Global mkt

a company can identify and group customers or countires according to common needs and wants.

based on coutnry income and population, age, ethinic heritage, or other variables

groups people according to attitudes, interests, opinions, and life styles

utilizes user status and usage rate as segmentation variables. focuses on whether or not people buy and use a product, as well as how often and how much the use or consume

a segment based ondemogrpahics , young people between the ages of 12 and 19

demographic sementation consumers whoa re well traveled and have the money to spend on prestigious products with an image or exclusivity

• Heavy
• medium
• light
• non user

potential user, nonuser, ex user regulare first stimes

80% of revenue comes from 20 percent of firms product or customers

• focuses on the numerator of the value equation the B in V =B/P
• b=benfit
• v=value

analogous mass marketing in a single coutnry. involves creating the same mkt mix for a broad mass market or potential buyers (undifferentiated target marketing)

The second global targeting strategy concentrated marketing, involves devising a mkt mix to reach this

-simply a single segment of the global mkt

represents a more ambitious approach than concentrated target mkt. Also known as Multisegment targeting- entails targeting two or more distinct market segments with multiple mkt mix offereings

Defined as a strategy that identifies the brand as a symbol of a particular global culture or segment

which associates the brands users, use occasions or production origins with a foreign coutnry or culture.

Product a good or service or idea with both tangible attributes that collectively value for a buyer or user.

-A products tangible attributes can be assessed in physical terms such as weight, dimensions or materials used

A complex bundle of images and experiences in a customers mind

• 1.promise quality certification
• 2. Enable customers to better organize their shopping expereience by finding a certain product

which represents the total value that accrues to a productas a result of a compay's cumulative investmetns in the mkt of the brand

is one that has achieve success in a single natioal mkt

Meets the wants and needs of a global mkt.. offered in all world regions, including triad and in coutrries at every stage of development

has the same name and in sime instances a similar image and positioning throughout the world

A corporate name (sony) is combined with a product brand name (walkman)

is a variation on combination branding in which who or more different company or product brands are feature prominently on product packaging on in advertising

Using organizational structures, processes and cultures to allocate brand-building resources, to create global synergies, and to develop a global brand strategy that coordinates and leverages country brand strategies

TOP TO BOTTOM

• Self-actualization (personal)
• External and internal esteem (social)
• Social
• safety (physical
• Physiological

product lable, shape, package

Degree of complexity found on the lable are precieved differently in the world

a written guarantee that assures the buyer is getting what he or she has paid for or that provies recourse in case a products performance falls short of expectations

involves changeing elements of design, function, packaging in response to needs or conditions in particular countries

entails developing new products from the groud up with the world market in mind

strategy when pursueing global mkt opportunities.. can be most profitable

relatively low cost of imlementation the produst itself is unchanged, expenditures for approach are in researching the mkt and revising advertising, sales,point of sale material and other communication elements as appropriate.

adapt the product to local use or preference conditions while extending minimal change, the basic home mkt commmunivation strategy or brand name.

the process of endowing resoureces with a new capacity to create value, is a demanding but potentially rewarding product strategy for reaching mass markets less developed countreis as well as important market segments in industrialized coutnries

ignoring decisions made by subsidary or affiliate managers

• 1. product it self
• 2.the market
• 3. adaptation

Products taht embody a level of features of earlier generations while incorporating new feature that offer added value such as a substantial improvement in performance or greater convience.

New product. are typically new and improved verson of existing ones

New sizes flavors, and lo-fat versions.

companys communciation strategy coordinated across the bored...

Nike: tells a story when mkt

may be defined as messages whose are, copy, headlines photographs, taglines and other elements have been developed expressly for the their worldwide sutibility.

core product design element or component that can be quickly and cheaply adapted to various country mkts.

Analogous to the concept of gloabl prodcut platforms discussed

all customer market could get the best product availiable for the best price

Setting price levels that are low enough to quickly build market share

the increase in the final selling price of goods traded across borders that reflesct these fators

based on analysis of internal (materials, labor, testing) and external costs

defines per unit product cost as the sum of all past or current direc and indirect overhead costs

make no adjustments to reflect market conditions outside the home country

used to ensure that prices are competitive in the context of the particular environment

establish future cost for all component elements

• e-term
• f-term
• c-term
• d-term

e-term-refers to a transaction in which the buyer takes delivery at the premises of the seller; the buyer bears all risks and expenses from the point on

D-terms- the seller has agreed to deliver the goods to the buyer at the place he or she names i the coutry of import, with all costs including duties paid.

F-terms "pre main carriage terms" (FCA)

-is widely used in global sales to transer from seller to buyer is effected when the goods are delivered to a specified carrier at a specified destination

FAS is the incoterm for a transaction in which the seller places the shipment alongside, or available to, the vessel upon which the goods will be transported out of the country

is non-containerized general cargo such as iron, steel, machinery

the responsibility and liability of the seller do not end untell the goods have cleared the ships rail

C-terms or main carriage- the rist of loss or damage goods is transferred to the buyer once the goods have passed the ships rail

(cost to freight) the seller is not responsible for risk loss at any point outside the factory

• adopted by companies that do not want to lose maerkt shares
• -the use of the flexible cost-plus method to reduce prices in response to unfavorable currency swings

means that buyers will be able to comparison shop bc goods will be priced in euros as opposed to marks, franc, or lira

• ethnocentric pricing policy
• -calls for per unit price of an item to be the same no matter where in the world the buyer is located

• Polycentric pricing
• -permits subsidiary or affiliate managers or independent distributors to establish whatever price they fell is most appropriate in their market environment

neither fixes a single price worldwide nor allows subsidairies or local distributors to make independent pricing decisions

traded products that are exported from one country to another where they are sold by unauthorized person or organizations

when companies emply a polycentric, multinational pricing policy that calls for setting different prices in different country mkts

authorized dealers are not longer the sole distributors. the product is often available from multiple sources and margins are threatened

if the manufacturer ignores complaints from authorized channel memerber those member are free-riding. they may opt to take various actions to offset downward pressure on margins these options include cuting back on presale service, customer ed,and salesperson traning

competition from gray market products lead to channel conflict as authorized distributors attempt to cut costs, complain to manufacturers and file lawsuits against gray makt

gray markets can emerge because of pricing differentials that resort from multinational pricing policies. a variety of forces, including falling trade barriers, the info explosion on the internet and modern distribution capabilities hamper a companies ability to pursue local pricing strategy

gray markets may differ in quality, ingrediants, pr some other way. they can compromise a manufactorers reputation and dilute brand equity as when persription drugs are sold past their expirations days.

an illieagal act of representatives of 2 or more companies secretly setting similar prices for their product.

refers to the goods, services, and intangible property bout and sold by operating units or divisions of the same companu

derived from the price required to be competative in the global mkt place

uses an internal cost as the starting point in determining price

A third party alternative is to allow the organizations affiliates to determine this among themselves.

a sale results in produc flowing in one direction to a buyer; a separate stream of products and services, often flowing in opposite direction, is also created

describes the least complex and oldest form of bilateral, nonmonetized countertrade

parallel trading or paralle barter- is distinguiched from other froms in that each delivery in an exchange is paid for in cash

is the reciprocal arrangment whereby the gov. in the importing country seeks to recover large sums of hard currency spent on expensive purchases such as military aricraft or telecommunication systems

buybacks - is a form or countertrade that involves two separate parallel contractss

Triangluar trad and swap- is a mechanism that can be applied to barter or countertrade. a thrid party steps into a simple barter or other countertrade arrangement when one of the parties is not willing to accept all the goods revieeved in a bank transaction

• Place-the availability of a product or service in a location that is convenient to the customer
• Time-The availability of a product or service when desired by a customer
• Form- The availability of the product processed prepared in proper condition and ready to use
• Information- The availibility of answers to questions and general communication about the product.

is an intermediary who negotiates exchange transactions between two or more parties but does not take title to the good being purchased

wholesale intermediary that typically carries product lines or brands on selective basis

several departments under one roof each representing a distinct merchandise line and staffed with a limited number of salespeople

offer less variety than department stores.. are more narrowly focussed and offer a relatively narrow merchandise mix aimed at a particular target market

are departmentalized single-story establishments that offer a variety of food and non food items on a self-service basis.

offer some of the same products as supermarkets but the merchandise max is limited to high-turnover convenience and impulse products

• can be divided into several categories..
• -full-line discounters= offer a wide range of merchandise including food
• ---wharehouse clube-walmart
• -Dollar store "bargain basement"

hybrid retailing format combining the discounter, supermarket, and warehouse club under a single roof

offer a wide range of aggressively priced grocery items plus general merchandise in a space hat occupies abou half the size of a hypermarket

(category killers, big-box retailers) the label in the rretailing industry when talking about stores such as Toys'R us, home depot, IKEA

Consist of a grouping of stores in one place

a variation on the traditional shopping mall reatil operations that allow companies with well known consumer brands to dispose of excess invetory, out of date merchandise

occurs when a company uses its own resources to open a store on a greenfield site or to acquire on or more existing retail facilities from another company.

The appropriate entry strategy when barriers to entry are low yet the market is culturally distant in terms of consumer behavior or retailing strutures... a contracted relationship between two companies

a market entry strategy that entails purchasing a company with multiple locations in a foreign country

limit their risk when targeting unfamiliar, difficult to enter markets

all firms that perform support activities by generating raw maters, converting thm into components or finished products and making them avaliable to customer

the managment process that integrates the activities of all companies-- both upstream and downstream-- to ensure an efficient flow of goods throughout the supply chain

refers to the practice of loading ocean-going freight into steel boxes 20 to 40 feet or longer... flexible can be shipped in many different models

involves a combination of land and water shipping from producer to customer

describes the integration of activities necessary to ensure the efficient flow of raw material in process inventory and fixed goods

challenge of effectively communicating across borders is one reason that global copanies and their advertising agencies are embracing a concpet known as this.

may be defined as any sponsored paid message that is communicated in a non personal way..

as messages whose are copy headline photographs tagelines and other elements have been developed expressingly for the worldwide sustainability

analogous concept of global product plat forms.. gives middle ground between standardization and adaptation.. designing basic copy, artwork or other elements can be adapted as required for other counties markts

Depends on logic and speak to the audiences intellect

tugs at the heartstrings or tickle the funny bone to get a feeling response form the audience

the premise or claim to the reason for buying the product

The visual presentation the body language of an advertisement

The department or function responsible for evaluating public opinion abou and attitues towards brands and ads

The company does not pay.