Marketing Imported Products
Tekle Sebahtu Ph.D.
http://www.stcinternational.us
stcintL@q.com
Marketing Imported Products Agenda
• Marketing Mix/targeting/Segmentation/
Positioning
• Landed cost
• Pricing strategy
• Distribution channels
• Locating Suppliers
• Q &A
Reasons for Market Failures
•
•
•
•
•
•
Lack of marketing plan
Underestimating Competition
Lack Segmenting/Targeting consumers
Lack of Product Strategy/positioning
Pricing structure and strategy not realistic
Distribution Strategy- Direct/indirect or
Partnerships not identified.
• Neglecting to consider
Alliances/Licensing/Joint venture
What Marketer’s Do!
Product
Price
Target
Market
Place
(Distribution)
Promotion
Blending the four
strategy elements
of marketing
decision-making
– Product
– Price
– Distribution
– Promotion
to satisfy chosen
target markets
Segmenting Consumer Markets
• Demographic Segmentation
• Geographic Segmentation
• Psychographic Segmentation
• Product-Related Segmentation
Demographic Segmentation
Dividing consumer groups according to
characteristics such as gender, age, income,
occupation, education, household size, and
stage in the family life cycle
Geographic Segmentation
Dividing an overall market based on locations
• Region
• Cities
• Districts
Psychographic Segmentation
• Dividing a population into groups that have similar
psychological characteristics, values, and lifestyles.
• Lifestyle: people’s decisions about how to live their
daily lives, including family, job, social, and consumer
activities
© PhotoDisc
• Positioning: a marketing strategy that
emphasizes serving a specific market
segment by achieving a certain position
in buyers’ minds
Landed Cost Major Elements
• Merchandise cost
• Product origin charges
• Packing, inland freight, terminal charges
• Transportation charges
• Ocean/inland to destination/ warehouse
• Destination charges
• Unloading, terminal, harbor maintenance fee
• Clearance
• Duty, bond fees
• Administrative
• Banking, insurance, warehouse
Pricing Strategy
• Skimming Pricing Strategy (market Plus)
• Advantage - Allows to recover cost associated with
marketing (first mover)
• Disadvantage– invite competition
• Penetration pricing strategy (Market Minus)
• Advantage - Attract customer, consumer goodwill,
secure market acceptance
• Discourage competition
• Everyday low pricing (EDLP)
• Disadvantage – perception, less profit
• Competitive pricing strategies
• At the general level of competitive offering
Common Pricing Mistakes
• Determine costs and take traditional industry
margins
• Failure to revise price to capitalize on market
changes
• Setting price independently of the rest of the
marketing mix
• Failure to vary price by product item, market
segment, distribution channels, and purchase
occasion
The Product Life Cycle
Market
Introduction
Market
Growth
Market
Maturity
+
$0
Time
-
Sales
Decline
Channels of Distribution
Direct
Distribution
Channels
Indirect
Consumer Marketing Channels
Promotion Methods
• Sales-promotion
• Advertising
• Sales force (Personal Selling)
• Public-relations
• Direct-marketing
Trade Leads
Thank You for participating!
For additional information please visit
http://www.stcinternational.us
Email: stcintL@q.com