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Details

MKT 452 Marketing Strategy
Notes for Final Exam
57
Marketing
Undergraduate 4
03/15/2011

Additional Marketing Flashcards

 


 

Cards

Term

·         Dumping

Definition

o   Sale of products in foreign markets at prices lower than those charged in the home country markets

Term
Adaptation may lead to (4)
Definition

§  Modify the product for the culture

§  Higher demand due to local adaptation

§  Increase in costs

§  Decrease in quality

Term
Standardization may lead to (4)
Definition

·         Sale the same type of product to other countries

·         Economies of scale

o   Mass produce so you can make the fixed prices lower

o   Able to produce product with less cost

·         Improved quality

·         Lower demand

Term
Self reference criterion (SRC) effect
Definition

o   Occurs when people assume that whatever is applicable in one culture is also applicable in another culture

o   Basically people make assumptions of another culture based on your culture

Term
Low Context Cultures
Definition

o   Example: U.S., France, Germany, U.K.

o   Communications takes place in a straight forward manner

o   More concerned about time

Term

o   High context culture

Definition

§  Example: Japan, Pakistan, Saudi Arabia

§  Communications are not straight forward

§  Need to build long term relationships

·         Takes a long time to build, you can’t just have one conversation with them

§  Less concerned about time

Term
Examples of high context cultures
Definition
 Example: Japan, Pakistan, Saudi Arabia
Term
Examples of low context cultures
Definition

o   Example: U.S., France, Germany, U.K.

Term
Components of Culture
Definition

o   Factual and Interpretative

§  Factual is obtained by observing

§  Interpretative: hidden components

·         You can observe them

Term
Role of Culture in International Marketing
Definition

o   Culture includes customs, beliefs, values, language and other habits acquired by individuals as members of society

Term
Problems with entering foreign markets
Definition

o   Culture

§  Effects every aspect of marketing

o   Political instability

§  Also important in marketing

§  Have to look at the history of how the governments has changed

o   Import controls

o   Exchange controls

§  Some cultures won’t allow you to change the currency to your currency

Term

o   Direct ownership

Definition

§  Where a company will completely own operations in the foreign company

§  Don’t really know the culture of country

Term

o   Joint Ventures

Definition

§  You partner

§  Example: Euro Disney partnered with France who had 51% stake

§  Risk is shared by both

§  Your partner will have more knowledge about the culture

§  Disadvantage:

·         Loose control of quality positions

·         Governments have restrictions on how much foreign companies can have in terms of stake

·         What if they kick you out?

Term

o   Franchising

Definition

§  Example: Disney in Tokyo

§  Share risk with the partner

Term

o   Licensing

Definition

§  Granting patent rights, trade mark rights etc.

§  Give permission to produce the products

§  Advantage is that you don’t have to micromanage everything

§  Disadvantage: wondering if they are going to steal your technology and sale it to your competitors

·         Counterfeit

Term

o   Exporting

Definition

§  Simplest way to get into international market

·         Advantage:

o   No hassle

o   Don’t have to worry about culture as much

o   Realize economies of scale

o   Get more experience

Term

·         Entry Strategies for Global Marketing (5)

Definition
  • Exporting
  • Licensing
  • Direct Ownership
  • Franchising
  • Joint Ventures
Term
pricing methods (5)
Definition

o   Odd-even Pricing:

§  Example: 49cents, $4.95, etc.

o   Prestige Pricing

§  Pricing higher

o   Price Lining:

§  Should a company price brands A,B,C at $200, $220, $450?

o   Price Leader:

§  Sale at cost or slightly below cost

Term
Penetration Price
Definition
involves the setting of lower, rather than higher prices in order to achieve a large, if not dominant market share.
Term
Advantages and Disadvantages of Penetration Price
Definition

§  Elastic products

§  Easy entry for competition

§  Useful when the competitors entry is easy

§  Good to use when the demand is highly elastic

§  Higher risk is involved

§  Larger firms are in a better position to use

Term
Skimming Price
Definition
setting at high prices
Term
Advantages of Skim pricing (7)
Definition

§  Pharmaceutical industry

§  Better for break-even reasons

§  To generate revenues in order to offset costs

§  To lower the risk

§  Useful if the Price quality perceptions are strong

§  Use when the entry of competitors is difficult

Term
Breakeven Quantity equation
Definition

·         Breakeven Quantity= Fixed cost/ (Price- Variable Costs)

Term

·         Price Elasticity of Demand equation

Definition

o   % change in quantity/ demanded % change in price

Term

o   Pricing Objectives (4)

Definition

§  Survival

§  Profit

§  Market Share Maximization

§  Quality

Term
Shoplifting
Definition

o   Retailer’s losses are in the range of 25 billion $/yr

Term

·         Advantages to franchisees

Definition

o   Capital to buy/lease building

§  Uses established trade name/marks

§  Get support for advertising

·         Technical support

 

 

Term

o   Advantages to franchisers

Definition

§  Provides capital through royalties and fee

·         Royalties: advertising cost are regained form royalties

·         Help to expand rapidly

·         Describes risk

o   Parent company works to manage the company

o   Can maintain quality through monitoring

Term

o   Franchising

Definition

§  Buying a form of distribution in which a parent company (franchises) grants independent business. The right to do business in prescribed manners over a period of time in a specified place

Term

§  Discount Stores

Definition

o   High-volume

o   Low profit margins

o   Large bulk

Term

·         Department stores

Definition

§  Customer service

§  Service based

§  Lower volume

Term

§  Supermarket

Definition

·         Few nonfood items

Term

§  Super Store

Definition

·         Some Kroger stores

Term

§  Hyper- Markets

Definition

·         One-Stop shopping

·         Example: supercenter Wal-mart

Term
   Positioning
Definition

§  Deciding how you want customers to think of your brand

·         What are you, what do you sell

§  Gold Circle= KMART

·         Competitive MKT

Term

·         Meta Tabs

Definition

A special HTML tag that provides information about a Web page. Unlike normal HTML tags, meta tags do not affect how the page is displayed. Instead, they provide information such as who created the page, how often it is updated, what the page is about, and which keywords represent the page's content. Many search engines use this information when building their indices.

 

o   Doesn’t show up on company page but will show up on search engine

Term

·         Overstock.com

Definition

o   Offer student discounts for students and faculty to search for items on their stock (inventory) so they will pop to the top of the free listings on Google so Google pushed overstock to the 10th page

Term

·         Search engine optimization (SEO)

Definition

o   Companies push themselves to the top of search engine methods

§  Placing address on home page so info pops up in city search

§  Place info on page that fits search terms

§  STML language

Term

·         New competitor for Netflix

Definition

o   Amazon is introducing video streaming

§  Only for “prime member”

§  Trying to increase prime membership

o   Has brought Netflix stock down

Term

·         Factors to be considered in selecting a type of distribution

Definition

o   Customer Convenience

o   Maintenance of Image for the Product

o   Manufacturer Control

Term

·         Distribution Strategy

Definition

o   Channels help to decrease transaction time and costs

o   Agents work for a long term basis

o   Brokers work for a short term basis

o   Companies could us multiple channels

Term
Push Marketing
Definition

manufactures tries to push product to retailers to consumers

Term
Pull marketing
Definition

o   manufactures will target consumers, consumers goes to retailers and forces retailers to go to the manufactures

Term

·         HTC

Definition

o   Two New Phones

§  Cha-Cha

§  Salsa

o   Added button for Facebook

§  If you’re reading the news on your phone, you can just press the FB button and it will be posted on your wall

Term

·         Smart TV

Definition

o   Access internet through the television

o   Example: you can watch Netflix on television

o   Google and Netflix can benefit

§  Basically anybody who does e-commerce of some kind

§  And website providers

o   PC companies can be affected

§  Laptop companies

§  Time Warner, Direct TV

§  Blockbuster, Redbox

o   Manufacturers could be hurt because most people would stop watching commercials

Term

o   Coupons

Definition

§  Most popular tool for promotions

§  400 billion are in the market

§  2% are redeemed

Term
Some sales promotion uses
Definition

§  Introduce new products

§  Get existing customers to buy more

§  Combat competition

§  Maintain sales in off-season

§  Increase retail inventories

§  Note: Good for short-term objectives only

Term
Factors affecting the advertising media mix choices (5)
Definition

o   Nature of the product

§  Example: car vs. radical product by a new firm

o   Nature of the target market

§  Example: consumer vs. industrial product

o   Size of the target market

o   Ad Budget

o   Availability of media

Term
Competitive Parity
Definition

§  By matching competitors’ ad budget in absolute dollars or allocating the same % of sales for the ad budget as their rivals

Term
Percent of Sales
Definition

§  Is based on a percentage of firm’s past year sales

§  Simple to use

§  Affordable

·         Your always proportionate to last year’s sales

§  Be careful when the firm’s sales are at an extreme

Term
Some methods of determining the Ad budget (2
Definition

Percent of Sales

Competitive Parity

Term
Zapping
Definition
changing the channel
Term
Zipping
Definition
fast forwarding the advertisements
Term
Comparative Advertising
Definition

o   Involves comparison of two or more specific brands on the basis of one or more characteristics

o   In some countries it is illegal to use this

§  Example: Germany

Term
Promotion Mix Components (5)
Definition

o   Advertising

o   Direct Marketing

o   Personal Selling

o   Sales Promotion

o   Publicity & Public Relations

Term

·         The Communications Process

Definition

o   Source/Sender-> Encoding- >Channel Message<- Decoding<- Receiver/Audience

§  Noise

§  Response Feedback Loop

Term

·         Super Bowl

Definition

·         Most memorable were the sponsored ads and the humorous ads

o   Example: Doritos and Budweiser

·         3 million dollars for 30 second commercials

·         About 111 million people watch the Super Bowl

o   30 million people watched solely for the ads

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