT technology, but at the expense of image quality and response time.

T9:
Look at Predictive Text Input.

TFD :
Thin Film Diode. A type of LCD display technology. TFD technology combines the
excellent image quality and fast response times of TFT, with the low power consumption
and low cost of STN.

TFT :
Thin Film Transistor. A type of LCD display technology. Compared to other types of
LCD technology, TFT features excellent image quality and response time, but uses more
power, and is more expensive.

UMTS :
Universal Mobile Telecommunications System. A third-generation (3G) wireless
communications technology and the next generation of GSM. UMTS is a wireless
standard approved by the International Telecommunications Union and is intended for
advanced wireless communications.
UMTS uses WCDMA technology, and the two terms are often used interchangeably with
each other.

Voice dial:
A feature that allows a user to dial a phone number by spoken commands.

WCDMA :
Wideband Code Division Multiple Access. An approved third-generation (3G) wireless
standard which utilizes one 5 MHz channel for both voice and data, offering data speeds
of 144 Kbps to 2 Mbps.
PRICE :

When HAIER operating in international markets it will be follow extension, adaptation,

and invention approaches in pricing. In the extension approach, a HAIER follows the
same price throughout the world. When following adoptation approach allows its regional
managers to fix the product prices based on the circumstances in which they operate. But
while the company will follow a invention approach takes a medium position between
fixing a single price worldwide and fixing different prices based on the requirements of
subsidiaries.

International Pricing for HRT MAX

OBJETIVES OF PRICE SETTING(HRT MAX)

• Generally the pricing objectives will be: survival, profit, return on investment,
market share, status quo, and product quality.
• International pricing strategies can be classified into three forms: market
skimming, market penetration, and market holding. But the company will be only
follows the market penetration strategies mean at the starting the product will be
sale out at low prices but not at the lowest prices.
• Pricing decisions are influenced by different factors such as inflation, nature of
product or industry and competitive behavior, devaluation and revaluation, market
demand, and transfer pricing.
• Pricing is a value determination process for the product or service that will be
offered for sale. Making pricing decisions in international markets is ridden with
difficulties as it involves multiple currencies, trade barriers, additional cost
considerations, and longer distribution channels. Before setting the prices, the
marketer must know his target market well. When he is clear about the market he
is serving, he can determine the price appropriately. The pricing policy must be
consistent with the company’s overall objectives.

Marketing
Channel and
Place Decisions
for HRTMAX:

• Channel • Complaints of
Objectives and Managers
Constraints Complaints of
• Differences Distributors
between Countries • Innovations in
in Distribution International
Channels Channels
Constraints Channel Structure
• Channels in Less • Wholesale
Developed Intermediaries
Countries Merchant
 Intermediaries Partners
Functional Support Market
Intermediaries Entry
• Channel Strategy Maintain Control
for New Market over Marketing
Entry Strategy
• Evaluating Get Detailed

Channel Market and

Alternatives Financial

• Select Distributors Performance Data

Select Distributors from Distributors

who can Develop Strategic

Markets Decisions

Treat Local Pertaining to

Distributors as Distribution

Long-Term Channels

Marketing channels are created to facilitate the exchange

process, alleviate discrepancies, standardize transactions
and provide customer service. In a normal situation, a
distribution system consists of two levels of players
between the manufacturer and the consumer. These players
are wholesale distributors and retailers. Distribution
channels in different countries are dissimilar in terms of the
retail system, channel length and channel accessibility.

Characteristics of customers, product, intermediaries and

the environment influence the mode of channels. The
characteristics of customers include number of customers,
geographical distribution, income, and shopping habits.
Product attributes include degree of standardization,
perishable nature of the product, bulk, service requirements
and unit price. The mode of channel is also affected by a
variety of economic, social and political factors. Generally,
local markets in less developed countries are regulated or
dominated by networks of local intermediaries.

Internationally operating companies have to partner with

these distributors to gain access to their unique expertise
and knowledge. Channel innovation depends on many
factors like level of economic development of the country in
which the firm is operating, local demographic/geographic
factors, social norms, government actions and competitive
pressures. A properly designed distribution channel will
help a company achieve a sustainable competitive
advantage. Channel structure varies depending on the
customer.

Transactions between parties that do not involve the

ultimate consumer are considered wholesale transactions.
There are two types of wholesale intermediaries: merchant
intermediaries and functional intermediaries. Merchant
intermediaries buy products and resell them. Functional
intermediaries negotiate and just expedite exchange among
producers and resellers. They charge fees and/or
commission. An international firm must take adequate care
when entering into agreements with distributors. This can
make or mar its chances of success. A firm can choose
direct or indirect channel based on requirements. It can
similarly go for selective or intensive distribution depending
on the need.
Supply Chain What They Do Provider
Member country
These companies are generally considered the first
stage in the supply chain and provide basic products HAIER
Raw Material
through mining, harvesting, fishing, etc., that are key GROUP
Suppliers
ingredients in the production of higher-order CHINA
products.
Firms at this level use raw materials to produce more HAIER
Processed Materials
advanced materials or products contained within GROUP
or Basic Component
more advanced components. PAKISTAN
Manufacturers

Advanced These companies use basic components to produce

JAPAN
Component products that offer a significant function needed
GERMANY
Manufacturers within a larger product.
This market consists of companies that purchase both
basic and advanced components and then assemble
Product these components into a final product designated for HAIER
Manufacturers a user. These products may or may not be sold as PAKISTAN
stand-alone products. Some may be included within
larger products.
These companies offer services at almost any point in
the supply chain and also to the business user PEL
Support Service
market. Some services are directly related to the SAMSUNG
Firms
product while others focus on areas of the business LG
not directly related to production.
Promotional Decisions for HRT MAX:

• Promotional Mix • Barriers to

• Advertising Promotion and
Personal Selling Communication
Elements of the • Language
Personal Selling Differences
Process Cultural
Sales Promotion Differences
Publicity Social Differences
Economic
 Differences Differences
Legal & Competitive
Regulatory Differenc

Promotional mix is a blend of advertising, personal selling,

sales promotion and public relations, used by a firm to reach
its target market. To meet the objectives of a communication
strategy a marketer has to mix these ingredients
harmoniously.
Advertising is a paid form of non-personal communication
about an organization or its products that is transmitted to a
target audience through a mass/broadcast medium. This type
of promotion allows a marketer to focus on a small, clearly
defined market segment.
The method is also cost efficient. An organization can
communicate with a large number of prospective customers
at a minimal cost per person. Personal selling is a method of
communication aimed at persuading a prospective customer
to buy something, by providing suitable information. It
offers unique benefits to marketers, like quick feedback.
This allows a change of message based on situational
demands. Generally, two types of salespeople are involved
in personal selling -- order getters and order takers.
The personal selling process involves seven steps:
prospecting, evaluating, preparing, approaching the
customer, making the presentation, closing, and follow up.
Sales promotion involves activities and materials that are
meant to catch the attention of prospects. Though gaining a
competitive edge is an important objective of sales
promotion, there are other motives, which induce firms to
concentrate on this method. Quick returns are an obvious
reason. Also, consumers look forward to sales promotions
before purchase.
Overseas product exhibitions bring together people
interested in a particular industry. These events attract
important visitors such as potential customers, distributors,
agents, journalists, politicians and competitors. The events
provide an ideal opportunity to get attention. Publicity is an
important method of promotion. It is primarily informative,
objective and more subdued in tone compared to an
advertisement. Most big firms operating internationally
have dedicated publicists. A publicist’s basic tool is the
press release.
Other tools include telephone press conferences, in-studio
media tours, multi-component video news releases,
newswire stories, and Internet releases. When firms are
forced to deal with negative publicity, they should first
minimize rumours and misinformation. They should then
make efforts to expedite objective coverage, instead of
blocking it. The effectiveness of the communication process
is determined by external factors such as language, local
economy, laws, socio-cultural factors and competition.
These factors can act as barriers when not dealt with
properly.

COMPETETORS
• HRT • Hp
• Samsung • Asus
• Motorola • Gigabyte
• Lg • Otek
• Apple • Palm
• Htc • Black barry
• I-mate • Voda fone
• 02 • T-mobiles
• Ften • Sagem
• Alcatel • NEC
• Philips • WND
• Sharp • Pantech
• Toshiba • i-mobile
• BenQ- Siemens • VK Mobile
• BenQ • Bird
• Panasonic