question

Definition of Marketing

answer

Activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large

question

Goals of Marketing

answer

Attract new customers by promising superior value Keep and grow current customers by exceeding expectations, delivering not just satisfaction but delight

question

What is the basis of modern marketing?

answer

Exchange

question

Five Key Ideas of Marketing

answer

Does not occur by accident Non businesses also engage in marketing Marketers decide what to offer market and how to price, promote, and deliver Marketing is an exchange process Marketers and individuals enter into exchanges for a purpose: to obtain value/benefit

question

Exchange Definition

answer

Act of obtaining a desired object from someone by offering something in return

question

Exchange Requirements

answer

At least two parties Each party has an unsatisfied need or want Each party has something of value to offer the other OPPORTUNITY FOR COMMUNICATION

question

Steps in the Marketing Process

answer

1. Discover consumer needs and wants 2. Design a CUSTOMER-DRIVEN marketing strategy that creates consumer satisfaction and delight 3. Build profitable relationships by consistently delivering superior value 4. Capture value from customers to create profits and customer quality

question

Value

answer

Benefits you get from doing something vs the cost More value = more satisfaction

question

Need

answer

STATE OF FELT DEPRIVATION including physical, social, and individual needs Is INNATE

question

Wants

answer

Form that a human need takes, as shaped by culture and individual personality

question

Demand

answer

Wants + Buying Power

question

Marketing Myopia

answer

Occurs when sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products Happens if you can't keep needs and wants separate

question

Where do market failures come from?

answer

Failure to adapt Failure to see opportunities

question

Market

answer

SET OF ACTUAL AND POTENTIAL BUYERS These people share a need or want that can be satisfied through exchange relationships Has demand and supply

question

Marketing Offer

answer

Fulfills needs and wants Some combination of products, services, information, or experiences offered to a market to satisfy a need or a want

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Products

answer

Persons, places, organizations, information, ideas

question

Services

answer

Activity or benefit offered for sale that is essentially intangible and doesn't result in ownership

question

Brand Experiences

answer

Dazzle their senses, touch their hearts, stimulate their minds

question

Marketing Management

answer

The art and science of answering two basic questions for a marketing strategy: What customers will we serve? How can we best serve these customers?

question

Marketing Mix

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Putting together certain factors to best satisfy customers

question

Marketing Strategy

answer

Controllable variables

question

Marketing Environment

answer

Uncontrollable variables Demographics, regulations, laws, economy, technology, competition

question

Market segmentation

answer

Dividing market into segments of customers based on different wants

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Target Marketing

answer

Selecting one or more segments to cultivate

question

What are the components of the marketing mix?

answer

Product Price Place (Distribution) Promotion

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Differentiation

answer

Creating superior value by actually differentiating the market offering through features, style, design, and quality

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Positioning

answer

Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers What comes to mind when think of brand?

question

Distinctive Competence

answer

A source of unique and sustainable competitive advantage; something your firm can do better then others

question

Value Proposition

answer

Set of benefits or values a company promises to deliver to consumers to satisfy their needs

question

Partners inside firm to deliver superior value

answer

All employees customer focused Teams coordinate efforts towards customers

question

Partners outside firm to deliver superior value

answer

Supply chain management Strategic alliances

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Relationship

answer

Mutual, getting need satisfaction, implies trust and loyalty

question

What are relationships built on?

answer

VALUE AND SATISFACTION

question

How to deliver superior value to build relationships?

answer

Organizational strategy and execution Providing exceptional customer value Achieving completely satisfied customers Earning high customer loyalty Increased sales growth and profits

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Perceived Value

answer

Customer's evaluation of the difference b/w all of the benefits and all of the costs of a marketing offer relative to those of competing offers

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Customer Satisfaction

answer

Dependent on the PERCEIVED PERFORMANCE RELATIVE TO EXPECTATIONS Often leads to loyalty

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Customer Classifications

answer

Butterflies True Friends Strangers Barnacles

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Butterflies

answer

Good fit and high profit potential Go from store to store but like what we offer

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True Friends

answer

Good fit and highest profit potential Love what we offer and keep coming back Highly loyal

question

Strangers

answer

Little fit and LOWEST profit potential Come shop sporadically and don't particularly like what we offer

question

Barnacles

answer

Limited fit and low profit potential Keep coming back but don't particularly like us Suck up resources but don't give much in return

question

What customer classification should be a business's main focus?

answer

True Friends Use benefits and rewards and follow their tastes

question

Demarketing

answer

Can be a way to get rid of barnacles Temporarily or permanently reducing the number of customers or shifting their demand Bank ex: Charging high fees for people with low daily checking account balances

question

Demand Management

answer

FIND AND INCREASE DEMAND Focus on true friends and butterflies

question

Customer Lifetime Value

answer

Entire stream of purchases that the customer would make over a lifetime of patronage

question

Share of Customer

answer

Share a company gets of the customers purchasing in their product categories

question

Production Concept

answer

GOODS AS CHEAPLY AS POSSIBLE Focus on distribution efficiency and increased production

question

Product Concept

answer

Assumes people want new and better things all the time

question

Selling (Sales) Concept

answer

Assumes people won't buy a particular brand unless it is aggressively sold to them Use large scale promotion to encourage customers to buy the product (Marketing is really sales)

question

What is the predominant marketing philosophy today?

answer

The Marketing Concept

question

The Marketing Concept

answer

MUST KNOW NEEDS AND WANTS OF TARGET MARKET and MUST USE INTEGRATED MARKETING TO DELIVER, MUST SATISFY MORE THEN COMPETITORS

question

Three Key Ideas of Marketing Concept

answer

Deliver Customer Satisfaction Using integrated Marketing Achieve organizational goals

question

Societal Marketing Concept

answer

Deliver value in a manner that maintains or improves the customer's and society's wellbeing

question

Three Basic Aspects of Societal Marketing Concepts

answer

Accountability to society and consumers for actions Responsibility to help improve society Sustainability- green initiatives, sustain environment

question

Strategy

answer

Long-term course of action identifying goals and how to achieve them

question

Strategic Planning

answer

DEVELOPING AND MAINTAINING FIT b/w GAOLS, CAPABILITIES AND ENVIRONMENT

question

At what levels does strategic planning occur?

answer

Corporate level SBU level Functional level

question

Steps in Corporate Strategic Planning

answer

MISSION SWOT OBJECTIVES AND GOALS BUSINESS PORTFOLIO GROWTH STRATEGIES FUNCTIONAL STRATEGIES

question

SWOT Analysis

answer

Defines the current situation of the organization Strengths Weaknesses Opportunities Threats

question

Strengths

answer

Internal capabilities that may help a company reach its objectives

question

Weaknesses

answer

Internal limitations that may interfere with a company's ability to achieve its objectives

question

Opportunities

answer

External factors that the company may be able to exploit to its advantage

question

Threats

answer

Current and emerging external factors that may challenge the company's performance

question

What do our strengths determine?

answer

How vulnerable we are to threats

question

What do our weaknesses tell us?

answer

How big of a problem threats will be

question

What do our weaknesses determine?

answer

Constraints on opportunities

question

Business objectives generally focus on outcomes that are

answer

Measurable Profits, sales, market share but also social responsibility

question

Marketing objectives often include

answer

Intangible constructs Brand awareness, attitude, purchase intention

question

Metrics

answer

Measure of the quantitative value or trend of a marketing activity or result

question

Brand Awareness

answer

Could be define as "in unaided recall, the percent of a sample of consumers who name our brand within the first three names"

question

Dashboards

answer

Way to visually show measured metrics

question

Business Portfolio

answer

Collection of businesses and products that make up the company

question

SBU

answer

Strategic Business Unit Unit of company that has a separate mission and objectives and that can be planned independently from other company businesses

question

Portfolio Analysis

answer

EVALUATING SBUS Supports resource allocation decisions

question

BCG Growth Share Matrix

answer

Horizontal is relative market share Vertical is market growth rate

question

Relative Market Share

answer

Ratio of firm's market share compared to its largest competitor's share Serves as proxy to the strength of the SBU

question

Higher share translates to

answer

Greater sales volume Lower costs due to ECONOMIES OF SCALE, EXPERIENCE CURVE, BARGAINING POWER

question

Market Growth Rate

answer

Indicates degree of attractiveness of an industry High Growth Market- more money needed to keep up Low Growth Market- mostly just maintenance

question

Order of BCG Growth-Share Matrix

answer

Upper right corner: Question Mark Goes counter clock wise- Question mark, star, cash cow, dog

question

Question Mark

answer

Not much money going in but a lot of money coming out Either build to star or let slip to dog

question

Star

answer

Lot of money going in and out Essentially a wash

question

Cash Cow

answer

Surplus money comes from here

question

Dog

answer

Negative Let go or sell sometimes may want to keep

question

Grow Strategies

answer

Market penetration Product development Market development Diversification

question

Market Penetration

answer

Sell more current products to current market

question

Market Development

answer

Take current product and try to develop new markets

question

Product Development

answer

Take new product into existing market

question

Diversification

answer

New product into new markets Most risk

question

How does marketing play a key role in corporate and SBU strategic planning?

answer

Provides a guiding philosophy Provides inputs to strategic planners Designs strategies to reach corporate objectives

question

What is the marketing concept?

answer

Provide need satisfaction by integrating decisions and profit for an organization

question

What are the three phases of the strategic marketing process?

answer

Planning Implementation Control

question

Two keep components of developing a marketing strategy

answer

Id target market Develop marketing mix

question

Four components to implementing a marketing plan

answer

GET RESOURCES DESIGN ORGANIZATION DEFINE TASKS EXECUTE

question

Marketing Environment

answer

Consists of actors and forces OUTSIDE of organization that affect management's ability to build and maintain relationships with target customers "uncontrollable forces"

question

Environmental Scanning

answer

Process of acquiring information about events and trends occurring in the environment

question

Two Pieces of Social Marketing Environment

answer

Demographics Cultures

question

Demographics

answer

Study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics

question

What is the most important demographic trend?

answer

The changing age structure of the US population

question

Baby Boomers

answer

Born b/w 1946 and 1964 Nearly 30% of population Spend on anti-aging products and services, new housing, travel, etc

question

Generation X

answer

Born b/w 1965 and 1976 Cares about the environment Prizes experience, not acquisition Skeptical of marketing messages, research purchases carefully, use communities to share info Rely on opinions of others rather then marketing

question

Generation Y

answer

Echo boomers Born b/w 1977 and 1994 Large teen and young adult market Fluent with computer and digital technology Personalization and product customization are key to marketing success

question

Millennials

answer

Born since 1995 Includes tweens and teens

question

Household

answer

Housing unit with one or more people

question

Family household

answer

At least two members related by birth, marriage, or adoption, one of whom is the householder

question

Non family Household

answer

Can be either a person living alone or a householder who shares the housing unit with non relatives

question

Trends in average household size

answer

Diminishing size of household Less people are married with children One person household and non family households rising

question

Statistical Metropolitan Area

answer

One or more adjacent counties or county equivalents that have at least one urban core area of at least 50,000 population plus adjacent territory that has a high degree of social and economic integration with the core as measured by commuting ties (84% of pop)

question

Micropolitan Statistical Area

answer

Based around an urban cluster Population of 10,000 to 49,0000

question

Culture

answer

Consists of the set of values, ideas, and attitudes that are learned and shared among the members of a group

question

Value Consciousness

answer

Concern for obtaining the best quality, features, and performance of a product or service for a given price that drives consumption behavior

question

Economic Environment

answer

Consists of factors that affect consumer purchasing power and spending patterns

question

Disposable Income

answer

Money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation

question

Discretionary Income

answer

Money that remains after paying for taxes and necessities

question

What is the most dramatic force shaping our destiny

answer

Technology

question

Impact of technology on customer value

answer

Plummeting Costs New Products Production of Existing Products

question

Competitors

answer

Those who serve a target market with products and services that are viewed by consumers as being REASONABLE SUBSTITUTES for the firm's products or services

question

Pure Competition

answer

Large number of sellers selling similar products Marketing mix and price unimportant bc are just selling at market price and at this price can sell all you make

question

Monopolistic Competition

answer

Many sellers selling unique but substitutable products Pricing is important

question

Oligopoly

answer

Few large competitors selling similar products Promotion is key

question

Monopoly

answer

Single producer

question

Why is legislation enacted?

answer

Protect competition Protect consumers

question

Sherman Antitrust Act

answer

Grandfather of antitrust acts Tried to break up monopolies of the day and create more competition in market place

question

Clayton Act

answer

Supplement to Sherman Act Lists things you can't do to try and create monopoly or lessen competition

question

Federal Trade Commission Act

answer

Established a body of specialists with broad powers to issue cease and desist orders to enforce prohibition of unfair methods of competition

question

Robinson-Patman Act

answer

Most important legislation with concern for pricing Regulates price discrimination- can't discriminate price b/w different purchasers of like grade and quality

question

Wheeler-Lea Act

answer

Amended FTC Act to make it more of a direct consumer protection agency

question

Ethics

answer

Moral principles and values that govern actions and decisions by both individuals and organizations

question

Social Responsibility

answer

Organizations are part of a larger society and are accountable to society for their actions

question

Three Concepts of Social Responsibility

answer

Profit Responsibility Stakeholder Responsibility Societal Responsibility

question

Consumer Buying Behavior

answer

Refers to the buying behavior of people who buy goods and service for personal use (ultimate use)

question

Buyers Black Box

answer

We can see different stimuli or inputs and we can see what comes out but we can't see inside processor

question

What are the parts of the black box model of consumer behavior?

answer

Inputs Process Outputs AKA Stimuli Transformer Responses

question

What are the steps of the consumer decision process?

answer

Problem Recognition Search Evaluation Choice/ Purchase Outcomes

question

Problem Recognition

answer

Conscious recognition that current situation is not what you want it to be

question

Search

answer

Looking for solutions to problem Either do or don't become aware of whats available Awareness and Unawareness Sets

question

Evaluation

answer

Mental comparison process Evoked set (meets criteria) Inert set (ok) Inept set (doesn't meet criteria)

question

Lexicographic Model

answer

Take most important characteristic to you and decide which product offers best choice of this characteristic

question

If performance does not exceed expectations

answer

Disappointment

question

If performance meets expectations

answer

Satisfaction

question

If performance exceeds expectations

answer

Delight

question

Cognitive Dissonance

answer

Buyer's Remorse Buyer's doubts shortly after a purchase about whether it was the right decision

question

Psychology of Simplification

answer

We like to make most of the things we buy routine so we don't have to expend time and energy making decisions Is a learning process

question

Learning

answer

Change in behavior due to experience

question

Types of Problem Solving

answer

Extended Problem Solving Limited Problem Solving - gained more experience Routinized Response Behavior - now know what works for you

question

Situational Influences

answer

Purchase task (gift or personal) Social surrounding Physical surroundings Temporal effects (how critical is decision; how much time do you have?) Antecedent states (condition going into situation)

question

Motive

answer

Drive Need that is sufficiently pressing to direct the person to seek satisfaction

question

Maslow's Hierarchy of Needs

answer

Physiological Safety Social Esteem Self-actualization

question

Perception

answer

Process by which people select, organize, and interpret information to form a meaningful picture of the world

question

Perception can be influenced by

answer

Selective attention Selective distortion Selective retention

question

Selective Attention

answer

Tendency for people to screen out most of information to which they are exposed

question

Selective Distortion

answer

Tendency for people to interpret info in a way that will support what they already believe

question

Selective Retention

answer

Tendency to remember good points made about a brand they favor and forget good points about competing brands

question

What are the applications of perception?

answer

Subliminal JND Perceived Risk

question

Subliminal

answer

Stimuli below the lower limin

question

Just Noticeable Difference

answer

If you can tell the difference b/w similar stimuli discrimination occurs If you can't, generalization occurs

question

Perceived Risk

answer

Anxiety bc purchase outcomes are unknown but could be negative Financial, safety, and social risk

question

What are strategies to reduce perceived risk?

answer

Obtain seals of approval Secure endorsements Provide free trials/samples Give extensive instruction Provide warranties/guarantees

question

Steps of information processing

answer

Exposure Attention Comprehension Yield/Acceptance Retention

question

Information Processing depends on

answer

Involvement- how important or personally relevant something is to a person

question

High Involvement

answer

Learn feel do pattern Retain own interpretation of information Yield and acceptance is present

question

Low Involvement

answer

Learn do feel pattern Retain info as delivered No yield and acceptance pattern but retention is there

question

Marketing Strategies for Low Involvement

answer

Leader: Maintain product quality , avoid stockouts, ads to reduce cognitive dissonance Market Challenger: Encourage trial use

question

Marketing Strategies for High Involvement

answer

Market Leader: Provide info with ads, use personal selling Challenger: Provide info with comparative ads, introduce new evaluative criteria

question

Drive

answer

Strong internal stimulus that calls for action Drive becomes a motive when it is directed toward a particular stimulus object

question

Cues

answer

Minor stimuli that determine when, where, and how person responds

question

Response

answer

Action taken regarding drives and cues

question

Reinforcement

answer

Occurs if response satisfactorily reduces drive

question

Four stages of Learning

answer

Drive Cues Response Reinforcement

question

Belief

answer

Descriptive thought that a person holds about something From marketing point of view, beliefs concern the attributes of a product

question

Attitude

answer

Person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea Takes a belief and adds to it an evaluation

question

Components of Attitude

answer

Cognitive- beliefs Affective- feelings, evaluations Conative- person's behavioral tendency toward and object

question

Personality

answer

Refers to unique psychological characteristics that leads to relatively consistent and lasting responses to one's own environment Defined in terms of traits

question

Lifestyle

answer

Pattern of living expressed psychographics

question

Psychographics

answer

AIO Activities Interests Opinions

question

VALS

answer

Values and Lifestyles Innovators- Succesful; take charge Survivors- Focus on basic needs Primary Motivators: Ideals, achievement, self expression

question

Opinion Leader

answer

One who occupies a position of INFORMAL INFLUENCES over the attitudes and overt behavior of others Is earned not assumed

question

Reference Groups

answer

Any group that individuals use as a STANDARD FOR EVALUATING THEMSELVES and their own behavior

question

Conditions for Reference Group Influence

answer

1. Purchased product must be one that others can see and identify (PUBLIC CONSUMPTION) 2. Purchased product must be conspicuous; must stand out as something unusual that not everyone owns (NOT EVERYONE HAS)

question

Who is must important consumer buying organization?

answer

Family

question

Roles in buying decisions?

answer

Initiator Info Gatherer Influencer Decider Purchaser User

question

Most important role in buying decisions?

answer

Purchaser

question

Autonomic

answer

Partners independently make equal numbers of decisions

question

Syncratic

answer

Both partners jointly make most decisions

question

People change the goods they buy over their lifetimes due to age

answer

Family Life Cycle

question

Social Class

answer

Society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors Measured by combo if occupation, source of income, education, wealth and other variables

question

What has broadest influence on behavior?

answer

Culture

question

Subcultures

answer

Groups of people with shared value systems based on common life experiences Can be defined by race, ethnicity or age

question

B2B

answer

Business Marketing Refers to marketing to organizations that buy goods and services for use in production of other products and services that are sold, rented, or supplied to others

question

Types of business markets

answer

Industrial (creators of goods/services) Institutional (Generally low budget and serve mainly captive clients/consumers Government Reseller

question

Business Buying Process

answer

Process where business buyers determine which products and services are needed to purchase, and then find, evaluate, and choose amount alternative brands

question

Derived Demand

answer

Dependent upon demand for consumer products No demand for consumer products would mean no demand for component products

question

Types of buyer situations in B2B

answer

Straight Rebuy Modified Rebuy New Task

question

Straight Rebuy

answer

Routine purchase decision such as reorder w/o any modification

question

Modified Rebuy

answer

Purchase decision that requires some research where the buyer wants to modify the product specification, price, terms, or suppliers

question

New Task

answer

Purchase decision that requires thorough research such as a new product

question

Buying Center

answer

Floating membership; who is in it may fluctuate depending on what product is being purchased

question

Organizational Buying Criteria

answer

Objective attributes of the suppliers products and services and the capabilities of the supplier itself

question

Supplier Development

answer

Systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials that they will use in making their own products or resell

question

Just in Time

answer

Supplier delivers as needed Delivery issue pushed back to supplier

question

Reciprocity

answer

Industrial buying practice in which two organizations agree to purchase each other's products or services

question

Supply Partnership

answer

Relationship that exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for purpose of lowering cost or increasing value of products

question

Sustainable Procurement

answer

Integrate environmental considerations into all stages of an organizations buying process

question

Participants in Organizational Buying Process

answer

Users - will use product Influences- provide info for evaluating alternatives Buyers- Can select supplier and arrange purchase Decider- Formal or informal power to select and approve Gatekeepers- Control flow of information

question

Steps in Organizational Buying Process

answer

Problem recognition Info Search Alternative Evaluation Purchase Decision Post purchase behavior

question

Product specification

answer

Describes technical criteria

question

Value analysis

answer

Approach to COST REDUCTION where components are studied to determine if they can be redesigned, standardized, or IMPROVED

question

Supplier Search

answer

Involves compiling list of qualified suppliers

question

Proposal Solicitation

answer

Process of requesting proposals from qualified suppliers

question

Supplier Selection

answer

Process when the buying center creates a list of desired supplier attributes and negotiates with preferred suppliers for favorable terms and conditions

question

Order-routine Specifications

answer

Final order with the chosen supplier and lists all of specifications and terms of purchase

question

Performance Review

answer

Critique of supplier performance to purchase terms

question

Why is online buying in organizational markets prevalent?

answer

Organizational buyers depend heavily on timely supplier info Reduces buyer order processing costs Can reduce marketing costs and broaden potential customer base

question

E-marketplaces

answer

Online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of info, money, products, and services

question

Traditional Auction

answer

Seller puts item up for sale and would-be buyers bid in competition with each other Prices rise until buyer determined

question

Reverse Auction

answer

Buyer communicates a need for a product and would-be suppliers bid in competition with each other

question

Exporting

answer

Company produces goods in home country and sells them in foreign market Simplest means involving least change Least risky

question

Indirect Exporting

answer

Third party markets and handles logistics

question

Direct Exporting

answer

Company does everything itself

question

Licensing

answer

When firm enters into agreement with a licensee in a foreign market For fee or royalty licensee buys right to use the company's process, trademark, patent, trade secret or other item of value

question

Joint Venturing

answer

When firm joins with host country partner to produce or market products or services

question

Contract Manufacturing

answer

When a firm contracts with manufacturers in the foreign market to produce its product or provide its service (host firm_

question

Management Contracting

answer

When domestic firm supplies management skill to foreign company that supplies capital

question

Joint Ownership

answer

When one company joins forces with foreign investors to create local business that they share ownership and control of

question

Direct Investment

answer

Development of foreign-based assembly or manufacturing facilities Most risky and costly but potentially most profitable

question

Standardization

answer

Company uses essentially same brand names, promotional strategies, etc in all markets

question

Adaptation

answer

Company modifies its marketing offering to reflect individual cultures in which it operates

question

Five Product and Promotion Strategies for Global Marketing

answer

Product Extension Communication Adaptation Product Adaptation Dual Adaptation Strategy Product Invention Strategy

question

Product Extension

answer

Selling virtually same product in other countries

question

Product Adaptation

answer

Changing a product in some way to make it more appropriate for a country's climate or consumer preferences

question

Product Invention

answer

Invent totally new products designed to satisfy common needs across countries

question

Identical Promotional Message

answer

Often used for product extension and product adaptation strategies around the world

question

Adapted Promotion Message

answer

Same product may be sold in many countries but advertised differently

question

Dual Adaptation Strategy

answer

By modifying both products and promotion messages

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