Exam 3 Flashcards
Competitive advantage
Look at the competition and see what gives you a customer appreciated advantage over them
Differentation
Something that seperates you from the competition, makes the custoemr more loyal
Industrial customer knows differentation comes with a cost
Intrapersonal
Communcaition with yourself
Interpersonal, Intragroup
Easiest to promote/with customers
Innovators/ early adopters
One or more person talking to each other with the same understanding
Interpersonal, Intergroup
The rest of the market
Different groups
Must dumb it down
Mass communications(ads)
Coms by technology
Communications process
- Message
- Selection of Delievery Vehicle
- Encoding the Message
- Transmission (Send message)
- Bias Stream (Anything that interferes with the ad)
- Recepient (target market)
- Decode the message
- Message
Feedback
- Most important
- Only way to know if the communication process message are the same
Promotion Mix
Adverstising
Entertaining the audience
Adverstising
Institution Ad
Talks about the company, not product
Popular in Europe
Advestising
Local Ads
Geographically localized Ad, Usually product specific and where to buy
Seeing ads in News day, Channel 12
Advestising
Nationals Ads
Ad seen by the whole country, product specific
Advestising
Global Ad
Both institution and product specific all over the world
Everyone knows the brand
Promotion Mix
Sales promotion
Anything that influence a customer to buy or rebuy a product
Coupon, smapling, tradeshow, sales, sweeptstate(Poll to win something)
Promotion mix
Event sponsorship
Some kind of activity is going on, sports event, traget market is high
superbowl, olympics
Promotion mix
Product placement
Take product into a Tv show or movie
Must pay for product placement, good guy only uses iphone
Promotion mix
Personal selling
sales people are looked down upon,
Puffing
Lying to get a sale
Promotion mix
Direct marketing
Take a list of target market
Limited access to list in other parts
Standardization
Keep what you got
Adaptation
Adapt to the culture
Capital goods
High sepense items that depreciate over its life time
No changes, only in language
tangible assets: Building, chairs, printing machine
Component parts
Manufacutred item that goes into someone’s product
no modify, Car parts
Raw materials
Nature items
Non manufactured item that goes into someone else’s product
No modify
Professional services
Needs modifications depends on situation
Products for resale: Distribution
Industrial- no modify
Consumer - lots of modify
Convenicence goods
Low risk item, no cost, no thought buying
modify/adaption to culture/translation
Distributed all over the place
Shopping goods
High cost item, more risk, must shop around to buy it
Modify depends on the item, furniture, airline tickets
Speciality goods
Easiest to market, unique product, demands supplies
No modification, consumer come to you, Luxury cars
unsought goods
Extremem difficult to market, need it but don’t want to buy
Cemetery block
Extended product
Anything over and above the “product” that makes it attractive for a purchase
Market other than the product
Eg. Brand reputation, support, finanicing, delivery
Factor influence adaptation
Country
1) Compulsory adaptation - national standards
2) Climate - weather/shelf life
3) local product usage - local taste/preference
Factors influence adaptation
Product characteristics
1) Safety standard - auto industry
2) Hygiene regulations - FDA/expirations date
3) Industry standard - ISO 9000/SA 8000
Factors influence adaptation
Company characteristics
Can they afford it/ is it worth the effort
Product positioning
How the customer views your product based on specific variables/attribute
variables such as price/quality/ benefit/ style
Global origin
Global consumer culture positioning
Coke, boeing, sony
Foregin origin
Foregin conusmer culture positioning, foregin product better than local
Fuji water, IKEA
Local origin
Local consumer culture
hershey
Research and development
Done in mulitple countries, closer to customers, local inputs and host govt.
Brand
recognizable name/term that differentiate from their competitions
generates brand loyalty
Brand nonrecognition(first)
get the brand out there, brand is not known
Brand recognition
Consumer knows the brand, might buy depends on sale
Brand preferences
Customers prefer that brand, but will buy sub if brand is not available
Brand insistances
Customer intend to buy only that brand, company controls distribution
Customer will come back only two times, but not a 3rd if product is not abailable
Global brand
Same brand all over the place
Genertic brand
Nonbranded product, low ses or developing countries
Sometimes better than regular brand
Store/private brand
Distribution channel brand products specific to the store
Maximazation profit
price product that the highest possible price you can get away with
specialty goods
Acceptable/Satisfactory
what most company uses
make enough to cover cost + some proft
ROI are similar in industry
Volume pricing
just move product, not interest in profit
eliminates past season product for new season
Status quo/competitive pricing
price product the same as the competition/market
No thought about costing structure
Price skimming
high upfront price(max profit first then come down)
limited cokmpetition, cost of differentiatoin, early adopters
Penetration pricing
low price, tries to get into new market segment or move inventory
buy market share, competition
Companion product pricing
two or more product placed together
shampoo + toothpaste
Design to cost pricing( not cost based)
what the cusomter can afford, only cost you can charge
usually in undeveloped or emerging market
Incoterms(International commerical terms)
E-term
Buyer takes title at seller location
get the product at the seller location
Incoterms(International commerical terms)
D-terms
Buyer take title somewhere in their country
Incoterms(International commerical terms)
F terms
Buyer takes title at the port side
Incoterms(International commerical terms)
C terms
Buyer takes title on board
Pricing structure/option
Same world wide
Same price everywhere(price to lo segment)
Give up on profit
Pricing structure/option
Dual pricing(domestic and export)
one price for domestic, different price for foregin
Pricing structure/option
Country/region by Country/region
Customer/market based
Pricing options
Dumping
Selling below cost
Pricing options
Transfer pricing
price transfer within the company since they’re so big
Pricing options
Price fixing
an agreement between competitors to fix the price level, illegal in distribution
Global market persepective
Macro view
country by country
Micro view
Local segments of the country
Global segments
Pluralization of consumption, corss border
same product everywhere
MAPS
1) Measureable - can it be measured
2) Accessible - able to use distribution strucutre
3) Profitable - needs to make money
4) Stability
High profit, high accessible
gold market
high profit, low accesible
joint venture
low profit, high accesible
bail, find another way into market
low profit, low accessible
leave
Consumer segmentation variables
Demographics
Measureable characteristics of consumer
age, gender, income, education, employment
Consumer segmentation variables
Psychographic
Not measurable, attitudes, personality, and life style, culture
Consumer segmentation variables
Behavior
How will they use the product
High users: keep them
Non-users: major introduction to the product
Consumer segmentation variables
Benefit
Why they buy/use the product
Consumer segmentation variables
Geographic considerations
weather, climate
Industrial segementation variables
Geographic
Where are they located
Industrial segmentation
Applications
how they use the product
Industrial segmentation
Industry
Same rules in same nidustry
Industrial segmentation
Technical levels
dictates behavior
Industrial segmentation
Demographic
size of company, number of employee, money spent on product
Undifferentiated(Standard global marketing)
Need to change lanugage, same strategy everywhere
Differentiated(multi segment)
Multi national
Individual segments in each country
Niche or focus
Small piece of a larger segment(Subset)
Use whene everyone usese the same mix,
provide something different than what the market gives
Micro marketing
A segment of one customer
Benefit of good channel distribution
Bring buyers and sellers together
Take title/ownership to product
Benefit of good channel management
Specialization of labor
No one else will do the same job in a distribution channel
Subject matter expertise
Benefit of good channel management
Standardized exchange transaction
Managed by industry
Makes distribution more efficent/smooth
Direct distribution
Manufacturer goes directly to the end user
most company are doing direct since it’s less costly
Indirect distribution
M -> W -> R -> EU
Thief can happen within these channel
Variables that influence channel selection
Market/customers
Less customers = direct distribution
More customers = indirect distribution
Think about planes
Variables that influence channel selection
Product
High end good = direct distribution
Low end good = indirect
Variables that influence channel selection
Organizational factors
Do it better? less expensive? do it at all?
Variables that influence channel selection
Competition
Keep eye on other competitors, keep being efficient
Variables that influence channel selection
Availability
Only use what’s available
Vertical Marketing Systems(VMS)
Planned channel system desgined to be effective and efficient
Types of VMS
Corporate
One company own the whole VMS/ distribution channel
Types of VMS
contractual
Contract with everyone
Con: No flexiblity
Pro: Everyone knows what the do
Types of VMS
Administered(bully)
Someone that slaps everyone else in the distribution channel
Walmart
Expats
Sending domestic employee to foregin countries to work
Usually fail:
- Due to Family pressure to come back
- Domestic worker outlive your stay
- No preparation/training from company about the country
