Chapters 9-12 Flashcards
international marketing
developing and performing marketing activities across national boundaries
born globals
firms that are international from their inception
- often small technology firms
ex: eBay, google, etc
Environmental forces in global markets
Sociocultural economic political, legal ethical and social responsibility competitive technological
Environmental forces
Generate financial rewards
increase market share
heighten customer awareness
Sociocultural forces
family, religion, education, health, recreation, etc
Economic forces
global marketers must understand:
international trade
trade barriers
*developing nations offer much market potential
Political and legal forces
Import tariff: duty levied on a nation on goods bought outside and brought into the country
quota: limit on the amount of goods an importing country will accept in a period of time
Trade controls
Exchange controls: Government restrictions on the amount of a particular currency that can be bought or sold
WTO
World Trade Organization:
entity that promotes free trade among member nations
Dumping
selling products at unfairly low prices
Ethical and social responsibility
Differences in ethical standards:
bribery
intellectual property protection
Self-reference criterion (SRC)
the unconscious reference to one’s own cultural values, experience, etc
Competitive Forces
competition is a staple in the global marketplace
Technological forces
make international marketing faster, easier, more affordable
Modes of entry into international markets
STAGE 1: no regular export activities
STAGE 2: export via independent representatives
STAGE 3: Establishment of one or more sales subsidiaries internationally
STAGE 4: establishment of international production
Trading company
a company that links buyers and sellers in different countries
Licensing
an alternative to direct investment
requires a licensee to pay commissions or royalties on sales or supplies
Franchising
form of licensing - a franchiser grants a franchisee the right to market its product in accordance with the franchiser’s standards
Contract Manufacturing
practice of hiring a foreign firm to produce a designated volume of the product to specification
final product carries domestic firm’s name
Joint ventures
a partnership between a domestic firm and a foreign firm
*popular in industries requiring large investments
Direct ownership
a situation in which a company owns subsidiaries or other facilities overseas
multinational enterprise
a firm that has operations in many countries
levels of global marketing
Domestic marketing Limited exporting Multinational marketing Regional marketing Global marketing
Digital Media
electronic media that functions using digital codes; media through computer, cell phones, etc
Digital marketing
uses all digital media to develop communication with customers
Interruption marketing
firms purchase the right to interrupt people and demand their attention
TV advertising, billboards, radio ads
Permission marketing
relies on attention being earned
opting into an email newsletter, following a social media page
e-marketing
the strategic process of distributing, promoting and pricing products using digital media
Benefits of digital marketing
- allows marketers and customers to share info
- now possible to target markets more precisely
- still in early stages
Characteristics of online media
Addressability, Interactivity, Accessibility, connectivity, control
paid search
advertisers pay only when a customer clicks on an ad or link from a search page
behavioral targeting
tracking consumer’s website surfing behavior
content ads
ads that are determined by the content on a webpage
Social media marketing (SMM)
Marketers use these sites to:
promote products, handle questions, provide info
wiki
type of software that creates an interface that users can add or edit content
Media sharing sites
Flickr, pinterest, instagram, youtube, etc
Virtual sites
World of Warcraft, Sims, etc
Pokemon Go
21 million users in 2016
$23 billion increase in Nintendo stock
Products
goods, services, ideas
Consumer products
products to satisfy family and personal wants and needs
Business products
products to use in a firm’s operations to resell or make other products
4 types of consumer products
convenience, shopping, specialty, unsought
Convenience products
relatively inexpensive, purchased frequently, minimal effort
ex: soda, gum
Shopping products
items which buyers are willing expend considerable effort in planning
ex: TV, phones
Specialty products
items with unique characteristics that buyers are willing to expend considerable effort in planning
ex: watch, collectibles
Unsought products
purchased to solve a sudden problem, consumers are unaware they need it
ex: AAA, ER
Product item
specific version of a product that can be designated as a distinct offering among a firm’s products
Product line
group of closely related product items viewed as a unit because of marketing
Product mix
composite or total group of products that an organization makes available to customers
Product life cycle
Introduction, growth, maturity, decline
Introduction stage
sales at zero and profits are negative
high risk failure
Growth stage
sales rise rapidly, profits peak
promotion costs drop
Maturity stage
when sales start to decline
intense competition
Decline stage
when sales fall rapidly
Product adoption process
Awareness Interest Evaluation Trial Adoption
Adopters
Innovators - first adopters of new products
Early adopters - people who adopt new products early, are “the people to check with”
Early majority - adopt a new product just before the average person
Late majority - skeptics who adopt new products when they feel it’s necessary
Laggards: last adopters who distrust new products
Brand
a name, term, design that identifies one seller’s products
Brand name
part of the brand that can be spoken
Brand mark
part of the brand that is a picture or symbol
Trademark
legal designation of exclusive use of a brand
Trade name
full legal name of an organization
Brand loyalty
customer’s favorable attitude towards a brand
three degrees of brand loyalty
Brand recognition: customer is aware a brand exists
Brand preference: customer prefers one brand over others
Brand insistence: customer strongly prefers a specific brand and won’t accept substitutes
Brand equity
an organization may buy a brand from another company at a premium price because it may be less expensive
3 most valuable brands in the world
Google, Apple, Microsoft
Types of brands
Manufacturer: initiated by producers to show that producers are identified with their products
Private distributor: initiated and owned by reseller
Generic: brands indicating only the product category
Individual branding
each product is given a different name
Family branding
branding all of a firm’s products with the same name or part of the name
Brand extension
when an organization uses one of its existing brands to brand a new product in a different category
Co-branding
using two or more brands on one product
Brand licensing
an agreement when a company permits another organization to use its brand on another product for a fee
4 functions of packaging
visibility
information
emotional appeal
workability
Line extension
development of a product closely related to existing products
may: increase sales and take market share
Product modifications
changing characteristics of a product - ORIGINAL PRODUCT DROPS FROM PRODUCT LINE
3 types of modification
quality
functional
aesthetic
new product development process
idea generation - seeking product ideas
screening - selecting ideas with the greatest potential
concept testing - seeking a sample of buyers’ responses
business analysis - evaluating impact of a product idea
product development - determining if producing a product is feasible
test marketing - limited introduction of product
commercialization - finalizing plans for full-scale manufacturing
Product positioning
use of perceptual maps
