Unit 5 Discussion Template
BU220
1. Description of each market from the New Shoes Simulation
Home market refers to the initial market the firm entered. The home market consists of customers to buy the shoe for the specific abilities the shoe gives (Mitchell, 2016). For example, KB KICK’S Shoes combine sporty capabilities with style. KB KICKS also represents prestige because they are made by a specific designer and are a limited edition. KB KICKS shoes are also manufactured in Italy giving it a touch of exclusivity. Therefore, marketing for KB KICKS shoes involves advertising exclusivity and privilege that is often preserved for celebrities only, but can now be afforded by regular people.
The Domestic Market reaches customers in a wider demographic and there is focus on value. KB KICKS shoes offers value in the form of exclusivity because the shoe designs cannot be found anywhere else. In the Domestic market, value is more important than performance. Customers in the Domestic market aim for discounts and lower prices. The advertisement for KB KICKS would point out the fact that the shoes are handmade in Italy using Italian leather with a touch of traditional and modern quality and style.
Foreign Market consist of the customers from other countries that view shoe importation as a form of luxury (Mitchell, 2016). KB KICKS already utilizes the Foreign market, because the shoes are made in Italy. Customers from other countries, especially the United States, associate Italy with luxury. However, customers in the Foreign market are keen to ensure that the shoes are legitimate, meaning that KB KICKS has to advertise a bit to gain legitimacy in the countries. Customers in the foreign market are inconsistent.
2. Explain how the foreign market differs from the home and domestic markets
The foreign market considers the shoes a luxury compared with the home and domestic market whose main concern is performance and value. Similarly, compared to home and domestic market, the foreign market is inconsistent. Robust advertising is needed for home and domestic markets, while the foreign market operates on little advertisement. Further, foreign market deals with different types of customers from different countries, unlike home and domestic markets that deal with similar consumers.
3. Complete the following matrix identifying each element of the marketing mix as either H (High), L (Low), or M (Medium) for each region. Be sure to complete the matrix based on the target market (consumer) for each market (home, domestic, foreign).
Provide support for your reasoning process and assessment.
Home
Domestic
Foreign
Product
High
High
Low
Price
Medium
low
High
Consumer Promotion
Medium
Medium
High
Advertising
High
Medium
Low
Personal Selling
Low
Low
High
Dealer Promotion
Low
Low
Low
The product has the most customers in the home market and domestic market, but few in the foreign market. The consumers in the foreign market are buy the shoes as a form of luxury (Mitchell, 2016). Luxury products are usually limited in number compared to the home market where consumers take advantage of deals to increase the demand of the product.
The price of the product is low in the domestic market because the consumers always want deals and bargains. According to Mitchell (2016), consumers in the home market are sensitive to deals and low prices. However, in the home market customers associate high price with quality hence can be doubtful of quality if the price is low. In the foreign markets, the shoe is viewed as a form of luxury hence the high price.
Consumer promotion is medium in home and domestic markets because consumers are always looking for deals and discounts. In the foreign market, the company is trying to obtain new customers hence the high consumer promotion. For example, KB KICKS gives free shipping to customers in the foreign market (KB KICKS, 2021).
Advertising for home and domestic markets is high and medium respectively because there are many potential customers in the markets. However, the foreign market has low advertising meant for credibility purposes (Mitchell, 2016).
Personal selling is high in foreign market as the company is trying to convince the few customers that the shoe is worth the price and has value. However, personal selling is low in domestic and home markets because the customer is already aware through the high advertisements.
Dealer promotion is low in all the markets because KB KICKS promotes exclusivity and privilege meaning that it is the only shoe distributor. Research shows that luxury-based products conduct little to no dealer promotion because of the behavior of the target consumers (Turner, 2016).
References
KB KICKS (2021). Get to know KB KICKS. https://www.aliveshoes.com/kb-kicks
Mitchell, Ted (2016). Descriptions of the three markets in the new shoe simulation. Silo Tips. https://silo.tips/download/descriptions-of-the-three-markets-in-the-new-shoe-simulation-ted-mitchell-the-ho
Turner, Mary M (2016). Evaluating the perception of luxury brands in today’s marketplace and the impact of the digital age on these brands” (2016). Marketing Undergraduate Honors Theses. 27. http://scholarworks.uark.edu/mktguht/27
The post Unit 5 Discussion Template BU220 1. Description of each market from the appeared first on PapersSpot.
