Term
| Economic Development: China and India |
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Definition
China and India have two of the highest growth rates in the world.
Have the world’s two largest populations.
Among highest levels of income disparity.
Great linguistic and cultural diversity.
China has a huge luxury market - beginning to buy US products |
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Term
| Political Structure and Actions |
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Definition
No private ownership and Minimal individual freedom -> Little central government and Maximum personal freedom
1: The third variable is political structure. Government policies run the gamut from no private ownership and minimal individual freedom to little central government and maximum personal freedom. As rights of private property increase, government-owned industries tend to decrease.
2: The least regulated and most efficient economies and concentrated among countries with well established common-law traditions, including Australia, Canada, New Zealand, the United Kingdom, and the United States. Others are Singapore and Hong Kong. |
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Term
| Political and Legal Considerations |
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Definition
Agreements and Organizations -> CAFTA, NAFTA, EU
1. The trend toward globalization has resulted in the creation of additional agreements and organizations
NAFTA, ratified in 1993, created the world’s largest free trade zone (opening relations with Mexico)
2. The Central America Free Trade Agreement—was instituted in 2005. It will reduce tariffs to CAFTA countries
3. EU currently has 27 member states. The Greek financial crisis in early 2010 highlighted financial problems in other EU nations such as Hungary, Italy, Portugal, and Spain. The EU Commission and the courts have not always been kind to U.S. multinationals |
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Term
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Definition
| Characterized by Complex, sophisticated, industries |
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Term
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Definition
| Characterized by Basic Industries |
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Term
| Factors to keep in mind when dealing with different cultures: |
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Definition
1. Language and cultural idioms
2. Customs and tradition
3. Values and expectations of sales presentations |
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Term
| Marketing Considerations in Demographics |
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Definition
| Population density, Urban or rural?, Age |
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Term
| Shortages in natural resources create... |
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Definition
International DEPENDENCIES
Shifts of WEALTH
Inflation and RECESSION
Export opportunities if resources are abundant
Stimulus for INTERVENTION |
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Term
| External Environment Facing Global Marketers |
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Definition
Culture
Economic Development
Political Structure
Demographics
Natural Researchers |
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Term
| Stages of global business development |
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Definition
1. Companies operate in one country ad sell to others
2. set up foreign subsidiaries to handle sales
3. operate an entire line of business in another country
4. Virtual operation |
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Term
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Definition
Account for 19 percent of U.S. private Jobs
Provide 25 percent of private wages
74 percent of R&D spending
48 percent of total exports |
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Term
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Definition
Technology is capital intensive and does not necessarily increase employment.
Support governments that benefit the company, not necessarily the country and its people
May take away more wealth than they generate |
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Term
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Definition
Earn additional PROFITS
LEVERAGE a unique product or technological advantage
Possess EXCLUSIVE market information
Saturated DOMESTIC MARKETS
Excess capacity
Utilize “ECONOMIES OF SCALE” |
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Term
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Definition
1 PEOPLE OR ORGANIZATIONS WITH
2 NEEDS OR WANTS, AND WITH
3 THE ABILITY AND
4 THE WILLINGNESS TO BUY
A group of people that lacks any one of these characteristics is NOT a market. |
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Term
| Generic Market Definition |
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Definition
| customer user needs + customer type + geographic area |
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Term
| Product Market Definition |
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Definition
| customer user needs + customer type + geographic area + product type (good/service) |
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Term
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Definition
| People or organizations with needs or wants and the ability and willingness to buy |
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Term
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Definition
| A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs |
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Term
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Definition
| The process of dividing a market into meaningful, relatively similar, identifiable segments or groups. |
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Term
| The Importance of Market Segmentation |
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Definition
1. Markets have a variety of product needs and preferences
2. Marketers can better define customer needs
3. Decision makers can define objectives and allocate resources more accurately |
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Term
| Searching for market opportunities |
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Definition
What us a company's market?
Don't just focus on the product
Generic markets to product markets
Broaden market definitions to find opportunities. |
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Term
| Criteria for Segmentation |
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Definition
| Substantiality, Identifiability and Measurability, Accessibility, and Responsiveness |
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Term
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Definition
| Segment must be LARGE ENOUGH to warrant a special marketing mix. |
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Term
| Identifiability and Measurability |
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Definition
| Segments must be IDENTIFIABLE and their size measurable. |
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Term
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Definition
| Members of targeted segments must be REACHABLE with marketing mix. |
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Term
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Definition
| Unless segment responds to a marketing mix differently, NO SEPARATE TREATEMENT IS NEEED |
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Term
| Behavioral Segmenting Dimensions |
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Definition
| Needs, benefits sought, thoughts, rate of use, purchase relationship, brand familiarity, kind of shopping, type of problem solving, information required |
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Term
| Geographic Segmentation Dimensions |
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Definition
1. Region of world/country
2. Region in a country
3. Size of city |
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Term
| Components of Geographic Segmentation |
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Definition
1. Region of the country or world
2. Market size
3. Market density
4. Climate |
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Term
| Benefits of Regional Segmentation |
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Definition
1. New ways to generate sales in sluggish and COMPETITIVE MARKETS
2. SCANNER DATA allow assessment of best selling brands in region
3. REGIONAL BRANDS appeal to local preferences
4. Quicker reaction to competition |
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Term
| Demographic segmentation dimensions |
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Definition
| income, sex, age, family size/cycle, occupation, education, ethnicity, social class |
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Term
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Definition
| Tweens, Teens, Gen Y, Gen X, Baby Boomers, War Generation (61-66), Great Depression Generation (67-76), GI Generation (77+) |
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Term
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Definition
1. Women make 70% of consumers goods purchases annually
2. Many marketers of male-dominated arenas are TARGETING WOMEN
3. Increasing numbers of marketers in female dominated categories are TARGETING MEN |
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Term
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Definition
1. Determines CONSUMER WANTS
2. Determines BUYING POWER
3. Retailers can appeal to:
a. low-income (Walmart)
b. High-income (Saks Fifth Avenue)
c. Both (Costco, Target) |
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Term
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Definition
Largest ethnic markets are: Hispanic, African Americans, Asian
Companies must make products geared toward specific ethnic groups as they continue to expand. |
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Term
| Components of Family Life Cycle |
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Definition
| Age, Marital Status, Children |
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Term
| Psychographic Segmentation |
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Definition
| Market segments on the basis of personality, motives, lifestyles and geo-demographics. |
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Term
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Definition
| Marketers might appeal to the emotional, rational, or status motives, among others |
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Term
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Definition
| Reflects a person's traits, attitudes, and habits |
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Term
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Definition
1. How time is spent
2. Importance of things around them
3. Beliefs
4. Socioeconomic characteristics |
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Term
| Geodemographic Segmentation |
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Definition
Segmenting potential customers into NEIGHBORHOOD LIFESTYLE CATEGORIES
Combines geographic, demographic, and lifestyle segmentation. |
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Term
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Definition
| The process of grouping customers into market segments ACCORDING TO THE BENEFITS THEY SEEK FROM THE PRODUCT |
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Term
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Definition
| Dividing a market by the amount OF PRODUCT BOUGHT OR CONSUMED |
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Term
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Definition
| A principle holding that 20% OF ALL CUSOMERS GENERATE 80% OF ALL THE DEMAND |
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Term
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Definition
| developing a specific marketing mix to influence potential customers’ overall perception or a brand, product line, or organization in general. |
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Term
| Potential Markets: 3 Questions |
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Definition
What are its relevant segmenting dimensions?
How big is ti?
Where is it? |
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Term
| Search for growing markets |
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Definition
Other countries
Current populations
Population trends |
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Term
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Definition
| Gross National income + Income earned by foreigners who own resources in the nations |
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Term
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Definition
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Term
| issues relating to development |
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Definition
| 3rd world consumer needs, much segmentation, literacy and marketing problems |
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Term
| Marketing definition (non AMA) |
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Definition
| Marketing is a philosophy, attitude, perspective or management orientation that stresses customer satisfactions |
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Term
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Definition
| activity, set of institutions and processes for creating, communication, delivering, and exchanging offerings that have value for customers, clients, partners and society at large. |
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Term
| Marketing entails processes that focus on delivering ____ and ___ to customers, not just ____ and ____services |
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Definition
| value and benefits; selling goods and services |
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Term
| Conditions for Exchange (5) |
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Definition
| at least 2 parties, something of value, communication and deliver, acceptance or rejection, and a desire to deal with the other party(ies) |
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Term
| Successful marketing comprised of ability to (9) |
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Definition
1. analyze needs
2. predict wants
3. estimate demands
4. predict when (customers want it),
5. determine where (to get it),
6. estimate price,
7. decide promotion,
8. estimate competition,
9. provide service (warranty etc). |
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Term
| Marketing encompasses production and ensures that .... |
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Definition
| the RIGHT products/services are offered |
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Term
| Market Management Philosophies (4) |
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Definition
Productions - internal capabilities of the firm
Sales - aggressive sales techniques for high profits
Market - satisfy needs and wants while meeting objectives
Societal- satisfy needs and wants while enhancing societal and individual well being |
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Term
| Key Characteristics of Marketing (6) |
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Definition
More than persuasion
Begins with need
Doesn't go it alone
Involves change
Builds relationships
Profit and Nonprofit |
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Term
| Customer Value Requirements (6) |
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Definition
Offer products that PERFORM
Earn TRUST
Avoid Unrealistic PRICING
Give buyers FACTS
Offer ORGANIZATIONAL WIDE commitments in service and after-sales support
CO-CREATION with customer |
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Term
| Customer satisfaction is... |
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Definition
| customer EVALUATION of a good or service in terms of whether that good or service has met their NEEDS and EXPECTATIONS. |
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Term
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Definition
BUYING: looking for and evaluating goods and services.
SELLING: promoting the product to prospective buyers.
TRANSPORT: moving the goods from place to place.
STORAGE: holding an inventory of goods until needed by customers.
STANDARDIZATION and GRADING: sorting products by size and quality.
FINANCING: providing necessary cash and credit to produce, transport, store, promote, sell, and buy products.
RISK taking: assuming responsibility for uncertainties. |
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Term
| Strategic planning definition |
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Definition
managerial process of creating and maintaining a FIT between organizations OBJECTIVES and RESOURCES and the evolving market OPPORTUNITIES.
Goal is long term profitability and growth. |
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Term
| Ansoff's Opportunity Matrix |
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Definition
| Penetration (increase market share), Market Development (new customers), Product Development (new products), Diversification (even more new products) |
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Term
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Definition
| refers to the planning, implementation, and control of marketing activities. These activities are continuous, and decisions made in the past in one area can have implications on the other areas as well. |
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Term
| Marketing orientation v production orientation |
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Definition
production - mass marketing. everyone is the same
marketing - target marketing. everyone is different |
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Term
| Marketing plan definition |
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Definition
| written document that acts as a guidebook of marketing activities for the marketin |
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Term
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Definition
compare actual and expected performance
clearly stated activity towards stated goals
examination of marketing environment
reference for success of future activities
entry into marketplace with awareness
“do unto them before they do unto you” |
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Term
| Marketing opportunity analysis (MOA) |
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Definition
| description and estimation of size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments. |
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Term
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Definition
segment market
analyze market
select one or more target markets |
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Term
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Definition
Four Ps
production
place
promotion
pricing |
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Term
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Definition
target market + marketing mix = marketing strategy
marketing strategy + time details = marketing plan
marketing plan + other = marketing program |
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Term
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Definition
Strengths
Weaknesses
Opportunities
Threats |
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Term
| Each company has ____ it wasn't to accomplish and ____ at its disposal |
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Definition
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Term
| When looking at competitors consider both ____ and ____ competition |
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Definition
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Term
| External market environment made up of.... |
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Definition
| economic, technological, political and legal, and cultural and social environments |
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Term
| Company + competitor + external marketing environment = |
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Definition
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Term
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Definition
Population Growing, but growth rate has slowed significantly
Birthrate (bust)
Graying of America
Gen X fewer in number
Gen Y tech savvy |
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Term
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Definition
| rural --> urban --> suburban |
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Term
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Definition
People are the basis for any market
Demographic characteristics realte to buyer behavior
Demographic cohorts have their own needs, values and consumption patterns. |
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Term
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Definition
Pre- and early adolescents, age 8 to 12
Population of 20 million
Directly spend about $50 billion annually
Parents spend $150 billion annually on tweens
View TV ads as “just advertising” |
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Term
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Definition
Population of about 25 MILLION
Spend approximately 72 HOURS/WEEK tuned in electronically
View shopping as a social sport
50 million teens around the world are on FACEBOOK
Key to make them buy: modern and convenient, get them involved in the product |
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Term
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Definition
Born between 1979 and 1994
Surpassed population of baby boomers
Two Stages: 1) Those born in 1994 fit closer to the Teen cohort. 2) Those born in 1979 have established careers and started families.
Purchasing power of $200 billion annually
As a group, Gen Y has a lifetime spending is $10 trillion
Characters: Inquisitive, opiniated, diverse, good time managers, quick shoppers, multi-taskers, brand loyal |
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Term
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Definition
Born between 1965 and 1978
Population of 40 millions
Independent, resilient, ADAPTABLE, CAUTIOUS AND SKEPTICAL
71 percent have children under age 18
Home ownership is an important goal
Avid buyers of LATEST CLOTHES, TECHNOLOGY AND RECREATIONAL PRODUCTS |
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Term
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Definition
Born between 1946 and 1964
Population of 75 million
Working longer to compensate for economic downturn, which affected retirement savings
The market of services directed at seniors IS ONE OF THE FASTEST GROWING BUSINESSE MARKETS
Spend $2 trill annually on food, cards and personal care
Purchase iPads, vacation and postponing retirements
Control 80% of the personal wealth in the US |
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Term
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Definition
Estimated purchasing power of ethnic markets in 2013:
Hispanics: 1.5 trillion
African Americans: 1.2 trillion
Asian Americans: 775 billion
The minority population of the United States in 2011 110 million |
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Term
| Marketing to Hispanic Americans |
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Definition
The Hispanic population’s diversity creates CHALLENGES FOR TARGETING THIS MARKET (cuban, mexian, puerto rican etc)
12 million Hispanics aged 20-34 in the United States
94 percent of U.S. Hispanics have home Internet access.
Highly responsive to NEW MEDIA: MOBILE MARKETING AND SOCIAL MEDIA MARKETING |
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Term
| Marketing to African Americans |
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Definition
47 percent are between 18 and 49 years old
More firms are creating products for the African American market.
Promotional dollars and media choices directed toward African Americans continue to increase. |
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Term
| Marketing to Asian Americans |
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Definition
Younger, better educated, and HAVE HIGHEST AVERAGE INCOME OF ALL GROUPS
Early adopters of LATEST DIGITAL GADGETS
Cultural diversity within the Asian American market complicates promotional efforts. |
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Term
| Role of Families and Working Women |
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Definition
Growth of DUAL INCOME families results in increased purchasing power
Approximately 59 percent of work-age females are in the workforce (men laid off because they were more expensive to keep)
Working wives bring in 45 percent of the total family earnings.
The phenomenon of working women has probably had a greater effect on marketing than any other social change.
Live long and make own wealth and get that of their husbands. Arguably wealthiest |
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Term
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Definition
Leisure time accounts for less than 6 hours a day
About 40 percent of American adults check work email on vacation
Constant digital immersion can decrease a ATTENTION SPAN |
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