Lecture 9-11 Flashcards
Why Logistics is Important in International Marketing Plans
Logistics is about ‘managing’ the system that turns raw materials into products/services and then gets them to customers
Draw a logistics supply chain/risk management map?
Origin (factory mine) –> Inland carrier –> Dock at port of shipment –> Vessel –> Dock at port of destination –> Inland carrier –> Destination
Aspects of logistics management?
- Information Control Systems
- Frequent Review Costs/Methods
- Qualified People
- Continual Search For:
• Better/cheaper raw materials
• Handling systems
• Packaging materials
Pricing objectives for Profit orientation
Target return and maximize profits
Profit objectives for sales orientation?
Unit sales growth and market share growth
Profit objective for market orientation?
Competition and Non-price (quality/service)
Pricing Strategies
Market Skimmer Penetration Pricing Market Holding Cost Plus Performance Relationship Demand Pricing Product Line Pricing Market Pricing Price/Quality Strategy Cultural Pricing
Market Skimmer
Setting a high price before the others are in the market creates a first mover advantage
Penetration Pricing
Introduce at a steep discount often at a loss to create brand loyalty
Cost Plus pricing
You add direct material cost, direct labour cost and overhead cost add markup percentage and you get the cost
Performance Pricing
Priced based on the quality of the service could include no win no fee
Relationship Pricing
Flexibility to modify pricing to develop long term relationships
Demand Pricing
If high demand for the product pricing will go up.. low demand for the product then pricing will go down
Product line pricing
First product introductory then the next few add-on more expensive.. Value adding (cars, phone plans, razors)
Market Pricing
The maximum value you would set it at (high end products)
