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MKTG 440 > Exam 3 > Flashcards

Exam 3 Flashcards

1
Q

Inventory Management

A

Ensures that a company neither runs out of manufacturing components or finished goods nor incurs the expense and risk of carrying excessive stock of these items

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2
Q

Transportation

A

Method or mode a company should utilize when moving products through domestic and global channels; the most common modes of transportation are rail, truck, air, and water

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3
Q

Distribution Systems by Market Development: Developing economies

A
  • Long, fractured, inefficient distribution systems
  • Marketer as channel educator
    • Training programs for middlemen and store personnel
    • Prepare manuals and pamphlets describing products and services
    • Help middlemen develop facilities, inventory, shipment, shelving procedures and establish tracking and cost-accounting systems
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4
Q

Distribution Systems by Market Development: More advanced developing countries

A
  • Distribution systems slowly become more efficient
    • Domestic versus foreign intermediaries
    • Improvements in infrastructure
    • Integration and consolidation in distribution networks
    • Modernization of retailing
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5
Q

Distribution Systems by Host Market Development: Developed economies

A
  • Well-developed, shorter, efficient distribution systems
  • But locked-up channels are common!
  • Distributors may have exclusive agreements (contractual or informal)
  • Distributors may be unwilling to take the risk of pioneering an unknown product
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6
Q

Determinants of channel choice

A
  1. Company
  2. Industry
  3. Market
  4. Government
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7
Q

Developing a distribution strategy in a host market

A
  1. Distribution density
  2. Channel length
  3. Rationalizing distribution channels
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8
Q

Local wholesalers (dealers, distributors) vs Retailers

A
  • Take title to products, may receive exclusive distribution rights for a geographic area or country
  • Wholesale distribution structure varies by country

vs

Size and accessibility vary greatly by country

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9
Q

Factors Affecting Channel of Distribution Decisions

A
  1. Company requirements & resources
  2. Industry
  3. Market
  4. Political/legal
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10
Q

Company requirements & resources

A
  • Competitive advantages related to distribution
  • Objectives and Marketing strategy for host market
  • need for coordination & control
  • Resources: financial, personnel, experience
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11
Q

Industry

A
  • competition
  • technology
  • Product
    • Core, actual, augmented characteristics
    • Intermediary’s skills & resources
    • PLC
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12
Q

Market

A
  • Infrastructure & system requirements
  • Demand: Market potential, tradition & custom
  • Intermediaries’ availability, skills & resources
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13
Q

Political/legal

A
  • Barriers to entry

- Regulations

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14
Q

Distribution density

A

points of purchase

  • Extensive – Many outlets per marketing area
  • Selective – Fewer outlets per marketing area
  • Exclusive – A very limited number of outlets per marketing area
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15
Q

Channel length

A

number of intermediaries

  • Product’s distribution density
  • Average order quantity
  • Availability of channel members

a) Density
b) Skill set of intermediaries in that economy
c) More intermediaries for the same size market in a developing market vs developed b/c skill set and resources are lower

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16
Q

Rationalizing Distribution Channels

A
  • Changing Distributors
    • Product becomes established
    • distributor not doing good job
  • Multiple Channels (Parallel Distribution)
    • In some cases multiple channels emerge or are created

a) As market becomes more valuable, you may want to change distribution or add distribution channel

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17
Q

Integrated Marketing Communications (IMC)

A

a process designed to ensure that all elements of a company’s communications strategy is carefully coordinated across all channels and markets.
- The challenge: environments vary from market to market.

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18
Q

Drivers of Global IMC

A
  • Consistency of brand image
  • Economies of scale in production/distribution
  • Leveraging good ideas
  • Enhanced coordination and control
  • Speeds implementation
  • Global media & spillover
  • Global segments
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19
Q

Restrictors of IMC

A
  • Differences in economic development
  • Differences in consumers needs
  • Differences in technology & infrastructure
  • Differences in PLC
  • Lack of supporting partners
  • Different competition
  • Organizational capabilities
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20
Q

Advertising

A

is any sponsored, paid message that is communicated in a non-personal way
–Single country
–Regional
–Global

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21
Q

Global advertising

A

is the use ofthe same advertising appeals, messages, art, copy, photographs, stories, and video segments for worldwide suitability

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22
Q

Identical Ads

A

ads are identical, usually with localization only in terms of language voice-over changes & simple copy translations

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23
Q

Prototype Advertising

A

the same ads, but the voice-over may be changed to avoid language & cultural problems, & the ad may be re-shot with local celebrities and environments

24
Q

Pattern Advertising

A

similar but less structured global approach, wherein the positioning theme is unified & some alternative creative concepts are planned, but execution differs between markets

25
Q

Tradeoffs of Global Advertising

A

Pros

  • Consistency of brand communications
  • Economies of scale in production/distribution
  • Leveraging good ideas
  • Simplified coordination and control
  • Media spillover
  • Global segments

Cons

  • Differences in economic development, consumer needs, media availability and legal restrictions
  • Cultural differences make images inappropriate
  • Product usage is different
  • Ignores local creativity
  • Consumer use of advertising different
26
Q

Selecting an Advertising Agency

A
  1. Company organization
    –Companies that are decentralized may want to leave the choice to the local subsidiary
  2. National responsiveness
    –Is the global agency familiar with local culture and buying habits of a particular country?
  3. Area coverage
    –Does the agency cover all relevant markets?
  4. Buyer perception
    –What kind of brand awareness does the company want to project?
27
Q

Factors affecting promotional mix decisions

A
  1. Government
  2. Company
  3. Target market
  4. Product
  5. Communication tools
28
Q

International Trade Fairs

A
  • Essential for international B2B
  • Different from US trade shows
  • Direct and Indirect effects
    • Sales
    • identify potential distributors
    • introduce latest products
    • discover industry trends
    • spot new competitive developments
29
Q

Forms of Direct Marketing

A
  • direct mail
  • telemarketing
  • door-to-door selling
  • internet marketing
  • catalogs
30
Q

Direct Marketing (def)

A

various forms of interactive marketing where company uses media to get direct access to end consumer and establish one-to-one relationship

31
Q

Social Media

A

marketing techniques of focused use of social media networks, online communities, blogs, wikis or any similar online activities

  • Huge, trusted, molds perception
  • User-generated content
  • Not top-down communication
  • most of social media accessed via smartphone
32
Q

Mobile (probably not on exam)

A

leverage the benefits of mobile devices to communicate with target customers
- can be customized to location or consumption context
interactive
*Problems
- technology varies
- privacy concerns and laws
- relies on partners like wireless carriers

33
Q

Public relations practices can be affected by:

A
  • Cultural tradition
  • Social and political contexts
  • Economic environments
34
Q

PR’s role is growing in the post global recession

A
  • Build consensus and understanding
  • Create harmony and trust
  • Articulate and influence public opinion
  • Anticipate conflicts and resolve disputes
  • Smartphones, broadband Internet, social media, satellite links allow PR pros to stay in touch with media anywhere, anytime
35
Q

Public Relations & Publicity

A
  • Marketing activities to generate good will among publics (external and internal)
  • Has become increasingly important because of anti-globalization sentiments.
  • Cause-related marketing
    • Combination of PR, sales promotion, and corporate philanthropy that expresses the organization’s social vision and support for a planned long-term social policy.
36
Q

Sales Promotion (generally, what is it? Examples)

A
  • Examples include contests, coupons, freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, and rebates.
  • Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers).
  • Strategy vs. tactics
  • Specific objectives can often be the same across markets
  • Specific tactics to achieve those objectives often change due to structural, cultural, and regulatory differences across markets
37
Q

Sales Promotion (def)

A

refers to any paid consumer or trade communication program of limited duration that adds tangible value to a product or brand

  • Price vs. non-price promotions
  • Consumer vs. trade promotions
38
Q

Sales Promotion Function/Goals

A
  • Provide a tangible incentive to buyers
  • Reduce the perceived risk associated with purchasing a product
  • Provide accountability for communications activity
  • Provide method of collecting additional data for database
39
Q

Barriers to Standardization

A
  • Company
  • Market
    • Economic Development
    • Consumer Preferences
  • Industry
    • PLC
    • Trade Structure
  • Government
    • Regulations
40
Q

Barriers to Standardization: Company

A
  • Entry strategy
  • Selected channels and intermediaries
  • Goals for host market
  • Resources for local operations
41
Q

Barriers to Standardization: Market

A
  • Economic Development
    • In markets with media limitations the percentage of the promotional budget allocated to sales promotions may have to be increased.
    • In countries with low levels of economic development, low incomes limit the range of promotional tools available
    • Market maturity can also be different from country to country
  • Local perceptions of a particular promotional tool or program can vary
    • Taiwanese consumers prefer coupons to sweepstakes; Malaysians and Thais prefer sweepstakes to coupons; they find coupons embarrassing.
    • In Islamic countries, sweepstakes don’t work because gambling is discouraged.
    • Recognize value to the customer
42
Q

Barriers to Standardization: Industry

A
  • Different countries have different distribution infrastructures that limit transferability of certain in-store or trade promotions
  • Trade structure in the retailing industry can affect the use of sales promotions
43
Q

Barriers to Standardization: Government

A
  • Sales promotion needs to be localized because of country-unique restrictions/regulations
    • Japan’s limitation on value of promotional gifts attached to products is of the 10% product’s price
  • Many countries regulate “standard” retail prices and the frequency such prices can be reduced by way of price promotions.
44
Q

Trade Promotions

A

Trade Promotion to persuade channel members to carry products or to increase sales

45
Q

Personal Selling

A
  • Person-to-person communication between a company representative and potential buyers
  • Focus is to inform and persuade prospect
  • Short-term goal: make a sale
  • Long-term goal: build relationship
46
Q

Personal Selling Hurdles

A
  1. Political Risks – unstable or corrupt governments change the rules for the sales team
  2. Regulatory Hurdles – Governments can set up quotas or tariffs that affect the sales force
  3. Currency Fluctuations – increase and decrease in local currencies can make certain products unaffordable and complicate compensation
  4. Market Unknowns – lack of knowledge of market conditions, the accepted way of doing business, or positioning of the product may derail the sales team’s efforts
47
Q

Decisions about international sales management can be divided into two categories:

A
  • international selling strategy and management considerations
  • intercultural considerations
48
Q

Sales force management consists of the following six steps:

A
  1. Setting salesforce objectives
  2. Designating salesforce strategy
  3. Recruiting and selecting salespeople
  4. Training salespeople
  5. Supervising salespeople
  6. Evaluating salespeople
49
Q

Global Sales Management: How transferable are selling strategies & techniques?

A
  • differing market objectives
  • differing human relations
  • degree of market development
  • differing regulatory environments
  • geography and physical dimensions
50
Q

Sales Force Nationality

A
  • Expatriates
  • Host country
  • Third country
51
Q

Expatriates

A
  • Expatriates are home-country personnel sent overseas to manage local operations in the foreign market.
  • Expatriates are especially important in complex operating environments, or when elevated political risk requires constant monitoring.
  • Expatriates are important whenever communication with the home country office is at a premium
  • Most companies will send out a few expatriates as operations begin in a new host market.
52
Q

Expatriates Advantages/Disadvantages

A

Advantages

  • Superior product knowledge
  • Demonstrated commitment to service standards
  • Train for promotion
  • Greater HQ control

Disadvantages

  • Higher cost
  • Higher turnover
  • Need (and cost) for language and cross-cultural training
53
Q

Host Country Nationals Advantages/Disadvantages

A

Advantages

  • Economical
  • Superior market knowledge
  • Language skills
  • Superior cultural knowledge
  • Fast implementation

Disadvantages

  • Needs product training
  • May be held in low esteem
  • Language skills may not be important
  • Difficult to ensure loyalty
54
Q

Third Country Nationals Advantages/Disadvantages

A

Advantages

  • Cultural sensitivity
  • Language skills
  • Economical
  • Allows regional sales coverage

Disadvantages

  • May face identification problems
  • May be blocked for promotions
  • Income gaps
  • Needs product and/or company training
  • Loyalty not assured
55
Q

Retailers in new host market: Why go global?

A

a) Environmental factors:
(1) saturation in home market
(2) recession or other economic factors
(3) strict regulation on store development
(4) high operating costs

MKTG 440 (3 decks)

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