International Marketing Mix - Place

Question 1

What is place?

Answer 1

Refers to where the organization’s goods or services are made available for sale.

Question 2

How to sell?

Answer 2

• Businesses must determine the best way to sell their product.
  Sales methods or venues may include:
• Selling products to retailers
• Opening their own retail store
• Selling online (e-commerce)
• Catalogues

Question 3

Logistics

Answer 3

Logistics consists of the flow of goods and services both into and out of an organization.
Consists of:
- transportation
- inventory management
- warehousing and storage
- packaging

Question 4

Centralized strategy

Answer 4

All of a company’s manufacturing and marketing is performed in one location.

Question 5

Decentralized strategy

Answer 5

• a company sets up a manufacturing plant in another nation;
• or hires a sales force there;
• or even licenses its brand to a local manufacturer;
• does not perform all manufacturing and marketing in one location.

Question 6

How to enter foreign markets

Answer 6

E-COMMERCE
SALES AGENT/AGENCY
TRADE SHOW
BRANCH PLANT
LICENSING AGREEMENT
AQUISITIONS

Question 7

BRANCH PLANT

Answer 7

Building and staffing a branch plant is the most expensive market entry strategy, but could be the most effective.
The three major advantages to owning a branch plant in a foreign country are:
Shipping costs are lower
Import regulations and tariffs are not an issue
Product modifications are easier

Question 8

E-commerce

Answer 8

• The use of the Internet to sell products and services to customers in a much larger areas than could be reached through a traditional retail location.
• Anywhere in the world can be an international business.
• Quality of the website is important.

Question 9

SALES AGENT/AGENCY

Answer 9

An individual hired and paid a commission by a company to market its product to potential buyers and distributors, often in a foreign country.

Question 10

Trade show

Answer 10

A collection of manufacturers and distributors of similar products who:
- rent space
- set up display booths
- sell to registered buyers seeking products for their retail businesses.

Question 11

LICENSING AGREEMENT

Answer 11

Is a contract giving someone the right to use a patent or trademark.
Manufacturers pay the owner of the trademark a fee, usually a royalty, which is a percentage of the sale of the licensed product.
1. Manufacturing agreements
2. Distribution agreements
3. Franchising agreements

Question 12

ACQUISITIONS

Answer 12

• Buy the company it competes with in a foreign market.
• Then can close it or use its marketing connections to expand your own market.
• Can be the most effective way for a company to deal with competition in a foreign or domestic market.