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Protectionism

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Shielding one or more industries within a countries economy from foreign competition through tariffs or quotas

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Argument for Protectionism

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-Limits outsourcing of jobs -Protects nations political security -Discourages economic dependency on other countries -Promotes development of domestic industries

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EU- marketing effect

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Marketers don't need to market nation by nation b/c most tariffs were removed and fewer regulations exist

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Global Competition

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Firms originate, produce and market p/s worldwide

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International Firms

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Marketing strategy is extension, or the same, as the one used in home country

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Multinational Firms

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Markets differently to each part of world, multi domestic marketing strategy (each part of world is unique)

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Multidomestic Marketing

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Market differently to each part of world

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Transnational Firm

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Emphasizes cultural similarities across countries, focuses on universal consumer needs/wants rather than differences (world is one market); works best with B2B marketers

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Global Brand

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Brand marketed under same name in multiple countries with centrally coordinated marketing programs Ex. McDonalds arches are same everywhere, but sell beer in Germany

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Global Consumers

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Consumer groups living in many countries who seek out similar p/s

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Emergence of Networked Global Marketspace

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Internet technology- enables exchange of p/s and info from sellers anywhere to buyers anywhere at any time, lower cost

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Economic Espionage

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Collection of info about competitors

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Economic Espionage Act 1996

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Made theft of trade secrets fed offense Prison time- 15 yrs Fine- 500,000

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Cross Cultural Analysis- Definition

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Similarities and differences among consumers from two or more nations or societies Assess: values, customs, cultural symbols, language

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Values

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Represent personally or socially preferable modes of conduct Affects attitudes, beliefs and behavior Ex. Mcdonalds not selling beef in India, Germans being unreceptive to credit cards

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Customs

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Considered normal and expected of people from specific country

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Foreign Corrupt Practices Act 1977

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Made bribery of foreign gov official a crime for US corporations

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Cultural Symbols

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Things that rep ideas and concepts of specific culture ex. number of hand gestures

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Language

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100 official languages, 3,000 different ones at least

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Back Translation

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Translated word or phrase is retranslated back to original language to catch errors

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Economic Considerations

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Scan of global marketplace should include: assessment of economic infrastructure, measurement of consumer income, and recognition of country's currency exchange rates

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Economic Infrastructure

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Country's communication, transportation, financial, and distribution systems are critical in determining whether or not to market in specific area

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Consumer Income and Purchasing Power

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Consider avg per capita or household income in country

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Currency Exchange Rates

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Price of one country's currency expressed in terms of another country's currency

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Political Stability

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Affects trade among nations

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Trade Regulations

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Ex. car safety rules, pharmaceutical regs

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Global Market-Entry Strategies

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-Exporting -Licensing -Joint Venture -Direct Investment

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Exporting

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Producing products in one country and selling in another; indirect and direct

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Indirect Exporting

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Firm sells produced products in foreign country through intermediary, often sold through distributor Less risk Least Profit

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Direct Exporting

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No intermediaries are used when a firm produces and sells products in a foreign country More Risk More Profit

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Licensing

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Offers right to trademark, patent, trade secrets for a royalty Low risk & capital free entry in foreign country Licensor has control, can modify product; reduces profits

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Franchising

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Variation of licensing

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Joint Venture

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Foreign company and local firm invest in creating local business, share control, ownership and profits Advantages: one company may not have resources to enter market alone Disadvantages: disagreements may arise

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Direct Investment

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Domestic firm investing in and owning a foreign subsidiary or division Advantages: cost savings, better understanding of local market, fewer local restrictions Disadvantages: biggest risk

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Marketing Channel

answer

Consists of individuals and firms involved in process of marking p/s available for consumption by end user Producer to intermediaries to buyer

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Middleman

answer

Any intermediary between manufacture and end user

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Agent or Broker

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Any intermediary with legal authority to act on behalf of manufacturer

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Wholesaler

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Intermediary who sells to other intermediaries, usually retailers

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Retailer

answer

Intermediary who sells to consumer

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Functions of Intermediaries

answer

-Transactional Function -Logistical Function -Facilitating Function

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Transactional Function

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Buying: purchasing products for resale of as agent for supply of product Selling: contacting potential customers, promoting products, seeking orders Risk taking: assuming business risks in ownership of inventory that can become obsolete or deteriorate

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Logistical Function

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Assorting: creating product assortments from several sources to serve customers Storing: assembling and protecting products at convenient location for better customer service Sorting: purchasing in large quantities and breaking into smaller amts desired by customers Transporting: getting product to customer

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Facilitating Function

answer

Financing: extending credit to customer Grading: inspecting, testing, or judging products and assigning grades Marketing info and research: providing info like competitive conditions and trends to consumers

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Consumer benefits

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Marketing channels results in having p/s when, where, and in the form the consumer wants them Time utility Place utility Form utility Possession utility

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Direct Marketing Channel

answer

Consumer and producer deal directly with one another

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Indirect Marketing Channel

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Intermediary involved between producer and consumer

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Internet Marketing Channels

answer

Create all four forms of utility (time,place,form,possession) by combining electronic and traditional intermediaries

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Direct Marketing (Internet Channel)

answer

Consumer buys product without meeting face to face with a salesperson Ex. mail-order selling, direct mail sales, catalog sales, telemarketing, interactive media, televised home shopping

question

Multichannel Marketing

answer

Blending of different communication and delivery channels that mutually reinforce attracting, retaining, and building customer relationships who shop in traditional intermediaries and online Value adding capabilities

question

Dual Distribution Alliance

answer

Firm reaches different buyers by employing 2 or more different types of channels for the same product

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Strategic Channel Alliance

answer

One firm's marketing channel is used to sell another firm's products Popular in global mkts

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Vertical Marketing Systems

answer

Improves efficiency in performing channel functions Corporate Systems Contractual Systems Administered Systems

question

Corporate Systems

answer

Successive stages of production and distribution under single ownership Forward Integration: owning intermediaries Backward Integration: owning manufacturing component

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Contractual System

answer

Independent production and distribution firms integrate efforts on a contractual basis Achieves greater functional economies and marketing impact than they could have alone

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Administered System

answer

Achieve coordination at successive stages of production and distribution by size and influence of one channel member rather than through ownership DOES NOT ATTEMPT TO OWN INTERMEDIARIES

question

Channel Choice

answer

Assess target market coverage, buyer requirements, and profitability when choosing a distribution channel for products

question

Target Market Coverage

answer

Attention to number of stores in geographical area, determines distribution approach: intensive, exclusive, selective

question

Intensive Distribution

answer

Firm places p/s in as many outlets as possible Ex. candy, fast food, newspapers, soft drinks

question

Exclusive Distribution

answer

One retailer in specific geographical location; specialty p/s

question

Selective Distribution

answer

Few retailers Ex. Dell Inc.

question

Buyer Requirements

answer

Make sure buyers interest are fulfilled: Information Convenience Variety Pre/Postsale Services

question

Profitability

answer

Cost of distribution, advertises and selling expenses associated with different types of marketing channels

question

Logistics

answer

Involve activities that focus on getting right amount of products to right place at right time, at lowest possible cost

question

Logistics Management

answer

Organize cost effective flow of raw material, in process inventory, finished goods, and related info from point of origin to point of consumption to satisfy customer requirements

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Supply Chain

answer

Refers to various firms involved in performing activities required to create and deliver p/s to consumer

question

Aligning Supply Chain with Marketing Strategy

answer

-Undertand customer: identify needs -Understand supply chain: what is designed to do well (responsive to customer requirement or emphasizing efficiency -Harmonize supply chain with marketing strategy: targeted customer needs and marketing strategy

question

Cross Docking

answer

Involves unloading products from suppliers, sorting products from stores, and quickly releasing products onto trucks

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Total Logistics Cost Concept

answer

Includes expenses associated with transportation, materials handling and warehousing, inventory, order processing, and retune products handling

question

Customer Service Concept

answer

Ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience

question

Value of Retailing

answer

Creates value with utilities provided: place, possession, time, form (production or alteration of product- create your own)

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Form of Ownership

answer

Classifies retail outlets into independent retailers, corporate chains, or contractual systems

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Independent Retailer (Classifying Retail Outlet)

answer

Owner is the boss, 1.1 million establishments Can offer convenience, personal service, lifestyle compatibility

question

Corporate Chain (Classifying Retail Outlet)

answer

Multiple outlets under common ownership Large chains can bargain with manufacturer to obtain g/s at discount, buying power translates into lower prices for consumer Ex. Macy's

question

Contractual System (Classifying Retail Outlet)

answer

Independently owned stores ban together to act like chain Ex. grocers agree to buy food from manufacturers to take advantage of volume discounts

question

Level of Service

answer

Describes the degree of service provided to customer: self, limited, full

question

Self Service

answer

Ex. gas stations, ordering online, self checkout lanes

question

Limited Service

answer

Customers responsible for most shopping, some salespeople available in certain departments Ex. Credit on merchandise return

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Full Service

answer

Sell to more distinctive, higher margin goods and retain customers Ex. specialty stores

question

Merchandise Line

answer

Describes how many different types of products a stores carries and in what assortment

question

Depth of Merchandise Line

answer

Number of products within each product line Limited-line Stores Single-line Stores Specialty Outlets Ex. Shoes: Nike, Adidas, Rain Boots, Ballet Shoes etc.

question

Limited-line Stores (Depth of Merch line)

answer

Carries considerable assortment of a related line of items

question

Single-line Stores (Depth of Merch line)

answer

Carries one huge primary line Ex. Victoria's Secret

question

Specialty Outlets ( Depth of Merch line)

answer

Combination of single-line and limited-line stores

question

Breadth of Merchandise Line

answer

Number of different product lines General Merchandise Stores Ex. Shoes, Appliance, Books, Clothing

question

General Merchandise Store

answer

Carries board product line with limited depth Ex. Dillard's, Macy's Carries wide range of different products but not unusual sizes

question

Non-Store Retailing

answer

Automatic vending- V commerce Direct Mail&Catalogs Television Home Shopping Online Retailing Telemarketing Direct Selling

question

Automatic Vending or V-Commerce

answer

Serves customers when and where stores cannot Moving toward green machines 31% drinks, 21% candy, 5% food

question

Direct Mail&Catalogs

answer

"Store that comes to the door" Eliminates cost of store workers, improves market efficiency through segmentation and targeting; catalogs used as tool to get customers to visit website or store

question

Television Home Shopping

answer

Normally reach 40-60 age group Ex. QVC, HSN

question

Online Retailing

answer

Search for, evaluate, and order products over internet Pro: 24 hr access, ability for comparison Con: 2/3 online consumers leave site to compare prices and 70% don't return

question

Telemarketing

answer

More efficient than direct mail sales exceed 332 billion Has had issues with legislation

question

Direct Selling

answer

Door to door retailing, in home or office 29 billion in sales

question

Markup

answer

Added to cost paid by retailer for product Difference between final selling price and retailer cost is maintained markup or gross margin

question

Discounting

answer

Markdown

question

Regional Shopping Center

answer

50-150 stores in a small area which often contain anchor stores

question

Anchor Store

answer

Well-known national or regional store

question

Strip Mall

answer

Cluster of stores who serve customers within a 5-10 minute drive Ex. gas stations, hardware store, laundry, grocery

question

Power Center

answer

Huge shopping strip with multiple anchor stores

question

Multichannel Retailers

answer

Utilize and integrate a combo of traditional store formats and nonstore formats Ex. Catalogs, television, online retailing

question

Retail Communication

answer

The way a store is defined in a consumer's mind; partially functional qualities, partially an aura of psychological attitudes

question

Functional

answer

Mix of elements including: Price range Store layouts Breadth&Depth of merch lines

question

Shopper Marketing

answer

Use of displays, coupons, product samples, and other brand communication to influence behavior in store

question

Category Management

answer

Assign manager the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other

question

Wed 2.0

answer

Not any technical update** identifies functionalities that make possible todays high degree of interactivity among users ( content can be continuously modified on blogs and wikis

question

Classifying Social Media

answer

Media richness- face to face is higher in richness than telephone or email Self Disclosure- to what degree a person shares their thoughts, feelings, likes and dislikes

question

Comparing Social and Traditional Media

answer

Social Media- accessible anywhere at anytime at low cost, requires little skill/can be done alone, happens instantaneously, can be altered, hard time establishing credibility, users have less privacy and anonimity Traditional Media- can be expensive with limited access, requires training and skills, could take long time to deliver the communication, once created it cannot be altered, consists of experts and influencers, recipients are rarely known

question

Personal Selling

answer

2 way flow of communication between buyer and seller, usually face to face

question

Sales Management

answer

Planning selling program and implementing and evaluating personal selling efforts

question

Relationship Selling

answer

Practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time

question

Personal Selling Process

answer

1. Prospecting- search for and qualify prospects through add referrals and cold canvassing 2. Preapproach- gather info and decide how to approach prospect from personal observation, other customers, own salespeople 3. Approach- gain attention of prospect, stimulate interest through product demonstration or references to common acquaintances, make transition to presentation 4.Presentation- begin converting prospect into customer by creating desire for product; deal with objections professionally 5. Close- obtain commitment and create customer 6. Follow Up- ensure customer is satisfied with p/s

question

Sales Management Process

answer

1. Sales plan formulation- set objectives, organize salesforce, develop acct management policies (specifying who salespeople should contact and what kind of customer service to engage in) 2. Sales Plan Implementation- salesforce recruitment and selection, training salesforce, salesforce motivation and compensation 3.Salesforce Evaluation- quantitative assessment, behavioral evaluation

question

Major Account Management

answer

Practice of using team selling to focus on important customers to build long term relationships

question

Marketplace

answer

Traditional buyers and sellers engage in face to face exchanges mostly characterized by physical facilities, dealing with mostly tangible objects

question

Marketspace

answer

enabled digital environment characterized by face to screen exchanges

question

Greatest Marketspace Opportunity for Marketers

answer

Creating form utility, interactive 2 way internet has made that possible because consumers can tell marketers their criteria

question

Capabilities of Internet Technology that Promote Customer Relationships

answer

Interactivity- listen to consumers and respond to needs Individuality- treat customers as individuals

question

Interactive Marketing

answer

Involves two way buyer seller electronic communication in computer mediated environment where buyer controls what kind and amount of info received from seller

question

Choiceboard

answer

Internet enabled system that allows consumers to design own p/s by answering questions and choosing from a menu of components

question

Collaborative Filtering

answer

Process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases

question

Personalization

answer

Customer initiated practice of generating content on marketers website that is custom tailored to individual's specific needs and preferences

question

Permission Marketing

answer

Solicitation of a consumer's consent to receive email and ads based on personal data supplied by consumer

question

Online Customer Experience

answer

-Context: websites aesthetic appeal and functionality -Content: all digital info on website -Customization: ability of the site to modify itself or be modified for users -Connection: network of linkages between company's site and other sites -Communication: dialogue that unfolds between website and users (many companies encourage user to user communications of website) -Commerce: website's ability to conduct sales transactions for p/s

question

Why Consumers Shop Online

answer

-Convenience: bots used to compare prices -Choice: exists in p/s selection by customer, internet technologies has invited consumers to engage in online dialogue with marketers to make more informed decision -Customization -Communication: 1. marketer to consumer email notification 2. consumer to marketer buying and service requests 3. consumer to consumer chat rooms and social networking -Consumer Cost: many items bought online can be bought at same price or cheaper in retail store Control- provides control over their shopping experience and purchase decision process **80% of online sales happen monday-friday

question

Web Communities

answer

Websites that allow people to congregate online and exchange views

question

Viral Marketing

answer

Internet enables promotional strategy that encourages consumer to forward marketer initiated messages to other via email or social networking

question

Showrooming

answer

Shopper visits retail store to inspect merch but later buyer online

question

Dynamic Pricing

answer

Changing prices for p/s in real time in response to supply and demand

question

Cookies

answer

Computer files that marketer can download onto device of online shopper to visits site, creates behavioral targeting

question

Behavioral Targeting

answer

Advertisements are chosen for you based on search history

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