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Marketing and sales strategies

Consider the following scenario. Be sure to reference the resources in your own research.

Your business is a computer manufacturing company. The business is set up internationally to take advantage of the technical skills and lower tax structures and costs of labor in multiple countries. The computer case, keyboard, and mouse components are manufactured in South Africa. The computer chip set is made in Japan, while the drives and machinery parts, like fans and switches, are manufactured in Germany. All of these countries have high tax structures, so your company sells the components to your plant in Galway, Ireland at cost. Hence, you pay no corporate income tax in these countries. The Galway plant then assembles and tests the computers and sells them for maximum profit to your distribution partners. Your distribution partners then sell the finished computers in the countries in which you have chosen to sell your products.

These very significant tax savings and the incentives from the Irish government (such as a very low corporate income tax) make your company very profitable. While Ireland is a part of the European community, which gives you access to a huge market, you would also like to enter other markets. However, tariffs may make this prohibitive unless you manufacture locally, which eliminates tariffs.

You have been asked to head a task force to determine what changes should be made to this approach and to report your findings to the executive management team. These findings will include a marketing and sales strategy, an outline of an operations plan, and a strategic planning approach for the business. You will need to consider many facets of marketing and operations, from small details, such as manufacturing hours, to large issues, such as product lines. You will also make recommendations on strategic planning, as it is used to modify operations and corporate direction, and how information technologies can help support operations and strategic planning. In addition, you must consider how various economic theories, strategies, and practices for global environments influence marketing and sales, operations, technology, and strategic planning for the business.

Based on the above scenario:

1. Create the business's marketing message.
2. Describe the marketing vehicles and marketing tactics, such as advertising and promotions.
3. Explain the strategic partnerships you desire.
4. Explain any sales assumptions.
5. Analyze the competition, including the potential threats and opportunities created by the competition, and describe your competitive position.
6. Identify the barriers to entry and the market share you hope to capture.
7. Describe what you expect in future competition.
8. Discuss how the marketing and sales strategies will create value for the business, in terms of integrating production and distribution.
9. Consider how the various economic theories, strategies, and practices for global environments influence your marketing and sales strategies.

Solution Preview

1. Create the business's marketing message.
The marketing message of the business is we sell the best computers to you at the best price.
The message communicates that the quality of computer is "best" and at the same time the price of the computer is reasonable.

2. Describe the marketing vehicles and marketing tactics, such as advertising and promotions.
The advertising will be in print and on television. The print advertisement will display all the features of the computer, give the marketing message of the business, as well as carry a coupon that can be redeemed for a 10 % discount(for a period of fifteen days). These coupons will be the sales promotion of the business.

There will be eleven different models of the computers being sold by the company. Three will be premium and will have advanced features. The eight other models will have a range of features like the processor used, the memory on the hard disk, and the size of the RAM. This range of computers will ensure that different segments of customers will be satisfied.

Pricing, the prices for each model of the PC will be slightly less than the average prices of similar computers being sold by competitors. The overall strategy will be penetrating pricing.

Promotion will be advertisements and sales promotions. There will also be publicity by way of inserts in local newspapers.
Place distribution will be distribution partners who have networks all over the world. Initially, the countries that do not have high barriers will be chosen for distribution.

3. Explain the strategic partnerships you desire.
The first strategic partnership I desire with is the distribution channels. The distributors can successfully sell the computers anywhere in the world. The second strategic partnerships are businesses in countries where there are ...

Solution Summary

This answer provides you an excellent discussion on marketing and sales strategies