BUSML 3250 Final

Hofstede’s 6 dimensions of natural culture

power distance index - high vs low, individualism vs collectivism, indulgence vs restraint, uncertainty avoidance index - high vs low, long term orientation vs short term orientation, toughness vs tenderness

PESTLE framework

framework for analyzing forces impacting marketing decisions in global environments

PESTLE framework abbreviation

political, economic, sociocultural, technological, legal/institutional, environmental/ecological

management contracting

domestic company provides management knowledge to another company in another country that supplies the capital

types of joint venturing

licensing, contract manufacturing, management contracting, joint ownership

sustainable marketing concept

calls for socially and environmentally friendly actions that meet immediate and future needs of consumers, society, and company

carbon offsetting

company allows unavoidable emissions into atmosphere but then undertakes remedial actions to counteract their negative environmental impact

sense of mission marketing

company should define its mission in broad social terms rather than narrow product terms

salutary products

have low immediate value but may benefit consumers in the long run, such as insurance products

customer journey 5 A’s

awareness, appeal, ask, act, advocacy

rational appeal

relate to audience’s self interest

moral appeals

appeal to audience’s sense of what is right and wrong

product augmentation

product version that includes additional features or services added by seller

product adaptation

adapting an existing product for different markets (green tea oreos in China)

sustainable marketing

meeting present needs of consumers and businesses while preserving or enhancing ability of future generations to meet their needs

competitive marketing

strategies that strongly position a company against competitors and give company the best possible strategic advantage

close competitors

McDonald’s vs Burger King

intensive distribution

places products in as many outlets as possible

exclusive distribution

places products in stores only

shopping product

purchase involves careful comparison of price, quality, and style (TV, appliances)

retail atmospherics

store environment that influences shoppers

disintermediation

retailer stops using a distributor and buys directly from producer

disintermediation example

Walmart stops buying produce from distributors and starts buying from farmers instead

exposure

consumer has chance to notice message

involuntary attention

occurs when something is surprising or unexpected

voluntary attention

engaging with consumers who actively choose to consume content rather than being interrupted by ads

straight product extension

selling same product worldwide without modification

triple bottom line

people, planet, profit

Porter’s 5 Forces

competition, ability of customers to find substitute products, threat of new entrants to market, customer bargaining power, supplier bargaining power

captive product pricing

pricing a product cheaply and charging more for essential parts (HP Printers)

two part pricing

pricing a product with a one time purchase fee or subscription and an additional usage fee

disruption

new business model or technology fundamentally changes industry landscape

omnichannel marketing

integrates all marketing channels to create the best customer experience

multichannel marketing

multiple marketing channels independently target consumers

stock turn rate

how quickly a company sells and replaces its inventory

stock turn rate formula

COGS / Average Inventory

personal selling

using sales force to sell products and build customer relationships

public relations

activities designed to engage with and build good relationships with stakeholders (ex. Tide helping with Hurricane Katrina disaster relief)

sales promotion

short term sales incentive to encourage product purchase (ex coupons)

aware

consumer hears about brand

appeal

consumer finds brand attractive

ask

consumer researches brand and seeks more information

act

consumer purchases/uses brand

advocate

consumer recommends brand to others

methods of determining promotional budget

affordable method, percentage of sales method, competitive parity method, objective and task method

affordable method

set budget at level company can afford

percentage of sales method

allocating a fixed percentage of past or forecasted sales

competitive parity method

setting budget to match competitors’ outlays

objective and task method

define specific objectives, determine tasks needed to achieve them, estimate cost of performing those tasks

key aspects of marketing message

message content, structure, and format

personal communication channel

involve direct two way interaction

non personal communication channel

delivers message to large, generalized audience