Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| all of the costing will be included in price of product |
|
|
Term
|
Definition
| The global manager must develop systems and policies that address price floor, price ceiling and optimum prices. Must be consistent with global opportunities and constraints |
|
|
Term
| Managers must determine the objectives for the pricing objectives which are: |
|
Definition
| unit sales-sell as many units as possible, market share-buy the business,own the market, and ROI |
|
|
Term
| market penetration pricing strategy |
|
Definition
| charging a low price in order to penetrate market quickly. appropriate to saturate market prior to imitation by competitors |
|
|
Term
|
Definition
| charging at a premium price, may occur at the intro stage of a product life cycle. Will last until competitors arrive. |
|
|
Term
| companion products: "razors and blades" pricing |
|
Definition
| products whose sale is dependent upon the sale of primary product. "if you make money on the blades, you can give away the razors" |
|
|
Term
|
Definition
1.determine the segments to be targeted
2.compute overall target costs
3.allocate target costs to product's various functions
3.obey the cardinal rule: if the design team can't meet the target, the product should not be launched.
(very restrictive) |
|
|
Term
|
Definition
| based on an analysis of internal and external cost; firms using western cost accounting principals use the full absorption cost method-per unit product costs are the sum of all past or current direct and indirect manufacturing and overhead costs |
|
|
Term
|
Definition
| does price reflect quality? is price competitive in local market? should we consider other pricing objs? discounts for international customers? should price differ with market segment?...etc |
|
|
Term
|
Definition
| means that companies set prices without regard to the eight foundation pricing considerations (based on home country) |
|
|
Term
| flexible cost-plus pricing |
|
Definition
| ensures that prices are competitive in the contest of the particular market environment |
|
|
Term
| terms of the sale: good crossing border |
|
Definition
| obtain export license, obtain currency permit, pack good for export, transport goods to place of departure, prepare a land bill of lading, complet customs export papers, prepare invoices, arrange ocean freight and preparation, obtain marine insurance and certificate of policy |
|
|
Term
|
Definition
| seller places goods at the disposal of the buyer at the time specified in the contract; buyer takes delivery at the premises of the seller and bears all risk and expenses from that point on (origin) FOB |
|
|
Term
|
Definition
| seller agrees to deliver the goods to the buyer at the place he or she names in the country of import with all costs including duties paint (destination) |
|
|
Term
|
Definition
| international commercial terms. Determines who is responsible for the tasks associated with the terms of the sale |
|
|
Term
| FAS (free alongside ship) |
|
Definition
| named port of destination-seller places goods alongside the vessel or other mode of transport and plays all charges up to that point |
|
|
Term
|
Definition
| seller's responsibilities does not end until goods have actually been placed aboard ship |
|
|
Term
| CIF (cost, insurance, freight) |
|
Definition
| named port of destination- risk of loss or damage of goods is transferred to buyer once goods have passed the ship's rail |
|
|
Term
|
Definition
| seller is not responsible at any point outside the factory |
|
|
Term
| environmental influences on pricing decisions |
|
Definition
| currency fluctuations, inflationary environment, government controls, subsides, regulations, competitive behavior, sourcing |
|
|
Term
|
Definition
| uncertainty about the economy, fear of the unknown |
|
|
Term
| global pricing: three policy alternatives |
|
Definition
| extension or ethnocentric, adaptation or polycentric, geocentric |
|
|
Term
|
Definition
| ethnocentric, per-unit price of an item is the same no matter where in the world the buyer is located, importer must absor freight and import duties, fails to respond to each national market |
|
|
Term
|
Definition
| polycentric, permits affiliate managers or independent distributors to establish price as they feel is most desirable in their circumstances, sensitive to market conditions but creates potential for gray market |
|
|
Term
|
Definition
| intermediate course of action, recognizes that several factors are relevant to pricing decisions. allows a difference in pricing but from a corporate point |
|
|
Term
|
Definition
| trademarked products are exported from one country to another where they are sold by unauthorized persons or organizations. |
|
|
Term
|
Definition
| occurs when product is in short supply, when producers use skimming strategies in some markets, and when goods are subject to substantial markups |
|
|
Term
|
Definition
| two or more channels with different pricings |
|
|
Term
|
Definition
| authorized dealers no longer sole distributors; product is now available from multiple sources (loss of exclusivity) |
|
|
Term
|
Definition
| manufacturers may opt to take various actions to offset downward pressure on margins. give services away |
|
|
Term
| damage to channel relationships |
|
Definition
| competition from gray market products can lead to channel conflict as authorized distributors attempt to cut costs, complain to manufacturers, and file lawsuits agains the gray marketers |
|
|
Term
| undermining segmented pricing schemes |
|
Definition
| online information of different prices |
|
|
Term
| reputations and legal liability |
|
Definition
| gray market can compromise manufacturer's reputation and dilute brand equity |
|
|
Term
|
Definition
| occurs when imports sold in the US market are priced at either levels that represent less that the cost of productions plus an 8% profit margin or at levels below those prevailing in the producing countries. to prove both price discrimination and injury must be shown |
|
|
Term
|
Definition
| representatives of two or more companies secretly set similar prices for their products |
|
|
Term
|
Definition
| occurs when competitors within an industry that make and market the same product conspire to keep prices high (illegal) All on the same level |
|
|
Term
|
Definition
| occurs when a manufacturer conspires with wholesales/retailers to ensure certain retail prices are maintained (legal) On different levels |
|
|
Term
|
Definition
| pricing of goods, services, and intangible property bought and sold by operating units or divisions of a company doing business with an affiliate in another jurisdiction |
|
|
Term
| cost-based transfer pricing |
|
Definition
| uses an internal cost as the starting point in determining price |
|
|
Term
| market based transfer pricing |
|
Definition
| derived from the price required to be competitive in the global marketplace |
|
|
Term
| negotiated transfer pricing |
|
Definition
| allow the organization's affiliates to determine prices among themselves |
|
|
Term
|
Definition
| occurs when payment is made in some form other than money |
|
|
Term
|
Definition
| the least complex and oldest form of bilateral, non-monetary counter trade; a direct exchange of goods or services between two parties |
|
|
Term
| counterpurchase or parallel trading |
|
Definition
| each delivery in an exchange is paid for in cash |
|
|
Term
|
Definition
| a reciprocal arrangement whereby the government in the importing country seeks to recover large sums of hard currency spend on expensive purchases such as military aircraft |
|
|
Term
| compensating trading or buyback |
|
Definition
| involves two separate and parallel contracts |
|
|
Term
| switch trading or triangular trade |
|
Definition
| a mechanism that can be applied to barter or countertrade; a third party steps into a simple barter or other countertrade arrangement when one of the parties is not willing to accept all the goods received in a transaction |
|
|
Term
|
Definition
| the physical flow of goods through channels |
|
|
Term
|
Definition
| are made up of coordinated groups of individuals or firms that perform functions that add utility to a product or service |
|
|
Term
| Why do marketing channels exist? |
|
Definition
| to create utility for customers |
|
|
Term
|
Definition
| availability of a product or service in a location that is convenient to a potential customer |
|
|
Term
|
Definition
| availability of a product or service when desired by a customer |
|
|
Term
|
Definition
| availability of the product processed, prepared, in proper condition and/or ready to use |
|
|
Term
|
Definition
| availability of answers to questions and general communication about useful product features and benefits |
|
|
Term
|
Definition
| wholesale intermediary that typically carries product lines or brands on a selective basis |
|
|
Term
|
Definition
| aka broker, an intermediary who negotiates transactions between two or more parties but does not take title to the goods being purchased or sold (american autos in japan) |
|
|
Term
| Peer-to Peer Selling (P2P) |
|
Definition
| the internet and other related media are dramatically altering distribution; Ebay pioneered P2P and now helps Disney and IBM set up websites for fixed price selling as well as B2C auctions; interactive tv may become a viable direct marketing channel in the future |
|
|
Term
|
Definition
| mature form in the US; growing popularity in China |
|
|
Term
| manufacturer-owned stores or independent franchises |
|
Definition
| direct selling alternative such as Walt Disney or Apple |
|
|
Term
|
Definition
|
|
Term
|
Definition
| channel innovation that has grown in popularity; one manufacturer distributes product by utilizing another company's distribution channel; requires that the combined product lines be complementary and appeal to the same customer |
|
|
Term
|
Definition
| the company establishes its own sales force or operates its own retail stores |
|
|
Term
|
Definition
| the company utilizes independent agents, distributors, and/or wholesalers |
|
|
Term
|
Definition
| must fit the company's competitive position and marketing objectives within each national market |
|
|
Term
| how to work with channel intermediaries |
|
Definition
| select distributors, look for distributors capable of developing markets, rather than those with a few good customer contacts, treat local distributors as long-term partners |
|
|
Term
| how to work with channel intermediaries pt2 |
|
Definition
| support market entry by committing money, managers and proven marketing ideas, from start, maintain control over marketing strategy (MDF), distributors provide with detailed market and financial performance data, build links among national distributors at earliest opportunity, keep close tabs on books, be specific with MDF |
|
|
Term
| Money development funds (MDF) |
|
Definition
| virtual money to develop or market the brand |
|
|
Term
|
Definition
| any retailing activity that crosses national boundaries |
|
|
Term
|
Definition
| have several departments under one roof. ex: Belf |
|
|
Term
|
Definition
| offer less variety that department stores, more narrowly focused and aimed at a particular target market. ex: Victoria's Secret and Tiffanys |
|
|
Term
|
Definition
| departmentalized, single-story retail establishments that offer a variety of food and non-food items, mostly on a self service basis. Harris Teeter |
|
|
Term
|
Definition
| merchandise mix is limited to high-turnover convenience and impulse products. Prices may be 15-20 percent higher than supermarkets ex: 7-11 |
|
|
Term
| discount retailers/warehouse clubs |
|
Definition
| emphasis on low prices. ex: walmart, sam's club |
|
|
Term
|
Definition
| sell a tightly focused selection of goods at very low prices. ex: Aldi |
|
|
Term
|
Definition
| hybrid retailing format combining the discounter, supermarket, and warehouse club approaches under a single roof. ex: carrour |
|
|
Term
|
Definition
| offer a wide range of aggressively priced grocery items plus general merchandise in a space that occupies about half the size of a hypermarket. es: target, super walmart |
|
|
Term
| category killers/superstores |
|
Definition
| stores that specialize in selling vast assortment of a particular product category. ex: toy'r'us, IKEA |
|
|
Term
|
Definition
| a variation on the traditional shopping mall; a place for companies to dispose of excess inventory ex: tanger outlet stores |
|
|
Term
| top 3 global retailers, 2010 |
|
Definition
| walmart, carrefour, metro AG |
|
|
Term
| environmental factors in global retailing |
|
Definition
| saturation in the home-country market, recession or other economic factors, strict regulation on store development, high operating costs. What advantage do we have relative to the local competition? |
|
|
Term
|
Definition
| company uses its own resources to open a store on a Greenfiled site or acquire one or more existing retail facilities |
|
|
Term
|
Definition
| appropriate strategy when barriers to entry are low yet the market is culturally distant in terms of consumer behavior or retailing structures |
|
|
Term
|
Definition
| a market entry strategy that entails purchasing a company with multiple existing outlets in a foreign country |
|
|
Term
|
Definition
| this strategy is advisable when culturally distant, difficult-to-enter markets are targeted |
|
|
Term
| innovation in global retailing |
|
Definition
| innovation takes place only in the most hight developed systems; the ability of a system to successfully adapt innovations is directly related to its level of economic development |
|
|
Term
| innovation in global retailing pt2 |
|
Definition
| even when the economic environment is conductive to change, the process of adaptation may be either hindered or helped by local demographic factors, geographic factors, social mores, gov't action, and competitive pressures, the process of adaptation can be greatly accelerated by the actions of aggressive individual firms. |
|
|
Term
|
Definition
| includes all the firms that perform support activities by generating raw materials, converting then into components or finished products, and making them available to customers |
|
|
Term
|
Definition
| management process that integrates the activities of all companies to ensure an efficient flow of goods through the supply chain |
|
|
Term
|
Definition
| includes order entry in which the order is actually entered into a company's info system; order handling, which involves locating, assembling, and moving products into distributions and order delivery |
|
|
Term
|
Definition
| warehouses are used to store goods until they are sold. Distribution centers are designed to efficiently receive goods from suppliers and then fill orders for individual stores or customers |
|
|
Term
|
Definition
| ensures that a company that neither runs out of a manufacturing components or finished goods nor incurs the expense and risk of carrying excessive stocks of these items |
|
|
Term
|
Definition
| the method or mode a company should utlilize when moving products through domestic and global channels; the most common modes of transportation are rail, truck, water, air. |
|
|
Term
|
Definition
| analyzing each shipping mode to determine which mode or combination of modes, will be both effective and efficient in a given situation |
|
|
Term
|
Definition
| practice of loading ocean-goingfreight into steel boxes measuring 20-40 feet |
|
|
Term
| intermodal transportation |
|
Definition
| goods transported that involves a combination of land and water shipping from producer to customer |
|
|
Term
|
Definition
| refers to any paid consumer or trade communication program of limited duration that adds tangible value to a product or brand |
|
|
Term
| price coupon vs. non-price promotions |
|
Definition
| price promotion takes the form of a price reduction, coupon or mail-in refund. non-price promotions may take the form of free samples, BOGO free, etc. |
|
|
Term
| consumer vs. trade (sales promotion) |
|
Definition
| increase demand; add to distribution channel |
|
|
Term
| sales promotion characteristics |
|
Definition
| provide tangible incentive to buyers, reduce the perceived risk associated with purchasing a product, provide accountability for communications activity, provide method of collecting additional data for database |
|
|
Term
|
Definition
| ever increasing budget allocations, formulation, implementation and follow-up by mgmt, globalizing brands require involvement to ensure consistency and success, retailers seek coordinated programs from suppliers |
|
|
Term
| Sales promotion: issues and problems |
|
Definition
| fraud, regulations by country; cultural dispositions to coupons and other sales promotions-ex: malaysians see coupon usage as embarrassing. |
|
|
Term
| characteristics of personal selling |
|
Definition
| person2person communication b/w a company representative and a prospective buyer, focus is to uncover needs and inform prospect, short-term goal: make a sale, long-term goal: build a relationship. Differentiation is key |
|
|
Term
| personal selling philosophy |
|
Definition
| commitment to the marketing concept and a willingness to adopt the role of problem solver/partner |
|
|
Term
|
Definition
| game plan for establishing and maintaining high-quality relationships w/ prospects/customers. commitment |
|
|
Term
|
Definition
| plan that can assist the sales representatives in selecting and positioning products to satisfy customer needs |
|
|
Term
|
Definition
| plan that ensures that the sales professional will be maximally responsive to customer needs and build prospect base |
|
|
Term
|
Definition
| consists of setting objectives for each sales call and establishing a presentation plan to meet those objectives |
|
|
Term
|
Definition
| approach, presentation, demonstration, negotiation close, servicing the sale |
|
|
Term
|
Definition
| someone living in a foreign country that takes an employee from home country. Avg-superior product knowledge, demonstrated commitment to high customer service standards. Dvg-highest cost, high turnover |
|
|
Term
|
Definition
| adv-economical, superior market/cultural knowledge, language skills, fast implementation. div-needs product training, may be held in low esteem, language skills may not be important, difficult to ensure loyalty |
|
|
Term
|
Definition
| adv-cultural sensitivity, language skills, economical, allows regional sales coverage. div-may face id problems, may be blocked for promotions, needs product and/or company training, loyalty not assured |
|
|
Term
|
Definition
| agents that work under contract rather than as full-time employees |
|
|
Term
| exclusive license arrangements |
|
Definition
| a firm will pay commissions to an in-country company's sales force to conduct personal selling on its behalf. |
|
|
Term
| contract manufacturing or production |
|
Definition
| with a degree of personal selling made available through warehouses or showrooms that are open to potential customers |
|
|
Term
|
Definition
| through which a corporation will manage a foreign sales force in a mode that is similar to franchising. |
|
|
Term
|
Definition
| partnerships with an in-country partner |
|
|
Term
|
Definition
| any communication with a consumer or business recipient that is designed to generate a response in the form of an order, a request for further info, and/or a visit to a store or other place of business. |
|
|
Term
|
Definition
| uses the postal service as a vehicle for delivering a personally addressed offer to a prospect targeted by the marketer. Direct mail popular with banks or other financial institutions |
|
|
Term
|
Definition
| a magazine style publication that features photographs, illustrations, and extensive info. about a company's products. |
|
|
Term
| infomercials, teleshopping |
|
Definition
| a form of paid television programming in which a particular product is demonstrated, explained, and offered for sale to viewers who call a toll-free # shown on screen. |
|
|
Term
|
Definition
| an increasingly popular form of marketing communications whereby a company pays a fee to have its name associated with a particular event, team or athletic association or sports facility |
|
|
Term
|
Definition
| arranging for their products and brand names to appear in popular television programs, movies, and other types of performances. Marketers also lend or donate products to celebrities and other public figures. |
|
|
