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Canon Marketing Mix Programme

Transmitted to: Canon

Prepared for: Ms. Doti Chee (Lecturer)

Ms. Pham Thu Thuy (Tutor)

Unit 1: Marketing

Banking Academy, Hanoi

BTEC HND in Business (Finance)

Prepared by: Vu Hong Minh (Owen)

Registration No: A970629

Submitted: February 22nd, 2010

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Contents Page

Cover Page..1

Contents Page.2

Executive Summary...4Introduction....5

3a. Describe how products (both SELPHY and LASER PRINTER) are developed to

sustain competitive advantage in Vietnam..6

3a.1. Definition of competitive advantage...6

3a.2. Total product...6

3a.3. Product life cycle (PLC) ...10

3a.4. Porters generic competitive strategies.10

3a.5. Branding11

3a.6. Ansoff Growth Matrix...12

3a.7. New product development13

3b. Explain how distribution of products is arranged to provide optimum customer

convenience...13

3b.1. The Five Right of Distribution.13

3b.2. Canons Distribution Channel..15

3b.3. Selection of distribution Channel Selphy and laser printer..16

3b.4. Physical Distribution.17

3c. The price of the product in the light of the Canon objectives and market conditions

exist in Vietnam.17

3c.1. Vietnam market condition in relation to pricing...17

3c.2. Cost and profit...18

3c.3. Pricing policy and the marketing mix...19

3c.4. Price strategy.193c.5. Approach to Pricing .21

3d. Illustrate how promotional activities integrated to achieve marketing objectives of

Canon.22

3d.1. Promotion strategy22

3d.2. Integrated Marketing Communications23

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3d.3. Elements of Promotion Mix..23

3e. The additional elements of the extended marketing mix.24

3e.1. People....24

3e.2. Process...25

3e.3. Physical evidence..25

3e.4. Suggest Ways on How Canon Use the Extended Marketing Mix for SELPHY and

LASER PRINTER.25

4a. Marketing mixes for two different segments in consumer markets.26

4a.1. Elements should be considered in order to develop an effective marketing mix..26

4a.2. Recommendation of marketing mix for SELPHY and LASER PRINTER..27

4a.3. Pros and cons of the recommended Mix...28

4b. The differences in marketing products and services to organisations rather thanconsumers..29

4b.1. Consumer market.29

4b.2. Organizational market..30

4b.3. Differences between business to business and consumer32

4c. Explain how and why international marketing differs from domestic marketing...33

4c.1. Benefits and risks of entering into international marketing.33

4c.2. The differences in International marketing environment.34

4c.3. The differences in elements of Marketing mix in International marketing..37

Conclusion.39

References.40

Appendix43

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Executive Summary

In this situation, I am a marketing executive in Canon, Vietnam. I have been

approached by my Sales Director and requested to write a detail report on marketing

programme which covers all the elements of marketing mix to help successfully launchthese exciting new products in Vietnam.

First of all, I will describe how products (both SELPHY and LASER PRINTER)

are developed to sustain competitive advantage in Vietnam. Secondly, I shall explain how

distribution of products is arranged to provide optimum customer convenience. Thirdly, I

must explain how to set the price(s) of the product in the light of the Canon objectives

and market conditions exist in Vietnam. Then, I will illustrate how promotional activities

integrated to achieve marketing objectives of Canon, and analyse the additional elements

of the extended marketing mix. Whats more, I shall recommend marketing mixes for

two different segments in consumer markets. Furthermore, I will explain the differences

in marketing products and services to organisations rather than consumers. Finally, I will

explain how and why international marketing differs from domestic marketing.

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Introduction

A world-renowned camera maker, Canon has, over the last 60 years ventured into

new grounds of product development. With its commitment in Research and Technology,

Canon products today include personal products, business equipment and industrialproducts. Canon products are aimed at improving the lives of people at work and at play.

The company operates through three product segments: business machines, cameras and

optical and other products.

If businesses want to succeed, they must understand about marketing mix strategy

(4Ps) and oriented to the customer. In general, there are four basic and important

elements in marketing mix that business cannot ignore when developing marketing

strategies to bring any type of products and services to the market includes: Product,

place, price and promotion. Recently, the professionals have added three elements to

make extended marketing mix (7Ps) include: People, process and physical evidence, to

increase the strength of marketing activities. However, this strategy can only bring

success if the business does it based on looking objectively from customers, not from the

subjective perspective of the business. On the other hand, the feedback from customers

will help businesses to market products that meet the demand of customers, selling at

acceptable price to customers, distributors in the place that convenient for customers and

mass communication in the way that customers like.

Whats more, Canon must segment the product suitable with consumer and

organizational market. Because, there are many differences marketing for each market, at

the same time, the international marketing differs from domestic marketing.

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3a. Describe how products (both SELPHY and LASER PRINTER) are developed to

sustain competitive advantage in Vietnam

3a.1. Definition of competitive advantage

Tutor2u Kotler Duermyer

A competitive

advantage is an

advantage over

competitors gained by

offering consumers

greater value, either by

means of lower prices

or by providing greaterbenefits and service

that justifies higher

prices (tutor2u, n.d.)

Companies can build a competitive

advantage from many sources, such as

superiority in quality, speed, safety,

service, design, and reliability, together

with lower cost, lower price, and so on. It

is more often some unique combination of

these, rather than a single silver bullet, that

delivers the advantage. (Kotler, 2003,p.22)

The differentiator

between your

company's abilities

and those of your

competitors - why

customers should do

business with you

rather than yourcompetition.

(Duermyer, 2010)

There are many definitions about competitive advantage, however, the best

definition is concentrating on the customers, help customer understand about product and

orienting them to your company. Competitive advantage is very important to the success

of business. In Canon Ltd, company tried to create the new product better than other

competitors with new design, new technology and suitable with the need and want ofcustomer. For example, perfect for home and small offices, Canon introduced the Laser

Printer LBP3250 and the colour laser printer LBP5050 lead the market with latest

USB2.0 Hi-Speed connectivity and lighting fast print out.

3a.2. Total product

Product is something that satisfies a set of wants that customers have. When you

buy a set of win and you prefer not to do so straight from the bottle. You may also want

to impress your dinner guests with your taste and choose to do so by possessing a particularly fine set of wine glasses (BPP, 2004, p.195). There are three levels of

products, it can be described below:

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The core product is not the tangible, physical product. You can't touch it. That'sbecause the core product is the benefit of the product that makes it valuable to

you.

The actualproduct is the tangible, physical product.

The augmentedproduct is the non-physical part of the product. It usually consists

of lots of added value, for which you may or may not pay a premium.

(Executive Marketing, 2009)

With Canon, the position of total product in a competitive environment is very

important. Because, when Canon applies total product, they must understand the

customer, same product can bring the different benefits of the different customers. For

example, customers didnt know that when they buy SEPHY, this product possessing

amazingly intelligent functions and attractive looking figures, the new products offer

users not only convenience, quality and versatility but also a unique lifestyle.

Furthermore, it can be the decoration in the house with good looking shapes.

Alternatively, Canon has good customer services with more than 300 authorized service

partners and over the last 60 years ventured into new grounds of product development.

This is why Canon has belief of customer better than competitors.

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Analysis on Elements a Product forSELPHYCore Product Canon HP EpsonCore Benefits e.g. Time saving, Print, etc Actual ProductPackaging

Functionality Durability Brand name Quality Features Performance Style Augmented ProductInstallation Delivery

After Sales Services Brand Finance Warranty Service QualityTangibles, reliability, assurance and empathy

In the table of analysis, SELPHY has many strong points, it has new technology,

high quality, new style and great feature. It looks like a candid briefcase equipped with a

handle to make portability easier. On the face of the printer, a 3.5 inch 230K dot LCD

screen is featured with 4 large buttons on its either sides to perform easy one touch

operations. Besides, the after sales services and warranty of Canon is very good.

However, Canon still has the weakness than competitors. Because of new technology and

multi function, so the installation of SELPHY is complicated than HP and Epson product.

Canon should be improved to be better than competitors.

Analysis on Elements a Product forLaser printer LBPCore Product Canon HP Epson

Core Benefits e.g. Time saving, Print, etc Actual ProductPackaging Functionality Durability Brand name Quality Features

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Performance Style Augmented ProductInstallation Delivery

After Sales Services Brand Finance Warranty Service QualityTangibles, reliability, assurance and empathy

Canon Laser printer has more strength in comparison to the competitors. Laser

Printer LBP3250 and the colour laser printer LBP5050 lead the market with latest

USB2.0 Hi-Speed connectivity and lighting fast print out. With better features andquicker printouts while assuring both quality and quantity, the two economical laser

printers have met the printing needs of SOHO users. However, the designs of these

machines are very boring, and similarity than other competitors product. Besides the

function isnt new, the technology follows the old generation. Canon should improve it to

get higher compete with competitors.

3a.3. Product life cycle (PLC)

The product life cycle is an attempt to recognize distinct stages in a productions

sales history (BPP, 2004, p.202). The current stage of SELPHY and laser printer is

introduce, because in Vietnam the product line of SELPHY and laser printer has been

appeared recently. Therefore, these products will bring to Canon both advantages and

disadvantages like reduction in cost through large production, besides the amount of

product sales increased significantly. However, the challenge of this period is Canon

product must face with many competitors in the market. Therefore, the price of SEPHY

and laser printer should be low at this stage to attract customers and continue to next

stage.3a.4. Porters generic competitive strategies

Differentiation strategy involves selecting one or more criteria used by buyers in a

market and then positioning the business uniquely to meet those criteria. This strategy is

usually associated with charging a premium price for the product-often to reflect the

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higher production costs and extra value-added features provided for the consumer.

Differentiation is about charging a premium price that more than covers the additional

production costs, and about giving customers clear reasons to prefer the product over

other, less differentiated products (tutor2u, n.d.). Different with other competitors, Canon

has many lines of product to suit with the need and want of customers. For example, the

target customers of SELPHY are individual customers with high income and the demand

is working or using at home. On the other hand, Laser printer focuses on small office,

home, the target is organisations. Besides, to reduce the impact of declining printer prices

and strengthen Canons presence in the global market, it will further strengthen sales

structure. Moreover, it will further differentiate products by enhancing imagine quality

and speed through FINE technology as well as by improving operability and design

(scenario)

3a.5. Branding

Brand leadership

Brand leader is the brand which consistently holds the largest market share when

measured by brand sales. There are some manufactures who make a number of brands

and therefore may be said to hold a large share of the product market than the brand

leader (BPP, 2004, p.210). The brand leader is the result of continually defending the

quality of their output and its relevance to the consumer over along time (BPP, 2004,

p.211). Brand has invisible power in marketing. When people think of Canon, they will

remember to the slogan Delighting you always, so the Canon brand has the belief of

customers. With over the last 60 years appeared in Vietnam, Canon is the familiar brand

about copying machines, printers, cameras, optical products and industrial equipment.

The company mainly offers its products under the Canon brand name as well as supplies

laser beam printers on an original equipment manufacturing (OEM) basis (scenario).

Brand positioning

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Brand positioning is the strategy to ensure that the brand, in the eyes of the public,

has a distinct position in the market with reference to quality, style, status, price or

combination of these (BPP, 2004, p.211).

Perceptual mapping:

Almost the product of Canon has high quality and high cost, however, to compete

with HP, Epson, Brother, etc. Canon comes onto market with LBP 3520, the product with

high quality and suitable price for customers. Canon introduced the Laser PrinterLBP3250 and the colour laser printer LBP5050 for home and small offices. Moreover,

SELPHY with new features, and stylish shape for easy home and office photo printing

jobs.

3a.6. Ansoff Growth Matrix

According to (BPP, 2004, page 51), the Ansoff Growth matrix suggests that the

growth strategy decision rests on whether to sell now or existing products in new or

existing market.

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(tutor2u, n.d.)

In Ansoff Growth matrix, Canon should choose product development, because

SEPHY and product line laser printer LBP is new product, it has appeared in Vietnam

recently. Company only needs find the way to develop SEPHY and laser printers for

existing customers. Canon has gained a belief of customers, so they can launch SEPHY

to favorable market. In another word, Canon aims to introduce new products into existing

markets. However, Canon must face with cannibalization. In marketing term

cannibalization occurs when an organization undertakes a new activity, such as launching

a new product which adversely affects their existing business (BPP, 2004, p.214).

3a.7. New product development

The technology always changes, to catch the development of economic, and

increase the level of competition. Canon shouldnt keep the current products. They must

have the plan to new product development. For example, if today, Canon improving new

features of products as well as the stylish shapes of products, tomorrow the competitors

will have new product to compete with Canon product. Therefore, before developing the

product, company must gather the feedback from customers, then having the plan to

produce suitable product with the need and want of market.

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3b. Explain how distribution of products is arranged to provide optimum customer

convenience

Distribution channel is the means of getting the goods to consumer (BPP, 2004,

p.236). Distribution channel is a group of organizations and individuals involved in the

process bring products from manufacturers to consumers.

3b.1. The Five Right of Distribution:

Right product: company must supply the suitable product which the needs and

want of customers. Therefore, Canon has many product lines to satisfy not only

individual customer but also organization. For example, SELPHY for easy home

and office photo printing jobs and Laser Printer for home and small office.

Right place: The market of printer in Vietnam is very large, however, there are

two main city are Hanoi and Ho Chi Minh city. These are potential and biggestmarket. So, Canon has many distribution in here like:

AUTHORIZED DISTRIBUTOR IN

VIETNAM:LE BAO MINH Joint Stock CorporationHead Office:190-192 De Tham Street, Cau Ong Lanh

Ward, Dist.1, HCMC

Tel: 08-38389666Fax: 08-38379666Branch:10A Tran Hung Dao St., District 1,

HCMC

Tel: 08-38386666

Fax: 08-38376666

14A10 Ly Nam De St., Ha Noi CityTel: 04-37226666

Fax: 04-37478151Sources: http://www.canon.com.vn/section/EN/bis/wheretobuy.jsp?

lang=EN&cat=103

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http://www.canon.com.vn/section/EN/bis/wheretobuy.jsp?lang=EN&cat=103http://www.canon.com.vn/section/EN/bis/wheretobuy.jsp?lang=EN&cat=103http://www.canon.com.vn/section/EN/bis/wheretobuy.jsp?lang=EN&cat=103http://www.canon.com.vn/section/EN/bis/wheretobuy.jsp?lang=EN&cat=103

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On the other hand, Canon has more than 300 authorized service partners in

the whole country. In the future, Canon will open more than 10 distributions in

Hai Phong, and Hai Duong.

Right time: In Vietnam, the demand of buying printers always increase because

Vietnam is growth country, besides, Canon has long stand in Vietnam market.

Canon continued to step up sales promotions in countries and regions recording

strong growth, such as China, India and Vietnam. At the same time, it also

emphasized the value of customer contact points and set up new showrooms in

cities such as Shanghai, Mumbai and Vietnam. Throughout Asia, the company

continues to expand contact points to improve after-sale service and call centers in

2009.

Right quantity: Canon Vietnam Co. Ltd. occupies 225,000 square meters of floorspace as one of Canons 18 manufacturing plants located in Asia outside Japan.

Canon Vietnam Co. Ltd. specializes in the production of Bubble Jet Printers.

Canon Vietnam Co. Ltd. contributes 25 percent of Canons total global

production of Bubble Jet Printers. Alternatively, Canon comes onto the market

with many lines of product to segment the need and want of customers, and

concentrate on Hanoi and Ho Chi Minh.

Right price: Although the price of Canon product is higher than othercompetitors, however, the quality is higher two. Compared with laser printer of

HP, Canon has higher price but the price is suitable with the average of

Vietnamese income. Vietnam will strive for an average income of US $2,100 by

2015 or up by 1.7 times of the figure in 2010, according to the draft plan on socio

economic development (Nguyen, 2009)

3b.2. Canons Distribution Channel

The members of distribution channel have many functions:

Transport: The production cannot organize to allocate the product to customer

by themselves. The need of having distribution is very important. It will help

company reduce the cost must pay for transporting. Canon should open more

distribution in 64 cities of Vietnam to reduce the transporting cost, at the same

time to attract more customers.

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Stockholding and storage: For production planning purposes an uninterrupted

flow of production is often essential, so stocks of raw materials and components

accumulates and need to be stored, incurring significant costs and risks (BPP,

2004 p. 238). Nowadays, stockholding and storage are important part in the

success of business. Canon should use the good raw material to have the good

product such as plastic, metal, glasses, etc.

Local knowledge: Depending on distributions, Canon can understand the local

market in many place, besides customer want to buy the product, they can only

need to meet the distribution. Alternatively, each distribution in this place

understands the needs and wants of their customers.

Promotion: whilst major promotional campaigns for national products are likely

to be carried out by the supplier, the translation of the campaign to local level isusually the responsibility of the local distributor, often as a joint venture (BPP,

2004, p.239). Canon must carry out the advertising and promotion. With the

slogan Delighting you always, Canon should have promoted the selling and

help the distribution meet the potential customers.

Display: Presentation of the product at the local level is often a function of the

local distribution (BPP, 2004, p.239). Therefore, this function is based local

distributors. In the shop, the distribution can introduce many brands about printer,not only Canon. Its unlikely to control the display of stores unless the shop

belongs to Canon. However, Canon should encourage the distributions sell their

product by discount the products and perhaps supply shops with POP materials to

better attract customers.

3b.3. Selection of distribution Channel SELPHY and Laser printer

SELPHY: Agents are the distributors who buy the manufactures goods and re-

sell them at a profit. Whats more they do not purchase the manufactures goods, but earn

a commission on whatever sales they make. Multiple stores buy goods for retailing direct

from the producer, many of them under their own label brand name (BPP, 2004, p.241).

Therefore, Canon should use agents and multiple stores to sell the product to customers.

Because, SELPHY is products line - a new lab smart compact printer for easy home and

office photo printing jobs. The ES series of compact photo printers have always been

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champions of creativity with a full range of innovative print options built into the printer.

SELPHY focuses on the customers who have high income, like travel, dynamic, etc. The

target is young customers and family. There are many multiple stores in Hanoi like Pico

Plaza, Media mark, Vincom, Trang Tien Plaza, etc. Each day, these stores attract

thousands of people. These are best place to introduce modern and new product like

SELPHY.

Laser Printer: Distributors & Dealers are organization which contract to buy a

manufacturers goods and sell them to customers. Their function is similar to that of

wholesalers, but they usually offer a narrower product range, sometimes the products of a

single manufacture. In addition to selling on the manufacturers product, distributors

often promote the products and provide after-sales service (BPP, 2004, p.240). The

segments of laser printer are for home and small offices. So, the best distributionchannels for these printers are distributors and retailers, because the target customers are

both individual customers and organizations. Besides, retailers are the stores were

allocated in each location. Therefore, they can understand the demand of customers in

there, and give the best way to service and sell the product.

3b.4. Physical Distribution

The logistic is very important, it includes: transportation, location of warehouses

and logistic management. Nowadays, Canon has more than 300 authorized service

partners in the whole country. Each distribution has own warehouses to keep the product.

Any ways, the transportation of Canon has many advantages. The main factory of Canon

in Vietnam is allocated in Hanoi, the capital of Vietnam, at the same time, it is the centre

of North. So, the transportation to other city is better. In the South, Ho Chi Minh is

secondary representative offices. There are many ways to transport in Vietnam that

Canon can use such as road, rail, water or air transport. In there, road transport has a

major advantage in its ability to deliver directly from the manufacturer to the customers

premises. In the water rail transportation, Canon can carry much larger quantities over

long distances (BPP, 2004, p.251). However, Canon should choose road transportation in

Vietnam, because save cost, save time, suitable with situation transport of Vietnam.

Moreover, the selection area will depend on the potential market. For this reason, Canon

should build warehouse in the new development city like Hai Duong, Hung Yen, etc. On

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the other hand, Canon Vietnam has the part to support the distributions, Canon should

care about customer benefits, and the cost savings.

3c. The price of the product in the light of the Canon objectives and market

conditions exist in Vietnam

The role of pricing is the price would reflect the costs to the seller of producing

the product and the benefit to the buyer of consuming it (BPP, 2004, p. 261).

3c.1. Vietnam market condition in relation to pricing

In 2009, the company expects a severe global economic environment. To reduce

the impact of declining printer prices and strengthen Canons presence in the global

market, it will further strengthen sales structure. Moreover, it will further differentiate

products by enhancing image quality and speed through FINE technology as well as by

improving operability and design. Besides in January 2010, the CPI (Consuming PriceIndex) in the whole country increased by 1.36% in comparison with December last year

and increased by 7.62% year on year (Vnmedia, 2010). Therefore, Canon must control

the price of product to suit with Vietnam economic situation.

3c.2. Cost and profit

CIM (Chartered Institute of Marketing) major definition of marketing is the

management process which identifies, anticipates and supplies customer requirement

efficiently and profitably (BPP, 2004, p.8). This definition emphasized the whole

marketing. It means company must have the management about marketing to manage the

process of marketing activities to get the effective. On the other hand, the process must

concentrate on customers satisfaction, because without customers, business cannot

survive.

Cost Profit

The cost is the amount of resources, usually

quantified in monetary terms, which isallocated to preparing a product for offer to

a market. In order words, everything we

spend on making an offering before we add

the element of profits

Profit is the excess over costs in revenue.

In other words, when we receive a sum ofmoney from a sale whatever is left over

when we have paid all our costs, is profit.

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(BPP, 2004, p.263)

In general, cost has three main elements includes: Material, labour cost and other

expenses. It can be classified as direct costs or as indirect costs. Direct cost is expenditure

that can be economically identified with a specific saleable cost unit. Compared with

indirect cost is expenditure on labour, materials or services which cannot be

economically identified with a specific saleable cost unit (BPP, 2004, p.264). Material

cost is the amount of money that company must pay in making product. This is one of the

most important costs, because the raw material is very important, a good material can

make a good product. So, Canon must choose the suitable material for the production.

For example, glasses, plastic, metal, etc. Moreover, the labour costs are the cost that

Canon must pay for employees include direct or indirect labour such wages, salaries. In

2009, the impacts of economic crisis to Vietnam make the salary of Canon employeesincrease, therefore the labour cost increase too. The other expenses include the expense

around the products such as the electricity, water, factory, etc. Canon must promote the

selling of new product, so the expenses will high. Canon should use for PR, advertising to

introduce new product to customers. However, when the product is completed and come

onto the market, the price of product includes the cost of material, labour costs and other

expenses, customers also must pay when they buy the product.

3c.3. Pricing policy and the marketing mix

Pricing policy is the outcome of management decisions about price which derive

from internal operational considerations about costs and external, customer-focused

considerations about value (BPP, 2004 p.270).

Pricing issues and pricing as a strategic tools.

A selling price is an amount of money which describes a point in a process of

exchange in which two or more parties achieve satisfaction (BPP, 2004, p.271). The price

that Canon gives to the SELPHY and laser must suit with organizational and market

issues. Because if they set maximum price, the customers wont buy, and if it is minimum

price, supplier wont sell it. Therefore, Canon must make an appropriate profit

considering the opportunity cost and investment to achieve satisfaction. Price plays an

important role in marketing and business activities. When the price of product increase, it

means the company will have more profit, however, they will lose a lot of customers.

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Canon must use the price as the strategic tools, controlling the price to compete with

other competitors and get more customers.

3c.4. Price strategy

Price and promotion

Information to the market

High Low

High

Price

Low

(BPP, 2004, p.8)

Canon can set high price for new product when these product begin to appear on

market. However, company should choose rapid penetration, because in Vietnam market

Canon still focuses on encouraging current customers to buy the product frequently.

Besides, implicating competitors customers move to buy their product, furthermore,

encouraging people who never buy their product to start buying. In general, the income of

Vietnamese isnt high than other country, set the low price to attractive customer is best

solution for Canon in this market. Market penetration is enhanced by the combination of

low price and high levels of promotion (BPP, 2004, p.275).

Price strategy and the marketing mix

Marketing mixes are segment-specific. The product may be designed for a given

segment (BPP, 2004, p.275). Perfect for home and small offices, Canon introduced the

Laser Printer LBP3250 and the colour laser printer LBP5050 lead the market, SEPHY for

easy home and office photo printing jobs. Besides, the price plays an important role in the

marketing mix. Canon can set high price with SEPHY, because this product is not only

Rapid

Skimming

Slow

Skimming

Rapid

Penetration

Slow

Penetration

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for printing, but also for decorative, easy to bring, and suitable with plentiful people or

working. Alternatively, laser printer can be set lower price.

Pricing and competitive edge

Price has invisible power in marketing mix, besides there is many ways to price a

product. These products of Canon are in introduction stage, so they must reduce the price

to attract customer. However, when Canon has new product, the competitors will

introduce new product too. It will be conflict and the price war will be happened. The

price of product reduces and the customers have more advantages to choose best product

to buy. To win in the price war and reduction of competition, Canon should keep the

current price and affirm the quality of product and the after sales services. Besides,

applying the mass media to introduce new product and give more promotion.

3c.5. Approach to Pricing

Four approaches to pricingCost plus pricing Target pricing Perceived value pricing Competitor related pricin

Cost plus is the

simplest method of

pricing in which a

standard or

traditional

percentage is added

to the cost (BPP,2004,p. 277)

Target pricing is

where an

organization pitches

a price which will

deliver a target

profit or return on

investment over aperiod (BPP, 2004,

p. 278).

Arbitrary pricing of a

product based on its

value as perceived by its

buyers, as opposed to

pricing based on the

seller's costs of

producing the product(business glossary, n.d.).

Many companies bring a

product into a market in

consideration of the prices

which are obtainable by

players already operating

there in (BPP, 2004, p. 278

In four approaches to pricing, Canon should apply perceived value pricing for

SELPHY and competitor related pricing for Laser printer. The market segment of

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SELPHY is for easy home and office photo printing jobs, it focuses on people who have

high income, so they can easy to purchase the expensive product for their demand.

SELPHY looks like a candid briefcase equipped with a handle to make portability easier.

On the face of the printer, a 3.5 inch 230K dot LCD screen is featured with 4 large

buttons on its either sides to perform easy one touch operations. The ES series of compact

photo printers have always been champions of creativity with a full range of innovative

print options built into the printer (scenario). Because of the function, convenience, and

appearance, SELPHY has high price and it also motivating Canon should choose

perceived value pricing to attract customers. By contrast, the laser printer product of

Canon has many competitors like HP, Epson, Brother, etc. Besides, the segmentation of

laser printer is private home use, users will find the Laser Shot LBP5050 perfect for all

their printing needs, the LBP5050N with a network interface ideal for small officeswhereas the LBP3250 will prove to be useful in both the home and small office

environment. Whats more, these machines dont have many differences with another

competitors product, so setting the suitable price to compete is best solution for laser

printer.

3d. Illustrate how promotional activities integrated to achieve marketing objectives

of Canon

Marketing communication is the process of both informing and educating users

and dealers about the company and influencing attitudes and behavior (BPP, 2004, page

307). Canon continued to step up sales promotions in countries and regions recording

strong growth, such as China, India and Vietnam. At the same time, it also emphasized

the value of customer contact points and set up new showrooms in cities such as

Shanghai, Mumbai and Vietnam. Throughout Asia, the company continues to expand

contact points to improve after-sale service and call centers in 2009 (scenario)

3d.1. Promotion strategy

A pull effect is when customers ask for the brand by name, including retailer or

distributors to stock up with the company's good. On the other hand, a push effect is

targeted on getting the company's goods into the distribution network. This could be by

giving a special discount on volume to ensure that wholesalers stock up with products

that company is promoting (BPP, 2004, p.307). In promotion, marketing pull effect to the

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purchase, marketing push effect to the selling. Therefore, Canon must use both strategies

to get high profits. In pull strategy, Canon focuses on customers by using promotion tools

to direct impacts the customers demand. For example, advertising on mass media like

internet, TV, radio, magazines, etc or PR (public relation), furthermore, Canon organize

the event like Canon Viet Nam Co. Ltd. held successfully Planting Forest Agreement

Signing Ceremony in order to kick off planting forest project namely For a Green Viet

Nam (Canon, 2008). Alternatively, Canon organizes the printers exhibition, or test the

trial product before buying such as Canon "Total solutions for Professional Photography"

Workshop (Canon, 2008). Moreover, Canon uses push strategy is very effective. In

Hanoi, Canon has many distributions like Tran Anh computers, Phuc Anh computers, or

Mai Hoang IT, etc. In general, Canon have discounted for agents through various forms:

consignment, payment 100% or payment in installments, etc. To persuade agents selltheir product, Canon has available team of professional staff to support the distributions

about technology, sales skill, training, information about product etc. Alternatively, these

employees has mission to gather the feedback from customers, competitors, market

information and agents to report to Canon. To sum up, pull and push strategy has the

relationship, so Canon should use both to have the desired effect.

3d.2. Integrated Marketing Communications

IMC (Integrated Marketing Communications) represents all the elements of an

organisations marketing mix that favourable influence an organisations customers or

clients (BPP, 2004, p.311). IMC is the concept under which a company carefully

integrates and co-ordinates its many communications channels to defers, consistent and

compelling message about the organization and its products (Kotler, Amstrong, Saunders,

Wong, 1999, p. 781). The IMC has technique is known as SOST and 6Ms.

SOST 6Ms

-Situation

-Objectives

-Strategy

-Tactics

-Men

-Money

-Machines

-Materials

-Minutes

-Measurement

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(BPP, 2004, p.311)

Canon products have been available in Vietnam since the 1980s through its

authorized distributors. Therefore, the situation of Canon in Vietnam is exist market,

Canon is only need to apply the marketing mix to the product and come onto the market.

However, company must use the IMC as the tools of promotion to bring the product to

the customers.

3d.3. Elements of Promotion MixIn consumer market, Canon should use advertising, PR, direct marketing, and

sales promotion for 2 product lines. With advertising, Canon should press release when

they have new product, besides using mass media such as TV, magazines, posters,

internet, radio, etc. On the other hand, Canon use PR for corporate and brand imagine.

For example, company organizes the event Vietnam welcomes Canon Photo Marathon

2009 for the 4th time, Canon For the next generation, Environment Protection

Propaganda, etc. Alternatively, Canon focuses on direct marketing, and sales promotion

to motivate the sales of product. For instance, Canon Launches Free Easy-Photo-Print

Application for the Apple iPhone, Making It Easier than Ever to Enjoy and Share Photos.

People can iphone like a remote control the printer. The target customer in this market is

individual customer, the demand of using product for home, entertainment. Therefore,

SELPHY can be the best choice, but perfect for home and small offices, Canon

introduced the Laser Printer LBP3250 and the colour laser printer LBP5050.

In industrial market, Canon should use personal selling, exhibitions, advertising

and public relation for 2 product lines. The target customer of industrial market isorganization. They always buy with the large of amount. Therefore, using personnel

selling is suitable. The sellers can easily to persuade the customers. Besides, they can

give the advice to help them have the suitable product. The needs and wants of

organizations are for working. Therefore, Laser Printer LBP3250 and the colour laser

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printer LBP5050 should be the best choice. Furthermore, SELPHY series of printers

from Canon for easy home and office photo printing jobs.

3e. The additional elements of the extended marketing mix

3e.1. People

People are the most important element of any service or experience. Services tend

to be produced and consumed at the same moment, and aspects of the customer

experience are altered to meet the 'individual needs' of the person consuming it

(Executive Marketing, 2009). With Canon, people are the key of successful. Canons

Corporate Philosophy is kyosei. A concise definition of kyosei is Living and Working

Together for the Common Good. Expanding on this, Canon defines kyosei as All

people, regardless of race, religion or culture, harmoniously living and working together

into the future (Canon, 2008). In fact, Canon often organizes the training program foremployees skill every year. It help employees understand their job, therefore, they can

work better and effective. Furthermore, Canon still standardized customer service.

Besides, company assesses the capacity and performance through the level of customer

satisfaction.

3e.2. Process

Process is another element of the extended marketing mix, or 7P's.There are a

number of perceptions of the concept of process within the business and marketing

literature. Some see processes as a means to achieve an outcome (Executive Marketing,

2009). The process of providing service is very important because customers are not only

interested in quality and value of product, but also interested in the way which the

company serves them. Therefore, the customers services of Canon is very good, company

concentrate on caring about warranty, supporting, and directions for using. When

customers went to the warranty office of Canon, they can use trial product and make the

comment, on the other hand, Canon applies warranty change one on one in 6 months, etc.

A good process will help the Canon keep customers loyalty. In 2009, Canon introduces

its new warranty card; affirming its quality commitment for Vietnamese users (Canon,

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2008). Alternatively, the time of warranty is shorter than before. When customers feel

more satisfaction than other companies, they will continue purchasing the companys

products in the future. So, its important to design a good process in marketing.

3e.3. Physical evidence

Physical evidence is an important remedy for the intangibility of the product. This

may be associated with the service itself, built up by identification with a specific

individual or incorporated into the design and specification of the service environment,

involving the building, location or atmosphere (BPP, 2004, p.402). Canon has more than

300 authorized service partners in Vietnam, besides there are two representative offices

in Hanoi and Ho Chi Minh. Canon Vietnam specializes in the production of Bubble Jet

Printers. It is one of Canons 18 manufacturing plants located in Asia outside Japan. In

2009, Canon rolls out 23 new products in a technology festivity in Vietnam (Canon,2009).

3e.4. Suggest Ways on How Canon Use the Extended Marketing Mix for SELPHY

and LASER PRINTER

Canon has more than 15,000 employees in Vietnam. Awareness of the importance

of people, Canon should organize more training programs for their employees to improve

their skills. On the other hand, Canon should have the reward for the employees to

encourage them. Whats more, company can organize the travel for employees in the

holiday. About the process, Canon should improve the customers services such as

decrease the time of warranty, give more information about new product when customers

go to the Canon shop. Moreover, company should have the part of controlling the

feedback of customers. From there, Canon can have more opportunities to produce the

product suitable with the needs and wants of customers. At the same time, company can

improve the competition with Hp and Epson. About physical evidence, Canon products

have been available in Vietnam since the 1980s through its authorized distributors. In the

last five years, it established a more significant presence when it set up a bubble jet

production facility in Hanoi and two representative offices in Ho Chi Minh City and

Hanoi. However, Canon should have the plan to open more distribution in the new

development cities such as Hai Phong, Hai Duong, Hung Yen, etc to meet the demand of

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customers.

4a. Marketing mixes for two different segments in consumer markets

Marketing mix as the set of controllable tactical marketing tools that the firm

blends to produce the response it wants in the target market. The marketing mix consists

of everything the firm can do to influence the demand for its product. The many

possibilities gather into four groups of variables known as the 'four Ps'; product, price,

place and promotion (Kotler, Amstrong, Saunders, Wong, 1999, p113). Because of the

development of market, the numbers of competitors increase. So, the three additional

elements were added to make extended marketing mix (7 Ps) includes: People, process

and physical evidence.

4a.1. Elements should be considered in order to develop an effective marketing mix

In general, Canons marketing objectives is to achieve overwhelming dominancefor Canons product business in the Vietnam market. Whats more, it is to create the

highest profit for Canon and bring the highest level of satisfaction for customer. The

strength of Canon is high quality printer business, but the weakness is high price, besides

the opportunities are leveraging the opportunities in imaging and printing, expanding

Canon capability, retail partnership. Whats more, the threats are economic crisis, and

intense price competition. The competitive advantages of Canon products are the prestige

brand name.

4a.2. Recommendation of marketing mix for SELPHY and LASER PRINTER

Product: Although the current products are very good, but Canon should improve

to catch the development of technology. On the other hand, the changing of products is to

compete with competitors in the market, attract more customers. About SELPHY, Canon

should improve the installation, and improving style, features, functionality with laser

printer. The truth is SELPHY and laser printers are new products in Vietnam market. In

general, these products has high quality, durability, and suitable with the demand of

Vietnamese. In January 2010, Canon received Trust & Use Vietnam award (Canon,

2010). So, it is the success of Canons product. However, products should be changed,

because the need and want of customers always change. To get more profit, company

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must upgrade the product to suit with the market demand. It will make Canon has the

power in printer market, and having more customers.

Place: Canon has more than 300 authorized service partners in Vietnam, and each

year, Canon has opened many shops from North to South of Vietnam. This country is

potential market, so the consumption of Vietnamese is high. Therefore, Canon is not only

keep the current distribution, but also company must open more shop in another city and

the new development area like Da Nang, Hai Duong, Hue, etc. For example, in 2009

Canon launches the second service center in Vietnam, located on the 3rd floor at 15

Nguyen Chi Thanh, Hanoi. This new service center is designed to be intuitive and user

-friendly, delivering presales and post sales support and services (Canon, 2009). It will

help Canon expand their market, at the same time increase the customers, and company

can make more profits. Besides, Canon should use the suitable strategy for each area tohave good allocation. Canon products have been available in Vietnam since the 1980s

through its authorized distributors. In the last five years, it established a more significant

presence when it set up a bubble jet production facility in Hanoi and two representative

offices in Ho Chi Minh City and Hanoi, providing jobs for more than 12,000 people in

the country. The two representative offices operate under the guidance and support of

Canon Singapore Pte. Ltd., which is the regional marketing headquarters for Canons

South & Southeast Asia region. Besides five distributors, the company has nearly 300

authorized service partners in the country (Canon, 2009).

Pricing: In general, the price of Canon product in Vietnam market is higher than

other competitors. However, the quality and services is better. This is why Vietnamese

accept to purchase for Canon. Therefore, Canon should keep this price and producing

other line of product like laser printer LBP3250 (4.389.00 VND) to aim at average

income customers. Whats more, Canon faces competition from HP, Brother, Epson,

Lexmark, etc and the impact of economic crisis. In 2009, the company expects a severe

global economic environment. To reduce the impact of declining printer prices and

strengthen Canons presence in the global market, it will further strengthen sales structure

(scenario). So, Canon must base on the economic situation and the competition in the

market to control the price to suit with customers.

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Promotion: Canon is not only use mass media to advertise the product by

Internet, TV, magazines, etc but also use PR to help customers understand about the

philosophy of company. Whats more, company must combine both pull and push

strategy for SELPHY and laser printers because Canon can attract the customer from

many sides. Furthermore, applying Integrated Marketing Communications and using

promotion tools and mix to motivate, advertising is one of the most promotion tools that

Canon must use, because nowadays, advertising is very popular. However, the direct

selling can be the best solution in the buying process. Moreover, Canon should have

many promotions such as special offer, gold time, giving presents, etc. It has strong

encouraging in purchasing decision of customers. PR is tools that company cannot

ignore, this tools orients to the potential customers, alternatively, it will improve the

product and corporate imagine.4a.3. Pros and cons of the recommended Mix

The marketing mix has many advantages for the success of Canon. Therefore,

Canon should use the marketing mix in marketing activities to get the best working.

However, company should improve more to get the best.

4b. The differences in marketing products and services to organisations rather than

consumers

4b.1. Consumer market

Consumer market is buyers and potential buyers of goods and services for

personal and household use (Babylon, n.d.). Fast-moving consumer goods (FMCGs) are

goods which are bought relatively frequently, at low cost, for immediate consumption

and often with high reliance on re-purchase. Such products are often sold in supermarkets

and they move off the shelves quickly. FMCGs require constant replenishment of in-store

stocks. The features of FMCG are frequent purchase, low price, basic good, impulse

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purchase, minimal effort (BPP, 2004, p.376). In consumer market, Canon generates

revenues through cameras (25.4%), and optical and other products (9.6%). The customers

of cameras and optical and other products are much diversified. However, the target

customers are individual, for home, family, and office photo jobs. There are many

product lines with many prices for each product to suit with the need and want of

customers. For example, in Vietnam market, Powershot SX200IS is 9.890.000 VND, but

IXUS120 is 7.590.000 VND, Powershot PSA480 is 2.490.000 VND, EOS450D is

16.990.000 VND (Pico, 2010). For perfect home, user can choose Powershot SX200IS,

IXUS120, with 12.0 MP, new technology auto find the smile, and suitable price. With the

photographers, they can choose the professional camera EOS450D, one of the best

cameras of Canon with many lenses. According to Canon, EOS450D can use more than

60 kinds of lens. The consumer good of Canon is shopping goods. In Vietnam, the Canoncamera is best brand according to PC World Vietnam, Canon received Trust & Use

Vietnam award for Cameras and Camcorders. The characteristics of shopping goods are

durable items, purchased infrequently, high cost, expected to last long time. Whats more,

buying behavior are extensive searching, product comparison, reliance on new

information (BPP, 2004, p.378).

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(BPP, 2004, p.379)

Canon should choose the high level of advertising, sale promotion and PR.

Whats more, company can use personal selling to persuade customers easily. However,the consumers often buy the product according to the hobbies, special care about low

price, basic good, and minimal effort. On the other hand, Canon should apply the media

advertising, sales promotion, wholesale and distribution selling to allocate the product to

many areas to meet the need and want of individual customers. Furthermore, Canon must

have the good warranty services, according to Canon, the warranty of their camera is 24

months (2 years).

4b.2. Organizational marketOrganizational market is all the individuals and companies who purchase goods

and services for some use other than personal consumption. Organizational markets

usually have fewer buyers but purchase in far greater amounts than consumer markets,

and are more geographically concentrated (business glossary, n.d.). Organizational

marketing refers to all business activities which are directed primarily at non-domestic

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markets. It therefore includes marketing products for industry, commerce, trade,

distribution, professional outlets and individual; in such business (BPP, 2004, p.376).

Canon generates revenues through business machines (65% of the total revenues in

FY2008). The product of business machines includes facsimiles, projectors, scanner, etc.

The target customers of business to business market are organizations, offices, etc. They

often buy with a big amount, and they need the professional product for working.

Therefore, the organization customer special care about the price, after sales services,

durability, quality, etc. Then they will choose the prestige brand. Classification of

industrial goods include: capital goods, accessories, raw material, components, supplies

and business service. Characteristic of industrial markets have three kind of economic

activities: Primary or extractive market, secondary or manufacturing industries, the

tertiary sector includes the service industries. Attributes of industrial markets are buyerare not spending the own money, the buying decision marking unit may involve many

people, decision making may take a long time, customer base is often small and easy to

identify, average order values and quantities are higher than consumer markets, personal

contacts and relationships are often a key part of the buying decision (BPP, 2004, p.380)

Canon is known as the biggest production about business machines, whats more the

services of Canon always make the organization customers happy. The fact is Canon won

the first prize of the Best ICT product Award for the 3rd consecutive time, Canon packs a

punch at Vietnam Computer Electronics World Expo 2009 (Canon, 2009). The

characteristic of organization customers is when they accept the Canon product, they can

easily become the loyal customers. And Canon will have more orders from another

organization. Therefore, Canon is not only using advertising or PR, but also company

must use personal selling to introduce direct product to the organization, at the same time

giving the advice for suitable product to help the organization save cost and save time.

This is the potential market, Canon should understand the demand and gather the

feedback, provide the good services at once.

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4b.3. Differences between business to business and consumer marketing table

(BPP, 2004, p.29)

Canon products today include personal products, business equipment andindustrial products. Canon products are aimed at improving the lives of people at work

and at play. The company operates through three product segments: business machines,

cameras and optical and other products (scenario). The markets for 3 product divisions of

Canon are different. The target of business machines is industrial market, by contrast the

cameras and optical and other products are consumer market. The customers of consumer

market buy the product sis for individual or family need, on the other hand the

organization buy product for working with the large amount. Therefore, the price thatorganization must pay for product is different with consumer. For example, the price of

LBP 5050 is 8,170,000.00VND, however when the organization buy 100 products, they

can be discounted 5% or 10% in the totals bill that they must pay. On the other hand, the

time effect of consumer with the production is short, they come to the shop, choose and

purchase. If the product has error, they will go to warranty. However, the organization

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buy with the large amount, so Canon is not only have response warranty, but also they

must care about creating the long term relationships.

4c. Explain how and why international marketing differs from domestic marketing

International marketing (IM) refers to the marketing of goods and services in two

or more countries (BPP, 2004, p.411).

4c.1. Benefits and risks of entering into international marketing

Benefit Limitation

+ The market for a product is unquestionably a global one

+ Overseas operation might be cheaper than manufacturing at home

+ The firm may receive orders or requests for potential oversea

customers

+ Profit margin may be higher abroad+ Seasonal fluctuation may be leveled out

+ The firm's prestige may be enhanced by portraying a global

image.

+ Profit might be affected by

factors outside the firm's

control

+ The necessary adaptations t

the product will diminish theeffects of economies of scale

+ Anti - dumping duties

(BPP, 2004, p. 412)

When entering into international marketing, Canon will have many both

advantages and disadvantages. When expand the business, company can enlarge their

operation areas, but Canon must faces with the new market that have many competitors

such as HP, Brother, Lexmark, etc. Whats more, Canon can sell the product withcheaper, because there are more raw material such as glasses, metal, plastic, etc in the

other countries, and they can buy it very easy, besides the human resources in the

growing country is very cheap. Therefore, Canon can reduce the cost that they must

include in the product. Furthermore, the negative is necessary adaptations to the product

will diminish the effects of economies of scale. The adaptations is very important, it will

decide the success of Canon in this country. For example, with the market that people

with high income, Canon should introduce the newest and best product like SELPHY.However, with people who have average income, Canon should give the product like

LBP 3250, besides company must control the price to suit with the demand of customers

to have more profits.

4c.2. The differences in International marketing environment

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Canon continued to step up sales promotions in countries and regions recording

strong growth, such as China, India and Vietnam (scenario).

Cultural: Although India is a traditional society, but business activities in India is

compliance with international trade practices. The vast majority of Indians have the

necessary skills such as language (English is widely used in communication such as

speaking and writing), management skills, the technical and the presentation skills. The

on time is not the most powerful of Indian. By contrast, Chinese are very serious in the

on time. They are never waiting if people are not on time. The main language of China is

Chinese, and the secondary is English. When people want to give the card name, they

should have both languages in two sides of the card.

Economic: India and China has the stronger economic process than Vietnam.

India's gross domestic product (GDP) grew by 7.9 per cent during July-September 2009,up from 6.1 per cent in the previous quarter, as per data released by the Central Statistical

Organisation (CSO). Overseas investors have infused US$ 816.69 million into the stock

market in the first trading week of 2010 (Government of India, 2009). The Chinese

economy is one of the fastest growing economies in the world. China's gross domestic

product (GDP) is projected to reach $2.3 trillion and $4.7 trillion by the end of 2010 and

2020 respectively. FDI in the Chinese economy have increased from $40.7 billion in

2001 to $70.3 billion in 2007 with investments primarily in the manufacturing sector

(chinastockdigest, n.d.). In the table 1, the average growth of real GDP over fifty years of

India generally increase about services and decrease about agriculture. However, in the

table 2, the GDP of India is higher than Vietnam and ranking six positions. China is still

the strongest economic in the Asian. On the other hand, the economic of these countries

are also impacted by world economic crisis such as inflation, unemployment, etc.

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(Sources: http://www.saneinetwork.net/pdf/shankar.PDF)

Political: In 2001, China become the member of WTO, the Government of China

has given many policies for business such as decreasing the tax of import and export. In2006, the import tax is smaller than 10%. However, in 2001, this tax is 15% (mquiz,

2006). On the other hand, India has been a WTO member since 1 January 1995. The

WTO Secretariat report, along with the policy statement by the Government of India, will

serve as a basis for the third Trade Policy Review (TPR) of India by the Trade Policy

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Review Body of the WTO on 19 and 21 June 2002. Policy in the agriculture sector has

been guided by domestic supply and self-sufficiency considerations. Thus, the sector is

shielded through import and export controls, including tariffs, state trading, and export

restrictions and, until recently, imports restrictions. The result of this policy has been a

substantial increase in stocks to unsustainable levels and the costs associated with

maintaining these stocks (WTO, 2002).

Technological: India has 13% of internet users in Asia and 7.36% that of the

world. But the sorrowful fact is only 5.3% of people in India use internet. The reason of

this is most of the people in India dont know computer. 70% of people who know

computer have used internet which is a healthy sign. 85% of internet users in India are

male which not a very good sign is. Among working women, only 11% use internet.

Mumbai has the maximum number of internet users (3.24 million) in India followed byDelhi (2.66 million) (Rameshjeee, 2008). By contrast, there are now an estimated 137

million Internet users in China, China to overtake US in number of Internet users in 2009

(Reimer, 2007). Therefore, Canon India bets on new technology and range expansion to

gain leadership in Printing Industry. Company launches 24 new products, expands range

to 67 IT peripheral products from its printing division, increases market share of laser

printers to 41% and registers growth of over 58% in 2009 for its printer division,

introduces the new ISO international standard of Images Per Minute for India, deepens

foray in the growing surveillance and security space (Canon, 2009)

Competitive: Chinas potential market is large, but its actual domestic market is

quite limited. Foreign investors entering China soon realize that local competition can be

tough and that there are many barriers to expanding market share. With Chinas accession

to the WTO almost certain, market access should improve in the future (Dorn, 1999).

Besides, the competition in India is the problem. However, Canon India Private Limited,

India's No.1 Complete Digital Imaging Company today announced its leadership in the

Laser Printer category in India. The IDC Report pertains to the Third Quarter of the

Calendar Year 2009 which specifies that Canon holds No. 1 position in the laser printer

category across the nation. The latest IDC report of September 2009 pegs Canon's market

share at 41% in the single function laser printer category. Over the last 18 months

Canon's laser printer business has steadily grown and expanded its reach across the nation

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with its 18 products which has resulted into this milestone figure. Canon's focus on this

category resulted in the growth in this category from 13% in 2008 to 41% in 2009

(Canon, 2009)

4c.3. The differences in elements of Marketing mix in International marketing

Product: In China and India, Canon still standardizes the product according to the

total quality management. Besides, Canon tries to adapt the suitable product for each

country. Canon's laser printers enjoy 41% market share in India as on July 2009. Laser

printers have contributed significantly to the 58% growth of Canon's printer business

(Canon, 2009). Whats more, Canon India uses straight extension (no significant change

is made) in approaches of adaptation. Because, set up in 1997, Canon India markets have

over 140 comprehensive range of sophisticated contemporary digital imaging.

Furthermore, Ever since Canon Malaysia was established in 1987, it has become a majorcorporate player in Malaysia. Focused on the objective of providing excellent products

and support to Malaysian users, Canon invested considerable time and effort in

developing channels to access the market. Obviously, Canon succeeded extremely well

and after celebrating its 20th anniversary in 2007, Canon in Malaysia has now more than

20 years of success, 20 years of non-stop product launches, 20 years of commitment from

employees, 20 years of support from customers, 20 years of passion and drive from

business partners. Canon is committed and will continue to strive to become a household

name and a leading brand, sought after for its quality and reliability in products and

services (Canon, 2009).

Place: Canon has many international distribution systems and retailers. Canon

today has offices in 7 cities, warehouses in 11 cities across India. Canon products are

available in over 300 towns in India. Overall Canon's presence is expected to increase to

4000 outlets by December 2009 (Canon, 2009). Moreover, Established since 1987,

Canon employs more than 500 staff who deliver products and service support to

Malaysian users directly and through its nationwide network of channel partners. Its

parent company, Canon Inc., a Fortune 500 Global company, is dedicated to the

advancement in technology and innovation and commits 10% of its total revenue each

year to R & D. Canons operations globally (Canon, 2009)

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Pricing: The price of Canon product gets the price right to suitable with the

location and the income of people in there. In India, the price of LASER SHOT LBP5050

is INR 21,995.00, by contrast, in Malaysia the price of LASER SHOT LBP5050 is RM

1,199.00, and LASER SHOT LBP3250 is RM 1,100.00. However, the price of LASER

SHOT LBP5050 in Vietnam is VND 8,170,000.00. Compared the prices, Canon tries to

control to unite the price. Because of the exchange rate, the transportation and other

expenses, so the price of product in countries has different but a little bit. Whats more,

Canon India closed 2008 with revenue of Rs. 665 crores, which marked 31% growth over

2007. Overall, Canon expects to touch revenue of more than 800 crores in 2009 (Canon,

2009).

Promotion: Canon has the traditional philosophy is kyosei. Every policy and

decision made in Canon is highly influenced by its corporate philosophy of kyosei.Simply put, kyosei means living and working together for the common good. It also

encompasses Canons desire to develop a society in which everyone can enjoy happiness

and fulfillment, regardless of differences in culture, customs, language or race. Canon

aims to contribute to the prosperity of the world and the happiness of humanity, which

will lead to continuing growth and bring the world closer to achieving kyosei (Canon,

2009). Whats more, the slogan Delighting you always of Canon always appearances in

the advertising of Canon in many countries. Canon has applied sales promotion and

sponsorship not only in Vietnam, India, and China, but also company want to bring the

Japan technology to customers in the world.

38

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Conclusion

In conclusion, marketing mix play an important role in the marketing process of

business. The success of marketing cannot without marketing mix. Normally, marketing

mix has four elements includes: Product, place, price and promotion. However, becauseof the economic development, there are many competitors in the market. Therefore,

Canon not only uses four basic elements, but also the three additional elements were

added to make extended marketing mix (7 Ps) includes: People, process and physical

evidence. Whats more, there are many differences between consumer market and

business to business market that Canon must know to segment suitable product for each

market. On the other hand, the international marketing has differed from domestic

marketing. But business must follow the standard of Canon, and adapt to the location.

39

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