Question

Class: International Business

Using the corporate strategy and structure you chose for Essay III Strategy, develop your own marketing mix for the report-out.

The Report-Out: Describe your marketing mix and provide reasons why you chose what you chose over other possibilities, try to compare with other strategies.

A LITTLE ABOUT MY ESSAY III: I am working in an American gaming hardware manufacturing company. The company designs, develops and sells high-quality gaming hardware, software, and services for gamers in the United States. I am thinking of expanding our online market and exports our goods to South Korea due to the tremendous demand for gaming hardware. (South Korea is the origin of Esports and also well known for its culture of online gaming.) PS: "I chose multi-domestic strategy"

Other Strategies except for multi-domestic:

home replication strategy – a strategy that emphasizes the duplication of home country-based competencies in foreign countries.

global standardization strategy – a strategy that focuses on the development and distribution of standardized products worldwide in order to reap the maximum benefits from low-cost.

transnational strategy – a strategy that endeavors to be simultaneously cost-efficient, locally responsive, and learning-driven around the world

Answer 1

Marketing Mix for American Gaming Hardware

Chosen strategy for International marketing: Multi Domestic strategy.

A multidomestic strategy is an international marketing approach that chooses to focus advertising and commercial efforts on the needs of a local market rather than taking a more universal or global approach. This means that companies employing this marketing strategy will seek to understand the culture of various local markets and tailor their entry into those markets based on the demographics of that area. With this approach, a great deal of effort is made to adapt advertising and presentation to appeal to local sensibilities, rather than using a mass market approach. In order for a multidomestic strategy to be successful, is it important to invest a great deal of research into the various localities where the products are actively marketed. This can often provide valuable insights into the nuances of the prevailing culture in an area, which leads to inspiration on how to present the products to best advantage. By taking the time to learn how to connect with consumers, it is possible to use the multidomestic strategy to create a wide range tactics that can be adapted to fit markets that share a lot of similarities, while still customizing the advertising and marketing efforts to match exactly with the local culture. While employing a multidomestic strategy can be somewhat costly on the front end, the effort can pay off in a big way. Assuming the products do in fact capture the attention and the loyalty of the local populace, those early efforts can yield returns over a number of years, possibly even decades. For this reason, any business seeking to become established and build a loyal client base in a number of different geographical areas will want to consider the potential of this particular marketing strategy.

As described above, this strategy is one of the most widely used strategy to build a loyal customer base in different local areas of operation in a global scale. It must be noted that South Korea is one nation which values its culture the most hence, cultural peculiarities must be kept in mind while designing the marketing mix. A multidomestic strategy helps in this regards.

The Product is typically targeted to the younger people. A local twist to include the local hero , local flavor and local ethos are a must. The product must blend well with the aspiration of the youths of the country while being careful that the product does not interfere with the legal regulations of the country. The price to begin with must be skimming in nature. The product is a sophisticated one and at first must be available only to a select few. This will help in creating a buzz among others, who would then definitely shell more out of their pocket to buy the product. Once a newer version of the game is released, the older version can be sold at a discounted price to make it available to many more customers and to hold on to the declining brand equity. The distribution channel can be mostly through online purchase as most of the youth are nowadays hooked on to the internet and social media, while being careful that prices must be charged in local currencies and payment modes must be supported locally. Promotional strategy must be created using local icons or by endorsing any country specific icon like sportsperson or movie stars. Advertisement through social media is one of the most effective while being less costly. Creating awareness by organizing events is another way of brand building. Events can be merged with local festivals , carnivals and sponsorship of major sporting events as well.