Global mkt

  1. Global market segmentation
    a company can identify and group customers or countires according to common needs and wants.
  2. Demographic
    based on coutnry income and population, age, ethinic heritage, or other variables
  3. Psychographic segmentation
    groups people according to attitudes, interests, opinions, and life styles
  4. Behavioral segmentation
    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
  5. Global teens
    a segment based ondemogrpahics , young people between the ages of 12 and 19
  6. Global elite
    demographic sementation consumers whoa re well traveled and have the money to spend on prestigious products with an image or exclusivity
  7. Usage rate
    • Heavy
    • medium
    • light
    • non user
  8. User status
    potential user, nonuser, ex user regulare first stimes
  9. 80/20 rule
    80% of revenue comes from 20 percent of firms product or customers
  10. benefit segementation
    • focuses on the numerator of the value equation the B in V =B/P
    • b=benfit
    • v=value
  11. Standardized Global mkt
    analogous mass marketing in a single coutnry. involves creating the same mkt mix for a broad mass market or potential buyers (undifferentiated target marketing)
  12. Niche
    The second global targeting strategy concentrated marketing, involves devising a mkt mix to reach this

    -simply a single segment of the global mkt
  13. Differentiated 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
  14. Gloabl consumer culture positioning
    Defined as a strategy that identifies the brand as a symbol of a particular global culture or segment
  15. Foreign consumer culture positioning
    which associates the brands users, use occasions or production origins with a foreign coutnry or culture.
  16. product
    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
  17. Brand
    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
  18. Brand image
    which represents the total value that accrues to a productas a result of a compay's cumulative investmetns in the mkt of the brand
  19. A local product or brand
    is one that has achieve success in a single natioal mkt
  20. a global product
    Meets the wants and needs of a global mkt.. offered in all world regions, including triad and in coutrries at every stage of development
  21. A global brand
    has the same name and in sime instances a similar image and positioning throughout the world
  22. combination or tiered brankind
    A corporate name (sony) is combined with a product brand name (walkman)
  23. co branding
    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
  24. global brand leahership
    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
  25. maslows hierarchy of needs

    • Self-actualization (personal)
    • External and internal esteem (social)
    • Social
    • safety (physical
    • Physiological
  26. Visual asthetics
    product lable, shape, package
  27. Asthetic styles
    Degree of complexity found on the lable are precieved differently in the world
  28. Express warranty
    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
  29. Adaptation strategy
    involves changeing elements of design, function, packaging in response to needs or conditions in particular countries
  30. Product invention
    entails developing new products from the groud up with the world market in mind
  31. Product communication extensions
    strategy when pursueing global mkt opportunities.. can be most profitable
  32. Product extension communiation adaptation
    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.
  33. product adaptation communication extension
    adapt the product to local use or preference conditions while extending minimal change, the basic home mkt commmunivation strategy or brand name.
  34. Innovation
    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
  35. not invented here NIH syndrome
    ignoring decisions made by subsidary or affiliate managers

    • 1. product it self
    • 2.the market
    • 3. adaptation
  36. dynamicallyDiscontinuous innovations
    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.
  37. Continuous innovation
    New product. are typically new and improved verson of existing ones
  38. line extensions
    New sizes flavors, and lo-fat versions.
  39. Intergrated marketing communications
    companys communciation strategy coordinated across the bored...

    Nike: tells a story when mkt
  40. global advertising
    may be defined as messages whose are, copy, headlines photographs, taglines and other elements have been developed expressly for the their worldwide sutibility.
  41. Platform
    core product design element or component that can be quickly and cheaply adapted to various country mkts.
  42. Pattern advertising
    Analogous to the concept of gloabl prodcut platforms discussed
  43. law of one price
    all customer market could get the best product availiable for the best price
  44. Market penetration pricing strategy
    Setting price levels that are low enough to quickly build market share
  45. export price escalation
    the increase in the final selling price of goods traded across borders that reflesct these fators
  46. Cost based pricing
    based on analysis of internal (materials, labor, testing) and external costs
  47. Full absorbtion cost method
    defines per unit product cost as the sum of all past or current direc and indirect overhead costs
  48. Rigid cost plus pricing
    make no adjustments to reflect market conditions outside the home country
  49. flexible cost plus pricing
    used to ensure that prices are competitive in the context of the particular environment
  50. Estimated future cost method
    establish future cost for all component elements
  51. 4 intercoms
    • e-term
    • f-term
    • c-term
    • d-term
  52. Ex-works
    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
  53. Delivered duty paid (DDP)
    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.
  54. Free carrier
    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
  55. Free alongside ship
    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
  56. Break bulk cargo
    is non-containerized general cargo such as iron, steel, machinery
  57. Free on board named port
    the responsibility and liability of the seller do not end untell the goods have cleared the ships rail
  58. Cost insurance freight named port
    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
  59. CFR
    (cost to freight) the seller is not responsible for risk loss at any point outside the factory
  60. Market holding strategy
    • 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
  61. Price transparency
    means that buyers will be able to comparison shop bc goods will be priced in euros as opposed to marks, franc, or lira
  62. extension
    • 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
  63. Adaptation
    • Polycentric pricing
    • -permits subsidiary or affiliate managers or independent distributors to establish whatever price they fell is most appropriate in their market environment
  64. geocentric pricing
    neither fixes a single price worldwide nor allows subsidairies or local distributors to make independent pricing decisions
  65. Gray market goods
    traded products that are exported from one country to another where they are sold by unauthorized person or organizations
  66. Parallel importing
    when companies emply a polycentric, multinational pricing policy that calls for setting different prices in different country mkts
  67. Dilution of exclusivity
    authorized dealers are not longer the sole distributors. the product is often available from multiple sources and margins are threatened
  68. free riding
    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
  69. damage to channel relationship
    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
  70. undermining segments pricing schemes
    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
  71. Reputation and legal liablity
    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.
  72. price fixing
    an illieagal act of representatives of 2 or more companies secretly setting similar prices for their product.
  73. Transfer pricing
    refers to the goods, services, and intangible property bout and sold by operating units or divisions of the same companu
  74. market-based transfer price
    derived from the price required to be competative in the global mkt place
  75. Cost based transfer pricing
    uses an internal cost as the starting point in determining price
  76. Negotiated transfer price
    A third party alternative is to allow the organizations affiliates to determine this among themselves.
  77. countertrade
    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
  78. barter
    describes the least complex and oldest form of bilateral, nonmonetized countertrade
  79. counterpurchase
    parallel trading or paralle barter- is distinguiched from other froms in that each delivery in an exchange is paid for in cash
  80. offset
    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
  81. comensation trading
    buybacks - is a form or countertrade that involves two separate parallel contractss
  82. Switch trading
    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
  83. The major categories of channel utitlity
    • 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.
  84. agent
    is an intermediary who negotiates exchange transactions between two or more parties but does not take title to the good being purchased
  85. distributors
    wholesale intermediary that typically carries product lines or brands on selective basis
  86. Department stores
    several departments under one roof each representing a distinct merchandise line and staffed with a limited number of salespeople
  87. Specialty retailers
    offer less variety than department stores.. are more narrowly focussed and offer a relatively narrow merchandise mix aimed at a particular target market
  88. Supermarkets
    are departmentalized single-story establishments that offer a variety of food and non food items on a self-service basis.
  89. Convenience stores
    offer some of the same products as supermarkets but the merchandise max is limited to high-turnover convenience and impulse products
  90. Discount retailers
    • can be divided into several categories..
    • -full-line discounters= offer a wide range of merchandise including food
    • ---wharehouse clube-walmart
    • -Dollar store "bargain basement"
  91. Hypermarkets
    hybrid retailing format combining the discounter, supermarket, and warehouse club under a single roof
  92. Supercenters
    offer a wide range of aggressively priced grocery items plus general merchandise in a space hat occupies abou half the size of a hypermarket
  93. superstores
    (category killers, big-box retailers) the label in the rretailing industry when talking about stores such as Toys'R us, home depot, IKEA
  94. Shopping malls
    Consist of a grouping of stores in one place
  95. Outlet stores
    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
  96. organic growth
    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.
  97. Franchising
    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
  98. Acquisition
    a market entry strategy that entails purchasing a company with multiple locations in a foreign country
  99. joint venture and licensing
    limit their risk when targeting unfamiliar, difficult to enter markets
  100. Supply chain
    all firms that perform support activities by generating raw maters, converting thm into components or finished products and making them avaliable to customer
  101. Logistics
    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
  102. Containerization
    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
  103. intermodal transportation
    involves a combination of land and water shipping from producer to customer
  104. Logistics management
    describes the integration of activities necessary to ensure the efficient flow of raw material in process inventory and fixed goods
  105. integrated marketing communication
    challenge of effectively communicating across borders is one reason that global copanies and their advertising agencies are embracing a concpet known as this.
  106. Advertising-
    may be defined as any sponsored paid message that is communicated in a non personal way..
  107. Global adervising
    as messages whose are copy headline photographs tagelines and other elements have been developed expressingly for the worldwide sustainability
  108. Pattern advertising
    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
  109. Rational appeal
    Depends on logic and speak to the audiences intellect
  110. Emotional appeal
    tugs at the heartstrings or tickle the funny bone to get a feeling response form the audience
  111. selling proposition
    the premise or claim to the reason for buying the product
  112. art direction
    The visual presentation the body language of an advertisement
  113. Public relations
    The department or function responsible for evaluating public opinion abou and attitues towards brands and ads
  114. Publicity
    The company does not pay.
Card Set
Global mkt
global test 2