Chapter 18- Global Marketing and R&D Flashcards
how many stores are in the area
retail concentration
how far it is from the manufacturer to the consumer
channel length
what has really shortened channel length in recent years
the internet
what is good about having a short channel length
you can really understand who your final customer is and cater to them
when it is hard to get into a certain market or channel
channel exclusivity; an example of this is grocery stores; they often don’t want to risk their profits and shelf space on new products so it makes it very hard to get into
the expertise of retailers and their ability to sell; value on the quality of the product or the quality of service: ex. is high customer service critical to the market
channel quality
very visible brand and lots of mass media; consumer products; long distribution channel; easily understood products; do it in a country that you have lots of ways to reach people
pull strategy
more of a personal connection; industrial goods; know who their customer is (very small amount); not as much mass media; relationship building; has to be more personalized; complex products; short distribution channels
push strategy
in ideal companies ______, ______, and ______ all work together
R&D, marketing, and production
the set of choices a firm offers to its target markets, such as the products available
marketing mix
in a concentrated retail system, most of the market is supplied by
few retailers
refers to the number of intermediaries between the manufacturer and the consumer
channel length
difficult for new firms to gain access to retail space
exclusive channels
the method a company chooses for delivering a product to the consumer
distribution strategy
when a company uses a ____ strategy, it emphasizes personal selling rather than mass media advertising
push
if a company chooses to use mass media advertising rather than personal selling as a communication strategy it is using
a pull strategy
when consumers in one area are charged lower prices for now apparent reason
price discrimination
what are three arguments in support of global advertising
significant economic advantages; one large advertising effort might produce better results; many brand names are global
what are three aspects of strategic pricing
multipoint, experience curve, and predatory pricing
the use of price as a competitive weapon to drive out weaker competition in a national market
predatory pricing
companies that price products low worldwide in an attempt to build global sales volume as rapidly as possible are implementing
experience curve pricing
what are two regulatory situations that can affect a company’s pricing decisions
competition policy and antidumping regulations
selling for lower than the cost of production
dumping
______ demand occurs when a large change in price produces a small change in demand
inelastic
a tool that companies use when trying to identify distinct groups of consumers whose purchasing behaviors differ from other consumers
market segmentation
