Exam 2 Flashcards
(139 cards)
1
Q
define globalization
A
the process by which goods, services, capital, people, information, and ideas flow across national borders
2
Q
what are the four main categories marketers use to assess global markets?
A
economic analysis using metrics, infrastructure and technology, sociocultural analysis, government actions
3
Q
what are three major economic factors that marketers use to assess global markets
A
economic environment, market size/population growth rate, real income
4
Q
define trade deficit and trade surplus
A
D: imports more than exports
S: exports more than imports
5
Q
What is GDP and why can it be an important metric for firms when considering global expansion
A
Gross domestic product, market value of goods and services produced by a country in a year.
6
Q
what is per capita income and why can it be an important metric for firms when considering global expansion?
A
overall income of a population divided by number of people included in population.
7
Q
what is the Big Mac index and why is it useful for companies?
A
How much is a Big Mac in each country?
8
Q
why are GDP and per capita income important metrics?
A
These metrics influence where you can make your product more or less expensively, your talent pool, and where you can sell it.
9
Q
what are the two most important population trends we discussed in class?
A
global population increases, not spread evenly
10
Q
what is infrastructure, and why is it important for companies to consider it when expanding?
A
the basic facilities, services, and installations needed for a community or society to function. Includes transportation, communication systems, water and power lines, public institution. For example, when bringing a wal-mart to India the store was a culture shift for citizens because they are used to family owned, shop-based stores rather than a megastore.
11
Q
Define tariffs
A
tax on imported goods
12
Q
define quotas
A
max quantity of a product that may be brought into a country during a specific time period
13
Q
define dumping
A
when foreign producer sells its offering in a foreign market at a price less than its production costs to gain market share
14
Q
define boycott
A
a group’s refusal to deal commercially with an organization to protect against its policies
15
Q
define trade agreements
A
an intergovernmental agreement designed to manage and promote trade activities for a specific region
16
Q
list each of Hofstede’s cultural dimensions
A
power distance, uncertainty avoidance, individualism, masculinity, time orientation
17
Q
power distance
A
willingness to accept social inequality as natural
18
Q
uncertainty avoidance
A
the extent to which the society relies on orderliness, consistency, structure, and formalized procedures of daily life
19
Q
individualism
A
perceived obligation to and dependence on groups
20
Q
masculinity
A
the extent to which dominant values are male oriented. Low= men and women are treated equally. High= male dominated positions of power
21
Q
time orientation
A
short versus long term orientation. A country that tends to have a long term orientation values long term commitments and is willing to accept a longer time horizon for something to occur
22
Q
what are the five global entry strategies we discussed in class? which are risky, which aren’t?
A
NON RISKY: export, franchising, strategic alliance
RISKY: joint venture, direct investment
23
Q
define and give qualities of export
A
produce in one country and sell in another. Less costly.
24
Q
define and give qualities of franchising
A
contractual relationship between firm and another firm or individual. Allows to operate a business using the name and business formation of the franchisor.
25
define and give qualities of strategic alliance
collaborative relationships between independent firms. They do no invest in one another.
26
define and give qualities of joint venture
when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared
27
define and give qualities of direct investment
requires a firm to maintain 100 percent ownership of its plants, operation facilities, and offices in a foreign country
28
list the three global product or service sales strategies
sell the same product or service in both home and foreign markets,
sell a product or service similar to the one sold in the home market to the foreign market,
sell totally new products or services
29
list and define the components of STP
segmentation: who you will target
targeting: how you will target them
positioning: where in the consumer's mind
30
what are the five steps in the STP process?
1. establish overall strategy (SWOT)
2. segmentation methods (separate and compare)
3. evaluate segment attractiveness (large enough/buying power)
4. select the target market
5. developing positioning strategy
31
define and give an example of geographic segements
organizes customers into groups on the basis of where they live. e.g. region
32
define and give an examples of demographic segments
groups consumers according to easily measured, objective characteristics. e.g.HHI
33
define and give an example of psychographic segmentation
separates consumers by how they describe themselves, how people self-select based on the characteristics of how they choose to occupy their time and what underling psychological reasons determine those choices. e.g. values
34
define and give and example of geodemographic segmentation
uses a combination of geographic, demographic, and lifestyle characteristics to classify consumers. e.g. "bohemian mix"
35
define and give an example of benefit segmentation
groups consumers on the basis of the benefits they derive from products or services. e.g. a full service suite at a hotel accommodates clients requiring extended stay
36
define and give an example of behavior segmentation
divides customers into groups based on how they use the product or service. e.g. a family with school children will have to-go bags of potato chips for lunches.
37
What is VALS and why is it useful for marketers?
Value and lifestyle survey, classifies consumers into one of eight categories based on psychographics.
38
list the five terms marketers use to determine whether a segment in attractive to pursue
identifiable, sustainable, reachable, responsive, profitable,
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identifiable
firms must be able to identify who is withing their market to be able to design products or services to meet their needs
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substantial
once you've identified potential target markets, determine if the market is large enough and has enough buying power to generate sufficient profits or be able to support the marketing mix activities
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reachable
can the market be reached/accessed? the consumer must know that the product or service exists, understand what is can do for them, and recognize how to buy it
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responsive
the customers in the segment must react similarly and positively to the firm's offering
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profitable:
focus on assessment on the potential profitability of each segment, both current and future
44
list, define, and provide and example of each of the four targeting strategies we discussed in class
undifferentiated: mass marketing, e.g. salt
differentiated: several segments with offerings for each, e.g. magazine categories
concentrated: niche marketing, e.g.
micro: one to one, e.g. amazon
45
how does value proposition assist marketers in positioning their products?
the unique value that a product or service provides to its customers and how it's better than and different from those of competitors
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salient attributes
focus on attributes most important to the customer (e.g. volvo means safety)
47
symbols:
represent the brands
48
define perceptual maps and ideal points
map: displays, in two or more dimensions, the position of products or brands in the consumer's mind
ideal: a specific spot on the map that shows where the customer's ideal product would lie on the map
49
what are the five steps of the marketing process?
objectives, design research, data collection, analyzing, implementation
50
syndicated data
available for a fee from commercial research firms, e.g. gfk MRI
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scanner data
used in quantitative research obtained from scanner readings of UPC labels at check-out counters
52
panel data
information collected from a group of consumers organized into panels over time
53
why is data mining useful for companies
use stat tools to uncover previously unknown patterns in the data or relationships among variables
54
what are examples of qualitative research
interviews, focus groups,
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quantitative research examples
experiment, survey, scanner, panel
56
three advantages to secondary data
saves time in collecting data, free or inexpensive,
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three disadvantages to secondary data
may not be precisely relevant, information may not be timely, sources may not be original
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three advantages to primary data
specific to the immediate data needs, offers behavioral insights general not available from secondary research
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three disadvantages of primary data
costly, time consuming, requires more sophisticated training and experience to design, study, and collect
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how does the value proposition change when marketing new products/existing products
inform how meets needs/remind why use, or switch
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what are associated services and how can they help a firm's value proposition?
non-physical aspects of product, such as warranties, financing, product support, after-sale service
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specialty products
products toward which customers show such a strong preference that they will expend considerable effort to search for the best suppliers, e.g. medical professionals
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shopping products
products for which consumers will spend a fair amount of time comparing alternatives, e.g. furniture
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convenience products
products for which the consumer is not willing to spend any effort to evaluate prior to purchase, e.g. bread
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unsought products
products consumers either do not normally think of buying or do not know about, e.g. iPhones
66
define and provide an example of a firm's product mix and lines
mix: complete set of all products offered by a firm
lines: groups of associated items that consumers tend to use together or think of as part of a group of similar products
e. g. Diederich college is mix, ADVE, PURE, CCOM, DGMD, JOUR, COMM, CMST, THAR is line
67
Define and describe breadth and depth.
Breadth is how many lines a company has. Depth is how many products are in a line.
68
How do firms decide to increase or decrease breadth and depth?
What is everyone else doing? Can we do it? If we do it, will they buy?
69
How is branding to inform different from branding to differentiate?
Branding to inform is seeks recognition. Branding to differentiate is how these companies separate or distinguish themselves from other products or companies in their category.
70
What are six positive things that brands can do for a company?
Facilitate purchase, establish loyalty, protect from (price) competition, reduce marketing costs, brands are assets, brands impact market value
71
Define and provide an example of a licensed brand
Black and Decker gives logo to a company that makes appliances and gets portion of sales.
72
What is a manufacturer brand? Give an example.
National brands, owned and managed by the manufacturer. E.g. "I need Tide," rather than "I need laundry detergent."
73
List the four categories of private brands discussed in class.
Premium, generic, copycat, exclusive co-brands
74
Define and give an example of premium brands
Private label, comparable or superior to manufacturer's brand quality. E.g. Kroger's private selection
75
Define and give an example of generic brand
Price sensitive, no frills, at discount. E.g. Roundy's
76
Define and give an example of a copycat brand
Imitate manufacturer's brand, perceived lower quality, lower price. E.g. Wal-Tussin instead of Robitussin.
77
Define and give an example of exclusive co-brands
Only at a particular store. e.g. Macy's Martha Stewart collection
78
What is an exclusive co-brand and how can it help a retailer?
Marketing two or more brands together on the same package, promoting two brands, one product. Links from quality brand can enhance less well-known brand.
79
list the two ways that firms name their brands.
brand licensing, brand re-positioning
80
define and provide an example of brand licensing
a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, and/or characteristics in exchange for a negotiated fee. e.g. Nintendo D.S. selling SpongeBob video game
81
define and give an example of brand repositioning
also called rebranding, refers to a strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences. e.g. Gatorade from athletes to the masses, and back to athletes
82
what is brand extension?
same brand name in a different line, an increase in product breadth
83
what is line extension
use same brand name within product line, which increases the product line's depth
84
what is brand dilution?
occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand in believed to hold.
85
what are three ways that a company can prevent dilution
evaluate the fit between the product class of the core brand and that of the extension, evaluate customer perceptions of the attributes of the core brand and seek out similar attributes for the extensions, refrain from extending the brand name to too many products and product categories
86
what is one pro and one con of a co-branding agreement?
pro: take on good qualities of a brand
con: sharing a reputation isn't always a good thing (reverse of the pro)
87
what are three key roles of product packaging?
attracts consumers' attention, enables products to stand out from their competitors, offers a promotional tool
88
define innovation
the process by which ideas get transformed into new offerings, including products, services, processes, and branding concepts that will help firms grow
89
what are the two end points of the innovation continuum (list and define)
slightly repositioned and new-to-the-world
90
list the categories of the diffusion of innovation
innovators, early adopters, early majority, late majority, laggards
91
innovators
buyers who want to be the first on the block to have the new product or service
92
early adopters
not as risky as innovators, but wait and purchase the product after careful review (not just based on "name")
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early majority
members of this group don't take much risk, wait until the bugs are worked out of a product or service
94
late majority
the last group of buyers to enter a new product market; at this point, the product has achieved its full market potential
95
laggards
consumers who avoid change and rely on traditional products until they are no longer available. they may never adopt a certain product or service
96
define the product life cycle
defines the stages that products move through as they enter, get established in, and ultimately leave the marketplace and thereby offers marketers a starting point for their strategy planning
97
list the categories of the product life cycle
introduction, growth, maturity, decline
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introductory stage
usually starts with a single firm, innovators are the ones to try the new offering
99
growth stage
marked by a growing number of product adopters, rapid growth in industry sales, and increases in both the number of competitors and the number of available product versions
100
maturity stage
characterized b the adoption of the product by the late majority, intense competition for market share among firms
101
decline stage
firms either position themselves as niche products or exit the market
102
what is the definition of marketing?
value
103
what is the main concept of marketing? What does marketing help create?
Marketing creates values and benefits to customers.
104
Describe the exchange that occurs when sellers and buyers meet.
Each party has something of value to the other.
105
define each of the four P's of marketing and provide an example
Product: goods and services
Price: everything the buyer gives up
Place: getting the product to the right customer
Promotion: communicating the product's value to the customer
106
what is an example of B2B and B2C marketing transaction?
B2B is TRG, B2C is anything individual
107
what is the definition of value?
the relationship of benefits to costs, what the consumer gets for what they give
108
what is the difference between transactional and relational customer relationships
transactional in when each purchase is an individual experience. Relational is when a long term relationship is established.
109
What does CRM stand for and how is it useful?
Customer Relationship Management. It is useful because it tracks everything about a consumer.
110
What is the definition of marketing strategy?
a firm's target market, marketing mix, and the method of obtaining a sustainable competitive advantage.
111
List and define the three macro strategies for developing customer value
Operational excellence: involves a firm's focus of efficient operations and excellent supply chain management. Cheaper.
Customer Intimacy: involves a focus on retaining loyal customers and excellent customer service.
Product Leadership: involves a focus on achieving high-quality products. Newest, best products.
112
What is a sustainable competitive advantage?
Something that a company can persistently do better than its competitors.
113
characteristics of OE
To increase convenience, lower costs, obtain reliability, become easier to use
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characteristics of CI
high level of customization/service, offer a complete solution, access to a wide selection, obtain advice and consult, feeling of an experience
115
characteristics of PL
access to high performance, linked with aesthetics and style, portray sophistication
116
what are the three phases of the marketing plan? List and define them.
Planning phase: define the mission and vision of the business, evaluate the situation both inside and outside of the organization.
Implementation phases: identify and evaluate different opportunities using segmentation, targeting, positioning, and the 4 P's
Control phase: evaluating the performance of the marketing strategy using marketing metrics
117
what is a mission statement? why is it important for a company to develop a strong mission statement?
a missions statement is a broad description of a firm's objective and the scope of activities it plans to undertake.
118
list and define each of the components of a SWOT analysis. Which are inward and outward focused?
Strengths: what your firm does well
Weaknesses: where you are vulnerable, what you don't do well
Opportunities: possibilities not yet realized
Threats: things you can't control but must be aware of
119
define stars
occur in high-growth markets and are high market share products. Often require heavy resource investment As market growth slows, starts become cash cows.
120
define cash cows
occur in low-growth markets but are high market share products. have excess resources that can be spun off to other products.
121
define question marks
appear in high-growth markets but have a relatively low market share. Do you increase the investment, or move on to something else?
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define dogs
in low-growth markets and have relatively low market shares. may generate enough resources to sustain themselves, but should be phased out at they will never become stars.
123
list, define, and provide and example of the 4 E's of social media
Excite: offer must be relevant--> personalized offers (amazon "frequently bought together")
Educate: sell the product's value proposition and offered benefits (Starbuck's for iPhone)
Experience: provide information about a firm's goods and services, simulating real experiences (car design program)
Engage: action, loyalty, and commitment (Zillow)
124
market penetration strategy
employs the existing marketing mix and focuses the firm's efforts on existing customers. Buy next product.
125
market development strategy
employs the existing marketing offering to reach new market segments. new people.
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product development strategy
offering a new product or service to a firm's current target market. new product same customers.
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diversification strategy
a firm introduces a new product or service to a market segment that it does not currently serve. new product new customers.
128
define culture and discuss how it plays a role in marketing activities
Culture is the shared meanings, beliefs, morals, values, and customs of a group of people.
Influences marketing activities: risk tolerances, sales, likes/dislikes, products unique to certain regions
129
what are some examples of regional culture?
"What do you call a carbonated beverage?"
130
demographics
the characteristics of human populations and segments, especially those used to identify consumer markets
131
what are the five steps in the consumer decision making process?
Need recognition, information search, alternative evaluation, purchase, post purchase
132
define and provide an example of compensatory decision rules
the consumer trades off one characteristic against another. e.g. Marquette is expensive but it's a Jesuit education.
133
define and provide an example of non-compensatory decision rules
selecting a product or service on the basis of one characteristic or one subset of characteristics, regardless of the values of other attributes. e.g. only purchasing things made in the U.S.A.
134
define and provide an example of decision heuristics
mental shortcuts that help a consumer narrow down choices
135
what are three things that a company can do to deliver post-purchase customer satisfaction?
build realistic expectations, demonstrate correct product usage, stand behind the products (money back guarantees)
136
define cognitive dissonance, provide an example
an uncomfortable state produced b an inconsistency between beliefs and behavior that in turn evokes a motivation to reduce the dissonance.
137
what are three things that a customer can do to relieve cognitive dissonance?
take back the item, only focus on the good qualities of the decision, seek positive feedback to justify your purchase
138
What are three things that a consumer can do to increase customer loyalty?
building a long-term relationship, loyalty cards, consistent employee contact
139
define situational factors and provide three examples of how firms might use situational factors to increase consumer spending
factors specific to the situation that override or influence shopping decisions. ex: store atmosphere, salespeople, crowding
