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Intro to Marketing > Midterm #2 > Flashcards

Midterm #2 Flashcards

1
Q

Uncontrollable elements of International Marking

A

Economic
Social
Technology
Competition
Political

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2
Q

Controllable elements of international marketing

A

the 4 P’s

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3
Q

social elements of International Marking

A

Culture
politics

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4
Q

Economic elements of International Marking

A

-Protectionism
-Tariffs
-Quotas
-Consumer Income
-Currency Exchange
-Infrastructure

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5
Q

Political elements of International Marking

A

political stability
Political risk

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6
Q

Ways to check political stability

A

Old hand: send someone familiar with that country to see how the political environment is

Grand Tour: send someone who may not be familiar in the country but is an expert on what your trying to sell and they go to the country for a longer term to see if the product is viable

Delphi Technique: panel of experts

Quantitative: data available

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7
Q

ways to protect against political risk

A

Partner with local firms: partnerships with companies to share risk with them

Minimize assets: minimize asset investments that may not be used elsewhere.

Insurance: Political insurance against political risk.

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8
Q

Technology elements of International Marking

A

Marketspace Enables Exchange
Anywhere, Anytime, and at a Lower Cost

  • ebay, alibaba, etc.
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9
Q

Competition elements of International Marking

A

Competing with international companies, or competing with domestic companies in an international market

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10
Q

Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist:

A

(1) exporting
(2) licensing
(3) joint venture
(4) direct investment

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11
Q

(1) exporting

A

Exporting is producing products in one country and selling them in another country.

Low risk, low reward, low investment

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12
Q

(2) licensing

A

a company offers the right to a trademark, patent, trade secret, or other similarly valued item of intellectual property in return for a royalty or a fee.
low risk, capital-free entry into a foreign country, low control

For instance, Yoplait yogurt is licensed from Sodima, a French cooperative, by General Mills for sales in the United States.

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13
Q

Joint Venture

A

When a foreign company and a local firm invest together to create a local business.

companies share the ownership, control, and profits of the new company.

For example, the Strauss Group has a joint venture with PepsiCo to market Frito-Lay’s Cheetos, Doritos, and other snacks in Israel and the Strauss Group’s Sabra hummus in North America

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14
Q

Direct Investment

A

a domestic firm actually investing in and owning a foreign subsidiary or division.

The biggest commitment a company can make when entering the global market

Examples of direct investment are Nissan’s Smyrna, Tennessee, plant that produces pickup trucks and the Mercedes-Benz factory in Vance, Alabama, that makes the M-Class sport-utility vehicle. Many U.S.-based global companies also use this mode of entry. Reebok entered Russia by creating a subsidiary known as Reebok Russia.

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15
Q

an international firm

A

engages in trade and marketing in different countries as an extension of the marketing strategy in its home country. Generally, these firms market their existing products and services in other countries the same way they do in their home country.

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16
Q

multinational firm

A

views the world as consisting of unique parts and markets to each part differently.

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17
Q

multidomestic marketing strategy is used by

A

multinational firms

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18
Q

multidomestic marketing strategy

A

A strategy used by multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business.

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19
Q

transnational firm

A

views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants rather than differences.

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20
Q

Transnational marketers employ a

A

global marketing strategy

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21
Q

global marketing strategy

A

the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ. This approach benefits marketers by allowing them to realize economies of scale from their production and marketing activities.

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22
Q

Countertrade

A

a country doesn’t accept foreign currency, so you must trade items of value for items without money.

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23
Q

balance of trade

A

The difference between the monetary value of a nation’s exports and imports.

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24
Q

Trade surplus

A

$ exports > $ imports

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25
Q

Trade deficit

A

$ imports > $ exports

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26
Q

5 Product promotion strategies

A
  1. Product Expansion Strategy
  2. Product Adaption Strategy
  3. Communication Adaption Strategy
  4. Dual Adaption Strategy
    5: product invention
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27
Q

Product Expansion Strategy

A

same product / same promotion

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28
Q

Product Adaption Strategy

A

adapt product / same promotion

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29
Q

Communication Adaption Strategy

A

Same product different promotion

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30
Q

Dual Adaption Strategy

A

adapt product, adapt promotion

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31
Q

Grey Marketing / parallel importing.

A

when your products are sold through unauthorized channels of distribution. This is similar to scalping, where someone buys at a low price and resells at a higher price.

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32
Q

marketing research

A

The process of defining a marketing problem / opportunity

systematically collecting / analyzing information

recommending actions

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33
Q

What are the different stages in a Marketing Research

A
  1. define the problem
  2. develop the research plan
  3. collect relevant information
  4. Develop findings
  5. take action
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34
Q
  1. define the problem
A
  • set research objectives
    -identify possible marketing actions
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35
Q
  1. develop the research plan
A
  • specify constraints
    -identify data needed for marketing action
    -determine how to collect data
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36
Q
  1. collect relevant information
A

-Obtain secondary Data
-obtain primary data

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37
Q
  1. Develop findings
A

-analzye the data
-present findings

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38
Q
  1. take action
A

-make action recommendations
-implement action recommendations
-evaluate research

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39
Q

what are constraints ?

A

restrictions placed on potential solutions to a problem.

Examples include the limitations on the time and money available to solve the problem.

LEGO Group might establish the following constraints on its decision to select one of the two new designs: The decision (1) must be made in five weeks (2) using 10 teams of middle school students playing with the two alternative MINDSTORMS® kits.

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40
Q

constraints that are too broad

A

collecting too much data can be costly and take too much time.

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41
Q

constraints that are too narrow

A

This can save cost and time but may impact the overall quality of the research.

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42
Q

sampling

A

selecting a group of distributors, customers, or prospects, asking them questions, and treating their answers as typical of all those in whom they are interested.

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43
Q

statistical inference

A

generalize the results from the sample to much larger groups of distributors, customers, or prospects to help decide on marketing actions.

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44
Q

Primary Data

A

Data you collect for yourself based on your research

Advantages: Relevant to your product
Disadvantages: Costly in time and money

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45
Q

Four other methods of collecting primary data

A

(1) social media
(2) panels/experiments/surveys
(3) data analytics
(4) data mining.

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46
Q

Experiment

A

Obtain data by manipulating factors under controlled conditions to test cause and effect.
example: McDonald’s testing products in test markets before launching nationwide

Example: serve beer in unmarked glass or glass with a logo and then ask how much they would be willing to pay

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47
Q

Survey Questions:
Likert scale

A

respondent indicates the extent to which he or she agrees or disagrees with a statement.

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48
Q

dichotomous question

A

a “yes” or “no” response.

49
Q

open-ended/subjective

A

cannot be answered yes or no.

respondents express opinions, ideas, or behaviors in their own words without being forced to choose among alternatives that have been predetermined by a marketing researcher.

50
Q

Secondary Data

A

Data collected from other sources for other projects that may or may not be relevant to your project.

Advantages: Cheaper, saves time
Disadvantages: may not be relevant, outdated

51
Q

Big data is

A

a vague, broad term generally used to describe large amounts of data collected from a variety of sources and analyzed with an increasingly sophisticated set of technologies.

52
Q

data mining is

A

the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions.

dads and diapers= beer

53
Q

Evaluate the results:
Direct forecast

A

based on consumer demand that you imagine, with no research and no data (this week I will sell 500 lemons)

54
Q

Evaluate the results:
Lost-horse forecast

A

you sold 500 lemons last week; this week, you are expecting rain, so you might not sell 500, but you might sell 200. So last year you sold x many products, now we wish to sell y many because of the condition of the abc.

55
Q

Evaluate the results: Statistical methods for Sales forecasting.

Extrapolation:

A

extending a pattern observed in past data into the future.
Assumes that the underlying relationships in the past will continue into the future, which is the basis of the method’s key strength: simplicity.

56
Q

Evaluate the results: Statistical methods for Sales forecasting.

Linear trend extrapolation:

A

when a pattern is described with a straight line

57
Q

market segmentation

A

aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.

58
Q

One product, multiple market strategy

A

One product that serves multiple markets (no segmentation at all)

ex: baseball magazine with different covers but same content
harry potter: good for kids, adults and grandparents

59
Q

3 strategies for segmentation:

A

One product, multiple market strategy

Multiple products, Multiple markets

Mass customization

60
Q

Multiple products, Multiple markets

A

Ford has Sedans, SUVs, Trucks, and Crossovers.

one issue is that Ford had multiple brands, with many different versions of all types of models, which made cars more expensive.

61
Q

Mass customization

A

Products and services that meet the needs of all consumers while also gaining the efficiency associated with mass production

Chipotle: All of the materials are produced at scale, but customers can still choose exactly what is in their meal.

62
Q

organizational synergy

A

increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently.

You sell apples, and I sell bananas, and now we link up to sell together, and now we have two sets of customers.

Gap and old navy to get two market segments- higher end and lower cost.

63
Q

What are the criteria to use when forming the segments?

A
  1. Simplicity and Cost-Effectiveness
  2. Potential for Increased Profit
  3. Similarity of Buyers’ Needs
  4. Difference of Needs of Buyers
  5. Potential of Reaching Segment
64
Q

Simplicity and cost-effective

A

A marketing manager must be able to put a market segmentation plan into effect. This means identifying the characteristics of potential buyers in a market and then cost-effectively assigning them to a segment.

65
Q

Potential for increased profit

A

maximizes the opportunity for future profit and return on investment (ROI).

If this potential is maximized without segmentation, don’t segment.

66
Q

Similarity of needs of potential buyers within a segment

A

Potential buyers within a segment should be similar in terms of common needs that, in turn, lead to common marketing actions, such as product features sought or advertising media used.

67
Q

Difference of needs of buyers among segments

A

If the needs of the various segments aren’t very different, combine them into fewer segments.

A different segment usually requires a different marketing action that, in turn, means greater costs.

If increased sales don’t offset extra costs, combine segments and reduce the number of marketing actions.

68
Q

Potential of a marketing action to reach a segment

A

Reaching a segment requires a simple but effective marketing action. If no such action exists, don’t segment.

69
Q

Ways to segment consumer markes

A

Geographic segmentation
Demographic segmentation
Psychographic segmentation

70
Q

Geographic segmentation

A

based on where prospective customers live or work (region, city size)

Campbell’s plants in Texas and California now produce a hotter nacho cheese sauce to serve their regions better.

71
Q

Demographic segmentation :

A

Based on some objective physical (gender, race), measurable (age, income), or other classification attribute (birth era, occupation) of prospective customers;

Household size. More than half of all U.S. households are made up of only one or two persons, so Campbell Soup Company packages meals with only one or two servings for this market segment.

72
Q

Psychographic segmentation

A

Based on some subjective mental or emotional attributes (personality), aspirations (lifestyle), or needs of prospective customers;

People of similar lifestyles tend to live near one another, have similar interests, and buy similar offerings.

73
Q

Why is it essential to group products into categories

A

so buyers can relate to them.

for example: grouping all cereals in a store, or grouping wendys individual items into meals

74
Q

a market-product grid is

A

a framework to relate the market segments of potential buyers to products offered or potential marketing actions.

75
Q

What are the factors to consider when selecting target markets?

A

-Market size.

-Expected growth.

-Competitive position.

-Cost of reaching the segment.

-Compatibility with the organization’s objectives and resources.

76
Q

product positioning

A

The place a product occupies in consumers’ minds based on important attributes relative to competitive products.

77
Q

Head-to-head position:

A

competing directly with competitors on similar product attributes in the same target market

coke and pepsi

78
Q

Differentiation position:

A

seeking a less-competitive, smaller market niche in which to locate a brand.

79
Q

product repositioning

A

Changing the place a product occupies in a consumer’s mind relative to competitive products.

80
Q

product

A

A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value.

81
Q

A good has

A

tangible attributes that a consumer’s five senses can perceive. For example, the Apple Watch can be touched and its features can be seen and heard.

82
Q

durable good

A

one that usually lasts over many uses, such as appliances, cars, and smartphones.

83
Q

what are the 4 types of consumer products ?

A

convenience products
shopping products
specialty products
unsought products

84
Q

convenience products

A

Items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort.

85
Q

shopping products

A

Items for which the consumer compares several alternatives on criteria such as price, quality, or style.

86
Q

specialty products

A

Items that the consumer makes a special effort to search out and buy.

87
Q

unsought products

A

Items that the consumer does not know about or knows about but does not initially want.

88
Q

business products

A

Products organizations buy that assist in providing other products for resale. Also called B2B products or industrial products.

89
Q

what are the 2 classifications of business products?

A

Components
Support products

90
Q

Components

A

items that become part of the final product. These include raw materials such as lumber, as well as assemblies such as a Toyota car engine.

91
Q

Support products:

A

items used to assist in producing other products and services.

92
Q

4 kinds of support products

A

-Installations, such as buildings and fixed equipment.

-Accessory equipment, such as tools and office equipment.

-Supplies, such as stationery, paper clips, and brooms.

-Industrial services, such as maintenance, repair, and legal services

93
Q

services

A

Intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value.

94
Q

What are the different types of services?

A

People or equipment
business or non profit
government

95
Q

four I’s of services

A

intangibility
inconsistency
inseparability
inventory

96
Q

four I’s of services
intangibility

A

services can’t be touched or seen before the purchase decision

97
Q

four I’s of services
inconsistency

A

Services often depend on the people who provide them

98
Q

four I’s of services
inseparability

A

The consumer cannot distinguish the service provider from the service itself.

99
Q

four I’s of services
inventory

A

If a physician is paid to see patients but no one schedules an appointment, the idle physician’s salary must be paid regardless of whether the service was performed.

100
Q

idle production capacity

A

This occurs when the service provider is available but there is no demand for the service.

101
Q

What are the 3 additional Ps of service marketing

A

People
Process:
Physical Evidence: the physical environment that the service takes place in or promotional materials used indicate the quality of the service

102
Q

Differences between the consumer’s expectations and his or her actual experiences are identified through

A

gap analysis

103
Q

How do consumers form expectations about serivces

A

Word of mouth
Past experience
Personal needs
Promotional activities

104
Q

idea

A

a thought that leads to a product or action, such as a concept for a new invention or for getting people out to vote.

105
Q

Product Class:

A

Each set of offerings can be categorized according to the product class or industry to which they belong, like the iPad, which is classified as a tablet device.

106
Q

Product form

A

size, colors, features

107
Q

Product item

A

specific product that has a unique brand, size, or price. (SKU used to track and identify)

108
Q

Product line

A

a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range. Closely related to satisfying a need.

109
Q

Product mix

A

Consists of all the product lines offered by an organization.

110
Q

What are the five key steps in segmenting and targeting markets?

A

1: GROUP POTENTIAL BUYERS INTO SEGMENTS

2: GROUP PRODUCTS TO BE SOLD INTO CATEGORIES

3: DEVELOP A MARKET-PRODUCT GRID AND ESTIMATE THE SIZE OF
MARKETS

4: SELECT THE TARGET MARKETS

5: TAKE ACTION

111
Q

Why do products fail?

A

protocol
organizational inertia

112
Q

What are the seven stages in the new-product development process?

A
  1. New-product Strategy development
  2. Idea generation
  3. Screening and evaluation
  4. Business Analysis
  5. Development
  6. Market testing
  7. Commercialization
113
Q

What are the different ways to define “newness” of a product or service?

A

If a product is functionally different from existing products, it can be defined as new.

If a product is functionally different from existing products, it can be defined as new.

114
Q

Newness from an organizational perspective

A

Product line extension: incremental improvement of an existing product line the company already sells (Purina makes a new line of cat food)

b) Jump in innovation: iPod to iPod touch

c) Brand extension: putting an established brand name on a new product in an
unfamiliar market - Colgate frozen dinners

115
Q

Newness from a consumer perspective

A

continuous innovation
dynamically continuous innovation
discontinuous innovation

116
Q

continuous innovation

A

requires no new learning by consumer: new and improved toothpaste

117
Q

dynamically continuous innovation

A

disrupts consumers normal routine but does not require totally new learning: swiffer mop

118
Q

discontinuous innovation

A

Requires new learning and consumption patterns by consumers: smart phones in 2008

Intro to Marketing (3 decks)

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