Marketing region

Procurement location Market/region. segment / sub-region, customer cluster / country, customer... 

The nicotine content in tobacco from cigarettes sold worldwide shows a wide variation (lARC 2004). Counts and coauthors reported on the nicotine content in the tobacco tiller of 48 Philip Morris USA and Phihp Morris International commercial filtered cigarettes from numerous international market regions (Counts et al. 2005). The majority contained blends of bright flue-cured (Virginia), hurley air-cured, and sun-cured oriental tobaccos, with inclusions of expanded tobaccos, processed tobacco, or processed stems. Four cigarettes contained primarily bright tobaccos. Nine brands contained carbon (also known as charcoal ) in their filter construction. 

Counties with several common denominators for marketing activities are grouped within heavy lines that delineate marketing regions. There are many such maps but various firms draw the lines in different patterns and it is important to know the basis on which the regions were established. This is usually explained in the legend of such maps. 

Some of the more directly analytical maps of marketing regions are of even greater business interest. 

Latin America is usually defined to include Mexico, The Caribbean, Central and South America. This market region includes about 370 million inhabitants. The individual countries represent a wide range of political, social, and economical scenarios. High inflation rates and large trade balance deficits are prevalent in many of the countries. Limited infrastructure (e.g. highways, public utilities, etc.) has seriously hampered their economic growth. However, strong raw material positions (e.g. petroleum, metal ores, etc.) have enhanced export income and helped improve the national GNP and levels of industrialization. For example, three major oil fields have been discovered in Mexico within the past few years, and Venezuela s oil-based economy is well known. 

Retailer 2, in the same market region, has a similar demand distribution from a separate primary market. Assume that customers who face a stockout at Retailer 1 go to Retailer 2 and vice versa. Thus, the demand faced by Retailer 1 for a given inventory level held by Retailer 2 is obtained as the sum of Retailer Is primary demand plus spillover demand from Retailer 2. Given an inventory Q = 40 held by Retailer 2, the spillover demand received by Retailer 2 has the distribution shown in Table 3.2. 

Notes Notation from Section 2 is used here. REG = a marketing region. MARK - number of marketing regions. M(REG) = number of production countries in region REG. 

As suggested in Wagner (1995), we used random data to vary model parameters and create a data set of experimental results. For our large study, we chose a problem with two subassemblies (ceiling fans), three marketing regions, six potential countries of operation, thirty markets, and five time periods. Low, medium, and high levels were chosen for four parameter sets (1)... 

Nature of international flow of goods Physical distribution of finished products from new production locations Shipping parts to production locations and exporting finished products Physical distribution towards new market regions Shipping semifinished products to Europe, where they are finalised in response to customer orders, while within the logistics system... 

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