International Marketing Case Study

866 Words4 Pages

NAME: MELANIE RAMTAHL
STUDENT NUMBER: HCIT 04516A.
INTRO TO INT’L MARKETING & PURCHASING
ASSIGNMENT 2.

PART A

Answers:

ii) Considering that Executive Interior’s has previously dealt with a few exports previously with success, it would therefore be advisable for them to enter the market by doing direct exporting. Although there will be greater risk for them to carry, and the responsibility will fall on them to arrange for the transportation etc of the goods, the end result will be greater profit potential and an increase in their market share.
In order for this process to be carried out smoothly with minimal glitches, an export division should be solely responsible for confirming orders from foreign markets, arranging for packaging and …show more content…

Firstly, the product needs to match it’s claim. The product being promoted defines the company and therefore needs to meet the desired standard. Also, the foreign market to where the goods are being exported may have prescribed laws and regulations which may have an effect on the end product being supplied. Tony needs to therefore ensure that he is not about to break any rules and regulations, thus putting himself in jeopardy.
The price also needs to be right. If his target market is the middle income sector then his price needs to meet affordability. He should not inflate prices knowing full well that the wood being supplied is inferior to his other more expensive products.
Tony needs to ensure that once he has decided on a particular target market, that he strategically advertises in order to reach his target market. Eg, his target market being the low to middle income, he would not advertise in a US$10 magazine instead in a newspaper or catalogue which is freely distributed to the target consumer.
Finally, the right endorsements, branding and PR efforts will add more value to the product. PART …show more content…

The quality of the product needs to be specified. In the case of HIGHLIGHTS, Ronnie needs to ensure that he is purchasing the desired product from the foreign seller. If he has to, perhaps make a trip, have the product tested for the necessary specs which he requires prior to entering into any sales agreement. Face to face communication plays a vital role in any first time business transaction. If the cut crystals he acquires is of a poor quality, he is then going to have dissatisfied customers. Quality should not be compromised for quantity.
Cost: It is very important to take into consideration total landed cost of a product which has components that are imported. The actual cost of the product is just one part of it. There are also transports costs, customs and clearances, inspection charges, in some cases unexpected demurrage costs which might occur, insurance, bank charges etc. It is always good to take these into consideration when determining the cost of an

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