For large public-private or government projects revenue sources might also include: Bonds, usually for large capital expenditures Taxes, primarily income, property and sales taxes Use fees and tolls With small fast-growing companies such as e-Business startups, investors often track expected revenues and revenue growth and may make changes to increase revenue. However, after the Dot-Com boom ended, more traditional measures such as cash flow and earnings have came back into favor as means of evaluation.
Concerning investment and control, the question really is how far the company wishes to control its own fate. The degree of risk involved, attitudes and the ability to achieve objectives in the target markets are important facets in the decision on whether to license, joint venture or get involved in direct investment.
Cunningham1 identified five strategies used by firms for entry into new foreign markets: In marketing products from less developed countries to developed countries point iii poses major problems. Buyers in the interested foreign country are usually very careful as they perceive transport, currency, quality and quantity problems.
This is true, say, in the export of cotton and other commodities. Because, in most agricultural commodities, production and marketing are interlinked, the infrastructure, information and other resources required for building market entry can be enormous.
Sometimes this is way beyond the scope of private organisations, so Government may get involved. It may get involved not just to support a specific commodity, but also to help the "public good".
Whilst the building of a new road may assist the speedy and expeditious transport of vegetables, for example, and thus aid in their marketing, the road can be put to other uses, in the drive for public good utilities. Moreover, entry strategies are often marked by "lumpy investments".
Huge investments may have to be undertaken, with the investor paying a high risk price, long before the full utilisation of the investment comes.
Good examples of this include the building of port facilities or food processing or freezing facilities. Moreover, the equipment may not be able to be used for other processes, so the asset specific equipment, locked into a specific use, may make the owner very vulnerable to the bargaining power of raw material suppliers and product buyers who process alternative production or trading options.
Zimfreeze, Zimbabwe is experiencing such problems. It built a large freezing plant for vegetables but found itself without a contract. It has been forced, at the moment, to accept sub optional volume product materials just in order to keep the plant ticking over. In building a market entry strategy, time is a crucial factor.
The building of an intelligence system and creating an image through promotion takes time, effort and money. Brand names do not appear overnight.
Large investments in promotion campaigns are needed. Transaction costs also are a critical factor in building up a market entry strategy and can become a high barrier to international trade. Costs include search and bargaining costs. Physical distance, language barriers, logistics costs and risk limit the direct monitoring of trade partners.
Enforcement of contracts may be costly and weak legal integration between countries makes things difficult. Also, these factors are important when considering a market entry strategy. In fact these factors may be so costly and risky that Governments, rather than private individuals, often get involved in commodity systems.
This can be seen in the case of the Citrus Marketing Board of Israel. With a monopoly export marketing board, the entire system can behave like a single firm, regulating the mix and quality of products going to different markets and negotiating with transporters and buyers.
Whilst these Boards can experience economies of scale and absorb many of the risks listed above, they can shield producers from information about, and from.
They can also become the "fiefdoms" of vested interests and become political in nature. They then result in giving reduced production incentives and cease to be demand or market orientated, which is detrimental to producers. Normal ways of expanding the markets are by expansion of product line, geographical development or both.
New market opportunities may be made available by expansion but the risks may outweigh the advantages, in fact it may be better to concentrate on a few geographic areas and do things well. This is typical of the horticultural industry of Kenya and Zimbabwe.
Traditionally these have concentrated on European markets where the markets are well known. Ways to concentrate include concentrating on geographic areas, reducing operational variety more standard products or making the organisational form more appropriate.
In the latter the attempt is made to "globalise" the offering and the organisation to match it. This is true of organisations like Coca Cola and MacDonald's. Global strategies include "country centred" strategies highly decentralised and limited international coordination"local market approaches" the marketing mix developed with the specific local foreign market in mind or the "lead market approach" develop a market which will be a best predictor of other markets.
Global approaches give economies of scale and the sharing of costs and risks between markets. There are a variety of ways in which organisations can enter foreign markets.For example, when a company puts a product on sale, it is changing one element of the marketing mix—namely, the price.
The marketing mix elements are called controllable factors because they are under the control of the marketing department in an organization.
Four Key Elements of Marketing Mix The marketing mix simply refers to the planned mix of the controllable elements of a product’s marketing plan.
These elements are usually referred to as the 4Ps and they are Product, Price, Place, and Promotion. (10 marks) Q. 6 Explain briefly the marketing mix elements for an automobile company giving sufficient examples. (10 marks) February Master of Business Administration - MBA Semester 2 MB – Marketing Management - 4 Credits Assignment Set- 2 .
As part of the marketing mix, promotion includes all activities that involve communicating with the customer about the product and its benefits and features. Once a company has worked on the product and price elements, it is time to start a conversation with the consumer about the product.
This includes raising awareness through different mediums to increase sales, as well as to create and. What are the four components of Marketing Mix briefly explain? SAVE CANCEL. already exists. Would you like to merge this question into it?
the marketing mix elements are price, place, product, and promotion. 1. Product. and giving the answers to them.
Use holidays and events in our Marketing Calendar to your advantage by having sales or specials at your business. Joint Promotions Joint promotions can be done both between brands owned by a single company, or between brands owned by separate companies.