Sample Critical Thinking On The Role OF A Marketing Manager
Entering new market is a responsible step forward for the company, especially when talking about the new product for the foreign market. International marking is not the same as marketing in the home country. ”Most executives are quite clear that international marketing is different from home-country marketing, and most multinational companies insist that their senior managers have international experience on their resumés” (Arnold, 2015). Marketing strategy of Peanut Butter's entering the Russian market will be highlighted in this paper. Therefore, US companies manufacturing Peanut Butter have an opportunity to enter the Russian market and have prosperous benefits from it. Some of the specific steps of marketing plan are outlined below.
1. Describe the product you selected in terms of the four utilities of customer value.
Each product before entering the foreign market should thoroughly analyze the product in terms of the customer values, especially if it is a new product. It is especially difficult to predict the success of the new product on the foreign market; therefore experts recommend examining the product within 4 basic utilities of the customers’ value - functionality, time, place and ease of possession. “This assurance adds value for consumers and can distinguish your brand from a competitor” (Puresmallbusinessmarketing.com, 2015). With the Peanut Butter being the product to be launched on the foreign market the analysis will be as following:
Functionality – the Peanut Butter is designed to quench hunger on the one side and to make people happier on the other side. As a result it does not only comforts people but satisfies their physiological needs, which makes the Peanut Butter a perfect product from this prospective.
Time – Peanut Butter is a universal product in terms of time as well because it can be stored up to 2 years and does not loose its palatability. Though it will be definitely better if the climate in the foreign county is not too hot because the human’s organism is not ready for the fat foods in this period of time. Thus, Russia is a good choice as it is cold there for more then half a year. Also talking about time it is worth mentioning that high season for selling peanut butter will be on holidays, in particular, New Year Eve.
Place - this can be various supermarkets and shops, anything where the customer’s eye can notice the new product. If it is a supermarket, small bottles with peanut Butter can be located o the lowest shelves (for the children) and on the level of the “eye line”, where the customers are most likely to notice the brand new product.
Ease of possession - this aspect includ4es the payment methods and the financial affordability of the product and is the most problematic issue for the Peanut Butter. Due to the fact that it will be imported from the USA the additional costs and tax are to be included to the price. Still the key factor remains the innovation and the lack of subsidiaries in Russia. So Russians can not but try the delicious food.
2. Identify the product’s target market at home and in your stated foreign market.
Canadian expert, Susan Ward states that “Target Marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments. It can be the key to attracting new business and making your small business’s a success” (Ward, 2015).
Developing target markets takes place in the following order:
1 Analyzing the risks of entering the market including all factors to determine their relevance;
2 Study of the norms and standards on the market as well as product certification system (compliance with national standards in terms of economy and safety);
3 Checking the patent purity of the goods;
5 Determination of the technological and marketing position;
6 Analysis of the development trend on the market and the industry in which the company operates;
7 Possible reactions of competitors on the entering of a new product;
8 Sales determinations by the size of the market, the market share of competitors, perhaps the fate of the company captured with the help of marketing activities;
9 A program of marketing: product improvement, providing the necessary technology and production facilities, development of pricing policy, distribution policy, promotion policy;
10 The costs and activities determined by estimates of marketing.
Taking into account the mentioned above facts, the target market of the Peanut Butter in the USA slightly differs from the target market in Russia. The target groups can be roughly divided in to 3 main groups:
1. Teenagers, who already have their own money and according to statistics have the biggest share in sweets’ consumption;
2. Mother and fathers who buy sweets for their small kids;
3. Young man and women who have sufficient funds and always end to follow the modern tendencies.
3. Indicate the competition of the product category in both home and foreign markets.
The biggest competitor in the US is "Mars LCC". Mars LLS is currently the largest private company in the US. Today «Mars LLC» is also one of the largest private companies in the world and belongs to the third generation of the family Mars, which was caused by two advantages: speed of decision-making and the ability to take risks.
Mars is one of the most professional companies in the FMCG, the Group is building a large-scale enterprises and the Russian market is not an exception. As there are no Russian analogues on the market, Mars remains the strongest competitor on the Russian market too.
4. Explain how you would apply the segmentation, targeting, and positioning (STP) approach to market the product in the foreign market.
Talking about the segmentation the most applicable approach will be the identification of the similar segments existing in the different countries. The advantages of this method are connected with the adaptation to the local markets. Main disadvantages include the worsening of the company's image on the global market.
The targeted customers are teenagers, parents who ca not but buy something delicious for their children and people, who are called "sweet hunters".
As for the positioning, we would take Bing's theory of product positioning on the foreign market and describe it as oriented on the definite group of consumers (sweet hunters) with an accent on quality of the product.
5. Discuss the major environmental facts and trends in the foreign markets that might affect sales of the product.
We believe the production of the Peanut Butter to be perspective on the Russian market since the consumption steadily is growing on it: according to Rosstat, only ii 2013 Russia produced 1.05 million tons of confectionery. According to experts from «Nielsen Russia" the market for chocolate bars for December 2013 - November 2014 was 11.67 billion rubles. Despite the financial crisis in Russia, sales remain at a fairly high level - the increase in revenues in 20014 amounted to 11%. Problems arise only on the level of distribution. Some regional retailers and distributors may delay payments. The foreign company should be ready to the fact that the Russian market can once be bankrupt. Therefore, entering Russian market is a huge risk, but is can be maintained due to the rising demand.
6. Explain how you would develop, execute and measure a campaign for this product considering the four p’s (product, price, promotion, and place).
Product - Peanut Butter is an exclusive innovative product on the Russian market which has no real competitor due to the fact that the product is completely new. It does not only helps to fight with hunger but brings joy and delight to those who buy it because of the extraordinary delicious taste.
Price - This is not the advantage of the product because of the need to import it. Price includes all the taxes and transportation costs, in addition it is converted from US dollars to rubles. Therefore no stress should be made on it.
Place - as was already identified below, it is a mass product sold at various supermarkets, shops, exhibitions, cafes etc.
Promotion will include television, radio, big boards and various clubs and can also take propaganda it account. The most important is that every customer should be aware of the new product so that each of them would like to try it.
7. Discuss the U.S. and international ethical marketing considerations.
While conducting the marketing research which is an obligatory step in order to realize everything mentioned above it is necessary to follow not only US but international market ethics. Cross cultural differences are crucial when planning the marketing strategy of entering the new market. For instance, US marketing is more focused on the practical and quality issues, but Russian marketing is more oriented on the "Price" elements.
Still there are some solemn rules which are relevant everywhere. "To gain honest opinions, market researchers must foster trust in themselves and in the research process" (Frenz, 2015). Therefore all the actions of the marketer should have the aim to gain trust. The second important ethical issue is privacy. "Companies have an unprecedented ability to collect, store and match information relating to customers that can infringe on a person's right to privacy" (Small Business - Chron.com, 2015). As a result, the company has a certain power under customer (information power ) and should prove its fair aims on actions.
Summing up, the entering of the Russian market be Peanut Butter is completely possible and has more advantages them disadvantages, in particular, the growing consumers' demand and lack of competitors, in other words, the unique absence of subsidiary products. Entering the new market can also bring sufficient disadvantages, the most crucial among which are financial risks. Russia is a big and promising country but taking into account the recent financial instabilities any firm should thoroughly evaluate its chances to remain profitable on the market. Anyway, Peanut Butter is a very promising product for Russian market due to its uniqueness and efficiently designed marketing strategy can only help to turn it into reality. References
Arnold, D. (2015). Strategies for Entering and Developing International Markets | What Is Different about International Marketing? | FT Press. Ftpress.com. Retrieved 9 January 2015, from http://www.ftpress.com/articles/article.aspx?p=101588
Frenz, R. (2015). Ethical Considerations of Marketing Research | eHow. eHow. Retrieved 9 January 2015, from http://www.ehow.com/info_7747512_ethical-considerations-marketing-research.html
Puresmallbusinessmarketing.com,. (2015). The 4 Utilities of Customer Value | Pure Small Business Marketing. Retrieved 9 January 2015, from http://www.puresmallbusinessmarketing.com/wordpress/?p=26
Small Business - Chron.com,. (2015). Ethical Considerations of Marketing Research. Retrieved 9 January 2015, from http://smallbusiness.chron.com/ethical-considerations-marketing-research-43621.html
Ward, S. (2015). Use Target Marketing & Market Segmentation to Improve Your Bottom Line.About.com Money. Retrieved 8 January 2015, from http://sbinfocanada.about.com/od/marketing/g/targetmarketing.htm