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Marketing Exam Final Last Chapters – Flashcards

Jaxon Wilson
7 July 2022
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Social media
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Online media where users submit comments, photos, and videos often accompanied by a feedback process to identify "popular" topics
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Blog
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Web page that is a publicly accessible personal journal and online forum for an individual or organization
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User-generated content
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The various forms of online media content that are publicly available and created by end users
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UGC satisfies 3 criteria
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- It is published on either a publicly accessible website or on a social networking site, so it is not simply an e-mail - It shows a significant degree of creative effort, so it is more than simply posting a newspaper article on a personal blog without editing or comments - It is consumer-generated by an individual outside of a professional organization, without a commercial market in mind
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Classifying social media
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Media richness and self-disclosure
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Media richness
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This involves the degree of acoustic, visual, and personal contact between two communication partners. The higher the media richness and quality of presentation, the greater the social influence that communication partners have on each other's behavior.
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Self-disclosure
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In any type of social interaction, individuals want to make a positive impression to achieve a favorable image with others. This favorable image is affected by the degree of self-disclosure about a person's thoughts, feelings, likes, and dislikes—where greater self-disclosure is likely to increase one's influence on those reached.
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The 4 major social networks
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Facebook, Twitter, LinkedIn, YouTube
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Guidelines to engage fans on Facebook
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- Make it familiar, but with a twist - Keep it fresh - Learn users' passions and let them guide content
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Recent updates to Facebook
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- Privacy settings - Ads on mobile devices - Customizing Facebook's newsfeed - Hashtag roll-out
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Brand managers can use Twitter to
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- Generate brand buzz by developing an official Twitter profile, recruiting followers, and showing photos of their products - Follow the Twitter profiles that mention their product and monitor what is being said, responding to user criticisms to develop happier customers - Tweet on topics that provide information of value to their customers
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LinkedIn
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A business-oriented website that lets users post their professional profiles to connect to a network of businesspeople, who are also called connections (Used for B2B image building)
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Tips to job seekers using LinkedIn
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- Focus your profile to make sure it is both complete and current and includes who you are professionally, who you can help, and how you can help them. - Brand yourself as an expert with "answers" by searching through relevant questions to let your answers showcase your abilities.
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YouTube offers great opportunity for a brand manager to
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Produce and show a video that explains the benefits of a complex product
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Guidelines for marketing and promoting a brand using YouTube videos
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- Exploit visual aspects of your message, perhaps sacrificing product messages to tell a more entertaining story. - Create a branded channel rich in key words to improve the odds of the video showing up in user searches. - Target viewers by using YouTube's insights and analytics research to reveal the number of views, the number of visits to your website, and what key words are driving user visits.
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Goals of traditional media
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Traditional media like magazine or TV ads generally use one-way communication from sender to receiver, those whom the marketer hopes will buy the product advertised. A little word-of-mouth chatting may occur among the "passive receivers," but communications generally end with the receiver.
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Goals of social media
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Social media deliberately seek to ensure that the message does not end with an individual receiver. Instead, the goal is to reach "active receivers," those who will become "influentials" and be "delighted" with the brand advertised. These customers will then become "evangelists," who will send messages to their online friends and then back to the advertiser about the joys of using the brand.
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Steps to selecting which social network to use
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Assessing (1) the characteristics of these visitors and (2) the number of users or unique visitors to the website.
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Role of brand manager
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- Composes the ad. - Specifies web address to which its ad should link based on the brand's social media marketing goals. - To increase awareness, links the ad to the company's website or its Facebook, Twitter, or Pinterest sites. - To encourage and produce new sales that can be tracked, links the ad to a coupon code, a specific product, or other promotional offer. - Defines the characteristics of market segments she wants to reach on social media. (Demographic characteristics like geographic region, sex, age range, and education. She then adds factors like relationship status and user interests)
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Role of social media
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Ads and videos on social media are less likely to have an objective of immediate sales because social network images are on the screen for only seconds. A more likely goal is to have viewers go to the advertiser's website and post it on their Pages or forward it to friends. The key for a brand manager using social media is to gain viewers' attention for a few extra seconds.
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Performance measures for social media
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- Those linked to inputs or costs - Those tied to the outputs or revenues resulting from social media
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Cost per thousand
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- CPM - "I will pay $0.50 for every 1,000 times this ad loads, up to $100 per month." - Provided by small websites that sell ads directly - Used by advertisers who want to build awareness - Advantages: Simple to use - Disadvantages: Impressions don't always lead to sales
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Cost per click
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- CPC - "I will pay $1.00 for every visitor who clicks on this ad and goes from your website to mine." - Most websites use this method- executed by a third party like Google/AdWords - Used by advertisers who want to pay for success, but may not be able to track sales from advertisement to purchase - Advantages: I only pay for a visitor who has expressed an interest in my ad. - Disadvantages: Ads may not display if they are a poor fit for the viewing audience
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Cost per action
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- CPA - "I will pay $5 for every purchase that originates from an ad on your site." - Usually executed through third parties; Google AdSense offers this feature - Used by sophisticated advertisers who want to pay for success - Advantages: I only pay for what works. Disadvantages: Similar to CPC but harder to track and more expensive per action
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_________ most closely ties the cost of the social media ad to the sales revenues the ad generates.
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CPA
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Frequently used Facebook measures from most general to most specific
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Users/members, fans, share of voice, page views, visitors, unique visitors, average page views per visitor, interaction rate, click-through rate, fan source
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Share of voice
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The brand's share or percentage of all the online social media chatter related to, say, its product category or a topic.
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Visitors
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The total number of visitors to a Facebook Page in a given time period; if someone visits three times in one day, she is counted three times
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Unique visitors
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The total number of unique visitors to a Facebook Page in a given time period; if someone visits three times in one day, he is counted only once.
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Average page views per visitors
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Page views divided by visitors in a given time period.
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Interaction rate
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The number of people who interact with a Post ("like," make a comment, and so on) divided by the total number of people seeing the Post.
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Click-through rate
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Percentage of recipients who have clicked on a link on the Page to visit a specific site.
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Fan source
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Where a social network following comes from—with fans coming from a friend being more valuable than those coming from an ad.
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One of the advantages of social media is that
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communities can form around ideas and commonalities, regardless of the physical location of their members
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Four trends in the past decade that have significantly influenced the landscape of global marketing
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Trend 1: Gradual decline of economic protectionism by individual countries. Trend 2: Formal economic integration and free trade among nations. Trend 3: Global competition among global companies for global customers. Trend 4: Emergence of a networked global marketspace.
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Protectionism
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The practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas.
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Arguments for protectionism
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Limits the outsourcing of jobs, protects a nation's political security, discourages economic dependency on other countries, and promotes development of domestic industries
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Tariffs
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Government taxes on products or services entering a country that primarily serve to raise prices on imports.
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Average tariff on manufactured products in industrialized countries
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4%
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Protectionism limits world trade through
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tariffs that increase prices and quotas that limit supply
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Quota
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A restriction placed on the amount of a product allowed to enter or leave a country. Can be mandated or voluntary and may be legislated or negotiated by governments
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Import quotas
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Seek to guarantee domestic industries access to a certain percentage of their domestic market
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World Trade Organization
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A permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.
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European Union
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- EU - 28 countries - Eliminated most barriers to the free flow of products
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The EU creates abundant marketing opportunities because
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Firms do not need to market their products and services on a nation-by-nation basis.
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North American Free Trade Agreement
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- NAFTA - Lifted many trade barriers between Canada, Mexico, and the United States - Stimulated trade flows among member nations as well as cross-border retailing, manufacturing, and investment
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Asian Free Trade Agreements
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Efforts to liberalize trade in East Asia
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Global competition
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Exists when firms originate, produce, and market their products and services worldwide. The automobile, pharmaceutical, apparel, electronics, aerospace, and telecommunication fields represent well-known industries with sellers and buyers on every continent. Other industries that are increasingly global in scope include soft drinks, cosmetics, ready-to-eat cereals, snack chips, and retailing.
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Strategic alliances
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Agreements among two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value creation.
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Three types of companies populate and compete in the global marketplace
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- International firms - Multinational firms - Transnational firms All three employ people in different countries, and many have administrative, marketing, and manufacturing operations (often called divisions or subsidiaries) around the world. However, a firm's orientation toward and strategy for global markets and marketing defines the type of company it is or attempts to be.
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International firm
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Engages in trade and marketing in different countries as an extension of the marketing strategy in its home country
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Multinational firm
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Views the world as consisting of unique parts and markets to each part differently
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Multidomestic marketing strategy
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A strategy used by multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.
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Transnational firm
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Views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants rather than differences.
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Global marketing strategy
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The practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ (popular among business-to-business marketers)
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Global brand
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A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs
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Global consumers
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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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3 types of global consumers
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a global middle-income class, a youth market, an elite segment
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Almost _____ businesses, educational institutions, government agencies, and households worldwide are expected to have internet access by 2015
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3 billion
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Industries that have benefited from Internet technology include
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industrial chemicals and controls; maintenance, repair and operating supplies; computer and electronic equipment and components; aerospace parts; and agricultural and energy products
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Most active participants in the worldwide business-to-business electronic commerce
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The United States, China, Canada, the United Kingdom, Germany, Sweden, Japan, India, and Taiwan
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Uncontrollable environmental variables
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Cultural, economic, and political-regulatory
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Cross-cultural analysis
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The study of similarities and differences among consumers in two or more nations or societies. Involves an understanding of and an appreciation for the values, customs, symbols, and language of other societies.
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Values
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A society's personally or socially preferable modes of conduct or states of existence that tend to persist over time.
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Customs
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What is considered normal and expected about the way people do things in a specific country.
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Foreign Corrupt Practices Act
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A law, amended by the International Anti-Dumping and Fair Competition Act, that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.
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Cultural symbols
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Things that represent ideas and concepts.
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Semiotics
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A field of study that examines the correspondence between symbols and their role in the assignment of meaning for people.
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3 principal languages
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English, French, Spanish
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Back translation
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The practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors.
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Cultural ethnocentricity
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The belief that aspects of one's culture are superior to another's. Global marketers are acutely aware that certain groups within countries disfavor imported products, not on the basis of price, features, or performance, but purely because of their foreign origin.
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Consumer ethnocentrism
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The tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products.
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A scan of the global marketplace should include
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- A comparative analysis of the economic development in different countries - An assessment of the economic infrastructure in these countries - A measurement of consumer income in different countries - Recognition of a country's currency exchange rates
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Developed countries
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Have somewhat mixed economies. Private enterprise dominates, although they have substantial public sectors as well
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Developing countries
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In the process of moving from an agricultural to an industrial economy. There are two subgroups within the developing category: (1) those that have already made the move and (2) those that remain locked in a preindustrial economy.
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Bottom of the pyramid
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The largest but poorest socioeconomic group of people in the world. Live on less than $2 a day.
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Economic infrastructure
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A country's communications, transportation, financial, and distribution systems
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Microfinance
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The practice of offering small, collateral-free loans to individuals who otherwise would not have access to the capital necessary to begin small businesses or other income-generating activities.
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_______ of the world's population has now achieved "middle-class" status
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Half
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Currency exchange rate
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The price of one country's currency expressed in terms of another country's currency.
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Aspects of the political-regulatory climate
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Political stability and trade regulations
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4 global market-entry strategies
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Exporting, licensing, joint venture, and direct investment
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The amount of _________, _________, __________, and __________ increases as the firm moves from exporting to direct investment.
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Financial commitment, risk, marketing control, and profit potential
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Exporting
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Producing products in one country and selling them in another country. This entry option allows a company to make the least number of changes in terms of its product, its organization, and even its corporate goals. Host countries usually do not like this practice because it provides less local employment than under alternative means of entry. Even though exporting is commonly employed by large firms, it is the prominent global market-entry strategy among small- and medium-sized companies. For example, 60 percent of U.S. firms exporting products have fewer than 500 employees.
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Licensing
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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. Advantages: Low risk and a capital-free entry into a foreign country. Drawbacks: The licensor forgoes control of its product and reduces the potential profits gained from it. The licensor may be creating its own competition. Some licensees are able to modify the product and enter the market with product and marketing knowledge gained at company's expense. So, many companies stay innovative so that the licensee remains dependent on them for improvements and successful operation. Finally, should the licensee prove to be a poor choice, the name or reputation of the company may be harmed.
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Joint venture
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A global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company. Advantages: One company may not have the necessary financial, physical, or managerial resources to enter a foreign market alone, and a government may require or strongly encourage a joint venture before it allows a foreign company to enter its market. Disadvantages: When the two companies disagree about policies or courses of action for their joint venture or when governmental bureaucracy bogs down the effort
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Direct investment
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The biggest commitment a company can make when entering the global market when it comes to financial commitments and risks. A global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division. The advantages to direct investment include cost savings, a better understanding of local market conditions, and fewer local restrictions.
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Indirect exporting
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When a firm sells its domestically produced products in a foreign country through an intermediary. It has the least amount of commitment and risk but will probably return the least profit. Indirect exporting is ideal for a company that has no overseas contacts but wants to market abroad. The intermediary is often a distributer that has the marketing know-how and resources necessary for the effort to succeed.
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Direct exporting
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When a firm sells its domestically produced products in a foreign country without intermediaries. Companies become involved in direct exporting when they believe their volume of sales will be sufficiently large and easy to obtain that they do not require intermediaries. Direct exporting involves more risk than indirect exporting for the company but also opens the door to increased profits.
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Contract manufacturing
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Type of licensing where a U.S. company may contract with a foreign firm to manufacture products according to stated specifications. The product is then sold in the foreign country or exported back to the United States
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Contract assembly
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Type of licensing where the U.S. company may contract with a foreign firm to assemble (not manufacture) parts and components that have been shipped to that country.
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Advantages of licensing to foreign country and U.S. firm
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The advantage to the foreign country is the employment of its people, and the U.S. firm benefits from the lower wage rates in the foreign country.
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A product may be sold globally in one of three ways:
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- Product extension - Product adaptation - Product invention
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Product extension
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Selling virtually the same product in other countries. Seems to work best when the consumer market target for the product is alike across countries and cultures- that is, consumers share the same desires, needs, and uses for the product. An identical promotion message is used.
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Product adaptation
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Changing a product in some way to make it more appropriate for a country's climate or consumer preferences. An identical promotion message is used.
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Product invention
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Companies can invent totally new products designed to satisfy common needs across countries
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2 ways global companies adapt their promotion message
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- Communication adaptation - Dual adaptation
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Communication adaptation
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The same product is sold in many countries but advertised differently
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Dual adaptation
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Modifying both products and promotion messages
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Distribution strategy
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- The availability and quality of retailers and wholesalers as well as transportation, communication, and warehousing facilities are often determined by a country's stage of economic development. - Seller, seller's international marketing headquarters, channels between nations, channels within foreign nation (can be very long or short, depending on product line), final consumer
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Pricing strategy
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Individual countries, even those with free trade agreements, may impose considerable competitive, political, and legal constraints on the pricing latitude of global companies. Pricing too low or too high can have dire consequences (dumping and a gray market).
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Dumping
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When a firm sells a product in a foreign country below its domestic price or below its actual cost. Often done to build a company's share of the market by pricing at a competitive level or because the products being sold may be surplus or cannot be sold domestically and, therefore, are already a burden to the company.
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Gray market
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When companies price their products very high in some countries but competitively in others, they face a situation where products are sold through unauthorized channels of distribution. when individuals buy products in a lower-priced country from a manufacturer's authorized retailer, ship them to higher-priced countries, and then sell them below the manufacturer's suggested retail price through unauthorized retailers. (Legal in U.S., illegal in E.U.)
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Two market environments populated by consumers and companies
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- Marketplace - Marketspace
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Marketplace
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Buyers and sellers engage in face-to-face exchange relationships in a material environment characterized by physical facilities (stores and offices) and mostly tangible objects.
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Marketspace
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An Internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings
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About ___ percent of Internet users ages 15 and older shop online in the United States
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90%
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The greatest marketspace opportunity for marketers lies in ____________
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it's potential for creating form utility (customization, 35% of online consumers)
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Two unique capabilities of internet technology that promote and sustain customer relationships
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- Interactivity - Individuality
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For buyer-seller relationships to work....
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Companies need to interact with their customers by listening and responding to their needs. Marketers must also treat customers as individuals and empower them to (1) influence the timing and extent of the buyer-seller interaction and (2) have a say in the kind of products and services they buy, the information they receive, and in some cases, the prices they pay.
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Interactive marketing
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Two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller
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Choiceboard
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An interactive, Internet-enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes (or components), prices, and delivery options. Because choiceboards collect precise information about the preferences and behavior of individual buyers, a company becomes more knowledgeable about a customer and better able to anticipate and fulfill that customer's needs. (Transaction device)
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Collaborative filtering
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A process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases. Collaborative filtering gives marketers the ability to make a dead-on sales recommendation to a buyer in real time.
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Personalization
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Consumer-initiated practice of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences. Today, one-half of the largest online retailers in the United States use personalization techniques.
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Permission marketing
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The solicitation of a consumer's consent (called "opt-in") to receive e-mail and advertising based on personal data supplied by the consumer.
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Companies that successfully employ permission marketing adhere to three rules
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- Make sure opt-in customers receive only information that is relevant and meaningful to them. - Their customers are given the option to opt-out, or change the kind, amount, or timing of information sent to them. - Their customers are assured that their name or buyer profile data will not be sold or shared with others.
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7 C's of the online customer experience
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- Content - Community - Customization - Communication - Connection - Commerce - Context
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Context
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Site's layout and visual design. A functionally oriented website focuses largely on the company's offering. Deal-oriented travel websites tend to be functionally oriented with an emphasis on destinations, scheduling, and prices. Beauty websites are more aesthetically oriented. As these examples suggest, context attempts to convey the core consumer benefit provided by the company's offerings.
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Content
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Text, pictures, sound, and video that the site contains. Platform for customization, connection, communication, community, and commerce.
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Customization
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Site's ability to tailor itself to different users or to allow users to personalize the site.
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Connection
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Degree that site is linked to other sites. Major design element for informational websites.
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Communication
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The ways the site enables site-to-user, user-to-site, or two-way communication.
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Community
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The ways that the site enables user-to-user communication. Has been shown to enhance customer experience and build favorable buyer-seller relationships
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Commerce
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Site's capabilities to enable commercial transactions
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Most websites do not include every design element because
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although every website has context and content, they differ in the use of the remaining five elements because websites have different purposes
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Labels given to online consumers
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Cybershoppers, Netizens, e-shoppers (not a homogeneous segment of the population)
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Online consumers
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The subsegment of all Internet users who employ personal computers or smartphones to research products and services and make purchases
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Demographics of online consumers
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Equally likely to be women and men, and they tend to be better educated, younger, and more affluent than the general U.S. population. This makes them an attractive market.
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It is estimated that ___ percent of online consumers account for ___ percent of total consumer online sales. Also, ____ tend to purchase more products and services online than ____.
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20 60 women men
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6 online consumer lifestyle segments
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- Click-and-mortar - Hunter-gatherers - Brand loyalists - Time-sensitive materialists - Hooked, online, and single - E-bivalent newbies
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Click-and-mortar
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The largest online consumer lifestyle segment, consists of women who tend to browse retailer websites but actually buy products in traditional retail outlets. They make up 23 percent of online consumers and represent an important segment for multichannel retailers that also feature catalog and store operations, such as J. Crew. (23%)
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Hunter-gatherers
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Married couples with children at home who use the Internet like a consumer magazine to gather information and compare products and prices. (20%)
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Brand loyalists
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Users who regularly visit their favorite bookmarked websites and spend the most money online. They are better-educated and more affluent Internet users who effortlessly navigate familiar and trusted websites and enjoy the online browsing and buying experience. (19%)
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Time-sensitive materialists
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Users who regard the Internet as a convenience tool for buying music, books, computer software, and electronics. (17%)
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Hooked, online, and single
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Young, affluent, and single online consumers who bank, play games, and spend more time online than any other segment. (16%)
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E-bivalent newbies
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Relative newcomers to the Internet who rarely spend money online but seek product information.
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Five general product and service categories account for about 2/3 of online consumer buying today and for the foreseeable future
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Computers & consumer electronics Apparel & accessories Books, music, & video Furniture & home furnishings Automobile & auto parts
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6 categories of item characteristics
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- Items for which product information is an important part of the purchase decision, but prepurchase trial is not necessarily critical. Items such as computers, computer accessories, and consumer electronics fall into this category. So do books. - Items for which audio or video demonstration is important. - Items that can be delivered digitally, including computer software, music, and video. - Unique items, such as specialty products, foods, beverages, and gifts - Items that are regularly purchased and where convenience is very important. Many consumer packaged goods, such as grocery products, personal care items, and office products, fall into this category. - Highly standardized products and services for which information about price is important. Certain kinds of home and automotive products, casual apparel, and toys make up this category.
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6 reasons consumers shop and buy online
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Convenience, choice, customization, communication, cost, control
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Bots
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Electronic shopping agents or robots that comb websites to compare prices and product or service features.
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Eight-second rule
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A view that customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds. The more clicks and pauses between clicks required to access information or make a purchase, the more likely it is a customer will exit a website.
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2 dimensions of choice
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- Product or service selection offered to consumers - Choice assistance
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Customerization
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The growing practice of not only customizing a product or service but also personalizing the marketing and overall shopping and buying interaction for each customer. Customerization seeks to do more than offer consumers the right product, at the right time, and at the right price. It combines choiceboard and personalization systems to expand the exchange environment beyond a transaction and makes shopping and buying an enjoyable, personal experience.
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3 forms of communication
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- Marketer-to-consumer e-mail notification - Consumer-to-marketer buying and service requests - Consumer-to-consumer chat rooms and instant messaging, in addition to social networking websites such as Twitter and Facebook.
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Web communities
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Websites that allow people to congregate online and exchange views on topics of common interests.
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Spam
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Communications that take the form of electronic junk mail or unsolicited e-mail.
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Buzz
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Word-of-mouth behavior in marketspace
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Viral marketing
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An Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking websites, and blogs.
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3 approaches to viral marketing
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- Marketers can embed a message in the product or service so that customers hardly realize they are passing it alone - Marketers can make the website content so compelling that viewers want to share it with others - Marketers can offer incentives
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Showrooming
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Occurs when a shopper visits a retail store to inspect merchandise but then goes online to compare prices from other retail and online sellers to attempt to make the best purchase. While obtaining a lower price is the primary motivator for showrooming, shoppers also engage in this practice to gather additional merchandise information, look for online promotions or deals, and check merchandise reviews and ratings. About half of U.S. online shoppers engage in showrooming. Consumer electronics, apparel, books, and home appliances are the most popular showrooming product categories.
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Dynamic pricing
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The practice of changing prices for products and services in real time in response to supply and demand conditions.
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Two major reasons for the popularity of online shopping and buying among women
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Greater shopping convenience and lower external search costs
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Cookies
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Computer files that a marketer can download onto the computer and mobile phone of an online shopper who visits the marketer's website that track their web activity
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Behavioral targeting
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Uses information provided by cookies for directing online advertising from marketers to those online shoppers whose behavioral profiles suggest they would be interested in such advertising.
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The busiest online shopping day is __________
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Wednesday
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The busiest store shopping day is ________
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Saturday
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Consumers are more likely to _____ than _____ online
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browse than buy
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Cross-channel shopper
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Opposite of showrooming, an online consumer who researches products online and then purchases them at a retail store. (51% of U.S. online consumers) (Slightly younger, have a higher education, earn significantly more money, and are more likely to embrace technology in their lives)
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Top reasons shoppers research items online before buying in stores
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- The desire to compare products among different retailers - The need for more information than is available in stores - The ease of comparing their options without having to trek to multiple retail locations
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Retail sales revenue from cross-channel shoppers is estimated to be about ____ times _____ than online retail sales.
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5 times greater
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Multichannel marketing
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The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in the traditional marketplace and online—the cross-channel shopper.
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Two general applications of websites exist based on their intended purpose
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- Transactional websites - Promotional websites
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Transactional websites
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Electronic storefronts that focus principally on converting an online browser into an online, catalog, or in-store buyer using the website design elements. Most common among store and catalog retailers and direct selling companies.
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Recurring issues for manufacturers
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- Threat of channel conflict - Potential harm to trade relationships with their retailing intermediaries
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Promotional websites
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Advertise and promote a company's products and services and provide information on how items can be used and where they can be purchased. They often engage the visitor in an interactive experience involving games, contests, and quizzes with electronic coupons and other gifts as prizes.
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Ethics
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Moral principles and values that govern the actions and decisions of an individual or group
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Four possible reasons the state of perceived ethical business conduct is at its present level
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- Increased pressure on businesspeople to make decisions in a society characterized by diverse value systems. - Growing tendency for business decisions to be judged publicly by groups with different values and interests. - Public's expectations of ethical business behavior have increased. - Most disturbingly, ethical business conduct may have declined.
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3 factors that influence ethical marketing behavior
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- Societal culture and norms - Business culture and industry practices - Corporate culture and expectations
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Business cultures
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Comprise the effective rules of the game, the boundaries between competitive and unethical behavior, and the codes of conduct in business dealings.
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Instances when business cultures go awry
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- Insider trading - Deceptive insurance sales practices - Bribery
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Caveat emptor
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The legal concept of "let the buyer beware" that was pervasive in the American business culture prior to the 1960s.
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Consumer Bill of Rights
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A law that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard.
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Right to safety
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Manifests itself in industry and federal safety standards for most products sold in the U.S.
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Right to be informed
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Marketers have an obligation to give consumers complete and accurate information about products and services. This right also applies to the solicitation of personal information over the Internet and its subsequent use by marketers.
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Right to choose
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Not limiting the number of new products available to customers
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Right to be heard
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Consumers should have access to public-policy makers regarding complaints about products and services. (Do Not Call Registry)
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Two most common kinds of unethical behavior
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- Economic espionage - Bribery
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Economic espionage
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The clandestine collection of trade secrets or proprietary information about a company's competitors. This practice is illegal and unethical and carries serious criminal penalties for the offending individual or business. Espionage activities include illegal trespassing, theft, fraud, misrepresentation, wiretapping, the search of a competitor's trash, and violations of written and implicit employment agreements with noncompete clauses. Most prevalent in high-technology industries.
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Bribery is more common in __________ and ________ marketing than _________ marketing.
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business-to-business and government marketing than consumer marketing
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Bribery is most evident in industries _____________ and in countries ___________
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experiencing intense competition, in the earlier stages of economic development
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Corporate culture
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The set of values, ideas, and attitudes that is learned and shared among the members of an organization
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Code of ethics
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A formal statement of ethical principles and rules of conduct. It is estimated that 86 percent of U.S. companies have some sort of ethics code and one of every four large companies has corporate ethics officers. Ethics codes typically address contributions to government officials and political parties, customer and supplier relations, conflicts of interest, and accurate recordkeeping.
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______________ are major reasons for the violation of ethics codes
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- Lack of specificity - Perceived behavior of top management and co-workers
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Whistle-blowers
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Employees who report unethical or illegal actions of their employers.
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Two prominent personal moral philosophies
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- Moral idealism - Utilitarianism
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Moral idealism
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A personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome. (Exists in Consumer Bill of Rights and is favored by moral philosophers and consumer interest groups)
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Utilitarianism
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A personal moral philosophy that focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior.
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Social responsibility
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The idea that organizations are part of a larger society and are accountable to that society for their actions.
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Three concepts of social responsibility
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- Profit responsibility - Stakeholder responsibility - Societal responsibility
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Profit responsibility
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That companies have a simple duty: to maximize profits for their owners or stockholders
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Stakeholder responsibility
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The obligations an organization has to those who can affect achievement of its objectives. These constituencies include consumers, employees, suppliers, and distributors.
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Societal responsibility
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Refers to obligations that organizations have to the preservation of the ecological environment and to the general public.
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Triple-bottom line
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The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.
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Green marketing
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Marketing efforts to produce, promote, and reclaim environmentally sensitive products.
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Cause marketing
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Occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products.
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Social audit
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A systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility.
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5 steps of a social audit
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1. Recognition of a firm's social expectations and the rationale for engaging in social responsibility endeavors. 2. Identification of social responsibility causes or programs consistent with the company's mission. 3. Determination of organizational objectives and priorities for programs and activities it will undertake. 4. Specification of the type and amount of resources necessary to achieve social responsibility objectives. 5. Evaluation of social responsibility programs and activities undertaken and assessment of future involvement.
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Sustainable development
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Conducting business in a way that protects the natural environment while making economic progress.
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Companies the evidence societal responsibility....
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benefit from favorable word of mouth among consumers and typically outperform less responsible companies in terms of financial performance
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Social media
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Online media where users submit comments, photos, and videos often accompanied by a feedback process to identify "popular" topics
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Blog
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Web page that is a publicly accessible personal journal and online forum for an individual or organization
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User-generated content
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The various forms of online media content that are publicly available and created by end users
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UGC satisfies 3 criteria
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- It is published on either a publicly accessible website or on a social networking site, so it is not simply an e-mail - It shows a significant degree of creative effort, so it is more than simply posting a newspaper article on a personal blog without editing or comments - It is consumer-generated by an individual outside of a professional organization, without a commercial market in mind
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Classifying social media
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Media richness and self-disclosure
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Media richness
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This involves the degree of acoustic, visual, and personal contact between two communication partners. The higher the media richness and quality of presentation, the greater the social influence that communication partners have on each other's behavior.
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Self-disclosure
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In any type of social interaction, individuals want to make a positive impression to achieve a favorable image with others. This favorable image is affected by the degree of self-disclosure about a person's thoughts, feelings, likes, and dislikes—where greater self-disclosure is likely to increase one's influence on those reached.
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The 4 major social networks
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Facebook, Twitter, LinkedIn, YouTube
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Guidelines to engage fans on Facebook
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- Make it familiar, but with a twist - Keep it fresh - Learn users' passions and let them guide content
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Recent updates to Facebook
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- Privacy settings - Ads on mobile devices - Customizing Facebook's newsfeed - Hashtag roll-out
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Brand managers can use Twitter to
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- Generate brand buzz by developing an official Twitter profile, recruiting followers, and showing photos of their products - Follow the Twitter profiles that mention their product and monitor what is being said, responding to user criticisms to develop happier customers - Tweet on topics that provide information of value to their customers
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LinkedIn
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A business-oriented website that lets users post their professional profiles to connect to a network of businesspeople, who are also called connections (Used for B2B image building)
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Tips to job seekers using LinkedIn
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- Focus your profile to make sure it is both complete and current and includes who you are professionally, who you can help, and how you can help them. - Brand yourself as an expert with "answers" by searching through relevant questions to let your answers showcase your abilities.
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YouTube offers great opportunity for a brand manager to
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Produce and show a video that explains the benefits of a complex product
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Guidelines for marketing and promoting a brand using YouTube videos
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- Exploit visual aspects of your message, perhaps sacrificing product messages to tell a more entertaining story. - Create a branded channel rich in key words to improve the odds of the video showing up in user searches. - Target viewers by using YouTube's insights and analytics research to reveal the number of views, the number of visits to your website, and what key words are driving user visits.
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Goals of traditional media
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Traditional media like magazine or TV ads generally use one-way communication from sender to receiver, those whom the marketer hopes will buy the product advertised. A little word-of-mouth chatting may occur among the "passive receivers," but communications generally end with the receiver.
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Goals of social media
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Social media deliberately seek to ensure that the message does not end with an individual receiver. Instead, the goal is to reach "active receivers," those who will become "influentials" and be "delighted" with the brand advertised. These customers will then become "evangelists," who will send messages to their online friends and then back to the advertiser about the joys of using the brand.
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Steps to selecting which social network to use
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Assessing (1) the characteristics of these visitors and (2) the number of users or unique visitors to the website.
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Role of brand manager
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- Composes the ad. - Specifies web address to which its ad should link based on the brand's social media marketing goals. - To increase awareness, links the ad to the company's website or its Facebook, Twitter, or Pinterest sites. - To encourage and produce new sales that can be tracked, links the ad to a coupon code, a specific product, or other promotional offer. - Defines the characteristics of market segments she wants to reach on social media. (Demographic characteristics like geographic region, sex, age range, and education. She then adds factors like relationship status and user interests)
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Role of social media
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Ads and videos on social media are less likely to have an objective of immediate sales because social network images are on the screen for only seconds. A more likely goal is to have viewers go to the advertiser's website and post it on their Pages or forward it to friends. The key for a brand manager using social media is to gain viewers' attention for a few extra seconds.
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Performance measures for social media
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- Those linked to inputs or costs - Those tied to the outputs or revenues resulting from social media
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Cost per thousand
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- CPM - "I will pay $0.50 for every 1,000 times this ad loads, up to $100 per month." - Provided by small websites that sell ads directly - Used by advertisers who want to build awareness - Advantages: Simple to use - Disadvantages: Impressions don't always lead to sales
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Cost per click
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- CPC - "I will pay $1.00 for every visitor who clicks on this ad and goes from your website to mine." - Most websites use this method- executed by a third party like Google/AdWords - Used by advertisers who want to pay for success, but may not be able to track sales from advertisement to purchase - Advantages: I only pay for a visitor who has expressed an interest in my ad. - Disadvantages: Ads may not display if they are a poor fit for the viewing audience
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Cost per action
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- CPA - "I will pay $5 for every purchase that originates from an ad on your site." - Usually executed through third parties; Google AdSense offers this feature - Used by sophisticated advertisers who want to pay for success - Advantages: I only pay for what works. Disadvantages: Similar to CPC but harder to track and more expensive per action
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_________ most closely ties the cost of the social media ad to the sales revenues the ad generates.
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CPA
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Frequently used Facebook measures from most general to most specific
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Users/members, fans, share of voice, page views, visitors, unique visitors, average page views per visitor, interaction rate, click-through rate, fan source
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Share of voice
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The brand's share or percentage of all the online social media chatter related to, say, its product category or a topic.
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Visitors
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The total number of visitors to a Facebook Page in a given time period; if someone visits three times in one day, she is counted three times
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Unique visitors
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The total number of unique visitors to a Facebook Page in a given time period; if someone visits three times in one day, he is counted only once.
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Average page views per visitors
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Page views divided by visitors in a given time period.
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Interaction rate
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The number of people who interact with a Post ("like," make a comment, and so on) divided by the total number of people seeing the Post.
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Click-through rate
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Percentage of recipients who have clicked on a link on the Page to visit a specific site.
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Fan source
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Where a social network following comes from—with fans coming from a friend being more valuable than those coming from an ad.
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One of the advantages of social media is that
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communities can form around ideas and commonalities, regardless of the physical location of their members
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Four trends in the past decade that have significantly influenced the landscape of global marketing
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Trend 1: Gradual decline of economic protectionism by individual countries. Trend 2: Formal economic integration and free trade among nations. Trend 3: Global competition among global companies for global customers. Trend 4: Emergence of a networked global marketspace.
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Protectionism
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The practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas.
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Arguments for protectionism
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Limits the outsourcing of jobs, protects a nation's political security, discourages economic dependency on other countries, and promotes development of domestic industries
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Tariffs
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Government taxes on products or services entering a country that primarily serve to raise prices on imports.
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Average tariff on manufactured products in industrialized countries
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4%
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Protectionism limits world trade through
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tariffs that increase prices and quotas that limit supply
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Quota
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A restriction placed on the amount of a product allowed to enter or leave a country. Can be mandated or voluntary and may be legislated or negotiated by governments
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Import quotas
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Seek to guarantee domestic industries access to a certain percentage of their domestic market
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World Trade Organization
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A permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.
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European Union
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- EU - 28 countries - Eliminated most barriers to the free flow of products
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The EU creates abundant marketing opportunities because
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Firms do not need to market their products and services on a nation-by-nation basis.
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North American Free Trade Agreement
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- NAFTA - Lifted many trade barriers between Canada, Mexico, and the United States - Stimulated trade flows among member nations as well as cross-border retailing, manufacturing, and investment
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Asian Free Trade Agreements
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Efforts to liberalize trade in East Asia
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Global competition
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Exists when firms originate, produce, and market their products and services worldwide. The automobile, pharmaceutical, apparel, electronics, aerospace, and telecommunication fields represent well-known industries with sellers and buyers on every continent. Other industries that are increasingly global in scope include soft drinks, cosmetics, ready-to-eat cereals, snack chips, and retailing.
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Strategic alliances
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Agreements among two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value creation.
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Three types of companies populate and compete in the global marketplace
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- International firms - Multinational firms - Transnational firms All three employ people in different countries, and many have administrative, marketing, and manufacturing operations (often called divisions or subsidiaries) around the world. However, a firm's orientation toward and strategy for global markets and marketing defines the type of company it is or attempts to be.
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International firm
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Engages in trade and marketing in different countries as an extension of the marketing strategy in its home country
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Multinational firm
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Views the world as consisting of unique parts and markets to each part differently
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Multidomestic marketing strategy
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A strategy used by multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.
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Transnational firm
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Views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants rather than differences.
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Global marketing strategy
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The practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ (popular among business-to-business marketers)
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Global brand
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A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs
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Global consumers
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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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3 types of global consumers
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a global middle-income class, a youth market, an elite segment
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Almost _____ businesses, educational institutions, government agencies, and households worldwide are expected to have internet access by 2015
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3 billion
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Industries that have benefited from Internet technology include
answer
industrial chemicals and controls; maintenance, repair and operating supplies; computer and electronic equipment and components; aerospace parts; and agricultural and energy products
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Most active participants in the worldwide business-to-business electronic commerce
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The United States, China, Canada, the United Kingdom, Germany, Sweden, Japan, India, and Taiwan
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Uncontrollable environmental variables
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Cultural, economic, and political-regulatory
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Cross-cultural analysis
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The study of similarities and differences among consumers in two or more nations or societies. Involves an understanding of and an appreciation for the values, customs, symbols, and language of other societies.
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Values
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A society's personally or socially preferable modes of conduct or states of existence that tend to persist over time.
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Customs
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What is considered normal and expected about the way people do things in a specific country.
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Foreign Corrupt Practices Act
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A law, amended by the International Anti-Dumping and Fair Competition Act, that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.
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Cultural symbols
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Things that represent ideas and concepts.
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Semiotics
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A field of study that examines the correspondence between symbols and their role in the assignment of meaning for people.
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3 principal languages
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English, French, Spanish
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Back translation
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The practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors.
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Cultural ethnocentricity
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The belief that aspects of one's culture are superior to another's. Global marketers are acutely aware that certain groups within countries disfavor imported products, not on the basis of price, features, or performance, but purely because of their foreign origin.
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Consumer ethnocentrism
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The tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products.
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A scan of the global marketplace should include
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- A comparative analysis of the economic development in different countries - An assessment of the economic infrastructure in these countries - A measurement of consumer income in different countries - Recognition of a country's currency exchange rates
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Developed countries
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Have somewhat mixed economies. Private enterprise dominates, although they have substantial public sectors as well
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Developing countries
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In the process of moving from an agricultural to an industrial economy. There are two subgroups within the developing category: (1) those that have already made the move and (2) those that remain locked in a preindustrial economy.
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Bottom of the pyramid
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The largest but poorest socioeconomic group of people in the world. Live on less than $2 a day.
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Economic infrastructure
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A country's communications, transportation, financial, and distribution systems
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Microfinance
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The practice of offering small, collateral-free loans to individuals who otherwise would not have access to the capital necessary to begin small businesses or other income-generating activities.
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_______ of the world's population has now achieved "middle-class" status
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Half
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Currency exchange rate
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The price of one country's currency expressed in terms of another country's currency.
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Aspects of the political-regulatory climate
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Political stability and trade regulations
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4 global market-entry strategies
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Exporting, licensing, joint venture, and direct investment
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The amount of _________, _________, __________, and __________ increases as the firm moves from exporting to direct investment.
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Financial commitment, risk, marketing control, and profit potential
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Exporting
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Producing products in one country and selling them in another country. This entry option allows a company to make the least number of changes in terms of its product, its organization, and even its corporate goals. Host countries usually do not like this practice because it provides less local employment than under alternative means of entry. Even though exporting is commonly employed by large firms, it is the prominent global market-entry strategy among small- and medium-sized companies. For example, 60 percent of U.S. firms exporting products have fewer than 500 employees.
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Licensing
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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. Advantages: Low risk and a capital-free entry into a foreign country. Drawbacks: The licensor forgoes control of its product and reduces the potential profits gained from it. The licensor may be creating its own competition. Some licensees are able to modify the product and enter the market with product and marketing knowledge gained at company's expense. So, many companies stay innovative so that the licensee remains dependent on them for improvements and successful operation. Finally, should the licensee prove to be a poor choice, the name or reputation of the company may be harmed.
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Joint venture
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A global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company. Advantages: One company may not have the necessary financial, physical, or managerial resources to enter a foreign market alone, and a government may require or strongly encourage a joint venture before it allows a foreign company to enter its market. Disadvantages: When the two companies disagree about policies or courses of action for their joint venture or when governmental bureaucracy bogs down the effort
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Direct investment
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The biggest commitment a company can make when entering the global market when it comes to financial commitments and risks. A global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division. The advantages to direct investment include cost savings, a better understanding of local market conditions, and fewer local restrictions.
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Indirect exporting
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When a firm sells its domestically produced products in a foreign country through an intermediary. It has the least amount of commitment and risk but will probably return the least profit. Indirect exporting is ideal for a company that has no overseas contacts but wants to market abroad. The intermediary is often a distributer that has the marketing know-how and resources necessary for the effort to succeed.
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Direct exporting
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When a firm sells its domestically produced products in a foreign country without intermediaries. Companies become involved in direct exporting when they believe their volume of sales will be sufficiently large and easy to obtain that they do not require intermediaries. Direct exporting involves more risk than indirect exporting for the company but also opens the door to increased profits.
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Contract manufacturing
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Type of licensing where a U.S. company may contract with a foreign firm to manufacture products according to stated specifications. The product is then sold in the foreign country or exported back to the United States
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Contract assembly
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Type of licensing where the U.S. company may contract with a foreign firm to assemble (not manufacture) parts and components that have been shipped to that country.
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Advantages of licensing to foreign country and U.S. firm
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The advantage to the foreign country is the employment of its people, and the U.S. firm benefits from the lower wage rates in the foreign country.
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A product may be sold globally in one of three ways:
answer
- Product extension - Product adaptation - Product invention
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Product extension
answer
Selling virtually the same product in other countries. Seems to work best when the consumer market target for the product is alike across countries and cultures- that is, consumers share the same desires, needs, and uses for the product. An identical promotion message is used.
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Product adaptation
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Changing a product in some way to make it more appropriate for a country's climate or consumer preferences. An identical promotion message is used.
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Product invention
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Companies can invent totally new products designed to satisfy common needs across countries
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2 ways global companies adapt their promotion message
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- Communication adaptation - Dual adaptation
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Communication adaptation
answer
The same product is sold in many countries but advertised differently
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Dual adaptation
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Modifying both products and promotion messages
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Distribution strategy
answer
- The availability and quality of retailers and wholesalers as well as transportation, communication, and warehousing facilities are often determined by a country's stage of economic development. - Seller, seller's international marketing headquarters, channels between nations, channels within foreign nation (can be very long or short, depending on product line), final consumer
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Pricing strategy
answer
Individual countries, even those with free trade agreements, may impose considerable competitive, political, and legal constraints on the pricing latitude of global companies. Pricing too low or too high can have dire consequences (dumping and a gray market).
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Dumping
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When a firm sells a product in a foreign country below its domestic price or below its actual cost. Often done to build a company's share of the market by pricing at a competitive level or because the products being sold may be surplus or cannot be sold domestically and, therefore, are already a burden to the company.
question
Gray market
answer
When companies price their products very high in some countries but competitively in others, they face a situation where products are sold through unauthorized channels of distribution. when individuals buy products in a lower-priced country from a manufacturer's authorized retailer, ship them to higher-priced countries, and then sell them below the manufacturer's suggested retail price through unauthorized retailers. (Legal in U.S., illegal in E.U.)
question
Two market environments populated by consumers and companies
answer
- Marketplace - Marketspace
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Marketplace
answer
Buyers and sellers engage in face-to-face exchange relationships in a material environment characterized by physical facilities (stores and offices) and mostly tangible objects.
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Marketspace
answer
An Internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings
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About ___ percent of Internet users ages 15 and older shop online in the United States
answer
90%
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The greatest marketspace opportunity for marketers lies in ____________
answer
it's potential for creating form utility (customization, 35% of online consumers)
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Two unique capabilities of internet technology that promote and sustain customer relationships
answer
- Interactivity - Individuality
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For buyer-seller relationships to work....
answer
Companies need to interact with their customers by listening and responding to their needs. Marketers must also treat customers as individuals and empower them to (1) influence the timing and extent of the buyer-seller interaction and (2) have a say in the kind of products and services they buy, the information they receive, and in some cases, the prices they pay.
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Interactive marketing
answer
Two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller
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Choiceboard
answer
An interactive, Internet-enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes (or components), prices, and delivery options. Because choiceboards collect precise information about the preferences and behavior of individual buyers, a company becomes more knowledgeable about a customer and better able to anticipate and fulfill that customer's needs. (Transaction device)
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Collaborative filtering
answer
A process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases. Collaborative filtering gives marketers the ability to make a dead-on sales recommendation to a buyer in real time.
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Personalization
answer
Consumer-initiated practice of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences. Today, one-half of the largest online retailers in the United States use personalization techniques.
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Permission marketing
answer
The solicitation of a consumer's consent (called "opt-in") to receive e-mail and advertising based on personal data supplied by the consumer.
question
Companies that successfully employ permission marketing adhere to three rules
answer
- Make sure opt-in customers receive only information that is relevant and meaningful to them. - Their customers are given the option to opt-out, or change the kind, amount, or timing of information sent to them. - Their customers are assured that their name or buyer profile data will not be sold or shared with others.
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7 C's of the online customer experience
answer
- Content - Community - Customization - Communication - Connection - Commerce - Context
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Context
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Site's layout and visual design. A functionally oriented website focuses largely on the company's offering. Deal-oriented travel websites tend to be functionally oriented with an emphasis on destinations, scheduling, and prices. Beauty websites are more aesthetically oriented. As these examples suggest, context attempts to convey the core consumer benefit provided by the company's offerings.
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Content
answer
Text, pictures, sound, and video that the site contains. Platform for customization, connection, communication, community, and commerce.
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Customization
answer
Site's ability to tailor itself to different users or to allow users to personalize the site.
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Connection
answer
Degree that site is linked to other sites. Major design element for informational websites.
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Communication
answer
The ways the site enables site-to-user, user-to-site, or two-way communication.
question
Community
answer
The ways that the site enables user-to-user communication. Has been shown to enhance customer experience and build favorable buyer-seller relationships
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Commerce
answer
Site's capabilities to enable commercial transactions
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Most websites do not include every design element because
answer
although every website has context and content, they differ in the use of the remaining five elements because websites have different purposes
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Labels given to online consumers
answer
Cybershoppers, Netizens, e-shoppers (not a homogeneous segment of the population)
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Online consumers
answer
The subsegment of all Internet users who employ personal computers or smartphones to research products and services and make purchases
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Demographics of online consumers
answer
Equally likely to be women and men, and they tend to be better educated, younger, and more affluent than the general U.S. population. This makes them an attractive market.
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It is estimated that ___ percent of online consumers account for ___ percent of total consumer online sales. Also, ____ tend to purchase more products and services online than ____.
answer
20 60 women men
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6 online consumer lifestyle segments
answer
- Click-and-mortar - Hunter-gatherers - Brand loyalists - Time-sensitive materialists - Hooked, online, and single - E-bivalent newbies
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Click-and-mortar
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The largest online consumer lifestyle segment, consists of women who tend to browse retailer websites but actually buy products in traditional retail outlets. They make up 23 percent of online consumers and represent an important segment for multichannel retailers that also feature catalog and store operations, such as J. Crew. (23%)
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Hunter-gatherers
answer
Married couples with children at home who use the Internet like a consumer magazine to gather information and compare products and prices. (20%)
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Brand loyalists
answer
Users who regularly visit their favorite bookmarked websites and spend the most money online. They are better-educated and more affluent Internet users who effortlessly navigate familiar and trusted websites and enjoy the online browsing and buying experience. (19%)
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Time-sensitive materialists
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Users who regard the Internet as a convenience tool for buying music, books, computer software, and electronics. (17%)
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Hooked, online, and single
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Young, affluent, and single online consumers who bank, play games, and spend more time online than any other segment. (16%)
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E-bivalent newbies
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Relative newcomers to the Internet who rarely spend money online but seek product information.
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Five general product and service categories account for about 2/3 of online consumer buying today and for the foreseeable future
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Computers & consumer electronics Apparel & accessories Books, music, & video Furniture & home furnishings Automobile & auto parts
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6 categories of item characteristics
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- Items for which product information is an important part of the purchase decision, but prepurchase trial is not necessarily critical. Items such as computers, computer accessories, and consumer electronics fall into this category. So do books. - Items for which audio or video demonstration is important. - Items that can be delivered digitally, including computer software, music, and video. - Unique items, such as specialty products, foods, beverages, and gifts - Items that are regularly purchased and where convenience is very important. Many consumer packaged goods, such as grocery products, personal care items, and office products, fall into this category. - Highly standardized products and services for which information about price is important. Certain kinds of home and automotive products, casual apparel, and toys make up this category.
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6 reasons consumers shop and buy online
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Convenience, choice, customization, communication, cost, control
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Bots
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Electronic shopping agents or robots that comb websites to compare prices and product or service features.
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Eight-second rule
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A view that customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds. The more clicks and pauses between clicks required to access information or make a purchase, the more likely it is a customer will exit a website.
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2 dimensions of choice
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- Product or service selection offered to consumers - Choice assistance
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Customerization
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The growing practice of not only customizing a product or service but also personalizing the marketing and overall shopping and buying interaction for each customer. Customerization seeks to do more than offer consumers the right product, at the right time, and at the right price. It combines choiceboard and personalization systems to expand the exchange environment beyond a transaction and makes shopping and buying an enjoyable, personal experience.
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3 forms of communication
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- Marketer-to-consumer e-mail notification - Consumer-to-marketer buying and service requests - Consumer-to-consumer chat rooms and instant messaging, in addition to social networking websites such as Twitter and Facebook.
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Web communities
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Websites that allow people to congregate online and exchange views on topics of common interests.
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Spam
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Communications that take the form of electronic junk mail or unsolicited e-mail.
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Buzz
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Word-of-mouth behavior in marketspace
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Viral marketing
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An Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking websites, and blogs.
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3 approaches to viral marketing
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- Marketers can embed a message in the product or service so that customers hardly realize they are passing it alone - Marketers can make the website content so compelling that viewers want to share it with others - Marketers can offer incentives
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Showrooming
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Occurs when a shopper visits a retail store to inspect merchandise but then goes online to compare prices from other retail and online sellers to attempt to make the best purchase. While obtaining a lower price is the primary motivator for showrooming, shoppers also engage in this practice to gather additional merchandise information, look for online promotions or deals, and check merchandise reviews and ratings. About half of U.S. online shoppers engage in showrooming. Consumer electronics, apparel, books, and home appliances are the most popular showrooming product categories.
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Dynamic pricing
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The practice of changing prices for products and services in real time in response to supply and demand conditions.
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Two major reasons for the popularity of online shopping and buying among women
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Greater shopping convenience and lower external search costs
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Cookies
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Computer files that a marketer can download onto the computer and mobile phone of an online shopper who visits the marketer's website that track their web activity
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Behavioral targeting
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Uses information provided by cookies for directing online advertising from marketers to those online shoppers whose behavioral profiles suggest they would be interested in such advertising.
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The busiest online shopping day is __________
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Wednesday
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The busiest store shopping day is ________
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Saturday
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Consumers are more likely to _____ than _____ online
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browse than buy
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Cross-channel shopper
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Opposite of showrooming, an online consumer who researches products online and then purchases them at a retail store. (51% of U.S. online consumers) (Slightly younger, have a higher education, earn significantly more money, and are more likely to embrace technology in their lives)
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Top reasons shoppers research items online before buying in stores
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- The desire to compare products among different retailers - The need for more information than is available in stores - The ease of comparing their options without having to trek to multiple retail locations
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Retail sales revenue from cross-channel shoppers is estimated to be about ____ times _____ than online retail sales.
answer
5 times greater
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Multichannel marketing
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The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in the traditional marketplace and online—the cross-channel shopper.
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Two general applications of websites exist based on their intended purpose
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- Transactional websites - Promotional websites
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Transactional websites
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Electronic storefronts that focus principally on converting an online browser into an online, catalog, or in-store buyer using the website design elements. Most common among store and catalog retailers and direct selling companies.
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Recurring issues for manufacturers
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- Threat of channel conflict - Potential harm to trade relationships with their retailing intermediaries
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Promotional websites
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Advertise and promote a company's products and services and provide information on how items can be used and where they can be purchased. They often engage the visitor in an interactive experience involving games, contests, and quizzes with electronic coupons and other gifts as prizes.
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Ethics
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Moral principles and values that govern the actions and decisions of an individual or group
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Four possible reasons the state of perceived ethical business conduct is at its present level
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- Increased pressure on businesspeople to make decisions in a society characterized by diverse value systems. - Growing tendency for business decisions to be judged publicly by groups with different values and interests. - Public's expectations of ethical business behavior have increased. - Most disturbingly, ethical business conduct may have declined.
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3 factors that influence ethical marketing behavior
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- Societal culture and norms - Business culture and industry practices - Corporate culture and expectations
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Business cultures
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Comprise the effective rules of the game, the boundaries between competitive and unethical behavior, and the codes of conduct in business dealings.
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Instances when business cultures go awry
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- Insider trading - Deceptive insurance sales practices - Bribery
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Caveat emptor
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The legal concept of "let the buyer beware" that was pervasive in the American business culture prior to the 1960s.
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Consumer Bill of Rights
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A law that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard.
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Right to safety
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Manifests itself in industry and federal safety standards for most products sold in the U.S.
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Right to be informed
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Marketers have an obligation to give consumers complete and accurate information about products and services. This right also applies to the solicitation of personal information over the Internet and its subsequent use by marketers.
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Right to choose
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Not limiting the number of new products available to customers
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Right to be heard
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Consumers should have access to public-policy makers regarding complaints about products and services. (Do Not Call Registry)
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Two most common kinds of unethical behavior
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- Economic espionage - Bribery
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Economic espionage
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The clandestine collection of trade secrets or proprietary information about a company's competitors. This practice is illegal and unethical and carries serious criminal penalties for the offending individual or business. Espionage activities include illegal trespassing, theft, fraud, misrepresentation, wiretapping, the search of a competitor's trash, and violations of written and implicit employment agreements with noncompete clauses. Most prevalent in high-technology industries.
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Bribery is more common in __________ and ________ marketing than _________ marketing.
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business-to-business and government marketing than consumer marketing
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Bribery is most evident in industries _____________ and in countries ___________
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experiencing intense competition, in the earlier stages of economic development
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Corporate culture
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The set of values, ideas, and attitudes that is learned and shared among the members of an organization
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Code of ethics
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A formal statement of ethical principles and rules of conduct. It is estimated that 86 percent of U.S. companies have some sort of ethics code and one of every four large companies has corporate ethics officers. Ethics codes typically address contributions to government officials and political parties, customer and supplier relations, conflicts of interest, and accurate recordkeeping.
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______________ are major reasons for the violation of ethics codes
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- Lack of specificity - Perceived behavior of top management and co-workers
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Whistle-blowers
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Employees who report unethical or illegal actions of their employers.
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Two prominent personal moral philosophies
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- Moral idealism - Utilitarianism
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Moral idealism
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A personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome. (Exists in Consumer Bill of Rights and is favored by moral philosophers and consumer interest groups)
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Utilitarianism
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A personal moral philosophy that focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior.
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Social responsibility
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The idea that organizations are part of a larger society and are accountable to that society for their actions.
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Three concepts of social responsibility
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- Profit responsibility - Stakeholder responsibility - Societal responsibility
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Profit responsibility
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That companies have a simple duty: to maximize profits for their owners or stockholders
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Stakeholder responsibility
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The obligations an organization has to those who can affect achievement of its objectives. These constituencies include consumers, employees, suppliers, and distributors.
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Societal responsibility
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Refers to obligations that organizations have to the preservation of the ecological environment and to the general public.
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Triple-bottom line
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The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.
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Green marketing
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Marketing efforts to produce, promote, and reclaim environmentally sensitive products.
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Cause marketing
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Occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products.
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Social audit
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A systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility.
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5 steps of a social audit
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1. Recognition of a firm's social expectations and the rationale for engaging in social responsibility endeavors. 2. Identification of social responsibility causes or programs consistent with the company's mission. 3. Determination of organizational objectives and priorities for programs and activities it will undertake. 4. Specification of the type and amount of resources necessary to achieve social responsibility objectives. 5. Evaluation of social responsibility programs and activities undertaken and assessment of future involvement.
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Sustainable development
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Conducting business in a way that protects the natural environment while making economic progress.
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Companies the evidence societal responsibility....
answer
benefit from favorable word of mouth among consumers and typically outperform less responsible companies in terms of financial performance
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Question
What is the right structure for an essay
Answer
A paragraph is a related group of sentences that develops one main idea. Each paragraph in the body of the essay should contain:
  • a topic sentence that states the main or controlling idea
  • supporting sentences to explain and develop the point you’re making
  • evidence from your reading or an example from the subject area that supports your point
  • analysis of the implication/significance/impact of the evidence finished off with a critical conclusion you have drawn from the evidence.