Marketing 3000: Joel Poor: Exam 3

What is international marketing/global marketing?

a company's effort in applying/adopting marketing strategy/tactics to create an integrated global marketing strategy

What are the 4 reasons for international trading growth?

1. the internet

2. increasing trade liberalization through multilateral trade agreements

3. saturated domestic markets

4. improved transportation/communication infrastructures and growing prosperity in developing economies

A global marketing strategy is developed in order to address the following:

- global market penetration

- coordination of marketing activities

- standardization vs. adaption

- concentration of marketing activities

- integration of competitive moves

What is global market penetration?

the extent to which a company has operations in major world markets

What is the coordination of marketing activities?

the degree to which global, marketing-mix activities are planned and executed interdependently

What is standardization vs. adaption?

the extent to which each marketing mix element can be standardized (used the same way) or must be adapted (used in different ways) in different country locations

What is the concentration of marketing activities?

the extent to which activities related to the marketing are performed in one or only a few country locations

What is the integration of competitive moves?

the extent to which a firm's competitive marketing tactics in different parts of the world are interdependent

What are the 4 world view descriptions?

-Ethnocentric

-Polycentric

-Regiocentric

-Geocentric

What is an ethnocentric world view?

-assuming that your home country is superior to the rest of the world

-opportunities outside of the home country are routinely ignored

-leads to the belief that products can be sold everywhere without adaption (standardized approach)

-associated with superiority

What is a polycentric world view?

-the belief that each country in which you do business is unique

What is a regiocentric world view?

-the belief that each region in which you do business is unique

What is a geocentric world view?

-the view that the entire world is a potential market

-strives to develop integrated global strategies

-serves world markets from a single country or sources globally for the purposes of focusing on select country markets

-often have a blurring of national identity

What are the 5 dimensions (plus 1) that Geert Hofstede suggested that the cultures of different nations can be compared with?

-power distance

-individualism

-individualist cultures

-collectivist cultures

-masculinity

-uncertainty avoidance

What is power distance?

-the extent to which the less powerful members of a society accept power to be distributed unequally

-the higher the power distance the lower the level of trust

What are the 3 characteristics that strategic alliances exhibit?

-the participants remain independent subsequent to the formation of the alliance

-the participants share the benefits of the alliance as well as control over the performance of assigned tasks

-the participants make ongoing contributions in technology, products, and other key strategic areas

What are Porter's 5 categories of factor conditions?

-human

-physical

-knowledge

-capital

-infrastructure

What are the 3 characteristics of home demand that are important to the creation of competitive advantage?

-market size

-demanding customers

-market sophistication

Why international business?

- increase sales

- internet has pushed brand to global market, why not capitalize?

- to dominate others

- reduce risks

What are the challenges of international business?

-language barrier

-cultural differences

-currencies

-trade policies and tariffs

-legal difference and political issues

-geography

What are the 4 types of product adaption and describe them?

-straight extension: do not change product and communications

-product adaption: adapt product and don't change communications

-communications adaption: don't adapt product and adapt communications

-dual adaptation:adapt product and communications

What is the usually the most critical of the 4ps of the marketing mix?

product

What is the key to new product success?

a new product needs to provide a distinctive benefit to a substantive segment (the new product fills an unfulfilled need)

What are the 4 brand sponsorship options?

-a product may be launched as a manufacturer's brand (national brand)

-the manufacturer may sell to resellers who give it a private brand (store brand or distributor brand)

-other manufacturers can market license brands

-two companies can join forces and co-brand a product

What are the 3 main types of brands, explain them and give examples?

-generic: low priced, identified by its generic name (Ex. a can of green beans)

-private: owned by a wholesaler or retailer (Ex. Sam's Choice and Equate are brands sold at War-Mart)

-manufacturer: brands we commonly think of when we think of branding (Ex. Coca-Cola, Kodak, Ford, Kraft)

What are the 3 types of branding?

- individual branding

- family branding

- cobranding

What is the measure of a brand's equity?

the extent to which customers are willing to pay more for the brand

High brand equity provides a company with:

-a high level of consumer brand awareness and loyalty

-more leverage in bargaining with resellers

-easy launch line and brand extensions

-strong and profitable customer relationships

What is the fundamental asset underlying brand equity?

customer equity

What are the 6 desirable qualities for a brand name?

1. should suggest something about the products benefits and qualities

2. should be easy to pronounce, recognize, and remember

3. should be distinctive

4. should be extendable

5. should translate easily in foreign languages

6. should be capable of registration and legal protection

What are the 3 choices a company has when developing a brand and explain them?

1. Line extensions: introduce additional items in a given product category under the same brand name

2. brand extension: a successful brand launches new or modified products in a new category

3. multi-branding: marketing of more than 2 competing and almost identical products, that belongs to a single organization and is filler under different and unrelated brands

What are the 4 stages of the product life cycle?

1. Introduction

2. Growth

3. Maturity

4. Decline

What are the key factors of the introduction stage of the product life cycle?

- sales/profits are low

- innovation/new product

- have target innovators that are willing to take risks

- Ex. electric cars, delivery drones, the segway

What are the key factors of the growth stage of the product life cycle?

- sales/profits grow

- competition and marketing efforts grow

- targets early adopters

- stimulates demand

- Ex. air bob, bullet trains, streaming music and videos, social media

What are the key factors of the maturity stage of the product life cycle?

- sales/profits plateau

- product is familiar

- target early and late majority

Ex. keurig, make-up, soap, cell phones

What are the key factors of the decline stage of the product life cycle?

- sales/profits decline

- comepetition increases outside, decreases inside

- creates new uses for product

- targets laggards

- Ex. newspaper, department stores, dvds

What is a fad?

products that go through really quick life cycles

What are the 5 adopter categories?

-innovators: targeted during introduction stage

-early adopters: central to growth stage

-early/late majority: central to maturity stage

-laggards: might adopt even in decline stage, usually old people

What are the factors that speed diffusion of an innovation?

-large relative advantage: Ex. flatscreen tv

-high level of compatibility: Ex. apple products

-easily observed: Ex. apple watch, things that are worn

-less complex and easy to try: Ex. streaming music and videos

What are the stages in the adoption process?

-awareness

-interest

-evaluation

-trial

-adoption (rejection)

During the beginning of the adoption process the info that is most important is from:

advertising (impersonal sources)

During the end of the adoption process the info that is most important is from:

personal sources

What is the importance of new product development?

1. SCS (sustainable competitive advantage) survivability: Ex. apple, FitBit, Nike, Starbucks

2. Key to Profitability: pricing power for a certain period of time till someone copies you

3. Capacity to change lives

What is a New Product?

-a new to the world product

-a new category entry

-addition to a product lines

-product improvements

-repositioning

What are the contents of a new product strategy?

-focus

-goals/objectives

-guidelines

What are the steps firms take to develop a new product?

-idea generation

-concept testing

-product development

-market testing

-product launch

-evaluation of results

What are the 3 types of product development?

1. prototype

2. alpha testing

3. beta testing

What are the 3 distribution coverage strategies?

-intensive: provides offering in as many outlets as possible, Ex. vending machine

-selective: restrict distribution, Ex. jewelry

-exclusive: restrictive distribution, Ex. Ferrari

What are the 2 types of pricing strategy and explain?

-Penetration pricing: set price low-immediate market share

-price skimming: set price high-immediate large profits

Discriminatory pricing is legal as long as:

it doesn't hinder competition