Studied by 41 PeopleTags & Description
Marketing
The sum total of all activities involved in getting goods and services from the original producer to the ultimate consumer.
Purpose of marketing
To sell the output of production
Market research
Finding or collecting data to help solve marketing problems
Secondary data
Data that you can look up because it has been collected by others
Statistics Canada
A great source of demographic data in specific areas of Canada.
Primary data
Information that businesses gather that relates specifically to their problems
Logistics
The management of the flow of goods and services both into and out of an organization
What is the difference between selling directly to the public or through a retailer when it comes to price?
The price is less if you sell directly to the the public. Retailers need to make a profit so they take a markup on the price they pay for a product from a manufacturer or distributor
What are the packaging issues that have to be considered when selling products outside of Canada ?
Package weights,package colors,legal requirements and language requirements
What system do all industrialised nations use to measure weights and volumes
Metric
How should weights be expressed when selling to the US?
Imperial weights and volumes
What other two countries use Imperial weights and volumes
Myanmar and Liberia
Are Canadian/British gallons the same size as US gallons
No Canada/British gallons are larger
What does the colour white symbolize in Canada/china?
Purity in Canada, death in china
What does the colour yellow symbolize in Canada/japan
Canada-cowardice,japan-courage
What's a potential drawback of using environmentally unfriendly packaging?
Importing country may charge a fee on each package imported
What would a potato chip manufacturer need to be converted about when selling to a Hindu country?
That the chips were not fried in beef fat because Hindus do not eat beef
Vegetarian or vegan may not purchase what items?
Wool,leather and other product's that come from animals
Why won't Sarah's onesies with hockey logos on them, sell well in London, england ?
Hockey is not popular in England
In terms of “location of operations” a centralized strategy means what?
All manufacturing and marketing performed in one location.
A decentralized operational strategy might mean what?
That you would set up a manufacturing plant in another location, hire sales force.
What’s the easiest way to enter a foreign market?
E-Commerce
B2C
Business to Consumer
B2G
Business to Government
B2B
Business to Business
Which e-commerce transaction is the easiest?
B2B
Can you think of any examples of businesses that just exist online?
Amazon, Instagram, Netflix, NordVPN
If a company wants to manufacture in Canada but sell in another country. How should it enter the market?
Sales agent or sales agency.
When a collection of manufacturers and distributers of similar products rent space, set up display booths and sell their products to registered buyers.
Trade Show
What is the most expensive market entry strategy?
Building and staffing a branch plant
3 Major advantages of owning a brand plant in a foreign market
Low Shipping Costs
Import Regulation nd Tariffs are not an Issue
Product modifications are easier
A contract giving someone the right to use a paten or trademark is called a
Licensing Agreement
A fee paid to the owner of a trademark or patent which usually amounts to a percentage of the sale of a licensed product is called a
Royalty
3 Main licensing agreements
Manufacturing Agreement
Distribution Agreements
Franchising Agreements
An agreement for the right to manufacture a product under license is called a
Manufacturing agreement
When an importer or retailer agrees with the manufacturer of a product to have the right to distribute the product within a country this is
Distribution agreement
An agreement between a business that permits an individual or other business to run a business using Business A’s name
Franchise agreement
Business A is called
Franchisor
Business B is called
Franchisee
When you get a mortgage loan from a bank the bank is the lender and is called the
Mortgagee
You, the borrower are called
Mortgager
What is the most effective way to deal with competition, whether in a foreign or domestic market?
Acquisition: Buy the company that competes with your company then close the company down or use the firms resources and marketing to expand market
What image does price skimming convey
That your product is innovative and exclusive
Once early adopter have responded to skimming by buying your product, what might the company do?
Lower the prices
Why is premium pricing different from price skimming
With premium pricing, the high price is sustained
2/10 net 30 is an example of a cash discount and means what?
2 percent discount it goods are paid within to days, full amount owed if paid after (30 days)
Selling “10 for the price of 8” is an example of a
Quantity or volume discount
What to the price of a product being sold internationally?
Price increase
What factors might decrease the price of a product made in a foreign country?
lower labour, transportation and manufacturing costs
In general businesses entering a foreign product have to make sure that the price of their products is what?
Competitive
Why are Oreos sold in a smaller package in China than they are in North America
Incomes are lower in China, consumers are not willing to spend money on a larger package and space is limited in money stores
Markup
The additional percentage added to cost to determine price. This percentage is the profit
Tend to have smaller markups
Products with a consistent demand such as groceries
Tend to have Higher Markups
Products with inconsistent demand such as high-fashion clothing and jewellery
Penetration Pricing
Entering a market at a lower price than the competition to influence customers to buy your product
Price skimming
Entering a market at a high price during the introductory phase.
Premium Pricing
Setting the price higher than the competition’s price to evoke an illusion of luxury and high quality.
Discount pricing
Often used in a B2B situation where the producer wants to sell high volumes to a wholesaler or retailer
Psychological Pricing
Choosing a particular price in the hope that it will sell the product e.g. setting a price at $199 instead of $200 because consumers tend to concentrate on the first number rather than the whole number
3 Ways to Sell products internationally
Using existing ads, translating ads, and creating new ads
A U.S company would be able to use the same ads in what country?
Canada
What do you need to be concerned about when translating ads
Difficult to say same thing in another language
The 2-C’s of international marketing
Consumer and Competition
International target market
The characteristics of the consumers who will likely buy your products or services
Ethnocentrism
A belief that your own culture values beliefs, represents the right way of doing things and other countries values aren’t important
Market size
The population of the market you’re selling to
Demographic Info
Statistical data of various characteristics of population
Face
The ability to face others without embarrassment and have them think well of you
Discretionary of Income
The money left over from your salary or wages after you’ve paid for essentials
Spending patterns
Spending habits of a population
Direct Competition
Firms that provide products or services that are almost identical to other products or services
Indirect competition
Firms that provide products or services that are not identical to other products or services
Competitive advantage
Make product cheaper than another company
Economies of Sale
The theory of more products you make in a factory the cheaper the unit will be to make.
Product diff
A difference in flavour quality colour or scent
Brand Equity
The value of a product’s brand in a market or the number of consumers that can identify the brand.