General economics 5.2
Important: delivery terms and payment terms
Lecture 7
Market assessment
Establish where your products might be valued already and if not whether you can create
this need
What is the contnent and country of focus all about (i.e. DESTIEP)?
What is the specifc target market all about (i.e. SWOT)
Extrapolaton of sales and market share
^ what are the two other strategy: product development and diversifcaaon study Ansof very well!!
Tentamen!!
Extrapolaton of sales and market share
• What is the market share objectvee 2% frst year 3-4s second year 5 % third year and 10%
after 5 years
• What penetraton degree in your target group should be reached for your producte
Penetraton degree of 10% (Reasonable frst trial rate? 60%, Rebuy average for food products
30%)
, • What will be the intensity of usage of the product (Purchase frequency)e Depends on the
country where you launch it. For example, icecream in Portugal much higher than in NL
• What will be adopton rate (how quickly the new product will be accepted by your target
groupe
Adopton rate TENTAMEN!!
Five atributes or characteristcs of an innovaton that determine its speed of adoptonn: you should
menaon these! These are scienafcally proven high for the adopaon rate.
• Relatve advantage >> signifcant advantage compares to the compeaaon. When it is
signifcant relaave advantage the adopaon will go fast.
• Compatbility >> with lifestyle, for example very healthy country and you have a healthy
product it fts. Or convenience, for example ready meals, this is compaable for the UK.
• Complexity >> simple products adapted more easy than complicated products, don’t make it
too scienafc or complex, people will not understand it. The consumer and buyer have to
believe it.
• Possibility of trial use >> in the US they have price of discounts, coupons!!when there are
free samples or trial uses tan it increases the adopaon rate.
• Observability >> you need to observe it, and not miss that the product is there, it needs to be
visible for the consumer.
Product strategy
Is product diferentatonimodifcaton needed in order to sell.
e.g.n: due to purchasing power, stylish appeal, solidity and simplicity (e.g. machines in less developed
countries), habitual use, taste preferences, seasoning, acceptance, health claims, negatveipositve
associatons, level of educaton, safety and environmental regulatons.
Is it necessary or clever to work with shortened PLC’se
Internatonal marketng
Standardize or adapt
Customizaton or globalizaton
Should management adapt its marketng strategy to ft local conditonse
Internatonally operatng companies have two optonsn:
1 Customized marketin strateny (customizaton) nestle
- Tailoring marketng actvites to each local market (mulanaaonal markeang)
- Highly efectve (high sales)
2 Staidardized marketin strateny (standardizaton, globalizaton) Unilever
- Same marketng plan for all countries, minimal modifcatons (global markeang)
- Highly efcient (lower costs)
Think globally act locally
Global approach to each country but details adapted to the country you are selling in = global
localizaaon strategy
, Advantages and disadvantages of standardizaton
Summary of intellectual property rights
Internatonal organizaton
Important: delivery terms and payment terms
Lecture 7
Market assessment
Establish where your products might be valued already and if not whether you can create
this need
What is the contnent and country of focus all about (i.e. DESTIEP)?
What is the specifc target market all about (i.e. SWOT)
Extrapolaton of sales and market share
^ what are the two other strategy: product development and diversifcaaon study Ansof very well!!
Tentamen!!
Extrapolaton of sales and market share
• What is the market share objectvee 2% frst year 3-4s second year 5 % third year and 10%
after 5 years
• What penetraton degree in your target group should be reached for your producte
Penetraton degree of 10% (Reasonable frst trial rate? 60%, Rebuy average for food products
30%)
, • What will be the intensity of usage of the product (Purchase frequency)e Depends on the
country where you launch it. For example, icecream in Portugal much higher than in NL
• What will be adopton rate (how quickly the new product will be accepted by your target
groupe
Adopton rate TENTAMEN!!
Five atributes or characteristcs of an innovaton that determine its speed of adoptonn: you should
menaon these! These are scienafcally proven high for the adopaon rate.
• Relatve advantage >> signifcant advantage compares to the compeaaon. When it is
signifcant relaave advantage the adopaon will go fast.
• Compatbility >> with lifestyle, for example very healthy country and you have a healthy
product it fts. Or convenience, for example ready meals, this is compaable for the UK.
• Complexity >> simple products adapted more easy than complicated products, don’t make it
too scienafc or complex, people will not understand it. The consumer and buyer have to
believe it.
• Possibility of trial use >> in the US they have price of discounts, coupons!!when there are
free samples or trial uses tan it increases the adopaon rate.
• Observability >> you need to observe it, and not miss that the product is there, it needs to be
visible for the consumer.
Product strategy
Is product diferentatonimodifcaton needed in order to sell.
e.g.n: due to purchasing power, stylish appeal, solidity and simplicity (e.g. machines in less developed
countries), habitual use, taste preferences, seasoning, acceptance, health claims, negatveipositve
associatons, level of educaton, safety and environmental regulatons.
Is it necessary or clever to work with shortened PLC’se
Internatonal marketng
Standardize or adapt
Customizaton or globalizaton
Should management adapt its marketng strategy to ft local conditonse
Internatonally operatng companies have two optonsn:
1 Customized marketin strateny (customizaton) nestle
- Tailoring marketng actvites to each local market (mulanaaonal markeang)
- Highly efectve (high sales)
2 Staidardized marketin strateny (standardizaton, globalizaton) Unilever
- Same marketng plan for all countries, minimal modifcatons (global markeang)
- Highly efcient (lower costs)
Think globally act locally
Global approach to each country but details adapted to the country you are selling in = global
localizaaon strategy
, Advantages and disadvantages of standardizaton
Summary of intellectual property rights
Internatonal organizaton
