MKTG 4840 Midterm

Coke communicates a standard of living in the US. Therefore, the brand has become a _____________ of American lifestyle.

symbol/icon

What are the factors which influenced the expansion of Coke distribution in the 1950s?

-the end of WW2 (post war prosperity)
-invention of the television (sponsorship in tv shows)
-supplying to troops in the war helped them gain a foothold around the world with troops and civilians too (set up distribution channels)
-desirable American lifestyle

Is "pattern" advertising a standardized or localized approach?

standardized, but it has elements of both

What product strategies do you think Coke uses worldwide today?

packaging is standardized, while attributes are localized

What are the 4 management orientations?

-ethnocentric
-polycentric
-regiocentric
-geocentric

Ethnocentric

home country is superior, sees similarities among ALL foreign countries

(extreme world view)

Polycentric

each host country is unique, sees differences in EVERY foreign country

(extreme world view)

Regiocentric

sees similarities & differences in a world region, but is ethnocentric or poly centric in its view of the rest of the world

Geocentric

sees similarities & differences in home and host countries

(most balanced view)

Globalization

the INTERDEPENDENCE & INTEGRATION of national economies

-is an economic phenomenon

GDP

=Gross Domestic Product
the market value of currently produced, final goods & services produced annually within a country's borders

When will China overtake the US as the worlds largest economy?

-not IF, but WHEN
-data from World Bank & IMF says China could overtake the US by 2024 based on GDP measured in US dollars

PPP

=Purchasing Power Parity (Big Mac Index)

When correcting of PPP, __________ is already a larger economy than the US

China

(when comparing how much you can buy with the Chinese Yuan vs. with the US dollar)

GDP is overstated by ____% in the US

1-2%

What caused an overnight 4-5% jump in US GDP?

Government decided to start counting unsold services in GDP

T/F World events (like COVID) could change all GDP predictions

true

4 causes & conditions of the Great Recession

1. deregulated banking industry (started in 1980s)
2. miscalculation of risk
3. failure of diversified portfolio strategy
4. highly leveraged borrowing

___________ & _____________ are one of the MOST important aspects of culture

language & communication

Diffusion Theory

explains how innovations are introduced and adopted by various communities

-the adoption process
-characteristics of innovation
-adopter categories

Life cycle curve for adopter categories is skewed for ______________________ cultures

Asian/Eastern

-takes longer for people to adopt because they have group mindset

At the time of this film (2006) Sesame Street planned to reach _______ million children in Bangladesh.

12

A development partner said, "We are proud of our ___________, _____________ & __________ and we want to keep them."

literature, culture & song

According to this same partner, "_________________" is taking the best from your domestic culture & offering it to the world.

internationalism

In Bangladesh, they decided not to have a street, community, or neighborhood, but rather a ___________________.

banion or bunion tree

The natural environment can cause economic problems in foreign markets as evidenced by the severe _____________ in Bangladesh which is a common occurrence.

flooding

tips for writing for translation

-be clear, concise
-don't add extra descriptive words if they aren't needed
-avoid humor & slang
-bullets/lists are great

"Quiet" Ad

doesn't need translating for international use
(standardized promotional approach)

CPI

corruption perception index

-corrupt officials & bribes play a heavy role
-the higher the CPI score the less corrupt

4 Global trends Disrupting Market Research

1. automation & DIY tools (a new need for unprecedented speed)
2. big data & predictive analytics (making humans more important than ever)
3. transparency & trust (baring it all)
4. partnership 3.0 (upping the MRX game)

4 areas of global market segmentation

1. demographic (includes ethnic)
2. geographic
3. psychographic
4. behavior (includes benefit)

Demographic Segmentation

dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

what are two groups that are considered homogeneous demographic groups?

Teens
-pretty similar around the world
-high % disposable income b/c living at home
-willing to try new things

VERY high income people
-more willing to buy luxury items
-smaller % of income goes to necessities (e.g. home, food)

Worldwide, we have a __________ population

aging (due to low birth rates)

This century, _________ will replace Asia as the driver of population growth

Africa

Psychographic segmentation

dividing the market using groups' values, attitudes, lifestyles and interests

Behavior segmentation

-Prof. calls it product-related segmentation

-focuses on whether people put & use a product, as well as how often & how much they use or consume

3 Step Target Marketing Process

1. Segment the market
2. choose your Target
3. design a Positioning strategy

Sample Positioning Statement

To ____(target's need)__ our ___(product or brand)__
is ____(differentiation concept)___ than ___(competitor)____

what's the idea/point of a positioning statement?

identify your target...design your product...then use a specific strategy to differentiation it from your competition (in the target's mind)

Stella Artois

"reassuringly expensive" -> price that matches quality BUT it's the equivalent of PBR in Belgium

used positioning to set itself apart as "premium":
-packaging, beer chalice
-perfect pour
"BuytheLadyaDrink" tag line

partnership with Matt Damon and water.org

Stella Artois is a great example of...

entering a new market, repositioning, and then solidifying that position with a partnership and an advertising campaign