Week 12 Flashcards
Tendency for variability to escalate with each stage in the distribution process, usually from a corresponding degradation in the quality of demand information.
The Bullwhip Effect
Delivery delays and inventory target adjustments, order batching, price fluctuations, shortage gaming.
Causes of the Bullwhip Effect
Excess inventories, problems with quality, increased raw materials cost, overtime expenses, increased shipping costs, lost customer service, lengthened lead time, lost sales, unnecessary adjusted capacity
Results of the Bullwhip Effect
Poor forecasting of sales, incorrect information along the supply chain, sales promotions, excess inventories, sales incentives, lack of customers confidence, problem with quality, (Customer returns), freight incentives
Causes of the Bullwhip effect
The exchange of information, news, ideas, etc. or the action to convey ones ideas, feelings, etc. clearly to others.
Communication
A transactional process between two or more parties whereby meaning is exchanged through the intentional use of symbols.
Communication
- To build primary demand and brand awareness
- To provide relevant information
- To influence attitudes and feelings
- To create desires and preferences
- To facilitate purchase and trial
- To create loyal customers
Marketing Communication Objectives
- Spontaneous Awareness
- Knowledge/comprehension of benefits
- Liking/favorable attitude
- Preference
- Trial
- Repurchase/regular use
Communication effects pyramid
________ can be reflected in different forms; physiological change, expressive behavior, and subjective experience.
Emotion
- Cost reduction
- Improve quality
- Enhanced customer preference
- Global customers and segments
Advantages of Standardization
- Off-target
- Lack of uniqueness
- Vulnerability to trade barriers
- Strong local competitors
Drawbacks of Standardization
- Maintaining consistent image
- Desired product features are the same
- Usage conditions are similar across market
- Symbols used carry same meaning across market
- Reducing confusion amongst world travellers
- Implementing single-coordinated campaign across country
- Reducing development, media and other costs
Standardized Advertising
Assumption: customers everywhere share the same wants and needs
Standardized Advertising
- product variables
- competitive variables
- organizational experience and control variables
- governmental variables
- cultural and societal variables
- Infrastructure variables
Factors influencing the decision to standardize or adapt advertising
Industrial goods– highest level of standardization
Customer durables– medium level of standardization
Customer nondurables–lowest level of standardization
Product Variables
Industrial Goods (level of standardization)
highest level of standardization
Customer Durables (level of standardization)
medium level of standardization
Customer Non-Durables (level of standardization)
lowest level of standardization
- Centralized decision-making structure–higher level of standardization
- Decentralized decision-making structure–lower level of standardization
Organizational Experience and Control Variables
Centralized decision-making structure (level of standardization)
higher level of standardization
Decentralized decision-making structure (level of standardization)
lower level of standardization
Agencies and Production Facilities
Infrastructure Variables
Luxury Products
High-tech Products
Experiential Products
Favorable Country Image
Products Suitable for Standardized Advertising
Assumption: cultural, economic, infrastructural, and political differences across countries
Adapted Advertising
One of the most formidable barriers in global marketing. Translation errors include simple carelessness, multiple-meaning words and idioms.
Language Barriers
Advertisers, local knowledge, perceptions and experiences to prepare ads for foreign countries with different cultures, beliefs, perceptions, etc.
SRC: Self-reference Criteria
The ___________ must be an effective copywriter, understand the product its feature and its market, should be translating into their native tongue and live in the country where the ad will appear.
Translator
