Wal-Mart Case Study
1. The chapter describes different marketing orientations. Discuss the applicability of each to Avon’s international operations.
The five common marketing orientations are production, sales, customer, strategic marketing, and social marketing. The production orientation does not apply to Avon. Initially when Avon entered its first foreign market, it went to nearby Canada probably focusing on a sales orientation with little product adaptation. Today, Avon utilizes aspects of customer, strategic marketing, and social marketing in its global strategy. Avon modifies its products to meet specific customers’ needs such as technology-driven skin care products in Japan and including insect repellent in the Brazilian skin cream. Avon modified its distribution method, particularly in China, as part of the overall strategic marketing orientation. Avon’s social marketing orientation is part of its global image supporting women and their needs. Specific programs include fighting breast cancer and domestic violence.
2. Why is Avon so much more dependent on its foreign operations than on its home (U.S.) operations? * * Avon forecasted slow growth in the U.S. based on heavy competition. This is often why companies decide to go global. Avon also considered some changing socioeconomic trends that might impact their sales model. More women were working full time and direct selling models did not fit that lifestyle. Avon also recognized that less than 5% of the world’s population lives in the U.S. * 3. Discuss socioeconomic and demographic changes that could affect Avon.
In addition to the changing role of women in the workforce in the U.S., Avon must evaluate each country’s availability of salespeople and customers. The availability of women who want to work part time in direct sales is a key trend for Avon’s sales force recruiting. Also, are women at home and available to meet with Avon representatives? The increase in the middle
The five common marketing orientations are production, sales, customer, strategic marketing, and social marketing. The production orientation does not apply to Avon. Initially when Avon entered its first foreign market, it went to nearby Canada probably focusing on a sales orientation with little product adaptation. Today, Avon utilizes aspects of customer, strategic marketing, and social marketing in its global strategy. Avon modifies its products to meet specific customers’ needs such as technology-driven skin care products in Japan and including insect repellent in the Brazilian skin cream. Avon modified its distribution method, particularly in China, as part of the overall strategic marketing orientation. Avon’s social marketing orientation is part of its global image supporting women and their needs. Specific programs include fighting breast cancer and domestic violence.
2. Why is Avon so much more dependent on its foreign operations than on its home (U.S.) operations? * * Avon forecasted slow growth in the U.S. based on heavy competition. This is often why companies decide to go global. Avon also considered some changing socioeconomic trends that might impact their sales model. More women were working full time and direct selling models did not fit that lifestyle. Avon also recognized that less than 5% of the world’s population lives in the U.S. * 3. Discuss socioeconomic and demographic changes that could affect Avon.
In addition to the changing role of women in the workforce in the U.S., Avon must evaluate each country’s availability of salespeople and customers. The availability of women who want to work part time in direct sales is a key trend for Avon’s sales force recruiting. Also, are women at home and available to meet with Avon representatives? The increase in the middle