Chapter 5.1

Chapter 5.1 Definitions Positioning –is about image and reputation –is not about what you do to the product but what you do to the mind of the potential customer –to position itself in world markets, a company must figure out what makes its products unique, different, or superior to other products –visibility is the key, “top of the mind” awareness

Chapter 5.1 Definitions Franchise –Is a type of business in which a company authorizes a group or an individual to sell its goods and services Strategic Alliance –Is formed when 2 or more companies form a partnership to co-develop, co-produce, or co- market their products

Chapter 5.1 How should a company position itself in world markets?

Chapter 5.1 How should a company position itself in world markets? –A business must establish what makes its products and services unique, different or superior. Well positioned and well run companies know where they and their products-and their image and reputation are at all times

Chapter 5.1 Global positioning Strategies BY IMPORTING OR EXPORTING – one form is a licensing agreement. A business pays a fee to a company from another country to produce or sell their products.

Chapter 5.1 Global positioning Strategies BY FRANCHISING – company authorizes someone to sell its goods & services BY STARTING A WHOLLY OWNED SUBSIDIARY

Chapter 5.1 Global positioning Strategies BY PURCHASING IN FOREIGN MARKETS THE PARTS OR MATERIALS (inputs) REQ’D FOR ASSEMBLY IN THE HOME MARKET e.g. GM

Chapter 5.1 Global positioning Strategies ESTABLISH A JOINT VENTURE e.g. Concorde. Join forces to produce a new product STRATEGIC ALLIANCE

Robertson Case How did Robertson change the market for screw and screwdrivers?

Robertson Case #1 How did Robertson change the market for screw and screwdrivers? –By making an adjustment or improvement to existing product, Robertson improved the practically, efficiency, and effectiveness of the screw and screwdriver.

Robertson Case #2 –By the 1930’s the Robertson screwdriver becomes a Model T fixture at Ford –World War II: the Robertson is used in the construction of British Navy Ships –Up to his death in 1951, Robertson was tireless spokesperson for his product & company

Robertson Case # 2 –1960’s Robertson Inc. was purchased by Trans Union –1981 US based Marmon group purchases Trans Union and therefore recieves Robertson –2002 Robertson Inc expands into China

Robertson Case #3 Identify one product or service for which your community is well known. How important is it to the local economy? Explain