Marketing 4720 Exam 2

Culture

-ways of living, built up by a group of human beings, that are transmitted from one generation to another

-revealed/shown/displayed in our social institutions including families, education, religion, government, and business

Task of Global Marketers

Incorporate this understanding into the marketing planning process through adaptation or standardization

- Remain open minded and lose personal biases

Value

an enduring belief or feeling that a specific mode of conduct is personally or socially preferable to another mode of conduct

Belief

an organized pattern of knowledge that an individual holds to be true about the world

Attitude

learned tendency to respond in a consistent way to a given object or entity

Subcultures

smaller groups of people with their own shared attitudes, beliefs, & values

- Southern, Fandoms, Religions, etc

Aesthetics

displayed through color or the shape of a product, label or package, and the style through design

Context: High/Low

Low Context Culture: Context doesn't matter as much. Messages are explicit and specific; words carry most of the communication power

High Context Culture: Context matters. Less information is contained in the verbal part of a message, while more information resides in the context of communication, including the background, associations, and basic values of the communicators

Self Reference Criterion

My perception is the only reality

Cultural Myopia

Perceiving that one's culture is superior while having a very shortsighted view of others.

Reduct:

1. Define the problem or goal in terms of home country cultural traits

2. Define the problem in terms of host-country cultural traits; make no value judgments

3. Isolate the SR C influence and examine it

4. Redefine the problem without the SR C influence and solve for the host country situation

Relative Advantage

how product compares with existing ones

Compatibility

extent to which a product is consistent with existing values and past experiences of adopters

Complexity

degree to which an innovation or new product is difficult to understand and use

Divisibility

ability of a product to be tried and used on a limited basis

Communicability

degree to which benefits of an innovation may be communicated to a potential market

Diffusion Process

Political Environment

governmental institutions, political parties, and organizations through which a country's people and rulers exercise power

Political Culture

reflects the importance of the government and legal system and is the setting within which individuals and organizations do business

Political Issues

Sovereignty, political risk, tax policies, threat of equity dilution, risk of expropriation

Sovereignty

Supreme and independent political authority

Political Risk

Risk of change in political environment or in government policy that would adversely affect a company's ability to operate effectively and profitably

Taxes

Fees for the support of government required to be paid by people and businesses.

Seizure of Assets - Expropriation

governmental action to dispossess (take away) a foreign company or investor of their assets

Seizure of Assets- Confiscation

no compensation is provided which is generally forbidden by international law.

Seizure of Assets - Nationalization

a government takes control of some or all of the enterprises in an entire industry

Seizure of Assets - Creeping Expropriation

occurs when the government doesn't outright take the asset but limits the economic activities of foreign firms

International Law

Global firms must know the rules and principles that nations consider binding among themselves

Private International Law

body of law that applies to disputes arising from commercial transactions between companies based in different nations

Common Law vs Civil Law

Islamic Law - Sharia

comprehensive code governing Muslim conduct in all areas of life, including business.

Jurisdiction

Refers to a court's authority to rule on particular types of issues arising outside of a nation's borders or to exercise power over individuals or entities from different countries

Patent

gives an inventor exclusive right to make, use, and sell an invention for a specified period of time

Trademark

distinctive mark, motto, device, or emblem used to distinguish it from competing products

Copyright

establishes ownership of a written, recorded, performed, or filmed creative work

Counterfeiting

unauthorized copying and production of a product

Associative Counterfeit/Imitation

product name differs slightly from a well-known brand

Piracy

unauthorized publication or reproduction of copyrighted work

Protecting Intellectual Property

members believe that the protection of intellectual property rights is essential to the international trading system

Antitrust Laws

designed to combat restrictive business practices and to encourage competition

Licensing

contractual agreement in which a licensor allows a licensee to use patents, trademarks, trade secrets, technology, and other intangible assets in return for royalty payments or other forms of compensation

Trade Secrets

Confidential information or knowledge that has commercial value and is not in the public domain and for which steps have been taken to keep it secret

Bribery

corrupt business practice of demanding or offering some type of consideration—typically in the form of cash payments—when negotiating business deals

Foreign Corrupt Practices Act

Makes it a crime for a U.S. corporation to bribe an official of a foreign government or political party to obtain or retain business

Omnibus Trade and Competitiveness Act

Allows for "grease" payments to cut red tape; i.e., getting shipments through customs, getting permits

Litigation

a negotiation process that the two parties have, by prior agreement, committed themselves to using

Arbitration

settles disputes outside of court

Information Technology

an organization's processes for creating, storing, exchanging, using, and managing information

Management Information System

means for gathering, analyzing and reporting relevant data to provide managers and other decision makers with a continuous flow of information about markets, customers, competitors, and company operations

Intranet

private network that allows authorized company personnel or outsiders to share information electronically in a secure way and without using paper

Big Data

extremely large data sets

Electronic Data Interchange

system allows a company's business units to submit orders, issue invoices, and conduct business electronically with other company units as well as with outside companies

Efficient Customer Response

joint initiative of supply chain members to optimize the supply chain to benefit customers by having stock-on-hand. ECR utilizes the EPOS system data

Electronic Point of Sale

data read on checkout scanners help firms identify sales patterns & geographical consumer preferences

Customer Relationship Management

tool that helps companies leverage the data they collect through ECR and EPOS

Touchpoints

any point of contact between the customer and the organization and is a chance to capture data

Direct Sensory Perception

to have an experience— managers should walk about and observe

Marketing Research

activity that links the consumer, customer, and public to the marketer through information

Market Research Steps

1. Information Requirements

2. Problem Definition

3. Choosing the Unit of Analysis

4. Examining Data Availability

5. Assessing the Value of Research

6. Research Design

7. Data Analysis

8. Interpretation and Presentation

Secondary Data

published for some other reason

Primary Data

Gathered through original research for the particular problem identified

Qualitative Research

good for exploring to

understand the customer including their situation and

consumer behavior and how they really feel about the

brand by getting "under the skin" of the brand.

Quantitative Research

provides the numbers

Latent Market

undiscovered segment but demand would materialize if an appropriate product were made available

Incipient market

market will emerge if an economic, demographic, political, or sociocultural trend continues

Survey Research

can be Qualitative or Quantitative

Back-translation

survey is translated into target language, then

translated back into original language

parallel translation

two versions by different translators are used

in conjunction with back-translation

Consumer Panel

Respondents' behavior tracked over time

Observation

Trained observers or a mechanical device

Focus groups

monitor leads 6-10 person discussion

Population vs Sample

Use a sample or subset of the

population to represent the entire population

Non-probability samples

convenience sample

Probability samples

each member of the

population has an equal chance of being surveyed

Global Market Segmentation

process of identifying specific segments--whether they be country groups or individual consumer groups—of potential customers with homogeneous attributes who are likely to exhibit similar responses to a company's marketing mix

Targeting

evaluating the segments and focusing marketing efforts on a country, region, or group of people that has significant potential to respond

Positioning

differentiate the product or brand in the minds of target customers

Global Teens

teenagers 12 to 19-year-olds and share similar consumption patterns across borders

Global Elite

affluent consumers who are well traveled and have the money to spend on prestigious products with an image of exclusivity

Purchasing Power Party

What the currency will buy in the country of issue

Behavioral Segmentation

how the customer behaves toward a product/brand

80/20 Rule (Pareto's Law)

80% of a company's revenues are accounted for by 20% of the customers

Benefit Segmentation

focuses on the value equation which says Value = Benefits / Price

Marketing Model Drivers

key elements or factors already in place for the firm that will be beneficial for the business to take root in the host country and grow

Enabling Conditions

structural market characteristics whose presence or absence affects success in the market

Standardized Global Marketing

-Mass marketing on global scale with standardized marketing mix- No (or minimal) product adaptation with intensive distribution- Enables lower production costs and communication costs

Concentrated Global Marketing

Niche marketing focused on a single segment looking for global 'depth' rather than national 'breadth'

Differentiated Global Marketing

- Multi-segment targeting aimed at two or more distinct markets- Allows for wider market coverage