INSIGHTS
Marketing 101 teaches the importance of the four P's: product, price, place and promotion. Several aspects, such as the company’s background and its target region and country, greatly determine its game plan for success.
Every thriving company understands the necessity of securing the correct positioning of its brand and products. “The right position will be determined by its success in the marketplace and success is determined by the ability to have a strong international presence, provide an extensive range of products and offer excellent service,” said Clemens Krebs, Head of International Marketing and Communications Management, Bosch Security Systems.
Meeting Client Expectations for Success
Date: 2011/05/16
Source: By Editorial Team
Channel Promotion
A great product is unsuccessful until it makes its way to end users. “There is quite a long chain within the security industry and different people have different levels of influence on how the product reaches the market. We make sure to go to every end of the chain and offer them the support they need,” Smith said. “We build good relationships with all our carefully selected partners, from distributors, system integrators, consultants — all the way through to the end user.” Partners must understand the product well. “They must be well-trained in order for them to pro v ide g o od t e c h n i c a l support to o u r e n d users,” Bonilha said. “The best marketing technique involves both partners and end users, which is why they need to be made aware of everything our product and services have to offer.” Products catered towards the mass market have to make sure they are easily accessible. “Our DIY products are sold through thousands of retail locations across North America and our brand is a predominant brand in e-tail,” Worndl said.
Perceptions of Quality
Different countries, and even regions, have different needs and companies must be prepared to market their products accordingly. “There are different trends depending on the country and region. For example, IP is a major trend at the moment but it is in different stages of its life cycle across Europe — Scandinavia and the Benelux region, for example, are advanced in their adoption of this technology, with roughly half of the sales split between analog and IP, while other countries are still in the initial growth stages of adopting IP,” Smith said. “This is why we must structure ourselves by placing people who understand the regional market and can give us feedback from these different regions. Even though 95 percent of our products are global, we still maintain three different sales divisions, located on three different continents, with regional offices across numerous countries, to target the specific needs of our customers and feedback market information to our developers.</P><P>These varying needs will eventually affect the perception of a brand when used within that country. Products which satisfy the requirements of projects in China may be labeled as high-end, whereas Europe may consider them to be lacking, and thus mid-end. According to a source, quality perception differs everywhere. Taiwanese products are seen as being mid- to low-end in Germany, yet mid- to high-end in India and Egypt .
This discrepancy can be explained by different product expectations by market. “Electronic security products are adapted both in performance and functionality to their respective risks. The risk and the assessment of these risks can vary from place to place,” Krebs said. “This can lead to differences in evaluation of the products. To combat this, our strategy lies in delivering tailor-made solutions to the respective requirements of our customers.” Adjusting the products based on region must be done carefully or it may create an adverse affect. “Perception difference is sometimes made more prominent when products are sold through a worldwide channel network,” Ku said. “Because companies may adjust the product strategy to fit different local market needs in terms of selling point, price, recommended applications and marketing activities — it can cause an inconsistency in the brand message. This is why product portfolio management is very important.”
The way business is conducted in each country also affects the level of quality expected from a product to make the cut. According to a source, European customers generally have higher standards for their OEM products because they are very careful about not hurting their brand, which means they are willing to spend more for a bigger brand name, high-end quality and service. But in the U.S. and China, price is of bigger concern when ordering large quantities. A clear strategy and steadfast commitment to quality are key factors in securing a position in the high-end segment and be perceived as such by partners and users, Hirano said.