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domestic marketing

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marketing within one nation with no cross-border business activity (home country)

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global marketing

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targets markets throughout the world; a standardized marketing strategy across the globe ex: Apple

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international marketing

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marketing strategy of opening a subsidiary to serve local markets. Pays attention to local customers, distribution channels, etc. ex: Nike

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multinational corporations

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heavily engaged in international trade beyond exporting and importing; move resources, goods/services, skills across national boundaries, may have several worldwide headquarters, less than 1% of US companies (taking it to the next level)

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global marketing standardization

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production of uniform products that can be sold the same way all over the world ex: Apple, Coca-Cola

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multidomestic strategy

answer

subsidiaries of multinational firms are allowed to compete independently in domestic markets (think SBU's but for multinational companies)

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5 external environment facing global markets

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culture economic development natural resources political structure demographic makeup

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culture

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the common set of values shared by its citizens that determine what is socially acceptable

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economic development

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developed country- complex, sophisticated industries less developed country- basic industries China and India are two of the highest growth rates in the world, largest populations but among the highest levels of income disparity ex: China and India

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global economy

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economies around the world closely interwoven

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natural resources

answer

differences in natural resources create international dependencies, shifts in wealth, inflation and recession, export opportunities if resources are abundant, and stimulus for military intervention

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political structure

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no private ownership minimal individual freedom or little central government maximum personal freedom

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tariff

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a tax levied on goods entering a country

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quota

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limit on the amount of a product entering a country

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boycott

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exclusion of products from a country or company

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trade agreement

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an agreement to stimulate international trade

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market grouping

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common trade alliance- countries work together to form a common trade area

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demographic makeup

answer

marketing considerations: population density alone not useful

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international opportunities

answer

95% of the world's population outside the US 75% of the world's purchasing power is outside the US

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export

answer

sell domestically produced products to buyers in other countries

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licensing and franchising

answer

licensor allows another firm to use its manufacturing process, trademarks, patents etc. Licenses pays royalty or fee.

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contract manufacturing

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private-label manufacturing by a foreign country

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joint venture

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domestic firm buys a part of foreign company or joins with a foreign company to create a new entity

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direct investment

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active ownership of a foreign company or overseas manufacturing or marketing facility

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global marketing mix

answer

adhere to same principles as marketing mix, basis for 4 P's of global marketing= RESEARCH

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one product one message

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same product same message ex: head & shoulders shampoo

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product adaptation

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change product same message ex: Oreos in Japan

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promotion adaptation

answer

change message same product ex: Coca-Cola light in Europe

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product invention

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change product change message ex: Pringles in Spain and UK flavors vary

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exchange rate

answer

reflect the price of one's currency in terms of another country's currency ex: Toyota car in US vs. Japan

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floating exchange rate

answer

the system that currency markets operate under, prices of different currencies move up and down based on the demand for and the supply of each currency

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dumping

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sale of exported product at price lower than charged for the same product in "home" market of exporter, can harm importing nation's competing industries (steel)

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countertrade

answer

all or part of payment for goods/services is in the form of other goods/services no cash involved

question

straight barter

answer

pepsi for vodka and ocean freighters with Russia

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compensation agreement

answer

technology/equipment to foreign plant, payment taken in goods produced (give equip get goods) general tire gives equipment to Romanian truck tire plant in return GT receives tires they sell in US

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consumer behavior

answer

how consumers make purchase decisions and how consumers use and dispose of product

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consumer decision-making process

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a 5 step process used by consumers when buying goods or services: need recognition information search evaluation of alternatives purchase post purchase behavior

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need recognition

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result of an imbalance between actual and desired states ex: i am really hungry

question

want

answer

recognition of an unfulfilled need and a product that will satisfy it ex: I want a Dutch's burger

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stimulus

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any unit of input affecting one or more of the five senses

question

internal stimulus

answer

hunger, thirst, hear your stomach growl and realize hungry

question

external stimulus

answer

recommendations from people, ad on TV/radio ex: friend told you to try Woodshed

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job statement

answer

goal the consumer is trying to achieve or problem trying to solve (what you want to get out of this product)

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outcome statement

answer

what consumers are seeking from the job of the product

question

internal information search

answer

recall information in memory- prior experiences, knowledge of product

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external information search

answer

seek information in outside environment

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need less information

answer

less risk, more knowledge, more product experience, low level of interest, confidence in decision

question

need more information

answer

more risk, less knowledge, less product experience, high level of interest, lack of confidence

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evoked set

answer

group of brands from which a buyer can choose

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evaluation of alternatives

answer

analyze product attributes, use cutoff criteria, rank attributes by importance (narrows your search)

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purchase

answer

to buy or not to buy

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postpurchase behavior

answer

how well expectations are met determine consumer satisfaction or dissatisfaction with the purchase

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cognitive dissonance

answer

inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions

question

routine response behavior

answer

little involvement in selection process, frequently purchased, low cost goods, may stick with one brand, buy first/evaluate later, quick decision, familiar with several brands but stick with one brand

question

limited decision making

answer

consumer has product experience but unfamiliar with brands available, low levels of involvement, low to moderate cost goods, evaluation of a few alternative brands, short to moderate time to decide

question

extensive decision making

answer

high levels of involvement, high cost goods, evaluation of many brands, long time to decide, buying unfamiliar, expensive, product or item infrequently bought

question

involvement

answer

the amount of time and effort a buyer invests in the search, evaluation and decision processes of consumer behavior

question

culture is...

answer

pervasive- everywhere, but most are unaware of presence functional- give order to society learned- not genetic, learn what is acceptable dynamic- adapts to changing needs/environment

question

value

answer

an enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct ex: breakfast/energy bars- all eat on the go

question

subculture

answer

a homogenous group (similar kind) of people who share elements of the overall culture as well as cultural elements unique to their own group

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social class

answer

group of people in a society who are considered nearly equal in status or community esteem, regularly socialize among themselves both formally and informally, share behavioral norms

question

social class measurements

answer

occupation, income, education (#1determinant), wealth, and spending habits

question

reference groups

answer

friends, family, clubs, professional groups, religious groups (who you talk to about getting product)

question

opinion leaders

answer

group leader who influences others, first to try new products and services out of curiosity

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age life cycle

answer

taste in food, clothes, cars, recreation often age related marketers define target markets according to life style

question

personality self-concept lifestyle

answer

combines psychological makeup and environmental forces (how you think of yourself)

question

perception

answer

process by which people select, organize and interpret stimulus into a meaningful and coherent picture

question

experiential learning

answer

an experience changes behavior

question

conceptual learning

answer

not learned through direct experience

question

belief

answer

an organized pattern of knowledge that an individual holds as true about his or her world

question

attitude

answer

a learned tendency to respond consistently toward a given object

question

business marketing

answer

marketing of goods and services to individuals and organizations for purposes other than personal consumption

question

business products

answer

used to manufacture other products, become a part of another product, aid in the normal operations of an organization, the KEY is INTENDED USE of the product

question

business market

answer

companies that market exclusively to business consumers

question

business-to-business electronic commerce

answer

the use of the internet to facilitate the exchange of goods, services, and information between organizations

question

relationship marketing

answer

strategy that entails seeking and establishing ongoing partnerships with customers

question

strategic alliances

answer

cooperative agreement between business firms ex: Starbucks in Target and Barnes & Noble

question

keiretsu

answer

network of interlocking corporate affiliates (strong strategic alliance)

question

4 categories of business customers

answer

producers- buy goods/incorporate into products for sale to others; profit-oriented resellers- wholesalers, retailers, buy finished goods for profit governments- federal, state, local, largest single market for goods/services in the world institutions- schools, churches, hospitals, colleges etc. d not have the standard business goals or profit, market share, ROI

question

7 types of business products

answer

major equipment accessory equipment raw materials component parts processed materials supplies business services

question

major equipment

answer

capital goods- machines, airplanes, buildings often custom designed, personal selling important marketing strategy

question

accessory equipment

answer

less expensive/shorter lived- computers, power tools, standardized, purchased by more customers

question

raw materials

answer

unprocessed products- minerals, timber, wheat, corn, fish, become part of the finished product

question

component parts

answer

finished item ready for assembly or needs very little processing

question

processed materials

answer

used directly in manufacturing other products- sheet metal, chemicals, lumber; do not retain their identity in final product

question

supplies

answer

consumable items that do not become part of the final product; short lived inexpensive; categories of maintenance, repair or operating supplies

question

business services

answer

expense items not a part of the final product- janitorial, advertising, legal, marketing research, maintenance services

question

buying centers

answer

all the people in an organization who become involved in the purchase decision

question

initiator

answer

suggest the purchase

question

influencers

answer

define specifications/provide info for evaluating options

question

gatekeepers

answer

regulate flow of information, often purchasing agent

question

decider

answer

person with power to choose or approve selection

question

purchaser

answer

negotiates the purchase

question

users

answer

members of organization who actually use the product

question

new buy

answer

a situation requiring the purchase of a product for the first time

question

modified rebuy

answer

a situation where the purchaser wants some change in the original good or service

question

straight rebuy

answer

a situation in which the purchaser reorder the same goods or services without looking for new information or investigating other suppliers

question

market

answer

people or organizations with needs or wants and the ability and willingness to buy

question

market segment

answer

a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs

question

market segmentation

answer

the process of dividing a market into meaningful, relatively similar, identifiable segments or groups

question

4 criteria for successful segmentation

answer

substantiality- segment must be large enough to warrant a special marketing mix identifiability & measurability- segments must be identifiable and their size measurable accessibility- members of targeted segments must be reachable with marketing mix responsiveness- unless segment responds to a marketing mix differently, no separate treatment is needed

question

geographic segmentation

answer

region of the country or world, market size, market density, climate

question

demographic segmentation

answer

age, gender, income, ethnic background, family life and family life cycle

question

age segmentation

answer

marketers can segment markets by age using cohorts

question

gender segmentation

answer

marketers of products such as clothing and cosmetics still segment markets by gender

question

income segmentation

answer

income level- influences consumers wants determines buying power, retailers can appeal to low-income, high-income or both

question

ethnic segmentation

answer

to meet needs and wants of ethnic populations some companies create products geared to specific groups

question

family life cycle

answer

series of stages determined by combination of age, marital status, and the presence or absence of children

question

psychographic segmentation

answer

market segmentation on the basis of personality, motives, lifestyles, and geodemographics

question

personality segmentation

answer

reflects a person's traits, attitudes and habits

question

motive segmentation

answer

marketers appeal to emotional, rational, or status motives

question

lifestyle segmentation

answer

divides people into groups according to how time is spent, importance of things around them, beliefs, income and education

question

geodemographic segmentation

answer

segmenting potential customers into neighborhood-lifestyle categories; combines geographic, demographic, and segmentation

question

benefit segmentation

answer

group customers into market segments based on benefits they seek from the product (needs and wants NOT customer characteristics)

question

usage rate segmentation

answer

dividing market by amount of product bought or consumed

question

satisficers

answer

business customers who place an order with the first familiar supplier to satisfy product and delivery requirements

question

optimizers

answer

business customers who consider numerous suppliers both familiar and unfamiliar solicit brands and study all proposals carefully before selecting one

question

undifferentiated targeting strategy

answer

mass-marketing philosophy, market is one big market with no individual segments, uses a single marketing mix

question

concentrated targeting strategy

answer

select one segment of a market for targeted marketing efforts

question

multisegment targeting strategy

answer

chooses two or more well-defined market segments and develops a distinct marketing mix for each

question

positioning

answer

determine marketing mix choose target market(s) develop product's positioning

question

product differentiation

answer

positioning strategy to distinguish company's products from those of competition, distinctions between products can be real or perceived

question

perceptual mapping

answer

graph how customers view things in their minds: products, brands, and group of products

question

7 positioning bases

answer

attribute price and quality use or application product class competitor emotion product user

question

repositioning

answer

changing consumers' perceptions of a brand in relation to competing brands

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