Global Entry Strategies, STP Marketing, Targeting Strategies, and Brand Management

Global Entry Strategies

1. Exporting

Low risk, low control

Producing goods in one country and selling them in another.

2. Franchising

Low-moderate risk, low-moderate control

A contractual agreement between the firm (the franchisor) and another firm or individual (the franchisee). Allows the franchisee to operate a business using the name and business format of the franchisor.

3. Strategic Alliance

Moderate risk, moderate control

Collaborative relationships between independent firms - they do not invest in one another.

4. Joint Venture

Moderate-high risk, moderate-high control

When a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared.

5. Direct Investment

High risk, high control

Requires a firm to maintain 100 percent ownership of its plants, operation facilities, and offices in a foreign country, often though the formation of wholly owned subsidiaries.

STP Marketing

Components of STP

• Segmentation - The who will you target.
• Targeting - The how will you target them.
• Positioning - The where in the consumer's mind

Steps of the STP Process

1. Strategy.
2. Segmentation Method.
3. Evaluate segment attractiveness.
4. Select target market.
5. Identify and develop positioning strategy.

Targeting Strategies

1. Undifferentiated Targeting Strategy (Mass Marketing)

Used when everyone might be considered a potential user of its product; focuses on the similarities in needs of the customers as opposed to the differences.

2. Differentiated Targeting Strategy

Target several market segments with a different offering for each.

3. Concentrated Targeting Strategy

Used when an organization selects a single, primary target market and focuses all its energies on providing a product to fit that market's needs.

4. Micromarketing

When a firm tailor a product or service to suit an individual customer's wants or needs

Brand Management

Product Mix and Product Lines

Product mix is the complete set of all products offered by a firm.

Product lines are the groups of associated items that consumers tend to use together or think of as part of a group of similar products.

Exclusive Co-Brand

A brand developed by a national brand manufacturer. If they develop a brand that people like, they can become the only place in the market where people can get that brand.

Brand Extension and Line Extension

Brand Extension is using the same brand name in a different product line, an increase in the product mix's breadth.

Line extension is use of the same brand name within the same product line to increase the depth

Brand Dilution

Occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold. Evaluate the fit between the product class, evaluate customer perceptions of the attributes of the core brand. Refrain from extending the brand name to many products and categories.