question

Protectionism

answer

is the practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas. May outsource jobs

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Tariffs and quotas

answer

discourage world trade,which are a government tax on products or services entering a country, primarily serve to raise prices on imports

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quota

answer

is a restriction placed on the amount of a product allowed to enter or leave a country.

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World Trade Organization (WTO)

answer

in 1995 to address an array of world trade issues

question

Global Companies, Three types of companies populate and compete in the global marketplace:

answer

(1) international firms, (2) multinational firms, and (3) transnational firms

question

international firm

answer

engages in trade and marketing in different countries as an extension of the marketing strategy in its home country. Generally, these firms market their existing products and services in other countries the same way they do in their home country

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multinational firm

answer

views the world as consisting of unique parts and markets to each part differently. use a multidomestic marketing strategy, which means that they have as many different product variations, brand names, and advertising programs as countries in which they do business

question

transnational firm

answer

views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants rather than differences. marketers employ global marketing strategy

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global marketing strategy

answer

the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ

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global brand

answer

a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs. have the same product formulation or service concept, deliver the same benefits to consumers, and use consistent advertising across multiple countries and cultures. EX: coke , pepsi, lego ,

question

global consumers

answer

consist of consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services

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cross-cultural analysis

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which involves the study of similarities and differences among consumers in two or more na- ions or societies

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Cultural Diversity Marketers

answer

must be sensitive to the cultural underpinnings of different societies if they're to initiate and consummate mutually beneficial exchange relationships with global consumers.

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Values A society's values

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represent personally or socially preferable modes of V conduct c or states of existence that tend to persist over time. Mcdonalds not selling beef big macs in india, they use chicken instead.

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Customs

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are what is considered normal and expected about the way people do things in a specific country

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Foreign Corrupt Practices Act (1977),

answer

s amended by the International Anti-Dumping and Fair Competition Act (1998). These acts make it a crime for U.S. corporations to bribe an official of a for- eign government or political party to obtain or retain business in a foreign country

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Cultural Symbols

answer

are things that represent ideas and concepts. Symbols and symbolism play an important role in cross-cultural analysis

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semiotics

answer

has emerged that examines the correspondence between symbols and their role in the assignment of meaning for people

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back translation,

answer

where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors

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Cultural Ethnocentrism

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The tendency for people to view their own values, customs, symbols, and language favorably is well known.

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Consumer ethnocentrism

answer

is the tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products

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Once a company has decided to enter the global marketplace, it must select a means of market entry.

answer

Four general options exist: (1) exporting, (2) licensing, (3) joint venture, and (4) direct investment

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Indirect exporting

answer

is when a firm sells its domestically produced products in a foreign country through an intermediary

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Direct exporting

answer

is when a firm sells its domestically produced products in a foreign country without intermediaries

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Licensing

answer

Under licensing, a company offers the right to a trademark, patent, trade secret, or other similarly valued item of intellectual property in return for a royalty or a fee

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Two variations of licensing

answer

contract manufacturing and contract assembly,

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contract manufacturing,

answer

a us company may contract with a foreign firm to manufacture products according to states specifications

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Contract manufacturing and assembly

answer

n developing companies has sparked controversy in the toy, textile, and apparel industries where poor working conditions, low pay, and child labor practices have been documented.

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Franchising

answer

A third variation of licensing is one of the fastest-growing market-entry strategies. Over 75,000 franchises of U.S. firms are located in countries throughout the world. Franchises include soft-drink, motel, retailing, fast-food,

question

Joint Venture

answer

When a foreign company and a local firm invest together to create a local business,

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Direct Investment:

answer

The biggest commitment a company can make when entering the global market is ___________, which entails a domestic firm actually investing in and owning a foreign subsidiary or division.

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Product and Promotion Strategies

answer

Global companies have five strategies for matching products and their promotion efforts to global markets.

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A product may be sold globally in one of three ways

answer

(1) in the same form as in its home market, (2) with some adaptations, or (3) as a totally new product:

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Product extension

answer

Selling virtually the same product in other countries is a ____________ strategy. It works well for products such as Coca-Cola, Gillette razors

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Product adaptation

answer

Changing a product in some way to make it more appropriate for a country's climate or consumer preferences is a ________________ strategy. Exxon sells different gasoline blends based on each country's climate

question

Product invention

answer

Alternatively, companies can invent totally new products de- signed to satisfy common needs across countries

question

Marketing research

answer

is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions. All though imperfect, marketers conduct marketing research to reduce the risk of and thereby improve marketing decisions.

question

decision

answer

is a conscious choice from among two or more alternatives

question

Exploratory research

answer

provides ideas about a vague problem.

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Descriptive research

answer

generally involves trying to find the frequency with which something occurs or the extent of a relationship between two factors.

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Causal research

answer

tries to determine the extent to which the change in one face- or changes another one.

question

measures of success

answer

which are criteria or standards used in evaluating proposed solutions to the problem

question

Secondary data

answer

are facts and figures that have already been recorded prior to the project at hand. internal and external__________—depending on whether the data come from inside or outside the organization needing the research

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Primary data

answer

are facts and figures that are newly collected for the project. can be divided into observational data, questionnaire data, and other sources of data.

question

Secondary Data Internal

answer

records of a company generally offer the most easily accessible marketing information. These internal sources of secondary data may be divided into two related parts: (1) marketing inputs and (2) marketing outcomes

question

Marketing input data relate

answer

to the effort expended to make sales. These range from sales and advertising budgets and expenditures to salespeople's call reports, which describe the number of sales calls per day, who was visited, and what was discussed.

question

Marketing outcome data relate

answer

to the results of the marketing efforts. These involve accounting records on shipments and include sales and repeat sales, often broken down by sales representative, industry, and geographic region.

question

Secondary Data external:

answer

Published data from outside the organization are ______ data. The U.S. Census Bureau publishes a variety of useful

question

Primary Data:

answer

Watching people Observing people and asking them questions are the two principal ways to collect new or primary data for a marketing study.

question

observational data

answer

can be collected by mechanical (including electronic), personal, or neuromarketing methods.

question

Mechanical Methods:

answer

National TV ratings are an example of mechanical observational data collected by "people meter" the device measures what channel and program is tuned in and who is watching

question

Personal methods:

answer

Watching consumers in person or recording them are two other observational coaches.

question

Ethnographic research:

answer

is a specialized observational approach in which train observers seek to discover subtle behavioral and emotional reactions as consum counter products in their "natural use environment," such as in their home or ca recently

question

Neuromarketing methods:

answer

Based on the results of neuromarketing studies, Campbell Soup Company C recently changed the labels of most of its soup cans. Some the changes: Steam now rises from more vibrant images of soup; f "unemotional spoons" have disappeared; and the script logo is he maller and has been moved to the bottom of the can.

question

questionnaire data,

answer

which are facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.

question

Primary Data: Other Sources Four other methods

answer

(1) social media, (2) panels and experiments, (3) information technology, and (4) data mining.

question

Panels and Experiments

answer

Two special ways that observations and questionnaires are sometimes used are panels and experiments. Marketing researchers often want to know if consumers change their behavior over time, so they take successive measurements of the same people

question

Information Technology:

answer

involves operating computer networks that can store and process data. Today, information technology can extract hidden information from large databases

question

Data Mining:

answer

data mining is the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and a marketing actions.

question

Market segmentation

answer

involves aggregating prospective buyers into groups that (1) have common needs and (2) will respond similarly to a marketing action.

question

product differentiation

answer

This strategy involves a firm using different marketing mix actions, such as product features and advertising, to help consumers perceive the product as being different and better than competing products.

question

market-product grid

answer

is a framework to relate the market segments of potential buyers to products offered or potential marketing actions

question

Mass Customization

answer

American marketers are rediscovering today what their ancestors running the corner general store knew a century ago: Each customer has unique needs and wants and desires special tender

question

Geographic segmentation:

answer

Region. Campbell Soup Company found that its canned nacho cheese sauce, which could be heated and poured directly onto nacho chips, was too spicy for Americans in the East and not spicy enough for those in the West and Southwest. The result: Campbell's plants in Texas and California now produce a hotter nacho cheese sauce to serve their regions better.

question

Demographic segmentation:

answer

Household size. More than half of all U.S. households are made up of only one or two persons, so Campbell packages meals with only one or two servings for this market segment.

question

Psychographic segmentation

answer

Lifestyle. Nielsen's lifestyle segmentation is based on the belief that "birds of a feather flock together." Thus, people of similar life- styles tend to live near one another, have similar interests, and buy similar offerings

question

Behavioral segmentation:

answer

Product features. Understanding what features are im- portant to different customers is a useful way to segment markets because it can lead directly to specific marketing actions, such as a new product, an ad campaign, or a distribution channel

question

Behavioral segmentation:

answer

Usage rate. Usage rate is the quantity consumed or patronage—store visits—during a specific period. It varies significantly among different customer groups. Airlines have developed frequent-flier pro-

question

Market size.

answer

The estimated size of the market in the segment is an important factor in deciding whether it's worth going after.

question

Expected growth

answer

Although the size of the market in the segment may be small Expected now, perhaps it is growing significantly or is expected to grow in the future.

question

Competitive position.

answer

The less the competition, the more attractive the segment is.

question

Cost of reaching the segment.

answer

A segment that is inaccessible to a firm's marketing actions should not be pursued.

question

Compatibility with the organization's objectives and resources.

answer

If your Wendy's restaurant doesn't yet have the cooking equipment to make breakfasts and has a policy against spending more money on restaurant equipment, then don't try to reach the breakfast segment.

question

Marketing synergies

answer

Running horizontally across the grid, each row represents an opportunity for efficiency in terms of a market segment. Were Apple to focus on just one group of consumers such as the medium/large business segment, its marketing efforts could be streamlined

question

Product synergies.

answer

Running vertically down the market-product grid, each column represents an opportunity for efficiency in research and development (R&D) and production. If Apple wanted to simplify its product line, reduce R&D and produc- tion expenses, and manufacture only one computer, which might it choose? Based on the market-product grid, Apple might do well to focus on the iMac (the orange column), because every segment purchases it.

question

Product positioning

answer

refers to the place a product occupies in consumers' minds based on important attributes relative to competitive products

question

product repositioning

answer

or changing the place a product occupies in a consumer's mind relative to competitive products

question

Head-to-head positioning

answer

involves competing directly with competitors on similar product attributes in the same target market

question

product

answer

is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value

question

nondurable good

answer

is an item consumed in one or a few uses, such as food products and fuel.

question

durable good

answer

good is one that usually lasts over many uses, such as appliances, cars, and smartphones

question

Services

answer

are intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value

question

idea

answer

is a thought that leads to a product or action, such as a concept for a new invention or getting people out to vote

question

Consumer products

answer

are products purchased by the ultimate consumer

question

business products / B2B products or industrial products

answer

are products organizations buy that assist in providing other products for resale. Apple Imac

question

Convenience products

answer

are items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort.

question

Shopping products

answer

are items for which the consumer compares several alternatives on criteria such as price, quality, or style.

question

Specialty products

answer

are items that the consumer makes a special effort to search out and buy.

question

Unsought products

answer

are items that the consumer does not know about or knows about but does not initially want.

question

derived demand

answer

A major characteristic of business products is that their sales are often the result of derived demand; that is, sales of business products frequently result (or are derived) from the sale of consumer products.

question

Classifying Services

answer

(1) people or equipment, (2) business firms or nonprofit organizations, or (3) government agencies.

question

A product item

answer

is a specific product that has a unique brand, size, or price

question

product line

answer

is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range

question

product mix

answer

which consists of all of the product lines offered by an organization

question

Insignificant point of difference.

answer

Research shows that a distinctive point of difference is the single most important factor for a new product to defeat competing ones—having superior characteristics that deliver unique benefits to the user

question

Incomplete market and product protocol before product development starts.

answer

Without this protocol, firms try to design a vague product for a phantom market.

question

Not satisfying customer needs on critical factors

answer

Overlapping somewhat with point 1, this factor stresses that problems on one or two critical factors can kill the product, even though the general quality is high.

question

Bad timing

answer

This results when a product is introduced too soon, too late, or when consumer tastes are shifting dramatically. Bad timing gives new-product managers nightmares

question

No economical access to buyers

answer

Grocery products provide an example of this fac- tor. Today's mega-supermarkets carry more than 30,000 different SKUs

question

Poor product quality

answer

This factor often results when a product i not thoroughly tested. The costs to an organization for poo quality can be staggering and include the labor, materials, an other expenses to fix the problem—not to mention the los sales, profits, and market share that usually result

question

Poor execution of the marketing mix

answer

brand name, package, price, promotion, distribution. Somewhere in the marketing mix there can be a showstopper that kills the product.

question

Too little market attractiveness.

answer

The ideal is a large target market with high growth and real buyer need. But often the target market is too small or competitive to warrant the huge expenses necessary to reach it

question

Encountering

answer

"groupthink" in task force and committee meetings. Someone in the new-product planning meeting knows or suspects the product concept is a dumb idea. But that person is afraid to speak up for fear of being cast as a "nega- tive thinker," "not a team player," and then being ostracized from real participa- tion in the group

question

Avoiding the "NIH problem.

answer

A great idea is a great idea, regardless of its source. Yet in the bureaucracy that can occur in large organizations, ideas from outside often get rejected simply because they come from outside

question

Stage 1: New-Product Strategy Development

answer

is the stage of the new-product process that defines the role for a new product in terms of the firm's overall objectives.

question

disruptive innovation.

answer

product or technology that completely disrupts its business

question

Wikipedia.

answer

This free and community-edited online encyclopedia caused Encyclopedia Britannica to cease print production after 244 years.

question

Stage 2: Idea Generation

answer

the second stage of the new-product process, involves developing a pool of concepts to serve as candidates for new products, building upon the previous stage's results.

question

Employee and Co-Worker Suggestions

answer

Employees should be encouraged to suggest new-product ideas through suggestion boxes

question

Customer and Supplier Suggestions

answer

Firms ask their sales people to talk to customers and ask their purchasing personnel to talk to suppliers to discover new- product ideas

question

Research and Development Laboratories

answer

Another source of new products is a firm's own research and development laboratories.

question

Competitive Products

answer

Analyzing the competition can lead to new-product ideas.

question

Smaller Firms, Universities, and Inventors

answer

Many firms look for outside visionaries that have inventions or innovative ideas that can become products. Some sources of this open innovation strategy include

question

Smaller, nontraditional firms

answer

Small technology firms and even small, nontradi- tional firms in adjacent industries provide creative advances

question

Inventors.

answer

Many lone inventors and entrepreneurs develop brilliant new-product ideas—like Gary Schwartzberg's tube-shaped bagel filled with cream cheese

question

Universities

answer

Many universities have technology transfer centers that often partner with business firms to commercialize faculty inventions

question

five other crowdfunding sources

answer

Crowdrise. Charitable causes. Crowdtilt. Anything. Fundable. Early-stage financing for start-up businesses. Rally. Nonprofits, artists, musicians, entrepreneurs. GiveForward. Medical causes.

question

Internal Approach

answer

In this approach to screening and evaluation, a firm's em- ployees evaluate the technical feasibility of a proposed new-product idea to determine whether it meets the objectives defined in the new-product strategy development stage.

question

customer experience management (CEM)

answer

which is the process of managing the entire customer experience within the company.

question

External Approach

answer

Firms that take an external approach to screening and evaluation use concept tests, external evaluations with consumers that consist of preliminary testing of a new-product idea rather than an actual product.

question

Stage 4: Business Analysis

answer

specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections.

question

Stage 5: Development

answer

Development is the stage of the new-product process that turns the idea on paper into a prototype

question

Stage 3: Screening and Evaluation

answer

Screening and evaluation is the stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort.

question

product life cycle

answer

describes the stages a new product goes through in the marketplace: intro- duction, growth, maturity, and decline.

question

primary demand,

answer

the desire for the product class rather than for a specific brand

question

selective demand

answer

the preference for a specific brand.

question

skimming strategy

answer

to help the company recover the costs of development as well as capitalize on the price insensitivity of early buyers.

question

penetration pricing

answer

To discourage competitive entry, a company can price low, referred to as _________ This pricing strategy helps build unit volume, but a company must closely monitor costs.

question

Growth Stage

answer

of the product life cycle is characterized by rapid increases in sales. It is in this stage that competitors appear

question

primary demand,

answer

the desire for the product class rather than for a specific brand

question

Maturity Stage

answer

is characterized by a slowing of total industry sales or product class revenue. Also, marginal competitors begin to leave the market.

question

Decline Stage

answer

occurs when sales drop. Fax machines for business use moved to this stage in early 2005. By then, the average price for a fax machine had sunk below $100.

question

Modifying The Product

answer

involves altering one or more of a product's characteristics, such as its quality, performance, or appearance, to increase the product's' value to customers and increase sales.

question

product bundling

answer

A common approach to product modification to increase a product's value to consumers

question

Modifying the Market

answer

a company tries to find new customers, increase a product's use among existing customers, or create new use situations

question

Finding New Customers

answer

As part of its market modification strategy, LEGO is offering a new line of products to attract consumers outside of its traditional market. Known for its popular line of construction toys for young boys, LEGO has recently introduced a product line for young girls called LEGO Friends

question

Increasing a Product's Use

answer

Promoting more frequent usage has been a strategy of Campbell Soup Company. Because soup consumption rises in the winter and declines during the summer

question

Creating a New Use Situation

answer

Finding new uses for an existing product has been the strategy behind Dockers, the U.S. market leader in casual pants

question

Repositioning the Product

answer

Often a company decides to reposition its product or product line in an attempt to bolster sales. Product repositioning changes the place a product occupies in a con- sumer's mind relative to competitive products

question

Reacting to a Competitor's Position

answer

One reason to reposition a product is because a competitor's entrenched position is adversely affecting sales and market share.

question

Reaching a New Market

answer

When Unilever introduced iced tea in Britain, sales were disappointing. British consumers viewed it as leftover hot tea, not suitable for drinking.

question

Catching a Rising Trend

answer

Changing consumer trends can also lead to product repositioning. Growing consumer interest in foods that offer health and dietary benefits is an example

question

Changing the Value Offered

answer

In repositioning a product, a company can decide to change the value it offers buyers and trade up or down

question

Trading up

answer

involves adding value to the product (or line) through additional features or higher-quality materials.

question

Branding Strategies

answer

Companies can choose from among several different branding strategies, including multiproduct branding, multibranding, private branding, and mixed branding

question

multiproduct branding

answer

a company uses one name for all its products in a product class. This approach is sometimes called family branding or corporate branding when the company's trade name is used.

question

product line extensions

answer

the practice of using a current brand name to enter a new market segment in its product class.

question

subbranding

answer

which combines a corporate or family brand with a new brand, to distinguish a part of its product line from others

question

brand extension

answer

the practice of using a current brand name to enter a different product class.

question

co-branding:

answer

the pairing of two brand names of two manufacturers on a single product

question

Multibranding Strategy Alternately

answer

which involves giving each product a distinct name

question

fighting brands

answer

their chief purpose is to confront competitor brands

question

Private Branding Strategy

answer

A company uses private branding, often called private labeling or reseller branding, when it manufactures products but sells them under the brand name of a wholesaler or retailer.

question

Mixed Branding Strategy

answer

where a firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market

question

Packaging and labeling products

answer

The packaging component of a product refers to any container in which it is offered for sale and on which label information is conveyed. A label is an integral part of the package and typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients

question

Communication Benefits

answer

A major benefit of packaging is the label information it conveys to the consumer, such as directions on how, where, and when to use the product and the source and composition of the product, which is needed to satisfy legal requirements of product disclosure

question

Functional Benefits

answer

Packaging often plays a functional role—providing storage, convenience, or protection or ensuring product quality.

question

Intangibility

answer

Services are intangible; that is, they can't be held, touched, or seen before the purchase decision. In contrast, before purchasing a traditional product, a consumer can touch a box of laundry detergent, kick the tire of an automobile, or sample a new breakfast cereal

question

Inconsistency

answer

Developing, pricing, promoting, and delivering services is challenging because the quality of a service is often inconsistent. Because services depend on the people who provide them,

question

Inseparability

answer

A third difference between services and products, and related to problems of consistency, is ______. In most cases, the consumer cannot (and does not) separate the deliverer of the service from the service itself.

question

Inventory

answer

Inventory of services is different from that of products. Inventory problems exist with products because many items are perishable and because there are costs associated with handling inventory

question

idle production capacity

answer

which is when the service provider is available but there is no demand for the service.

question

The Service Continuum

answer

This range of product-dominant to service-dominant offerings is referred to as the

question

Classifying Services

answer

(1) they are delivered by people or equipment, (2) they are for-profit or nonprofit, or (3) they are government sponsored.

question

For-Profit or Nonprofit Organizations

answer

Many organizations involved in services also distinguish themselves by their tax status as for-profit or nonprofit organizations. In contrast to for-profit organizations, nonprofit organizations' excesses in revenue over expenses are not taxed or distributed to shareholders

question

Government Sponsored

answer

A third way to classify services is based on whether or not they are government sponsored. Although there is not directd ownership and they are nonprofit organizations,

question

How consumers purchase services

answer

(1) understand how the consumer makes a service purchase decision, (2) under- stand how the consumer evaluates quality, and (3) determine how to present a differen- tial advantage relative to competing offerings.

question

experience properties,

answer

which can be discerned only after purchase or during consumption. Finally, services pro- vided by specialized professionals such as medical diagnoses and legal services have

question

credence properties,

answer

or characteristics that the consumer may find impossible to evaluate even after purchase and consumption

question

gap analysis

answer

This type of analysis asks consumers to assess their expectations and experiences on dimen- sions of service quality such as those described

question

repeat purchasers

answer

people who tried the product, were satisfied,

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