1. Having a global vision means
    • - recognizing and reacting to international maketing opportunities
    • - using effective global mktg strategies
    • - being aware of threats
  2. Benefits of globalization
    • - expands economic freedom
    • - spurs competition
    • - raises productivity and living standards
    • - offers access to foreign capital
    • - acts as a check on govt.
  3. External environmental factors of global marketers
    • - culture
    • - natural resources
    • - economic and technological development
    • - political structure
    • - demographic makeup
  4. Tariff
    a tax levied on goods entering a country
  5. quota
    limit on the amount of a product entering a country
  6. Boycott
    exclusion of products from a country
  7. embargo
    wall that does not allow anything to come into the country
  8. Why go global?
    • - earn more profits
    • - utilize economies of scale
    • - excess capacity
    • - possess exclusive market information
  9. How to enter the global market?
    • export
    • licensing
    • contract manufacturing
    • joint venture
    • direct investment
  10. Consumer decision making process
    • 1. recognize a need
    • 2. information search
    • 3. evaluate alternatives
    • 4. purchase
    • 5. postpurchase behavior
  11. Stimulus
    • any unit of input affecting one or more of the 5 senses
    • sight
    • smell
    • taste
    • touch
    • hearing
  12. cognitive dissonance
    inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
  13. marketers can reduce dissonance through:
    • guarantees
    • warranties
    • follow-up
    • communication
  14. subculture
    a homogeneous group of people who share elements of the overall culture as well as unique elements of their own group
  15. What is business marketing?
    marketing of goods and services to individuals and organizations for purposes other than personal consumption
  16. strategic alliances
    a cooperative agreement between business firms
  17. gatekeepers
    group members who regulate the flow of information, often the purchasing agent
  18. Market
    people or organizations with needs or wants and the ability and willingness to buy
  19. Market segment
    a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.
  20. Market segmentation
    the process of dividing a market into meaningful, relatively similar, identifiable segments of groups
  21. Bases for segmentation
    • geography
    • demographics
    • psychographics
    • benefits sought
    • usage rate
  22. 80/20 principle
    20 percent of all custimers generate 80 percent of the demand
  23. positioning
    developing a specific marketing mix to influence customers overall perception of a brand, product line, or organization
  24. repositioning
    changing perceptions of a brand in relation to competing brands
  25. database marketing
    the creation of a large computerized file of customers and potential customers profiles and purchase patterns
  26. secondary data
    data perviously collected for any purpose other than the one at hand
  27. ethnographic research
    the study of human behavior in its natural context
  28. When should marketing research be conducted?
    • Where there is a high level of uncertainty
    • When value of research information exceeds the cost of generating the information
  29. Product
    • everthing both favorable and unfavorable that a person receives in an exchange
    • - good
    • - service
    • - idea
  30. Marketing mix
    • product
    • place
    • promotion
    • price
    • people
  31. convenience product
    a relatively inexpensive item that merits little shopping effort
  32. shopping product
    a product that requires comparison shopping because it is usually more expensive and found in fewer stores
  33. specialty product
    a particular item for which consumers search extensively and are reluctant to accept substitutes
  34. unsought product
    a product unknown to the potential buyer or a known product that the buyer does not actively seek
  35. product line
    a group of closely-related product items
  36. product mix
    all products that an organization sells
  37. product mix width
    the number of product lines an organization offers
  38. product line depth
    the number of product items in a product line
  39. individual brand
    using different brand names for different products
  40. family brand
    marketing several different products under the same brand name
  41. UPC
    thick and thin vertical lines that are used to track products
  42. express warranty
    a written guarantee
  43. implied warranty
    unwritten guarantee
  44. idea screening
    eliminates ideas that are inconsistent with the organizations new product strategy or are inappropriate for some other reason
  45. concept test
    a test to evaluate a new-product idea, usually before any prototype has been created
  46. brainstorming
    the process of getting a group to think of unlimited ways to vary a product or solve a problem
  47. test marketing
    limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation
  48. product life cycle
    • introductory
    • growth
    • maturity
    • decline
  49. marketing channels
    a set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer
  50. retailer
    sells mainly to customers
  51. wholesaler
    buys goods from manufacturers, stores them, resells and ships them
  52. agents
    facilitate the sale from producer to end user
  53. arm's length relationship
    a relationship between companies that is loose
  54. integrated relationship
    relationship between companies that is tightly connected
  55. gross margin
    the amount of money the retailer makes as a percentage of sales after the COGS is subtracted
  56. Discount stores
    mass merchandising - retailing strategy using moderate to low prices on large quantities of merchandise and lower service to stimulate high turnover of products
  57. supercenter
    retail store combining groceries and general merchandise goods with a wide range of services
  58. extreme-value retailing
    smaller stores emphasizing daily necessities at rock-bottom prices
  59. category killers
    specialty discount stores that heavily dominate their narrow merchandise segment
  60. Six P's of the retailing mix
    • product
    • place
    • price
    • promotion
    • presentation
    • personnel
  61. atmosphere
    the overall impression conveyed by a store's physical layout, decor, and surroundings
  62. trading up
    persuading customers to buy a higher priced item
  63. suggestion selling
    seeks to broaden customers original purchases with related items
  64. promotional mix/strategy
    advertising, public relations, personal selling, sales production
  65. competitive advantage
    one or more unique aspects of an organization that cause consumers to patronize that firm rather than competitors
  66. Goals of promotion
    • inform
    • persuade
    • remind
  67. Traditional advertising media
    • TV
    • radio
    • newspapers
    • books
    • direct mail
  68. new advertising media
    • internet
    • banner ads
    • email
    • viral mktg
  69. Personal selling
    a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other
  70. AIDA
    model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message
  71. AIDAC
    • Attention
    • interest
    • desire
    • action
  72. Push strategy
    • Manufacturersmay use aggressive personal selling and trade advertising to convince awholesaler/retailer to carry and sell their merchandise.
    • Thewholesaler, in turn, pushes the merchandise forward by persuading the retailerto handle the goods.  The retailer usesadvertising and other forms of promotion to convince customers to buy the“pushed” products
  73. pull strategy
    1.which stimulates consumer demand to obtain product distribution.  The manufacturer uses a pull strategy by focusing promotional efforts on end consumers and opinion leaders.  The wholesaler then places an order for the “pulled” merchandise from the manufacturer.  Consumer demand pulls the product through the channel of distribution.
  74. advertising campaign
    a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals
  75. cooperative advertising
    an arrangement where the manufacturer and retailer split the costs of advertising the manufacturers brand
  76. public relations
    originates with the company
  77. publicity
    may or may not originate with the company
  78. advertising
    reason to buy
  79. sales promotion
    incentive to buy
  80. premium
    an extra item offered to the consumer, usually in exchange for some proof of purchase
  81. sampling
    a promotional program that allows the consumer to try a product for free
  82. trade allowance
    a price reduction offered by manufactures to intermediaries
  83. push money
    money offered to channel intermediaries to encourage them to push products
  84. price
    something given up in an exchange to aquire a good or service
  85. revenue
    price x number of units sold
  86. profit maximization
    setting prices so that total revenue is as large as possible relative to total costs
  87. market share
    a company's product sales as a percentage of total sales for that industry
  88. price equilibrium
    demand and supply are equal at a certain price
  89. elasticity of demand
    sensitivity to changes in price
  90. elastic demand
    when price goes down consumers buy more
  91. inelasitc demand
    when price goes down demand stays the same
  92. unitary elasticity
    an increase in sales exaclt offsets a decrese in prices and revenue is unchanged
  93. keystoning
    the practive of marking up prices by 100% or doubling the cost
  94. price skimming
    charging a high price coupled with heavy promotion
  95. penetration pricing
    charges a low price as a way to reach mass market
  96. status quo pricing
    charge a price identical to or very close to the competitions price
  97. unfair trade practices
    laws that prohibit wholesalers and retailers from selling below cost
  98. price fixing
    an agreement between two or more firms on the price they will charge for a product
  99. predatory pricing
    charging a very low price for a product with the intent of driving competitors out of business
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