"Marketing The Core Chapters 6-10"

protectionism
the practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs or quotas
tariff
a government tax on goods or services entering a country, primarily serving to raise prices on imports
quota
a restriction placed on the amount of a product allowed to enter or leave a country
World Trade Organization
institution that sets rules governing trade between its members through a panel of trade experts
global competition
exists when firms originate, produce, and market their products and services worldwide
multidomestic marketing strategy
a multinational firm’s strategy of offering as many different product variations, brand names, and advertising programs as countries in which it does business
global marketing strategy
the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ
international firm
engages in trade and marketing in different countries as an extension of the marketing strategy in it’s home country
multinational firm
views the world as consisting of unique parts and markets to each part differently
transnational firm
views the world as 1 market and emphasizes universal consumer needs and wants more than differences among cultures
global brand
a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs
global consumers
consumer groups living around the world who have similar or seek similar benefits from products or services
cross cultural analysis
the study of similarities and differences among consumers in 2 or more nations or socieites
values
a society’s personality or socially preferable modes of conduct or states of existence that tend to persist over time
customs
norms and expectations about the way people do things in a specific country
Foreign Corrupt Practices Act (1977)
A law that makes it a crime for US corporations to bribe an official of a foreign government or political party to obtain or retain business
cultural symbols
things that represent ideas or concepts in a specific culture
back translation
retranslating a word or phrase back into the original language using a different interpreter to catch errors
economic infrastructure
a country’s communications, transportation, financial, and distribution systems
currency exchange rate
the price of 1 country’s currency expressed in terms of another country’s currency
exporting
producing goods in 1 country and selling them in another country
direct exporting
when a firm sells its domestically produced goods in a foreign country without intermediaries
indirect exporting
when a firm sells its domestically produced goods in a foreign country through a an intermediary
licensing
a company offers the right to a trademark, patent, trade secret or other similarly valued item of intellectual property in return for a royalty or fee
joint venture
when a foreign company and a local firm invest together to create a local business, sharing ownership, control, and the profits of the new company
franchising
variation of licensing
direct investment
when a domestic firm actually invests in and owns a foreign subsidiary or division
Product extension
selling virtually the same product in other countries
product adaption
changing a product in some way to make it more appropriate for a country’s climate or consumer preferences
product invention
companies invent a totally new product designed to satisfy common needs across countries
dumping
when a firm sells a product in a foreign country below its domestic price or below its actual cost
gray market
a situation in which products are sold through unauthorized channels of distribution
marketing research
the process of collecting and analyzing information in order to recommend actions
decision
a conscious choice from among 2 or more alternatives
decision making
the act of choosing from alternatives
measures of success
criteria or standards used in evaluating proposed solutions to a problem
constraints
restrictions placed on potential solutions to a problem
concepts
ideas about products or services
new-product concept
a picture or verbal description of a product/service the firm might offer to sell
methods
the approaches that can be used to collect data to solve all or part of a problem
data
the facts and figures related to a problem
secondary data
facts and figures that have already been recorded before the project at hand. Advantages are tremendous time savings because the data have already been collected and low cost, such as free or inexpensive Census reports. Disadvantages are that data may be out of date, definitions or categories might not be quite right, and if collected for another purpose, may not be specific enough.
primary data
facts and figures that are newly collected for a project
syndicated panel
data economically answer questions that require consistent data collection over time
observational data
facts and figures obtained by watching, either mechanically or in person, how people behave
ethnographic research
a specialized observational approach in which trained observers seek to discover subtle behavioral and emotional reactions as consumers encounter products in their “natural use environment” such as their home or car
questionnaire data
facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors
focus groups
informal sessions of 6-10 past, present, or prospective customers in which a discussion leader, or moderator asks their opinions about the firm’s and its competitors products, how they use these products and special needs they have that the products don’t address
actions
what managers are responsible for, it means delivering the results in clear pictures and if possible a signle page
sales forecast
the total sales of a product that a firm expects to sell during a specified time period under specified conditions
Five Step Marketing Approach
Define the Problem, Develop the Research plan, Collect Relevant Information, Develop Findings, Take Marketing Actions
Special Methods to Marketing
Sampling and Statistical Inference
Define the Problem
Set research objectives, identify possible marketing actions
Develop the Research Plan
Specify Constraints, Identify data needed for marketing actions, determine how to collect data
Collect Relevant Information
Obtain secondary data, Obtain primary data
Develop Findings
Analyze the data, Present the findings
Take Marketing Actions
Make action recommendations, Implement action recommendations, Evaluate Results
Internal Secondary Data
Financial Statements, research reports, files, customer letters, sales call reports, and customer lists
External Secondary Data
US Census Reports, trade association studies and magazines, business periodicals, and internet-based reports
Open Ended Question
Allows respondents to express opinions, ideas or behaviors in their own words without being forced to choose among alternatives that have been predetermined by a marketing researcher. This information is invaluable because it captures the voice of respondents
Closed End or Fixed Alternative Questions
Require respondents to select one or more response options from a set of predetermined choices. Examples are dichotomous questions and scales
Dichotomous Question
The simplest form of a fixed alternative question that allows only a yes or no response
Semantic differential Scale
Five point scale in which the opposite ends have one or two word adjectives that have opposite meanings. For example one end of the scale says tasty and the other says not tasty, and you pick which of the five spaces is closest to your personal feelings about whatever they are asking you about
Likert Scale
A scale in which the respondent indicates the extent to which he or she agrees or disagrees with a statement
Panel
A sample of consumers or stores from which researchers take a series of measurements.
Experiment
Involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect. The interest is in whether changing one of the independent variables will cause the behavior of the dependent variable that is studied.
Independent Variable
The factor in an experiment that is manipulated ( the cause). Sometimes referred to as the marketing drivers.
Dependent Variable
The observed part of an experiment to see how it is impacted by a change in the independent variable. The ideal example is a change in the purchases.
Information Technology
Involves operating computer networks that can store and process data. Use data collected from this to create databases called data warehouses.
Sensitivity Analysis
Marketers use this to ask hypothetical questions to determine how hypothetical changes in product or brand drivers, the factors that influence the buying decisions of a household or organizations, can affect sales.
Data Mining
The extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions.
Direct Forecast
Estimating the value to be forecast without any intervening steps.
Lost Horse Forecast
Involves starting with the last known value of the item being forecast, listing the factors that could affect the forecast, assessing whether they have a positive or negative impact, and making the final forecast.
Survey of Buyers’ Intentions Forecast
Involves asking prospective customers if they are likely to buy the product during some future time period. For industrial products with few prospective buyers, this can be effective.
Salesforce Survey Forecast
Involves asking the firm’s salespeople to estimate sales during a coming period. Because these people are in contact with customers and are likely to know what customers like and dislike, there is logic to this approach. However salespeople can be unreliable forecasters–painting too rosy a picture if they are enthusiastic about anew product and too grim a forecast if their sales quota and future compensation are based on it.
Trend Extrapolation
Using past sales data, you fit a line to the data and extend it based on an equation to attempt to predict future sales.
market segmentation
Aggregates potential buyers into groups that have common needs and will respond similarly to a marketing action.
market segments
The relatively homogeneous groups of prospective buyers that result from the market segmentation process.
product differentiation
The strategy of using different marketing mix activities to help consumers perceive a product as being different and better than competing products.
market product grid
A framework relating the segments of a market to products or marketing actions of the firm.
criteria to use in in the forming of segments
1. simplicity and cost-effectiveness of assigning potential buyers to segments
2. potential for increased profit
3. similarity of needs of potential buyers within a segment
4. difference of needs of buyers among segments
5. potential of a marketing action to reach a segment
usage rate
The quantity consumed or the number of store visits during a specific period.
80/20 rule
The idea that 80 percent of a firm’s sales are obtained from 20 percent of its customers.
product positioning
The place a product occupies in consumers’ mind based on important features relative to competitive products.
product re-positioning
Changing the place a product occupies in consumers’ minds relative to competitive products.
perceptual map
A means of displaying the position of products or brands in consumers’ minds.
Product
A good, service, or idea consisting of tangible and intangible features that satisfies consumers’ needs and is received in exchange for money or something else of value
Services
Intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value
Consumer Products
Products purchased by the ultimate consumer
Business Products
Products organizations buy that assist directly or indirectly in providing other products for rescale
Four I’s of Service
The four unique elements that distinguish services from goods: intangibility, inconsistency, inseparability, and inventory
Idle Production Capacity
When the service provider is available but there is no demand for the service
Product Item
A specific product that has a unique brand, size, or price
Product Line
A group of products that are closely related because they are similar in terms of consumer needs and uses, market segments, sales outlets, or prices
Product Mix
All the product lines offered by a company
New-Product Process
The seven stages an organization goes through to identify business opportunities and convert them into salable products or services
Customer Experience Management (CEM)
The process of managing the entire customer experience within the company
product life cycle
The stages a new product goes through in the marketplace:
introduction, growth, maturity, and decline.
primary demand
The desire for the product class rather than for a specific brand, since there are a few competitors with the same product.
selective demand
The preference for a specific brand.
repeat purchasers
People who tried the product, were satisfied, and bought again.
A company will follow two strategies when handling a declining product:
deletion or harvesting
important aspects of life cycles are:
(1) their length
(2) the shape of their sales curves
(3) the rate at which consumers adopt products
two measures:
(1) category development index (CDI)
(2) brand development index (BDI)
branding
An organization’s use of a name, phrase, design, symbol, or combination of these to identify and distinguish its
products.
brand name
Any word, device (design, shape, sound, or color), or combination of these used to distinguish a seller’s goods or
services.
brand personality
A set of human characteristics associated with a brand name.
brand equity
The added value a brand name gives to a product beyond the functional benefits provided.
multiproduct branding
A branding strategy in which a company uses one name for all its products in a product class.
subbranding
Combines a corporate or family brand with a new brand, to distinguish a part of its product line from others.
brand extension
The practice of using a current brand name to enter a different product class.
multibranding
A branding strategy that involves giving each product
a distinct name.
package and label designers face four challenges:
(1) the continuing need to connect with customers
(2) environmental concerns
(3) health, safety, and security issues
(4) cost reduction
seven Ps of services marketing
Expanding the four Ps framework to include people, physical environment, and process.
price plays two essential roles:
(1) to affect consumer perceptions
(2) to be used in capacity management
off-peak pricing
Charging different prices during different times of the day or days of the week to reflect variations in demand
for the service.