question

Creating value for customers and building strong customer relationships

answer

Marketing

question

Sum of the tangible and intangible benefits and costs to them. Marketers can increase value of a customer offering by reducing price or increasing quality.

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Value

question

Apple, Nike, Geico, Budweiser, FedEx, Southwest

answer

Great Marketing Companies

question

Product, Price, Place, Promotion

answer

Marketing Mix

question

Consumers dislike the product and may even pay to avoid it (Demand)

answer

Negative

question

Consumers may be unaware of or uninterested in the product (Demand)

answer

Nonexistent

question

Consumers may share a strong need that cannot be satisfied by an existing product (Demand)

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Latent

question

Consumers being to buy the product less frequently or not at all (Demand)

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Declining

question

Consumer purchases vary on a seasonal, monthly, weekly, daily or even hourly basis (Demand)

answer

Irregular

question

Consumers are adequately buying all products put into the marketplace (Demand)

answer

Full

question

More consumers would like to buy the product than can be satisfied (Demand)

answer

Overfull

question

Global Markets, Consumer Market, Business Markets, Government Market

answer

Key Customer Markets

question

Fewer, larger buyers Close supplier-customer relationship Professional purchasing Multiple buying influences Derived demand Inelastic demand Fluctuating demand Geographically concentrated buyers Direct purchasing

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Characteristics of Business Markets

question

Physical (Market)

answer

Market-places

question

Digital (Market)

answer

Market-spaces

question

Cluster of complimentary products and services closely related in the minds of consumers, but spread across a diverse set of industries.

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Metamarkets

question

Basic human requirements such as air, food, water, clothing, shelter

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Needs

question

When needs are directed to specific objects that might satisfy the need.

answer

Wants

question

Wants for specific products backed by the ability to pay. People who want a Mercedes, but only those that are willing and able to buy it

answer

Demand

question

A marketing strategy that involves dividing a broad target market into subsets of consumers, businesses, or countries who have common needs and priorities, and then designing and implementing strategies to target them.

answer

Segmentation

question

A particular group of consumers at which a product or service is aimed. Segments that present the greatest opportunity to a firm

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Target Markets

question

Promote (a product, service, or business) within a particular sector of a market, or as the fulfillment of that sector's specific requirements.

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Positioning

question

Producer ; Wholesaler ; Retailer ; Consumer

answer

Marketing Channels

question

Production, Product, Selling, Marketing, Holistic

answer

Marketing Concepts

question

Consumers will favor products that are available and affordable (Marketing Concept)

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Production Concept

question

Consumers will favor products that offer the most in quality, performance, and innovative features (Marketing Concept)

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Product Concept

question

Consumers will not buy enough without a large scale selling and promotion effort (Marketing Concept)

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Selling Concept

question

Focus on satisfying the needs and wants of target markets (Marketing Concept)

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Marketing Concept

question

This marketing concept improves both the consumer's and the society's well being (Marketing Concept)

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Societal marketing concept

question

Aims to build mutually satisfying long-term relationships with key constituents in order to earn and retain their business. Customers, employees, marketing partners and members of the financial community (Holistic Marketing)

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Relationship marketing

question

Occurs when the marketer devices marketing activities and assembles marketing programs to create, communicate, and deliver value for consumers such that "the whole is great than the sum of its parts" (Holistic Marketing)

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Integrated marketing

question

An element of holistic marketing, the task of hiring, training, and motivating able employees who want to serve customers well. Ensure that everyone in the organization embraces appropriate marketing principles, especially senior management (Holistic Marketing)

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Internal marketing

question

Requires understanding the financial and nonfinancial returns to business and society from marketing activities and programs. Going beyond sales revenue to examine the marketing scorecard to interpret what is happening to market share, customer loss rate, customer satisfaction, product quality and others (Holistic Marketing)

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Performance marketing

question

Tool for identifying ways to create more customer value

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Value Chain

question

Gathering and acting upon information about the market (Core Business Processes)

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Market-Sensing Process

question

Researching, developing and launching new high-quality offerings, quickly and within budget (Core Business Processes)

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New-Offering Realization Process

question

Defining target markets and prospecting for new customers (Core Business Processes)

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Customer Acquisition Process

question

Building deeper understanding, relationships, and offerings to individuals (Core Business Processes)

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Customer Relationship Management Process

question

Receiving and approving orders, shipping goods on time, and collecting payment (Core Business Processes)

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Fulfillment Management Process

question

1. It is a source of competitive advantage and makes significant contribution to perceived customer benefits 2. It has applications in a wide variety of markets 3. It is difficult for competitors to imitate

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Core competency

question

Central instrument for directing and coordinating the marketing effort. Operates at two levels: strategic and tactical

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Marketing Plan

question

Lays out the target markets and the firm's value proposition, based on an analysis of the best market opportunities

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Strategic Marketing Plan

question

Specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and services

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Tactical Marketing Plan

question

Define the mission > Establish SBUs > Assign resources to SBUs > Assess growth opportunities

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Strategic planning steps

question

What is our business? Who is the customer? What is of value to the customer?

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Mission

question

Must have over 5% of mother company revenue. GE's appliance division compared to their mother company. Have to fit within mission statement of mother company 1. Single business, or a collection of related businesses, that can be planned separately from the rest of the company 2. Has its own set of competitors 3. Has a manager responsible for strategic planning and profit performance, who controls most of the factors affecting profit

answer

SBU

question

Market Growth Rate (Cash Usage) vs Relative Market Share (Cash Generation) (Stars, Question Marks, Cash Cows, Dogs)

answer

BCG Matrix

question

Market Development, Diversification, Market Penetration, Product Development

answer

Product-Market Expansion Strategies

question

Develop new markets with current products by identifying new demographic or geographic markets.

answer

Market Development

question

New products for new markets. How? Start up or buy new businesses.

answer

Diversification

question

Increase sales to present customer with current products by cutting prices, increasing advertising, getting products into more stores.

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Market Penetration

question

Offering modified or new products to current customers. How? New styles, flavors, colors, or modified products.

answer

Product Development

question

Success Probability vs Attractiveness (1, 2, 3, 4)

answer

Opportunity Matrix

question

Probability of Occurance vs Seriousness (1, 2, 3, 4)

answer

Threat Matrix

question

EX: Costco, McDonald's, Ikea, Walmart

answer

Cost Leadership

question

EX: Ferrari

answer

Focus

question

EX: Monster Thickburger

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Differentiation

question

Product/Service Alliance Promotional Alliance Logistics Alliance Pricing Collaborations

answer

Strategic Alliances

question

The sales goal set for a product line or sales representative

answer

Sale Quota

question

People, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely and accurate information to marketing decision makers

answer

Marketing Information System

question

Set of procedures and sources that managers use to obtain everyday information about developments in the marketing environment. Internal records system supplies "results data," but the marketing intelligence supplies "happening" data.

answer

Marketing Intelligence System

question

Inside the company. EX: Order to payment cycle

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Internal Records

question

Outside the company. Usually based on competitors and their customers. EX: Corporate espionage, benchmarking

answer

Market Intelligence

question

Data you personally collect (new)

answer

Primary Data

question

2nd hand data, already existing

answer

Secondary Data

question

! Train sales force to scan for new developments ! Motivate channel members to share intelligence ! Hire external experts to collect intelligence ! Network externally ! Customer advisory panel ! Utilize government data sources ! Purchase information

answer

How to improve market intelligence?

question

Environment where we have control

answer

Micro-environment

question

Environment where we do not have control

answer

Macro-environment

question

Unpredictable, short lived, and without social, economic and political significance

answer

Fad

question

More predictable and durable than a fad. Reveal the shape of the future and can provide strategic direction

answer

Trend

question

Large social, economic, political, and technological change that is slow to form, and once in place, influences us for some time. About 7-10 years or longer

answer

Megatrend

question

Facts about people: Population age mix, Ethnicities, Educational groups, Household patterns. (Environmental Forces)

answer

Demographics

question

Accelerating pace of change Unlimited opportunities for innovation (Environmental Forces)

answer

Technological

question

Consumer Psychology: recession of 2008 initiated new consumer spending patterns. Fundamentally shaken consumers' faith and financial situations in the economy. Mindless shopping and more price consciousness became norm. Income Distribution: Subsistence Economies: few opportunities for marketers Raw Material Exporting Economies: market for equipment, tools, supplies, and luxury goods for the rich Industrializing Economies: new rich class and growing middle class demand new types of goods Industrial Economies: rich markets for all sorts of goods (Environmental Forces)

answer

Economic

question

Steel and public utilities have invested billions of dollars in pollution-controlled equipment and environmentally friendly fuels, making hybrid cards, low-flow toilet, organic foods, and green office buildings. Emerging market of green lifestyle Corporate Environmentalism: companies recognize the need to integrate environmental issues into the firm's strategic plans Shortage of Raw Materials Increase in Energy Costs (Environmental Forces)

answer

Natural

question

Unconscious world view that defines our relationships to ourselves, others, organizations, society, nature, and the universe. Subculture: groups with share values, beliefs, preferences, and behaviors emerging from their specific life experiences or circumstances (Environmental Forces)

answer

Sociocultural

question

Consists of laws, government agencies, and pressure groups that influence organizations and individuals. Sometimes these create new business opportunities. Mandatory recycling programs created new marketing for recycled products. 2 major trends: Increased business legislation & Growth of special interest groups. (Environmental Forces)

answer

Political-Legal

question

Set of consumers with a sufficient level of interest in a market offer. Interest is not enough unless they also have sufficient income and access to the product

answer

Potential Market

question

Consumers who have interest, income, and access to a particular offer.

answer

Available market

question

Part of the qualified available market the company decides to pursue

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Target Market

question

Set of consumers who are buying the company's product

answer

Penetrated Market

question

Total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program

answer

Market Demand

question

Maximum sales available to all firms in an industry during a given period, under a given level of industry marketing effort and environmental conditions. Multiply the potential number of buyers by the average quantity purchases and then by the price

answer

Total Market potential

question

Calls for identifying all the potential buyers in each market and estimating their potential purchases. Accurate if there is a list of all potential buyers and a good estimate of what each will buy

answer

Market build-up method

question

Straightforward index for estimating market potentials. (weighted average)

answer

Market-Factor Index Method

question

Your company's percentage of an industry or market's total sales over a specified time period. Validates your position in the market and helps you fine-tune your overall marketing plan.

answer

Market Share

question

Part of anticipating what buys likely to do under a given set of conditions

answer

Forecasting

question

When interviewing buyers is impractical, the company may ask its sales representatives to estimate their future sales.

answer

Composite of sales force opinions

question

Obtain forecasts from experts, including dealers, distributors, suppliers, marketing consultants, and trade associations

answer

Expert Opinion

question

The function that links the consumer, customer, and public to the marketer through information. Information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions monitor marketing performance and improve understanding of marketing as a process

answer

Marketing Research

question

Provide diagnostic information about how and why we observe certain effects in the marketplace and what that means to marketers

answer

Marketing insights

question

these firms gather consumer and trade information, which they sell for a fee

answer

Syndicated-service research firms

question

Hired to carry our specific projects. They design the study and report the findings

answer

Customer marketing research firms

question

Provide specialized research services. Best example is the field-service firm, which sells field interviewing services to other firms

answer

Specialty Line Marketing Research firms

question

Exploring options (to shed light on the real nature of the problem and to suggest possible solutions or new ideas) (Research Objectives)

answer

Exploratory

question

Ex: How many people would use the internet for $5 (Research Objectives)

answer

Descriptive

question

Ex: Would passengers use the internet more if they could use their own devices? Cause and effect (Research Objectives)

answer

Causal

question

Observing unobtrusively as customers shop or consumer products (Research Approaches)

answer

Observational Research

question

Uses concepts and tools from anthropology and other social science disciplines to provide deep cultural understanding of how people live and work. Goal is to immerse the researcher into consumers' lives to uncover unarticulated desires that might not surface in any other form of research (Research Approaches)

answer

Ethnographic Research

question

Gathering 6-10 people who spend a few hours with a skilled moderator to discuss a product, service, or other marketing entity (Research Approaches)

answer

Focus Group

question

Assess peoples' knowledge, beliefs, preferences, and satisfaction and to measure these magnitudes in the general population (Research Approaches)

answer

Survey

question

Customers leave traces of their purchasing behavior in store scanning data, catalog purchases, and customer databases. (Research Approaches)

answer

Behavioral Research

question

Designed to capture cause-and-effect relationships by eliminated competing explanations of the findings. If the experiment is well designed and executed, research and marketing managers can have confidence in the conclusions. Laboratory experiment - drink taste (Research Approaches)

answer

Experimental Research

question

Consists of a set of questions presented to respondents. Most common to collect data (Research Instruments)

answer

Questionnaires

question

Yes or No

answer

Dichotomous Questions

question

Insert your level of agreement

answer

Likert Scale

question

Pick the best option between two poles. (Large and Small)

answer

Semantic Differential

question

Relatively indirect and unstructured measurement approaches, limited only by the marketing research's creativity that permit a range of responses. Popular methods include: word associations, projective techniques, visualization, brand personification, laddering

answer

Qualitative measures

question

A segment of the population selected to represent the population as a whole

answer

Sample

question

Each individual has the same probability of being chosen EX: choosing one name per page from a phone book

answer

Simple random sample

question

Divide the populations into groups (strata) and then conduct random sampling.

answer

Stratified random sample

question

In this technique, the total population is divided into these groups and a simple random sample of the groups is selected.

answer

Cluster sample

question

This kind of sampling is a non-probability sampling technique where subjects are selected because of their convenient accessibility and proximity to the researcher.

answer

Convenience sample

question

This kind of sampling sampling is a non-probability sampling technique where the researcher selects units to be sampled based on their knowledge and professional judgment.

answer

Judgment Sample

question

This kind of sampling is a non-probability sampling technique wherein the assembled sample has the same proportions of individuals as the entire population with respect to known characteristics, traits or focused phenomenon.

answer

Quota Sample

question

Expensive and is subject to bias and distortion are disadvantages of?

answer

Disadvantage of using personal interviews

question

The difference between the prospective customer's evaluation of all the benefits and costs of an offering and the perceived alternatives

answer

Customer Perceived Value

question

The perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering because of the product, service, people, and image

answer

Total Customer Benefit

question

The perceived bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering, including monetary, time, energy, and psychological costs

answer

Total Customer Cost

question

A deeply held commitment to rebuy or re-patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior

answer

Loyalty

question

= Benefits - costs

answer

Value

question

The whole cluster of benefits the company promises to delivery. It is more than the core positioning of the offering.

answer

Value Proposition

question

Includes all the experiences the customer will have on the way to obtaining and using he offering. A set of core business processes that help deliver distinctive consumer value

answer

Value Delivery System

question

A person's feelings of pleasure or disappointment that result from comparing a product's perceived performance to (or outcome) to expectations.

answer

Satisfaction

question

A person, household, or company that over time yields a revenue stream exceeding by an acceptable amount the company's cost stream for attracting, selling, and serving that customer.

answer

Profitable customer

question

Best conducted with the tools of an accounting technique called Activity Based Costing (ABC).

answer

Customer Profitability Analysis (CPA)

question

Tries to identify the real costs associated with serving each customer - the costs of products and services based on the resources they consume.

answer

Activity Based Costing (ABC)

question

Describes the net present value of the stream of future profits expected over the customer's lifetime purchases

answer

Customer lifetime value (CLV)

question

Identifies the percentage of the potential target market at each stage in the decisions process, from merely aware to highly loyal

answer

Marketing funnel

question

Ex: How likely is it you would recommend us to a friend?

answer

Net Promoter Score

question

Adhering to requirements (EX: 200 thread count)

answer

Conformance Quality

question

The study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs or wants.

answer

Consumer Behavior

question

Reflects the learned values, perceptions, wants, and behavior that stem from family and other important institutions.

answer

Culture

question

Are all the groups that have a direct (face-to-face) or indirect influence on their attitudes or behavior.

answer

Reference group

question

They are based on the group members' shared interests and goals. They are not structured with a specific goal in mind.

answer

Informal reference group

question

Groups that have a specific goal or mission, structure and positions of authority

answer

Formal reference group

question

Groups having a direct influence. Some of these are primary groups with whom the person interacts fairly continuously and informally, such as family, friends, neighbors, and coworkers. People also belong to secondary groups, such as religious, professional, and trade-union groups, which tend to be more formal and require less continuous interaction.

answer

Membership groups

question

Groups that people hopes to join

answer

Aspirational groups

question

Groups whose values or behavior people reject

answer

Dissociative groups

question

The most important consumer buying organization in society!

answer

Family

question

Two families in the buyer's life

answer

Family of orientation (consists of parents and siblings) and Family of procreation (spouse and children)

question

The specific mix of human traits that we can attribute to a particular brand.

answer

Brand personality

question

is a person's pattern of living in the world as expressed in activities, interests, and opinions. It portrays the "whole person" interacting with his or her

answer

Lifestyle

question

Stated that psychological forces that shaped peoples behavior are unconscious.

answer

Freud

question

Stated that people are driven by different needs at different times. According to Maslow, human needs are arranged in a hierarchy from most to least pressing.

answer

Maslow

question

Developed two-factor theory that distinguishes dissatisfiers (factors that cause dissatisfaction) from satisfiers (factors that cause satisfaction).

answer

Herzberg

question

A need that is sufficiently pressing to direct the person to seek satisfaction.

answer

Motive

question

The process by which people select, organize, and interpret information.

answer

Perception

question

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

answer

Selective attention

question

Tendency of people to interpret information in a way that will support what they already believe.

answer

Selective distortion

question

Retaining information that supports existing attitudes and beliefs. People tend to remember (forget) information that supports (differs) our attitudes and beliefs.

answer

Selective retention

question

They argue that marketers embed covert, subliminal messages in ads or packaging. Consumers are not consciously aware of them, yet they affect behavior

answer

Subliminal perception

question

The way information is recovered

answer

Memory retrieval

question

Induces changes in our behavior arising from experience.

answer

Learning

question

A strong internal stimulus impelling action

answer

Drive

question

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

answer

Cues

question

Means we have learned to recognize differences in sets of similar stimuli and can adjust our responses accordingly.

answer

Discrimination

question

Personal, Commercial, Public , Experiential

answer

Information sources

question

A descriptive thought that a person has about something based on knowledge, opinion, faith.

answer

Belief

question

Describes a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea.

answer

Attitude

question

It's a compensatory model, in that perceived good things about a product can help to overcome perceived bad things

answer

Expectancy value model

question

With these models, positive and negative attribute considerations don't necessarily net out.

answer

Noncompensatory models

question

This product must meet my minimum requirements), the consumer sets a minimum acceptable cutoff level for each attribute and chooses the first alternative that meets the minimum standard for all attributes

answer

Conjunctive heuristic

question

(I will rank order attributes and narrow down alternatives by comparing the first rankings) the consumer chooses the best brand on the basis of its perceived most important attribute

answer

Lexicographic Heuristics

question

(I will rank the attributes by importance AND define the minimum required values) the consumer compares brands on an attribute selected probabilistically—where the probability of choosing an attribute is positively related to its importance—and eliminates brands that do not meet minimum acceptable cutoffs.

answer

Elimination-by-aspects heuristics

question

Brand, Dealer (where), Quantity, Timing (when), Payment method (how)

answer

5 Purchase Subdecisions

question

Consumers base their predictions on the quickness and ease with which a particular example of an outcome comes to mind. Advertising and other marketing makes information more available to consumers. Occurs unconsciously and operates under the principle that "if you can think of it, it must be important."

answer

Availability heuristic

question

Consumers base their predictions on how representative or similar the outcome is to other examples. One reason package appearances may be so similar for different brands in the same product category is that marketers want their products to be seen as representative of the category as a whole.

answer

Representativeness Heuristic

question

Consumers arrive at an initial judgment and then adjust it based on additional information

answer

Anchoring ; adjustment heuristic

question

The model of the buyer behavior shows stimuli as input and buyer response as output.

answer

The Stimulus-response model (AKA Black box model)

question

The decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.

answer

Organizational Buying

question

Consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others.

answer

The Business Market

question

Multiple buying influences - Such as buying committees, which can be comprised of technical experts and senior management. Direct purchasing - Often large volume customers purchase directly from manufacturer, rather than these markets also differ from the consumer market in demand functions. Normally deal with far fewer but far larger buyers than consumer markets.

answer

B2B vs B2C

question

A type of demand that can be influenced when the producer of a business product engages in marketing effort to encourage the sale of its buyers products EX: American Egg Board

answer

Derived Demand

question

Total demand for many business goods and services is inelastic - that is, not affected too much by changes in price.

answer

Inelastic Demand

question

Demand for business goods tends to be more volatile than the demand for consumer goods. At times, a rise of 10% in consumer demand can result in a rise in business demand by as much as 200%.

answer

Fluctuating Demand

question

The process that occurs when a consumer makes another purchase of the identical goods in the identical amount under the identical terms from the identical supplier. A reorder on a routine basis

answer

Straight Rebuy

question

New purchase (Buying Situation)

answer

New Task

question

A buying situation in which an individual or organization purchase goods that have been purchased previously but changes either the supplier or some other elements of the previous order. In this the buyer wants to modify product specifications, terms, prices, suppliers.

answer

Modified Rebuy

question

The contractor (seller) approaches a potential buyer and offers to provide all of the organizations MRO (maintenance, repair, and operating) supplies. Systems selling is a key strategy in bidding on large-scale industrial projects such as dams, pipelines, factories, etc.

answer

Systems selling

question

Problem Recognition ; Description ; Characteristics ; Supplier Search ; Proposal Solicitations ; Supplier Selection ; Order Specification ; Performance Review

answer

Stages in the Buying Process

question

When problems are discovered from internal or external stimuli. A broken machine, low stock levels, or a new product being developed. External stimuli can trigger the process as well.

answer

Problem Recognition

question

An approach to cost reduction that studies whether components can be redesigned or standardized or made by cheaper methods of production without affecting the product performance.

answer

Product value analysis

question

(Blanket contracts) that establish long-term relationships. Here the supplier agrees to resupply the buyer as needed, at agreed upon prices, over a specific period of time.

answer

Stockless purchase plans

question

Refers to a type of solution that includes everything you need to immediately start running a business

answer

Turnkey solution

question

Largest customer in the world

answer

US government

question

Operates in more than one country and captures R;D, production, logistical, marketing, and financial advantages not available to purely domestic competitors. EX: Otis Elevator uses door systems from France, small geared parts from Spain, electronics from Germany, and motor drives from Japan; systems integration happens in the United States.

answer

Global firm

question

1. No regular export activities 2. Export via independent representatives (agents) 3. Establishment of one or more sales subsidiaries 4. Establishment of production facilities abroad

answer

Internationalization Process

question

Gradually entering countries in sequence (Approach)

answer

The waterfall approach

question

Entering many countries simultaneously (Approach)

answer

The sprinkler approach

question

Given more familiar language, laws, and culture, many U.S. firms prefer to sell in Canada, England, and Australia rather than in larger markets such as Germany and France.

answer

Psychic proximity

question

A tax charged by a foreign government against certain imports

answer

Tariff

question

Formed in 1957, this union set out to create a single European market by reducing barriers to the free flow of products, services, finances, and labor among member countries, and by developing trade policies with nonmember nations.

answer

The European Union

question

In January 1994, the this agreement unified the United States, Mexico, and Canada in a single market of 440 million people who produce and consume $16 trillion worth of goods and services annually.

answer

NAFTA

question

Links Brazil, Argentina, Paraguay, Uruguay, and (soon) Venezuela to promote free trade and the fluid movement of goods, people, and currency.

answer

MERCOSUR

question

Twenty-one countries, as well as the NAFTA members and Japan and China, are working to create a pan-Pacific free trade area under the auspices of this form

answer

APEC

question

Ten countries make up this group: Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Viet Nam. The region is an attractive market of over 590 million people with $1.2 trillion in GDP. Member countries aim to enhance the area as a major production and export center.

answer

ASEAN

question

When a domestic firm supplies management know-how to a foreign company that supplies the capital

answer

Management contracting

question

Exports that are not handled directly by the manufacturer or producer but through an export agent or freight forwarder.

answer

Indirect exporting

question

Overseas sales in which a producer or supplier controls all activities and collects all drawbacks.

answer

Direct exporting

question

The licensor issues a license to a foreign company to use a manufacturing process, trademark, patent, trade secret, or other item of value for a fee or royalty. The licensor gains entry at little risk; the licensee gains production expertise or a well-known product or brand name. The licensor, however, has less control over the licensee than over its own production and sales facilities.2

answer

Licensing

question

Historically, foreign investors have often joined local investors in a ____ ____ company in which they share ownership and control.

answer

Joint ventures

question

The ultimate form of foreign involvement where the foreign company can buy part or full interest in a local company or build its own manufacturing or service facilities

answer

Direct investment

question

Society where the self-worth of an individual is rooted more in the social system (Japan)

answer

Collectivist Society

question

Society where the self-worth of an individual is rooted more in the individual achievement (US)

answer

Individualistic Society

question

These cultures tend to be less egalitarian

answer

High power distance

question

These cultures tend to be more egalitarian

answer

Low power distance

question

This dimension measures how much the culture is dominated by assertive males versus nurturing females

answer

Masculine vs. Feminine

question

Indicates how risk-aversive people are

answer

Uncertainty avoidance

question

Perceptions of a country can influence how consumers in other parts of the world react to the brands produced by the countries manufacturers.

answer

Country-of-Origin Effects

question

Changing marketing communications for each local market

answer

Communication Adaptation

question

If it adapts both the product and the communications

answer

Dual Adaptation

question

Added costs and currency fluctuation risk might make the price two to five times as much in another country to earn the same profit for the manufacturer.

answer

Price escalation

question

1. Set a uniform price everywhere 2. Set a market-based price in each country 3. Set a cost-based price in each country

answer

3 choices for setting prices in different countries

question

Some products cross borders without adaptation better than others. While mature products have separate histories or positions in different markets, consumer knowledge about new products is generally the same everywhere because perceptions have yet to be formed.

answer

Product standardization

question

Introduces the product in the foreign market without any change.

answer

Straight extension

question

Alters the product to meet local conditions or preferences. Flexible manufacturing makes it easier to do so on several levels

answer

Product adaptation

question

Product vs. Communications - Do Not Change Product: Straight extension (DNCC), Communcation adaptation (AC) - Adapt Product: Product adaptation (DNCC), Dual adaptation (AC) - Develop New Product: Product invention (DNCC + AC)

answer

Product ; Communication Strategies

question

People are favorably predisposed to their own country's products, unless they come from a less developed country.

answer

Ethnocentric

question

This company's strength was selling more efficiently and efficiently directly to consumers than IBM and Compaq, its hardware competitors at the time.

answer

Dell

question

This technology company launched its success with an ingredient-branding marketing campaign (intel-inside)

answer

Intel

question

The chain retailer began its success by keeping prices lower than competitors by reducing its profit margin.

answer

Wallmart

question

This construction industry company is known for the great value it provides to its customers with highly reliable equipment, flexible financing, and a network of service and support.

answer

Caterpillar

question

Instead of building bigger and more opulent casinos, this company invested in its data and customer loyalty program.

answer

Harrah's

question

This airline ranked #1 in the 2014 American Customer Satisfaction Index (ACSI)

answer

Jet Blue

question

To address falling sales, this company shopped and ate at home and in restaurants with its customer

answer

Campbell Soup

question

EDLP

answer

Every day low prices (helps to smooth demand)

Marketing Management Kotler 15th Ed (Ch 1 – 8) – Flashcards

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