The paper "International Marketing Mix and Respective Strategies - Smith’ s Company " is a great example of a marketing case study. Marketing involves the effort to create, develop, and defend markets that satisfy the needs and wants of individual and business customers, hence international marketing goes to the level of handling the needs and wants of foreign customers. This is highly enabled through the international marketing mix. The mix includes the price, product, promotion, and place. The mix will depend on the target audience which is the rural residents in the countryside and the restaurants and hotels which are resorts and hence space will be convenient for the construction of the biogas equipment.
It also is dependent on the company objectives which is to publicize the use of biogas which is much cheaper in the long run and more environment is friendly. Also, the core of Smith’ s company is the aspect of profitability which is essential to maintaining the company. Moreover, the resources available will have to be taken into light (Smith, 1990). Elements of the marketing mix could be: i) Standardized across all markets ii) Adapted to appeal to particular market segments In standardization, the same approach to the 4 P’ s is made use in every target market.
In adaptation, this is where the marketing mix is tailored to the country or to market segment within a country (Joshi, 2005). In line with Smith’ s company, an adaptation mechanism will be utilized. International marketing mix and respective strategies Price There is a high need to establish prices as an obvious path to the profit for the company by recovering costs faced by the business (Yoshino, 1995).
Costs faced by the business include the training of agents in the host country, constructing the plant and accessing the raw materials for the company. These raw materials include the cow dung form the local farmers and the material for the construction work which will be provided by the company at subsidized prices due to the fact that the founder of the company forms part of the Kenyan Diaspora. Transport costs will be very low in terms of accessibility to such raw materials. This can be established by considering the use of discounts in attracting the customers so this is put up with the view that the discounts have put into light the discounts.
The distribution and maintenance of price lists are necessary so that all parties concerned will be informed of set prices and views will be passed on as to the level of the prices set. This will also serve to make prior arrangements by the customers in line with their set budgets. Since the business sells biogas equipment and the business is targeting the restaurants as well.
The price lists will aid a lot in invalidating the existence of the business and securing of funds ahead of time. Competitive information is also needed since the pricing strategy will be determined from this standpoint. However, the market for the biogas in Kenya has not been widely exploited so a setting of prices will not be a major problem for Smith’ s company. The business will make use of demand-based pricing strategies form the fact that the biogas is targeted to a range of customers; from local households to restaurants. This is managed through price discrimination where Smith’ s company will charge different prices in a different market.
The lower prices will be targeted to local households and the people located neat to the places where the biogas plant is located. This will be made more efficient with the use of varies price-lists for such different targets; hence higher prices will be made use of to big companies and the affluent in the society. The exchange rate fluctuation which also impacts pricing decisions is relatively constant.
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