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Module 1 Assignment

Melissa Carril

University of West Alabama

MK500 Marketing Management

Dr. Owolabi

May 21, 2021

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Module 1 Assignment

1. What are the importance ethics in marketing strategy, the value proposition,
and the elements of the marketing mix of an organization?

Ethics in Marketing Strategy

Important ethics in marketing strategy are sometimes considered the roadmap

for defining how a company chooses to market its product or service. Many companies

are motivated by a social responsibility to their customers. This can be compared to a

sense of doing what is right. While a good marketing strategy should set good

practices, it will further describe how a company will set standards and communicate

them. The strategy will consider customer loyalty, the long-term goals of the company,

whether the marketing will build credibility in the market, the type of leadership within

the company, and satisfying the needs and wants of the consumer (Marshall &

Johnston, 2019). Understanding the importance of marketing ethics will benefit the

organization in these areas.

Value Proposition

An effective value proposition informs the customer why they should buy from

you and not from the competition. A powerful value proposition helps your customers

truly understand the value of your company's products and services. Sometimes this is

considered the "bang for the buck." A company's reputation is the foothold of the value

proposition. As our text so nicely states, "As a company's ethics play an increasingly

important role in defining the value proposition, it is important to remember that trust is

developed slowly but lost quickly" (Marshall & Johnston, 2019).

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The Marketing Mix

The features of the marketing mix are:

 Price

 Product

 Promotion

 Place

Price

The price will represent the cost to purchase a product. This price element will

include the retail price and discounts, payment plans, and credit terms offered to the

consumer. Moreover, the price is what the customer sees as their cost to acquire a

product.

Product

The product is what is being offered to the customer. In consideration of the

product, things like the quality, packaging, design, and brand are included.

Promotion

The promotion will be the communication about the product. This will include

advertising, public relations, salespeople, and more. Who is receiving the

communication, how this communication reaches its desired market, and how often this

promotion will occur are questions to consider in the promotion element

(Paxton/Patterson, 2017).
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Place

The place represents the physical location where the customer can obtain,

access, or use a product (Lake, 2021). The place includes things like a retail location,

delivery, downloads, and other distribution methods. The place also encompasses any

leading-edge, incorporated supply chain methods crucial to business success.

2. List and explain the essential information components for assessing a global
market opportunity

The focus of a global market opportunity consists of 5 primary considerations.

 Economic

 Cultural and Social Trends

 Business Environment

 Political and Legal

 Specific Market Conditions

Economic

Understanding the economic environment which gives a correct perception of the

current economic climate. Some of the considerations for this would include the gross

domestic product (GDP) growth, the event of inflation, the strength of the currency,

and the business cycle. There may also be a need to include data on customer

spending and business products. Second, a strong understanding of the global

market's culture and social trends. These characteristics can affect the consumer's

perception of products or services. Third, a consideration of the business environment

is essential. The business environment is where relationships are cultivated.

Relationships that include management styles, degree of formality, and other biases are
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all affected. Fourth, understanding the political and legal environment is paramount. In

foreign markets, the labor laws and political landscape could become turbulent very

quickly. Proper awareness and planning for shifting fields should be a mainstay in

planning. And finally, entering a foreign market, a company must understand specific

market conditions (Marshall & Johnston, 2019). Some companies will follow customers

into a market without understanding why the customers are buying. Customer buying

habits are often compelled by current one-time events. The lack of knowledge of this

specific condition would become very misleading over time.

3. Explain the key factors a marketing manager needs to put in to

consideration before creating a global product strategy

A strong evaluation of the global opportunities related to the company's key

goals and characteristics is necessary. An assessment that expands on a company's

strengths and minimizes its weakness are considerations when putting together a global

product strategy. Areas to consider would include market research. This is an

understanding of how a company's product fits into the market.

Exporting

Entry into new global markets follows four basic strategies: exporting,

contractual agreements, strategic alliances, and ownership. The primary considerations

within the evaluation to enter an international market would include shipping products

instead of manufacturing locally. There are options to consider with this evaluation.

Internet

One of the options is the internet, and with the internet and a successful

website, each company possesses the ability to become global.

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Our text brings out a strong point of how the internet also serves as the vehicle for

many financial transactions. Any currency issues can be avoided while using the

internet and companies like VISA and MASTERCARD. One key option to consider is if

the foreign market has stable bandwidth providers and what percentage of the

customer base utilizes the internet (Marshall & Johnston, 2019).

Exporters and Distributors

Another option within the export strategy is to consider the use of exporters and

distributors. With the help of these external companies, the global market starts to

become more reachable without intense capital investment and structures.

Direct Sales Force

Yet another option is the direct sales force. That would be people in the foreign

area to represent the company. For specific industries, a customer may require that a

physical person is in the country.

Contractual Agreements

Another strategy consideration for entering the global market is contractual

agreements. Management must know if there is a prior agreement that would prevent

entering into that market. Things like tariffs or competition agreements would be

considered.

Licensing

If local laws require a partnership with a company that resides within a foreign

country, licensing should be considered. This generally would be seen if there are

importing issues.
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Franchising

The company seeking the global market agrees to supply products, systems,

services, and management training to the franchisee. This, in return, is for local market

knowledge, financial consideration in the way of a franchise fee, and or percentage of

sales. This is all done so that the franchisor does not lose some controlling power over

the franchisee.

International Joint Venture

A joint venture is how a company can enter a foreign market that otherwise

would encounter too many barriers. A joint venture structure is that the company's

management duties are shared between partners, and the management structure is

defined (Marshall & Johnston, 2019). So, an analysis of all strategic alliances must be

performed. If strategic partnerships could prevent a company from legally operating in

a market, this would need to be considered and adequately handled. This could include

the consideration of joint ventures, partners holdings, even management structure.

Direct Foreign Investment or Ownership

Then the direct foreign investment strategy holds long-term implications. This is

the riskiest strategy of all. A keen understanding of the environment timing, legal

issues, transaction costs, technology transfers, product differentiation, and marketing

communication barriers must be included in the strategy to enter into a global market

(Laven, 2017).

Similar to the exporting strategy, direct foreign investment or ownership has

options for consideration. These include the following:

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 Timing—political activity or social events and competitor endeavors

 Legal issues—the increasing difficulty of international contracts, asset

security

 Transaction costs—costs and fees specified in foreign currencies

 Technology transfer—key technologies are easily imitated in foreign

markets (Marshall & Johnston, 2019)

Companies have often released significant resources before recognizing that a

serious issue has extensively raised the cost of the venture and the need for

security. This is why a solid and thorough strategic plan is needed and executed.

4. One of your friends is contemplating opening a coffee shop near

your college campus. She seeks advice about the size of the
prospective customer base and how to market the business according
to the Marketing Mix (4P). What strategies can you share with your
friend to assist in launching the business?

Advising a friend about business can always be a tricky area; it is much easier

when you fully understand some sound concepts in the area of their business.

Establishing marketing strategies cannot be left out of the business plan. I would

advise a friend in the scenario given, using the Marketing mix. 4 Ps. (After studying

and hopefully understanding the 4 Ps, I really like the simplicity of the concept and yet

the way it covers all areas upfront). So, using various questions, I could cause them to

view their consideration through another perspective. This might have them

reevaluate their processes, and in that, I have merely suggested advice. I found in the

past that even if solicited, many people asking for advice are really asking for moral

support. If this is the case, the advice offered may not be received.
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Suggesting a solid consideration of the price that the product can be offered.

Will they offer a product within the average income per capita for the college patrons

and the surrounding area? Will this price still lend to the desired financial profits? If

coffee is the main product provided, what will make their coffee selected? Will there be

any special compliments to the product? Is their coffee even in demand? (I would

think that coffee near a college campus coffee is essential to the environment). But,

what about competitors? If there was another leading coffee house in the area, does

the customer base warrant two suppliers? How do they plan to promote their coffee?

Will their consumer awareness start with solid advertising and prominence? Again, if

competitors are present, then what will distinguish them from the competition? Then

finally, I would tell them to consider their place. Will their establishment be close and

convenient for the customer base. Is the location suitable for deliveries? Will they offer

delivery? Hopefully, through these questions, the advice was delivered and received

acceptably.

I would advise my friend once we could thoroughly examine the data received in

answering these questions. As for the price, in particular, it must be acceptable and yet

profitable. If there is a competitor, how will this price fare against theirs? I would

definitely think that to determine the size of the customer base, my friend must

consider the size of the campus population. I would emphasize that not necessarily

college enrollment. Since current events have taken to so many online registrations,

this could be very deceiving. I would advise on a consideration of on-campus

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enrollments for a determination of customer base. This base could be further defined if

a student is a coffee drinker.

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References

Lake, L. (2021, January 1). What the marketing mix is and why it's important. Retrieved

from The Balance Small Business: https://www.thebalancesmb.com/what-is-a-

marketing-mix-2295520

Laven, M. (2017, December 05). Five key considerations for developing your

global expansion strategy. Retrieved from Planning your global expansion strategy:

https://www.currencycloud.com/company/blog/planning-your-global-expansion-

strategy/

Marshall, G., & Johnston, M. (2019). Marketing Management. New York: McGraw-Hill

Education.

Paxton/Patterson. (2017, March 14). The 4 Ps of the marketing mix simplified.

Retrieved from YouTube: https://www.youtube.com/watch?

v=Mco8vBAwOmA&t=60s