Question

1.What marketing issues must HQ decide

Marketing strategy – HQ promotes cross-fertilization among countries

Product positioning – HQ persuasion for standardization

Product characteristics – No initiative

Branding – HQ enforced standardization

Packaging – HQ persuasion for standardization

Distribution – No initiative

Trade promotion – No initiative

Customer promotion – HQ promotes cross-fertilization among countries

Media advertising – HQ promotes cross-fertilization among countries

2.What marketing issues is better if decided locally closed to consumers in market?

Answer 1

There are two approaches to Marketing strategy:

1. The centralized approach where the HQ calls the shots usually in a market. This is usually done when the product is not localized and does not need a local influence marketing.

2. The decentralized approach where the HQ delegates the work to teams in the local market. This is done when the product needs to be tailored to a local market as the needs of the customer are different.

In this particular case

Distribution should be local as the particular country online sales might be easier than actually making a distribution network (which will take time). It will again depend on the nature of the product.

Trade promotions: These can be local as the level of the competition in each market will be different so the distributors might ask for a different share.

Customer Promotion: Based on the level of competition, a new entrant will have to offer new schemes to entice and attract customers.