Marketing Chapter 7 & 8 – Flashcards
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What is globalization? (Pg. 122)
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Process by which goods, services, capital, people, information, and ideas flow across national borders.
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Is it true most Americans take globalization for granted? (Pg. 123)
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Yes
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Who moderates/oversees the global market/general rules of trade and trade conflicts? (Pg. 124)
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the World Trade Organization (WTO), which replaced the General Agreement on Tariffs and Trade (GATT)
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What is the objective of the World Trade Organization (WTO) and what is their role? (Pg. 125)
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Objective=to help trade flow smoothly, freely, fairly, and predictably Role= act as a forum for negotiations among countries, settles trade disputes etc. etc. etc.
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What is the objective of the GATT? (Pg. 125)
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Lower trade barriers, for free flow of goods
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What is the objective of the IMF and the World Bank (Pg. 125)
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Promoting Globalization to fighting poverty, improving living standards IMF= primary purpose is to promotes international monetary cooperation & facilities expansion and growth of international trade World Bank= A LARGE developed bank that provides loans, policy advice, technical assistance, and knowledge services to low/middle income countries.
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How does the WTO differ from the Gatt it replaced
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The WTO is the ONLY organization that deals with global RULES of trade
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Explain the (stages) of The Global Development of Countries & provide examples of countries in each stage (ppt Chap 7 slide 6)
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Less Developed Countries (LDC) -lowest stage ...agricultural based economy Developing Countries -second stage... economies shift from agriculture to industry; standards of living, education, and use of technology rise (examples include: China, So. Korea, Thailand..) Developed Countries -economically advanced countries (US, UK, Canada, France, Italy, Germany, Japan - G7)
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Why would you conduct a glabal market assesment? (Pg. 125)
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Because different countries may be at different stages of globalization
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What are the things you assess to test the viability of a potential market entry? (See Diagram Pg. 126 or ppt Chap 7 slide 7)
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1. Economic Assesment 2. Infrastructure and Technology (analysis 3. Government Actions 4. Sociocultural Analysis
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What does the economic analysis assess &What does the sociocultural analysis assess?
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Economic analysis= How well the country is economically doing Sociocultural analysis= What is socially acceptable in that country
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What is involved in conducting an economic analysis? (Pg. 126)
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-Assess general economic enviornment... 2 indicatiors= (GDP & GNP) -Assess market size & population growth (today & tommorow) -Evaluate Real Income (or the real income of the people in the actual market)
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What is Gross Domestic Product (GDP)? (Pg. 126)
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the dollar value of goods and services a country produces within its borders
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What is Gross National Product (GNP)? (Pg. 126)
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the value of all goods and services produced by a country's individuals or organizations whether in or out of country borders
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What are other economic assessments that could be made?
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Percent of Population Below Poverty Level Per capita GDP Unemployment Rate Average Income
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How to you evaluate Market Size and pupulation grown? (Pg. 127)
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Just check to see if your market size and population are changing
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What is involed in evaluating real income? (ppt Chap 7 slide 10)
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Evaluate income Adjust product packaging Adjust product pricing... (According to peoples real country income)
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What is incolved in evaluating infrastructure and technology? (ppt Chap 7 slide 12)
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Transportation -Does the country have trucks/ a way to send products to customers? Communication -Does the country have phones? Distribution Channel -Are there roads built we can distribute? Commerce -Does the country have a sound banking system?
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What is involved in assessing government action? (Pg. 130)
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-Protectionism (Tarrif & Quota) -Trade Agreements -Boycott
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What is protectionism? (ppt Chap 7 slide 15)
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Protectionism is a government policy which seeks to provide HOME companies an advantage over foreign companies by implementing trade barriers ... (such as quotas and tarrifs)
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What is important to keep in mind about both Tarriffs and quotas? (ppt Chap 7 slide 14)
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Both benefit domestically made products because they reduce foreign competition
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What is a tarriff? (ppt Chap 7 slide 14)
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Tax Artificially raises prices Lowers demand
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What is a quota (ppt Chap 7 slide 14)
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Supply limit Reduces availability of imported goods
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What is a boycott? (Pg. 131)
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A groups refusal to deal commercially with some organization
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What is dumping? (Pg. 130)
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The Practice of selling a good in a foreign market at a price lower than its domestic price or cost.
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What is gray market? (ppt Chap 7 slide 20)
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When unauthorized party imports products and sells them for less.
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What is involved in analizing Sociocultural Factors? (Pg. 134)
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1. Power Distance - willingness to accept social inequality as natural 2. Uncertainty Avoidance - extent of reliance on orderliness, consistency, structure to guide daily life 3. Individualism - perceived obligation to and dependence on groups 4. Masculinity - extent to which dominant values are male oriented 5. Time Orientation - short- versus long-term orientation
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What is ethnocentrism (ppt Chap 7 slide 24)
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The tendency to prefer products or people of one's own culture over those from other countries
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Draw the Risk Vs. Control Diagram on Choosing a Global Entry Strategy (Notes 2/21/11 & ppt Chap 7 slide 25)
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...
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In terms of the Global Marketing Mix: What are the potential global Product or Service Strategies? (Pg. 138)
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3 Potential Strategies... 1. Sell the same product or service in both the home country market and host country 2. Sell a product or service similar to that sold in home country but include minor adaptations 3. Sell totally new products or services
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In terms of the marketing mix, what do firms need to do when globalizing? Give an example
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Change the 4p's Example: Product -OREO cookie in China has less sugar & smaller packaging that can fit in the Chinese pantries Price -OREO cookie cheaper in China Promotion -OREO cookie adds in china has kids teaching parents to eat oreo not the other way around -In Venezuela more driving, so more billboard adds
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Explain Standardization Vs. Localization (ppt Chap 7 slide 29)
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Standardization suggests that greater efficiencies and economies of scale are generated when all marketing is the same in each country (All products are the SAME) Localization recognizes that customer satisfaction will be highest when the marketing mix is tailored to local needs and wants (Make a CHANGE to sell the product to another area)
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What is semiotics... give an example (ppt Chap 7 slide 35)
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Semiotics is concerned with the correspondence between symbols and their role in the assignment of meaning for people Example: Coca-Cola took local landmarks and inserted Coke Bottles. Accepted in France ... but not in Greece.
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What are the ethical concerns with globalized marketing? (ppt Chap 7 slide 36)
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Environmental Concerns Fair Wages Working conditions Child Labor Cultural Impacts
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Briefly Describe Segmentation, Targeting, and Positioning (STP) (Pg. 145-146)
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Segmentation= Diving Markets Targeting= Deciding who you want to target Positioning= Positioning yourself in that targeted market
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Explain or draw the STP process (Pg. 146)
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Segmentation Step 1: Establish Strategy & Objectives Step 2: Describe Segments Targeting Step 3: Evaluate Segment Attractiveness Step 4: Select Target Market Positioning Step 5: Identify & Develope Positioning Strategy
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Explain Step 1 in the STP process (Pg. 146-147)
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Step 1: Establish Strategy & Objectives -Make sure Objective and Strategies are consistent with mission statement
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Explain Step 2 in the STP process, what are its parts? (Pg. 148)
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Step 2: Describe Segments -Geographic: North America, Europe , Brazil, City, Country -Demographic: Age, Gender, Income -Psychographic: Innovaters, Thinkers, Believers, Strivers, etc. -Benefits: Concenienve, presteige, economic -Geodemographic: Urban, established, sophisticated -Loyalty: Not loyal, loyal, completely loyal
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What is lifestyle? (Pg. 151)
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Part of Describing Segments The pattern of living that determines how people choose to spend their time, money, and energy and that reflects their values, tastes, and preferences.
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Explain Psychographics more (Pg. 152)
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Segments markets in terms of shared attitudes, interests, and opinions -Survivors -Makers -Innovaters -Thinkers -Believer -Achiever -Striver -Experiences
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What are the benefits of segmentation? (ppt Chap 8 slide 47)
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Emphasizing a benefit to a certain segment Ex: Being green, healthy
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Explain more about loyalty segmentation (Pg. 153)
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It's much cheaper to keep an existing customer b/c a longer Liftetime Value
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Whats the 80/20 rule? (ppt Chap 8 slide 48)
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A marketing rule of thumb that 20% of purchasers account for 80% of the product's sales.
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Whats long tail? Give an example (ppt Chap 8 slide 49)
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A new approach to segmentation based on the idea that companies can make money by selling small amounts of items that only a few people want, provided they sell enough different items. Example: Amazon.com has 3.7M books as compared to Barnes & Noble with 100k.
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What is usage occasion? Why is this important give example... (ppt Chap 8 slide 50)
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When a consumer uses a product such as, time of day, holidays, business functions, or casual get-togethers. ex: go tarts created for a on the go occasion
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Explain step 3 in the STP process (Pg. 154-157)
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Targeting Step 3: Evaluate Segment Attractiveness A viable target segment should satisfy ALL the following requirements... Indentifiable: Are members of the segment similar to each other but different from other segments? Substantial: Can marketers measure the size of the segment? Is the segment large enough to be profitable now and in the future? Reachable: Can marketing communications reach the segment? Is there a distribution channel to this segment? Responsive: Will the market respond to "your" proposition? Can the marketer serve the segment's needs? Profitable: Can the firm make money?
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What are the different targeting strategies? & provide examples... (Pg. 148-148 and ppt Chap 8 slide 54)
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1. Undifferentiated Marketing- Appeals to a broad Spectrum of people. (Example: Walmart) 2. Differntiated Marketing- (Slightly Different) Developing one or moreproducts for each of several distinct customer groups. (Example: L'Oreal / Lancome) 3. Concentrated Marketing- Focusing one or more products on a single segment. (Example: Hard Candy) 4. Micromarketing or Customized Marketing-Tailored products targeted at INDIVIDUAL customers.
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What is mass customization? and give an example? (ppt Chap 8 slide 55)
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An approach that modifies a basic good or service to meet the needs of an individual. Example: Dell Computers b/c can customize for the needs of individuals
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In step 5, define positioning (ppt Chap 8 slide 56)
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Developing a marketing strategy aimed at convincing a particular market segment that your product best meets their needs.
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What is brand personality and give an example (ppt Chap 8 slide 60)
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A distinctive image that captures a product's character and benefits. Ex: Some products are seen as chealp, or elegant, sexy, or cutting edge
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What is perceptual map and give an example (ppt Chap 8 slide 61)
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A vivid way to construct a picture of where products or brands are "located" in consumer's mind. Example: Magazines Fashion - Vogue, Cosmo, Glamour Traditional - Family Circle, Redbook Health - Self, Fitness
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Give an example of repositiong... think.
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Baking soda not just used to clean, we reposition in the market and say you can use it as tooth cleaner or volcano maker etc.
