Chapter 7 / International Business Exam / Mr. Singh

Marketing

Marketing

All the activities in involved in getting a good or service from the original producer to the ultimate consumer. \n \n Includes: Market research, product development, pricing, advertising and promotion, sales, and logistics.

Market Research

Finds or collects data to help solve marketing problems.

Product Development

Most companies use market research to help develop new products, taking consumer reaction into account.

Market research is a major part of product development, as companies don’t want to risk the high costs involved without some assurance that they will be successful.

John Ive

• British designer that is the CDO at Apple

• He leads the design department and they don’t report to finance, manufacturing etc.

• Only few employees have access to their Design studio

• When they’re working on a new product, they are separated completely from everyone else

Apple Inc. Facts

• They even implement physical controls to prevent the team from interacting with other employees

• Every Monday, Apple holds meetings to examine every single product that the company has in their design phase

• Apple only works a few projects at a time to keep their products dominant

Pricing

The price of a product must take into account the amount of labour, \n the cost of materials, and overhead (such as electricity).

Items that are sold in stores are marked up, as the retailer needs \n to make money on the items it sells.

Advertising & Promo

Advertising and promotion are needed to convince the customer to buy the product.

Businesses must identify the best way to reach their target market, taking into consideration the cost of different methods. For example, an Internet ad or brochure is much less expensive than a magazine ad or television commercial.

The four p’s

1. Product

2. Place

3. Price

4. Promotion

Centralized Strategy

A centralized strategy is a marketing strategy in which all of a company’s manufacturing and marketing is performed in one location.

Decentralized Strategy

A decentralized strategy is a marketing strategy in which a company sets up a manufacturing plant in another nation, or hires a sales force there, or even licenses its brand to a local manufacturer, rather than performing all manufacturing and marketing in one location.

E-Commerce

The use of the Internet by businesses to sell products and services to customers in a much larger areas than could be reached through a traditional retail location; using e-distribution, any business anywhere in the world can be an international business.

Sales Agent

An individual hired and paid a commission by a company to market its product to potential buyers and distributors, often in a foreign country.

Trade Show

A collection of manufacturers and distributors of similar products who rent space, set up display booths, and sell to registered buyers seeking products for their retail businesses.

Branch Plant

Building and staffing a branch plant is the most expensive market entry strategy, but could be the most effective.

Licensing Agreement

A licensing agreement is a contract giving someone the right to use a patent or trademark.

Manufacturers pay the owner of the trademark a fee, usually a royalty, which is a percentage of the sale of the licensed product.

Manufacturing agreements

The rights to manufacture a product

Distribution Agreements

The rights to sell a product

Franchising Agreements

Grants the ownership of a manufacturing or distribution company to a local franchisee

Research Development

R&D involves researching your market and your customer needs and developing new and improved products and services to fit these needs.

Acquisitions

when one company (the acquirer) buys most or all shares in another company (the target) to assume control of its assets and operations.

The most effective way for a company to deal with competition in a foreign or domestic market is to buy the company it competes with, then close it or use its marketing connections to expand its market.

The two C’s

1.Consumers

2.Competition

Target Market

Finds or collects data to help solve marketing problems.

Ethnocentrism

Believing your own culture, values, beliefs, and customs represent the right way of doing things, and that other value systems are not important.

Discretionary Income

The money remaining from an individual's salary or wages after all essential living expenses, including rent and groceries, have been paid.

Competition

Competitive Advantage

the combination of marketing elements that sets your business apart.

Demographic Info

Statistical data about various aspects (age, gender, etc.) of the population.