Chapter 5 Part One Marketing Foreign Products: Choose a product popular in anoth

Question

Chapter 5

Part One

Marketing Foreign Products:

Choose a product popular in another NON-AMERICAN country, and imagine trying to sell it to an American market.

You have the opportunity to keep the product and package as-is, or to change it completely. Consider the additional costs associated with changing. Create strategies/answer the questions below:

1.      Target market: Who should be the target market in the United States? What variables will be used to select the target market?

2.      Product: Will any adaptation be made to the product features? What about the packaging? The brand name?

3.      Price: What is a good retail price for the product?

4.      Promotion: How will the product be communicated to the target market? What promotional message will be used? What media will be used to reach the target market?

5.      Distribution: Where will the product be sold?

Part Two (answer TWO)

FOR THESE QUESTIONS, YOU HAVE TO CITE ONE OUTSIDE SOURCE FROM A BUSINESS TRADE PRESS PUBLICATION

1.      What is meant by “having a global vision”? Why is it important?

2.      Isolationists have suggested that the United States would be much better off economically and politically if we just “built a wall” around the country and didn’t deal with outsiders. Do you agree? Why, or why not?

3.      What are the major barriers to international trade? Explain how government policies may be used to either restrict or stimulate global marketing.

4.      Why is direct investment considered risky?

5.      Explain how exchange rates can affect a firm’s global sales.

Chapter 6

Part 3

Starbuck’s Case Study

1-5 True/False

If a consumer enjoyed the PSL during the 2015 season, then they will also enjoy it during the 2016 season.

If a customer wants nutritional facts about the new Chili Mocha they should do an internal information search on Starbucks’ website.

The perceived value of Starbucks coffee could be either utilitarian or hedonic depending on the customer.

On Maslow’s hierarchy of needs, a Pumpkin Spice Latte best satisfies the safety level.

A consumer will only purchase the new Chili Mocha after engaging in extensive decision making.

6-10 Multiple Choice

6. Which of the following is an example of consumer behavior?

a. purchasing a PSL

b. drinking a PSL

c. tweeting a picture of their PSL purchase

d. All of these are examples of consumer behavior.

7. Pumpkin Spice Latte fanatics could be considered a(n) __________ of coffee enthusiasts.

a. reference group

b. subculture

c. social class

d. opinion leader

8. A person’s co-workers belong in their __________ membership group.

a. aspirational

b. nonaspirational

c. primary

d. secondary

9. A consumer’s decision making is influenced by their __________.

a. gender

b. age

c. lifestyle

d. personality

e. All of these

10. If a customer only remembers the good taste of the PSL and not the sugar headache it gave them the last time they had one when ordering their next one, they are experiencing __________.

a. perception

b. selective exposure

c. selective distortion

d. selective retention

Explanation / Answer

Choosing a product popular in another NON-AMERICAN country, and trying to sell it to an American market. Let the product be Tata Nano which is a small affordable car very popular in India. If I am provided with the opportunity to keep the product and package as it is I will keep it like that. Consider the additional costs associated with changing, the following strategies will be made.

1. Target market: The target market in the United States will be the low and middle-class families with more exposure of the products in the non-prime locations. In places like New York or New Jersey, it would be irrelevant as people have high status and high income as this product aims at people who can easily afford a car with less money. The variables that will be used to select the target market are the economy of scale, livelihood of people, economic conditions of people, market conditions, availability of cheap labor and retail stores or warehouses etc.

2. Product: Few changes will be made to the product features as it was tailor-made to Indian climatic conditions but in the USA, as per the weather and roads, the internal parts may get changed. The packaging would remain same as it is the brand identity of Tata Company. The brand name will be same as Tata is already a reputed company which has a brand value not only in India but also in abroad.

3. Price: The retail price for the product will be higher than Indian price as it includes transportation cost, employees cost, warehouses cost and other production costs like equipment and machinery cost. Even if manufacturing is done here in the USA but the cost of production will increase as in the USA the raw materials are costlier than India especially the labor cost.

4. Promotion: The product is communicated to the target market by advertisements and billboards near marketplaces as it increases visibility. The promotional message could be “Smart Car with Affordable Price in your Town”. Print media will be used to reach the target market and after acquiring few states may be Visual advertisements or Television ads can be used for promotion.

5. Distribution: The product will be sold in the Tata-owned retail stores and the proximity to the warehouse will be less for easy access. The distribution network will consist of manufacturers, retailers, and customers. For maintaining quality, it is better not to outsource the distribution network.

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