Avon Calls for Foreign Market Case Study Example | Topics and Well Written Essays - 1000 words

Avon Calls for Foreign Market - Case Study Example From this paper it is clear that Avon applied product orientation strategy where it produced its goods and went to its customers to check whether they will be interested. Oudan & N.S. U, 2007 observes that this orientation has the advantage of saving the customer the burden to second-guess how a new product would develop. Product orientation allowed Avon to keep producing the items it was good in without having to deal with the risks involved in producing new products. Marketing orientation bears more advantages. In their line of duty, Avon representatives meet people and they get to hear their varying queries, ideas, and needs.  This study outlines that  Avon depends more on foreign markets because they do not stiff competition. There are many cosmetic manufacturers in the U.S. cosmetic industry. Avon’s independent salespersons help advertise products through the word of mouth. This cuts advertising costs that would accrue from other ways of marketing such as media.  Gr owth in the numbers of women who use cosmetics would raise Avon’s profitability. These are women of ages ranging between young adulthood and middle age. On the other hand, if the elderly exceeded the young, Avon’s profitability will go down. Avon targets women and an unbalanced growth in population that would lead to more men than women would reduce Avon’s sales and profitability. Global recession renders some people unemployed because companies resort to lay-offs and retrenchments in order to cut on their costs.