05 Dec Fall 2006 MKT 360 INTERNATIONAL MARKETING

Fall 2006

MKT 360 INTERNATIONAL MARKETING

TERM PAPER PARTS III & IV

FREQUENTLY ASKED QUESTIONS

III. Market Audit and Competitive Analysis

I. Introduction

II. The product

III. The market

A. 6. Pricing strategy

a. What do you mean by: “customary markups”? It means: “what are their usual profits”?

b. What do you mean by: “types of discounts available”? It means: “what kind of discounts do the manufacturers give to their distributors”?

IV. Preliminary Marketing Plan

I. The marketing plan

A. Marketing objectives

B. Product adaptation (modification)

1. Core component – what do I put here? Here you discuss what parts of the core component you would leave the same (standardize) or change (adapt).

2. Packaging component – what do I put here? Here you discuss what parts of the packaging component you would standardize or adapt.

3. Support services component – what do I put here? Here you discuss what parts of the support services component you would standardize or adapt.

C. Promotion mix

1. Advertising

a. Objectives

b. Media mix – what do I put here? Here you discuss what percent of your advertising budget you would spend on each medium (TV, radio, magazines, newspapers, outdoor, internet)

2. Sales promotions

a. Objectives

b. Coupons

c. Premiums – what is this? A premium is a small gift that you include with the purchase of a product (for example, a gift of a small bag when you purchase a certain amount of perfume)

D. Distribution: From origin to destination.

1. Port selection

2. Mode selection – do I have to discuss a particular mode of transportation even if I am not going to use it? Yes, please discuss the general advantages/ disadvantages of each one of the modes.

3. Packing

a. Marking and labeling regulations

b. Containerization – what do I put here? Please write the following: “Yes, we are going to use a 40 – foot container for our shipment.”

c. Cost to pack the container – what do I put here? Please write the following: “Depending on whether the cargo is palletized or not, packing of a container will cost anywhere from $300 to $500.”

4. Documentation required.

5. Insurance – what do I put here? Please write the following: “The cost of ocean freight insurance is approximately $1.00 per $100.00 of valuation of the cargo”.

6. Freight forwarder.

E. Channels of Distribution (micro analysis).

F. Price determination.

1. Cost of shipment of goods – what do I put here? Please write here the cost of the ocean freight that was quoted to you by the shipping line.

2. Transportation costs – what do I put here? Please write the following: “The cost of inland transportation from the warehouse to the port is approximately $300 to $400 per container.”

3. Handling expenses – what do I put here? If the shipping line quoted you separately for pier charges, wharfage fees, and loading/ unloading charges, please put those figures here. If they didn’t separate these charges in their quotation, assume that they are included in the total figure they gave you. In that case, then write: “Included in ocean freight figure.”

4. Insurance costs – what do I put here? “The cost of ocean freight insurance is approximately $1.00 per $100.00 of valuation of the cargo”.

Hope this is of help to you! Good luck!

Ben Recarey