ch. 16 global marketing and research and development

Marketing Mix

Choices about product attributes, distribution strategy, communication strategy, and pricing strategy that a firm offers its targeted markets

Noise

The amount of other messages competing for a potential consumer's attention

Strategic Pricing

The concept of containing the three aspects: predatory pricing, multipoint pricing, and experience curve pricing

Channel Quality

The expertise, competencies, and skills of established retailers in a nation and their ability to sell and support the products of international businesses

Channel Length

The number of intermediaries that a product has to go through before it reaches the final consumer

International Market Research

The systematic collection, recording, analysis, and interpretation of data to provide knowledge that is useful for decision making in a global company

direct selling advertising direct marketing sales promotion

examples of communication channels a company can use

sales promotion, direct selling, direct marketing, advertising

examples of communication channels a company can use

primary data

information collected for the specific purpose at hand

secondary data

information that already exists somewhere, having been collected for another purpose; less expensive

predatory pricing multipoint pricing experience curve pricing

3 aspects of strategic pricing

Exclusive Distribution Channel

A distribution channel that outsiders find difficult to access

Pull Strategy

A marketing strategy emphasizing mass media advertising as opposed to personal selling

Push Strategy

A marketing strategy emphasizing personal selling rather than mass media advertising

Price Elasticity of Demand

A measure of how responsive demand for a product is to changes in price

Concentrated Retail System

A retail system in which a few retailers supply most of the world market

Fragmented Retail System

A retail system in which there are many retailers, no one on which has a major share of the market

Intermarket Segment

A segment of customers that spans multiple countries, transcending national borders

Elastic

A small change in price produces a large change in demand

Country of Origin Effects

A subset of source effects, or the extent to which the place of manufacturing influences product evaluations

Experience Curve Pricing

Aggressive pricing designed to increase volume and help the firm realize experience curve economies

Source Effects

Effects that occur when the receiver of the message evaluates the message on the basis of status or image of the sender

Market Segmentation

Identifying groups of consumers whose purchasing behavior differs from others in important ways

Multipoint Pricing

Occurs when a pricing strategy in one market may have an impact on a rival's pricing strategy in another market

Predatory Pricing

Reducing prices below the fair market value as a competitive weapon to drive weaker competitors out of the market

Inelastic

When a large change in price produces only a small change in demand

consumer behavior

__ may be influenced by the level of economic development of a country prompting companies to sell products with certain features to less developed nations and products with other features to developed nations

under the age of 40

according to critics of theodore levitts arguments, the homogenization and standardization of needs and wants is currently limited largely to people ___

determine the data sources

after defining the research objects, the next step in the research process is to__

price elasticity of demand

after the company lowered the cost of the shoes, sales increased by 30%. this demonstrates:

product strategy

answering the question of whether customers have similar product needs across international market segments is part of which element of the marketing mix?

theodore levitt

argued that the success of companies like Mcdonalds and coke that sell essentially the same products everywhere reflects the globalization of markets and brands

shortened

channel length is typically __ in countries where large discount superstores are introduced

more money spent on r&d underlying demand is strong consumers are affluent

characteristics found in countries where new product development is strong

US

country ranked the highest in new product development for most of the post-world war 2 period

defining the research problem setting objectives for the research

defining the research objectives includes what

communication

direct selling, sales promotion, direct marketing, and advertising are all elements of a company's ____ channels

demand conditions scientific research competitive conditions

factors that stimulate ideas for new products

development costs are kept in check new products are designed for ease of manufacture product development projects are driven by consumer needs

firms that have tight cross-functional integration among r&D production, and marketing improve the potential for new product success by helping to ensure what

more

forecasts anticipate that intermarket segments will become ___ common in developed and emerging country markets

high

in highly-developed countries, the noise level is typically ___ compared to less-developed countries

print media

in many countries, you would find ads for tobacco and alcohol only in ___ due to federal laws

a profitable position in another national market

in order for predatory pricing to work, a firm should normally have:

a cost effective manner

in order to effectively manage R&D a company must use technology to develop products that customers need and the products must be designed so that they can be manufactured in ___

price elasticities of demand

in order to maintain profitable price discrimination, a company must meet two conditions: first, the company must be able to keep its national markets separate and second, it must deal with countries different ___

short distribution channels limited amount of media

in these situations a company would want to use a push strategy instead of pull

small

inelastic demand occurs when a large change in price produces a ____ change in demand

one

its best if members of a product development team are placed in __ location

mass media advertising

karen's boss told the marketing department that a pull strategy should be implemented to sell the new line of footwear. What communication strategy should the department use?

short

manufactures product and sells directly to the consumer, the channel length is ___

industrial

market segments that transcend national borders are more common in ___ markets

discrimination

price ___ exists when customers in different countries are charged different prices for the same product

define the research objectives

the first step in the international research process is to

initial concept development market introduction

the goal of a cross-functional product development team is to take a product from ___ to ___

distribution strategy

the method a company chooses for delivering a product to the consumer

arbitrage

the process of buying a product low and selling it high

creative destruction

the replacement of the translator by the microprocessor is an example of

an increase in car ownership the number of two income households the number of households with refrigerators and freezers

the tendency for greater retail concentration in developed countries has occurred because of what three factors?

noise levels source effects cultural barriers

the text lists three potentially critical variables that can jeopardize the effectiveness of a firm's international communication what are they?

push and pull strategies

the us company decided that the best way to sell its product line in Argentina was to create a sales force within the country since there were few trade publications to advertise in. what aspect of international business is the company working on?

significant economic advantages one large advertising effort will produce better results many brand names are global

three arguments in support of global advertising

new products are developed for ease of manufacture development costs are kept in check

tight cross-functional integration between R&D, production, and marketing allows a company to ensure that what will be accomplished

sales at less than fair value material injury to a domestic industry

two criteria that must be met for a country to bring antidumping actions against an importer

cultural difference advertising regulations

two main arguments against using standardized advertising

qualitative and quantitative

two mechanisms to collect data

antidumping regulations competition policy

two regulatory situations that can affect a company's pricing decisions

long

type of distribution channel that is more likely for the consumer to end up paying a higher price for the final product

defining the research objectives

understanding the scope of the research problem is a critical aspect of which step of the research process?

communication strategy

what element of the marketing mix is affected when a company is trying to create product awareness in international market segments?

lowers the costs of value creation by spreading the costs of ad development over many countries

what happens to the costs with standardized advertising

pull

when a channel length is long a company is better off using a __ strategy for communication

international communication

when a company uses a marketing message to sell products in another country

dumping

when a firm sells a product for a price that is less than the cost of producing it

segmentation

when car manufacturers sell luxury cars to high end consumers and lower priced models to lower income consumers, it demonstrates the idea of market ___

retail concentration

when determining how it will distribute products, a company must realize that there are four main differences between distribution systems: channel length, channel exclusivity, channel quality, and ___

product type relative to consumer sophistication media availability channel length

when determining whether to use a push or pull strategy what are important considerations

a push strategy

when introducing a complex product in a developing nation, most companies would use ___ in order to educate consumers on the features of the product

distribution channels are long selling consumer goods

when to use a pull strategy