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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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o Multidomestic Marketing Strategy

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means that they have as many different product variations, brand names, and advertising programs as countries in which they do business. • Snuggle and Mr. Clean

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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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o Global Marketing Strategy:

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the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ. This approach benefits marketers by allowing them to realize economies of scale from their production and marketing activities. • Caterpillar and Komatsu

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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. Use the same product formulation or service concept, deliver the same benefits to consumers, and use consistent advertising across multiple countries and cultures. o McDonald's

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• Cross-Cultural Analysis

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involves the study of similarities and differences among consumers in two or more nations or societies

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• Cultural Symbols

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ex: Greece Parthenon Coca Cola disaster

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o Back Translation

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where a translated word or phrase is retranslated into the original language by a different interpreter to catch any potential errors. • Kit Kat in Japan

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A scan of the global marketplace should include...

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• An assessment of the Economic Infrastructure: a country's communications, transportation, financial, and distribution systems is a critical consideration in determining whether to try to market to a country's consumers and organizations. • Consumer Income and Purchasing Power: must consider what the average per capita income is among a country's consumers and how the income is distributed to determine the nation's purchasing powers. • Currency Exchange Rates: the price of one country's currency expressed in terms of another country's currency.

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Political-Regulatory Climate

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How political stability and trade regulations are in a particular country

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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 fee. o Advantages: low risk and a capital-free entry into a foreign country. o Disadvantages: licensor forgoes control of the product and reduces the potential profits gained from it. o A variation of licensing is franchising

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• Joint Venture:

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when a foreign company and a local firm invest together to create a local business. o Advantages: one company may not have the necessary 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. o Disadvantages: arise when the two companies disagree about policies or courses of action.

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• Direct Investment

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this is the biggest commitment a company can make when entering the global market. It entails a domestic firm actually investing in and owning a foreign subsidiary or division. o For many companies, direct investment often follows one of the other three market-entry strategies. o Advantages: cost savings, a better understanding of local market conditions, and fewer local restrictions.

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• Product Extension

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selling virtually the same product on other countries. Seems to work best when the consumer market target for the product is alike across countries and cultures.

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• Product Adaptation

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changing a product on some way to make it more appropriate for consumer preferences of a country's climate.

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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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• Communication adaption strategy

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the same product may be sold in many countries but advertised differently.

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• Dual adaptation strategy

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modifying both their products and promotion messages.

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Walmart failed in germany because....

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• Antitrust authorities in Germany limited Walmart from selling some items below cost to lure consumers. Without this advantage, Walmart was unable to compete against German discount stores.

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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. Can cause subjection to severe penalties and fines.

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• Gray Market/Parallel Importing

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products are sold through unauthorized channels of distribution. It is illegal in the European Union.

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Marketing Channel

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consists of individuals and firms involved in the process of making a product or service available or use or consumption by consumers or industrial users.

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• Transactional Function Intermediary

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buying, selling, and risk taking.

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• Logistical Function Intermediary

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assorting, storing, sorting, and transporting.

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• Facilitating Intermediary

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financing, grading, and marketing information and research.

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• Place Utility:

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having a product or service available when a consumer wants it.

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• Form Utility

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involves making a product or service to make it more appealing to buyers.

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• Possession Utility

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entails efforts by intermediaries to help buyers take possession of a product or service, such as having airline tickets delivered by a travel agency.

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• Direct Marketing Channel

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the producer and ultimate consumers deal directly with each other. The producer performs all channel functions. o Allow consumers to buy products by interacting with various advertising media without meeting with a sales person.

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Indirect Marketing Channel

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intermediaries are inserted between the producer and the direct consumers and perform numerous channel functions.

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Internet Marketing Channel

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employ the internet to make products and services available for consumption or use by consumers or organizational buyers.

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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 shops and buy in traditional intermediaries and online.

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• Dual Distribution

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an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.

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• Strategic Channel Alliances

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one firm's marketing channel is used to sell another firm's products.

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• Corporate Vertical Marketing System

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the combination of successive stages of production and distribution under a single ownership

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• Backward Integration

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a retailer might own a manufacturing operation. ex: Kroger has its own manufacturing facility

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• Contractual Vertical Marketing System

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independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone.

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• Wholesaler-sponsored voluntary chains

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involve a wholesaler that develops a contractual relationship with small, independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management efforts.

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• Intensive Distribution

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a firm tries to place its products and services in as many outlets as possible.

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• Exclusive Distribution

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only one retailer in a specific geographical area carries the firm's products.

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• Selective Distribution

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a firm selects a few retailers in a specific geographical area to carry its products.

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Buyer Requirements:

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• Information • Convenience • Variety • Pre/Post-Sale Service

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• Channel conflict:

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arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals.

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• Vertical Conflict

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occurs between different levels in a marketing channel. o Conflicts occur due to disagreements over how profit margins are distributed among channel members. o Manufacturers believe wholesalers or retailers are not giving their products adequate attention. ex: disintermediation

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o Disintermediation

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arises when a channel member bypasses another member and sells or buys products direct.

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• Horizontal Conflict

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occurs between intermediaries at the same level in a marketing channel. o Arises when a manufacturer increases its distribution coverage in a geographical area. o Dual distribution causes conflict when different types of retailers carry the same brands.

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• Channel Captain

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a channel member that coordinates, directs, and supports other channel members. Can be producers, wholesalers, or retailers. o A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members. Influence can take four forms... • Reward, expertise, identification, and legitimate right.

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Logistics:

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involves those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost. • The performance of these activities is logistics management.

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Supply Chain

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the various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users. A supply chain includes suppliers that provide raw material inputs to a manufacturer as well as the wholesalers and retailers that deliver finished products to consumers. • Supply chain management is the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to consumers. • All companies are members of one or more supply chains.

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Total Logistics Cost:

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includes expenses associated with transportation, materials handling and warehousing, inventory, stockouts, order processing, and return products handling.

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Customer Service:

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the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.

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Reverse Logistics

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process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal. • Effect can be seen in the reduced waste in landfills and lowered operating costs for companies.

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Retailing:

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includes all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use.

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• Form of Ownership

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distinguishes retail outlets based on whether independent retailers, corporate chains, or contractual systems own the outlet.

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• Merchandise Line:

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describes how many different types of products a store carries and in what assortment. o Depth of Line: the store carries a large assortment of each item o Breadth of Line: stores that carry a broad product line (general merchandise stores).

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• Scrambled Merchandising:

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offering several unrelated product lines in a single store.

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• Retailing Mix

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the activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise.

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forward integration

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A company produces goods and also owns retail stores Ex: Apple, Sherwin Williams

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Wheel of Retailing

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• Outlets start with Low prices, low margins, and low status • Outlet now has Higher prices, higher margins, and higher status • Outlet now has Still higher prices, still higher margins, and still higher status • New form of outlet enters retailing environment with characteristics of outlet in box 1.

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Retail Life Cycle

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• Early Growth: the stage of emergence of a retail outlet. Market share rises gradually, profits may be low because of start up costs. • Accelerated Development: both market share and profit achieve their greatest growth rates. • Maturity Stage: new retail forms enter the market • Decline Stage: market share and profit fall rapidly

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Vertical Channel Conflict

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Between Retailer and wholesaler or manufacturer and retailer etc... 3 examples: Disintermediation, conflict over profit margins, manufacturers believe wholesalers or retailers aren't giving their products adequate attention

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Disintermediation- Vertical Channel Conflict

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A channel member bypasses another member and sells or buys products directly

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Horizontal Conflict

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Ex: when multiple retailers selling the same product are in one area, when a manufacturer increases its distribution coverage in a geographical area

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intensive distribution

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product is sold everywhere possible

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selective distribution

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product is sold in specific places

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Exclusive distribution

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Product is sold in only certain geographical areas through certain retailers

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Supply Chain Management

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Managing the production of the product through different firms using logistics and information

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Logistics

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Focus on getting the right products in the right amount at the right time to the right place

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Marketing Channels

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Gets the products to the consumer

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Efficient vs. responsive supply chain

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Efficient: inexpensive/slow modes of transportation, emphasize economies of scale, limit assembly and storage facilities into one location. Ex: Walmart Responsive: Quick transportation and communication with suppliers and consumers

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Retailing strategy: the 3 p's

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Product: depth of product line, breadth of product line Placement: Central Business district ( less convenient), regional shopping centers (malls with anchor stores), strip mall(ex: power center- Nashville West) Pricing: maintained markup-price of item when actually sold(difference between the final selling price and the retailer cost, also called the gross margin) *Every day low pricing- ex: walmart, don't have many markdowns *Every Day fair pricing- emphasize buyer experience and value through customer service *Off price retailing- selling brand name stuff at lower than retail price. Ex: TJ Maxx

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Current retail trends

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tighter consumer spending, showrooming, non store retailing

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Measuring social media performance

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CPM: Cost per thousand ("i will pay 50 cents for every thousand times this page loads") CPA: Cost Per Action ( "I will pay $5 for every purchase that originated from an ad on this site") CPC: Cost Per Click ("I will pay $1 for every visitor who clicks on the ad and goes to my website") Share of voice: brands share of all online social media chatter related to its product category

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Apps

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Short shelf-life

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Personal selling

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Eases the customer buying process by offering support and help

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relationship selling

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creating ties with customers due to salesperson's commitment and attention to the customers needs

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order takers

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inside order takers: ex: retail clerk outside order taker: work for wholesalers or manufacturers to make sure retailers have enough stock of their products and take orders if they don't

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order getters

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inside: typical salespeople that provide information to customers and try to close sales ex: car salesperson outside: ex: door to door sales person

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personal selling process (6 steps)

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1. Prospecting- search for qualified buyers 2. Preapproach- gather information and decide how to approach 3. Approach- Gain prospect's attention and stimulate interest 4. Presentation- convert prospect into customer by creating desire for product or service 5. Close- obtain purchase 6. Follow up- ensure customer is satisfied with product

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sales management process

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formulation- set objectives, organize sales force, develop account management policies implementation- recruit salesforce, train salesforce, motivate and compensate salesforce evaluation-quantitative and behavioral assessments of salesforce

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organization of the salesforce

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should reflect the marketing strategy of the firm organized on the basis of geography,customer or product

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compensation

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straight salary straight commission combination of salary and commission

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presentation formats for personal selling

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stimulus response formula selling/canned sales presentation need satisfaction

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stimulus response

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Assumes with the appropriate stimulus a customer will make a purchase. includes suggestive selling(ex: mcdonalds clerk asking if you would like fries with that")

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formula selling/canned sales presentation

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Used to inform thoroughly and is standard to every prospect. Drawback is that it does not allow for relationship to form

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need satisfaction

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emphasizes learning what the customer needs in order to sell something that fits their needs. Contains Adaptive selling(adjust the presentation to fit the selling situation) and consultative selling( focus on problem identification where the salesperson is an expert and fixes the problem with a product or service)

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multichannel marketing

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UseUse transactional and promotional websites ex: the use of retail and online combined to sell a product where a customer may showroom a product at the retail store and purchase it online

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marketplace vs. marketspace

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marketplace is stores marketspace is online

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7 website design elements

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Context: Site's layout and design Content: Text, pictures, sound and video Customization: Ability to tailor itself to different users or allow users to personalize the site Connection: Degree site it linked to other sites Commerce: Ability to make transactions Community: Ability for user to user communication Communication: site to user and user to site communication (ex: chat on moosejaw)

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8 second rule

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Customers will leave website if pages take longer than 8 seconds to load

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Interactive marketing

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customers customize their own products The buyer controls the kind and amount of information received

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choiceboard

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where customers design their own products

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Collaborative filtering

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"Customers who bought this also bought..."

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permission marketing

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opt in or opt out of email marketing from companies

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