Upgrade to remove ads
Only $2.99/month

MKTG 3101 Part 2 (5/14)

Terms in this set (59)

Economic Community
A group of nations organized to work toward common goals in the regulation of international trade. An example is the EU.
GATT
The General Agreement on Tariffs and Trade (152 member nations)
Four types of industrial structures
Subsistence economies, raw material exporting economics, industrializing economies, and industrial economies.
Subsistence Economies
Where the vast majority of people engage in simple agriculture, they consume most of their output and barter the rest for simple goods and services.
Raw Material Exporting Economies
They are rich in one or more natural material, and much of their revenues comes from exporting whatever it is.
Industrializing Economies
Manufacturing accounts for 10 to 20% of their economy. Usually creates a new rich class and a small but growing middle class.
Countertrade
international trade involving the direct or indirect exchange of goods for other goods instead of cash. This is an issue in some countries as they don't have physical copies of their cash to pay out to other countries.
Market Potential: Demographic Characteristics
Education, population size and growth, population age composition.
Market Potential: Sociocultural Factors
consumer lifestyles/beliefs, business norms and approaches, cultural and social norms, languages.
Market Potential: Geographic characteristics
Climate, country size, population density (urban vs rural), transportation structure, transportation structure and market accessibility
Market Potential
National priorities, political stability, government attitudes toward global trade, government bureaucracy, monetary and trade regulations
Market Potential: Economic factors
GDP size and growth, income distribution, industrial infrastructure, natural resources, financial and human resources
joint venturing
entering a foreign market by joining with foreign companies to produce or market a product or service.
licensing
a method of entering a foreign market in which the company enters into an agreement with a licensee in the foreign market. the licensee pays royalties or a fee to sell the foreign company's product.
contract manufacturing
a joint venture in which a company contracts with manufacturers in a foreign market to produce the product or provide its service.
Management Contract
a joint venture in which the domestic firm supplies the management know-how to a foreign company that supplies the capital; the domestic firm exports management services rather than products.
Joint Ownership
A joint venture in which a company joins investors in a foreign market to create a local business in which they both share control.
Direct Investment
Entering a foreign market by developing foreign-based assembly or manufacturing facilities.
Standardized global marketing
an international marketing strategy for using basically the same marketing strategy and mix in all the company's international markets.
adapted global marketing
an international marketing strategy for adjusting the marketing strategy and mix elements to each international target market, bearing more costs but hoping for a larger market share in return.
Straight Product extension
making a product in a foreign market without any change.
Product Adaptation
adapting a product to meet local conditions or wants in foreign currency.
Product invention
creating new products or services for foreign markets.
communication adaptation
a global communication strategy of fully adapting advertising messages to local markets
whole-channel view
designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network.
The 4 links of a global distribution channel
International seller -> Channels between nations -> Channels within nations -> Final user or buyer
Strategic Planning
The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.
Steps in Strategic Planning
1: Defining the company mission, 2: Setting company objectives and goals, 3: Designing the business portfolio, 4: Planning marketing and other functional strategies.
Mission Statement
A statement of the organization's purpose -what it wants to accomplish in the larger environment. It should be clear and direct, and in terms of how they create value for customers.
Product/market expansion grid
A portfolio planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.
Market Penetration
A strategy for company growth by increasing sales of current products to current market segments without changing the product.
Market Development
A strategy for company growth by identifying and developing new market segments for current company products. Maybe identify new groups of buyers.
Product Development
Offering modified or new products to current markets. Like how crocs went from the crappy old rubber shoe to also offering things like all terrain shoes.
Diversification
A strategy for company for company growth through starting up or acquiring businesses outside the company's current products and markets. Casting a wider net on the market.
Downsizing
reducing the business portfolio by eliminating products of business units that are not profitable or that no longer fit the company's overall strategy.
value chain
the series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products.
value delivery network
the network made up of the company, suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.
marketing strategy
the marketing logic by which the business unit hopes to create customer value and achieve profitable customer relationships
market segmentation
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs.
market segment
a group of consumers who respond in a similar way to a given set of marketing efforts
market targeting
the process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
positioning
arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
differentiation
actually differentiating the market offering to create superior customer value.
marketing mix
the set of controllable tactical marketing tools -product, price, place, and promotion -that the firm blends to produce the response it wants in the target market.
Mix: Product
the goods and services combination the company offers to the target market.
Mix: Price
The amount of money customers must pay to obtain the product. Make it what they're willing to pay, not what you want for it. If you make a profit with it, great.
Mix: Place
Company activities that make the product available to target consumers, like owning a ton of car dealerships.
Mix: Promotion
Activities that communicate the merits of the product and persuade target customers to buy it. Like ads.
Marketing Mix with a Consumer focus, the 4 C's:
Product=customer solution, Price=customer cost, Place=Convenience, Promotion=Communication
SWOT Analysis
Overal evaluation of the company's Strengths, Weaknesses, Opportunities, and Threats.
Contents of a Marketing Plan
Page 55, Executive Summary, Current Marketing Situation, Threats and Opportunities Analysis, Objectives and Issues, Marketing Strategy, Action Programs, Budgets, and Controls.
Marketing COntrol
The process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved.
Marketing ROI
Return On (marketing) Investment, the net return from marketing investment divided by the costs of the marketing investment.
Product Life Cycle
Course of a products sales and profits over its lifetime. It involvles: Product Development, Introduction, Growth, Maturity, and Decline.
Product Development
begins when the company finds and develops a new product idea. Sales are Zero and the investment costs mount.
Introduction
A period of slow sales growth as the product is introduced in the market. No profits because of the heavy expenses of product introduction.
Growth
A period of rapid market acceptance and increasing profits.
Maturity
A period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profit lowers as we need more marketing money to defend the product from competition.
Decline
the period when sales fall off and profits drop
THIS SET IS OFTEN IN FOLDERS WITH...