International Marketing Final

Explain the BCG Matrix and how it is used.

(Boston Consulting Group) Growth-Share Matrix - Ex. Star = iPad - Ex. Cash cow = iPhone - Ex. Dog = desktop Mac (legacy products) - Ex. Question mark = Apple TV, Apple Watch How it is used: The Boston Consulting group's product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products.

Different Types of Products

- Deficient products -- Have neither immediate appeal nor long-run benefits -- Example: bad-tasting and ineffective medicine - Pleasing products -- Give high immediate satisfaction but may hurt consumers in the long run. -- Examples: cigarettes and junk food - Salutary products -- Have low immediate appeal but may benefit consumers in the long run -- Examples: bicycle helmets or some insurance products - Desirable products -- Give both high immediate satisfaction and high long-run benefits -- Examples: tasty and nutritious breakfast food

ZEITGEIST

- Defined as the spirit of a generation or a period of time - Ex. Free love and progressive thinking of the 1960s

Understand the differences between a fad, a trend, and a megatrend.

- Ex. Fad: Silly Bandz, Pokemon Go - Ex. Trend: Electrical mobility→ Electric scooters, charging stations - Ex. Megatrend: social media, Facebook

Give a clear overview of the market research process.

- From "We think" → "We know" - Systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization - Approaches followed by firms: -- Use own research departments -- Hire outside research specialists -- Purchase data collected by outside firms There are 4 key steps in the market research process: 1. Define the problem (develop the clear objective and questions you have) 2. Develop a clear research plan (what platform, what countries, right types of questions) 3. Collect and analyze the data 4. Interpret reports and findings Different types of questions - open-ended (deeper insights), close-ended scale. International market research - diverse markets, need good secondary data, develop good samples and reach a wide range of respondents, sensitive and aware of cultural differences.

Discuss Regulatory Issues such as GDPR.

- General Data Protection Regulation - Means that as a European citizen, you have the right to be forgotten, aka right to privacy—all your data goes away (citizen doesn't get it either), no access to anything - Therefore, if you go on a website and you don't click the cookies, it's not as easy

SEM vs SEO

- Generally, SEM "search engine marketing" refers to paid search marketing, a system where businesses pay Google to show their ads in the search results - "Search engine optimization" or SEO is different because businesses don't pay Google for traffic and clicks; rather, they earn a free spot in the search results by having the most relevant content for a given keyword search Words with "high" commercial intent - Buy - Discount(s) - Deal(s) - Coupon(s) - Free shipping -- Prospect is looking to "complete the deal" BOTH SEO and SEM are key to online marketing strategy - SEO is a powerful way to drive traffic at the top of the funnel - SEM (search engine advertisements) are highly effective

Explain the Sales Funnel and its application.

- How you connect with customers in the sales process How to get a sales forecast: - Look at the probability, how likely is the sale to happen (80%) - Look at the value of that sale to the organization times the probability and then you get a sales forecast - Ex. If you have a million dollars worth of leads in contract negotiation and an 80% probability - Also 50%--> 500,000 - 10%--> 100,000 - Sales forecast: 1.4 million

New-product Pricing Strategies

- Market Skimming Pricing -- Setting a high price to skim maximum revenues layer by layer -- Fewer but more profitable sales -- Intel, new gadgets -Market Penetration Pricing -- Setting a low price for a new product in order to attract a large number of buyers and a large market share

Compare and contrast traditional approaches to advertising communication versus how ads are approached today...understand the challenges that marketers face.

- Mass marketing to direct marketing - Have a different landing page on a website: -- When we are marketing and we have an offer from the same company, when they click on the website, then click on a different landing page, the message to the family would be very different from the message to the guys -- You can as a company create different landing pages, especially for that particular offer, the same company -- More segmented - Compared with traditional media and sales approaches, digital and social media can create greater customer engagement and interaction

Major Forces in the Company's Macroenvironment

- Natural: climate change - Political: Trump's tariffs- trade war

Provide a good explanation and example of how neuroscience is impacting marketing.

- Neuroscience + Marketing = Neuromarketing Happy = buy - Skeptical = hesitate -- Ex. Tropicana updated their brand and the sales dropped by 33% -- Within a few months, they went back to their old brand Ex. The emotion of wanting to belong, want to market things to give them a sense of belonging - Can put a helmet on someone and can see if they are experiencing pleasure - When people buy things, if there is a pleasure involved, they are more likely to buy it - People think fast which plays a big role in how things are marketed - People like when things are easy to return - We tend to make better decisions when we think slow

IMPORTANT: Give a broad analysis of the marketing environment--internal, micro and macro.

- Outside forces that affect marketing management's ability to build and maintain successful relationships with target customers - Microenvironment: actors close to the company that affect its ability to serve its customers -- Customers -- Employees - Macroenvironment: larger societal factors that affect the microenvironment -- Economics -- Government -- Politics -- Nature (climate)

Other Considerations Affecting Price Decisions

- Overall Marketing Strategy -- Pricing decisions must be compatible with other elements of the marketing mix -- Luxury or value brand? - Organizational Considerations -- Who sets prices inside the organisation? - Competitors Strategies and Prices -- Your prices in the context of theirs -- Pricing affects the nature, type and intensity of competition - External Factors -- Economic conditions -- Taxes and quotas - The Market and Demand -- Price elasticity of demand

Be able to effectively position a product with a positioning statement.

- Positioning Statement: Summarizes company or brand positioning - Format: To (target segment and need) our (brand) is (concept) that (point of difference). - Ex. for Evernote: "To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." - All the company's marketing mix efforts must support the positioning strategy - Maintain the position obtained through consistent performance and communication - The product's position should be monitored and adapted over time

Explain the major forces in the 21st century as they relate to marketing. You should be able to discuss these points with specific examples.

- Science -- Neuroscience + Marketing = Neuromarketing -- Happy = buy -- Skeptical = hesitate -- Ex. Tropicana updated their brand and the sales dropped by 33% -- Within a few months, they went back to their old brand -- The emergence of science has helped marketers to better understand their customer via neuromarketing - is translated into marketing via - color of branding (have researched that people relate certain colors to different messages or feelings red=sale and urgency), auto branding, fonts, using anchoring to make customers buy more for more (10 for 10 on soda) - Big Data -- How to use it...Rights of Privacy? -- International Complexity—USA, EU & China - Technology

Types of Buying Situations

- Straight rebuy -- Buyer routinely reorders something without any modifications - Modified rebuy -- Buyer wants to modify product specifications, prices, terms, or suppliers - New task -- Buyer purchases a product or service for the first time - Systems selling (or solutions selling) -- Buying a packaged solution to a problem from a single seller -- Avoids the separate decisions involved in a complex buying situation

Describe and be able to apply the OCEAN strategy.

- The OCEAN approach's first major impact was the Ted Cruz Republican presidential campaign 1. Openness to Experience - Described as the depth and complexity of an individual's mental life and experiences (John & Srivastava, 1999). It is also sometimes called intellect or imagination. Openness to experience concerns an individual's willingness to try to new things, to be vulnerable, and the ability to think outside the box. - Common traits related to openness to experience include: -- Imaginative, Insightful, Curious , A wide variety of interests, Original, Daring, Preference for variety, Clever, Creative, Curious, Perceptive, Intellectual, Complex/Deep - An individual who is high in openness to experience is likely someone who has a love of learning, enjoys the arts, engages in a creative career or hobby, and likes meeting new people (Lebowitz, 2016a). - An individual who is low in openness to experience probably prefers routine over variety sticks to what they know and prefers less abstract arts and entertainment. 2. Conscientiousness - Conscientiousness is a trait that can be described as the tendency to control impulses and act in socially acceptable ways, behaviors that facilitate goal-directed behavior (John & Srivastava, 1999). Conscientious people excel in their ability to delay gratification, work within the rules, and plan and organize effectively. - Traits within the conscientiousness factor include: -- Persistent, Ambitious, Thorough, Self-disciplined, Consistent, Predictable, Controlled, Reliable, Resourceful, Hard working, Energetic, Persevering, Planner - Someone who is high in conscientiousness is likely to be successful in school and in their career, to excel in leadership positions, and to doggedly pursue their goals with determination and forethought (Lebowitz, 2016a). - A person who is low in conscientiousness is much more likely to procrastinate, to be flighty, impetuous, and impulsive. 3. Extroversion - This factor has two familiar ends of the spectrum: extroversion and introversion. It concerns where an individual draws their energy and how they interact with others. In general, extroverts draw energy or "recharge" from interacting with others, while introverts get tired from interacting with others and replenish their energy from solitude. - The traits associated with extroversion are: -- Sociable, Assertive, Extroversion, Merry, Outgoing, Energetic, Talkative, Articulate, Fun-loving, Affectionate, Friendly, Socially confident - People high in extroversion tend to seek out opportunities for social interaction, where they are often the "life of the party." They are comfortable with others, gregarious, and prone to action rather than contemplation (Lebowitz, 2016a). - People low in extroversion are more likely to be people "of few words," people who are quiet, introspective, reserved, and thoughtful 4. Agreeableness - This factor concerns how well people get along with others. While extroversion concerns sources of energy and the pursuit of interactions with others, agreeableness concerns your orientation to others. It is a construct that rests on how you generally interact with others. - The following traits fall under the umbrella of agreeableness: -- Altruistic, Trusting, Modest Humble, Patient, Moderate, Tactful, Polite, Kind, Loyal, Unselfish, Helpful, Sensitive, Amiable, Cheerful, Considerate - People high in agreeableness tend to be well-liked, respected, and sensitive to the needs of others. They likely have few enemies, are sympathetic, and affectionate to their friends and loved ones, as well as sympathetic to the plights of strangers (Lebowitz, 2016a). - People on the low end of the agreeableness spectrum are less likely to be trusted and liked by others. They tend to be callous, blunt, rude, ill-tempered, antagonistic, and sarcastic. Although not all people who are low in agreeableness are cruel or abrasive, they are not likely to leave others with a warm fuzzy feeling. 5. Neuroticism - Neuroticism is the one Big Five factor in which a high score indicates more negative traits. Neuroticism is not a factor of meanness or incompetence, but one of confidence and being comfortable in one's own skin. It encompasses one's emotional stability and general temper. - These traits are commonly associated with neuroticism: -- Awkward, Pessimistic, Moody, Jealous, Nervous, Testy, Fearful, Nervous, Anxious, Timid, Wary, Self-critical, Unconfident, Insecure, Unstable, Oversensitive - Those high in neuroticism are generally given to anxiety, sadness, worry, and low self-esteem. They may be temperamental or easily angered, and they tend to be self-conscious and unsure of themselves (Lebowitz, 2016a). - Individuals who score on the low end of neuroticism are more likely to feel confident, sure of themselves, and adventurous. They may also be brave and unencumbered by worry or self-doubt.

Provide a good explanation and example of the "Endowment Effect."

- When you go to the store and someone says "you can return it no questions asked," people are more likely to buy the product - This is called the endowment effect: the idea that when you have something in your possession, you think it's yours and you're less likely to give it up - Ex. You sit in the same seat every class - People who hesitate/think and say "no" make better decisions that people who make more spontaneous decisions - Ex. Taking a car for a test drive, having a puppy for the weekend - Promoted with shopping, ex. "Take it, buy it, no hassle" - "No returns, no exchanges, no refunds" — not the endowment effect - In Europe, more ^^^ because there many small stores that cannot hold the inventory Once people have something they feel a sense of ownership over it and are not likely to want to trade it or give it up. This was discovered through an experiment by professor Daniel Khaneman in which he gave 1/2 the students he was testing a mug and ½ a chocolate bar when given the opportunity to switch only 10% did. Even if they have an inferior product once they received it people felt a strong sense of ownership to it and less likely to give it up. Marketers play into this through the "try before you buy", best driving a car ext. Another real-world example is peoples seats in class - by the end of the year switching seats is very weird - people might get angry.

Major Forces in the Company's Microenvironment

- Working with coworkers - If you are a global organization and there are more tariffs/less interacting among people-- if this becomes the norm then you need to pay attention to whether you need to become more localized (speak a different language maybe)

Discuss the case of Cambridge Analytica/s and understand how they became famous and what the consequences of their operation may be as they relate to the marketing environment.

- https://www.youtube.com/watch?v=n8Dd5aVXLCc - Brought the OCEAN model out there - Involved with a Facebook scandal - Data was delivered to Cambridge Analytica without the user knowing - Were a very important player in the 2016 presidential election

Kahoot Quiz 1. When we monitor the social media buzz, it's considered... 2. Personality quizzes are a great way to create... 3. The EU recently enacted a law concerning data. It's called... 4. A 2016 data law in the EU gave citizens the following: 5. The market research survey method that offers the most flexibility is... 6. Marketing is not... 7. One of these choices depicts an outdated approach to targeting customers 8. The ice bucket challenge, Pokemon Go and Slap Bracelets are good examples of 9. Eating avocados and doing yoga is a part of a... 10. Choose the best market research sample for selling upscale catering services: 11. The most difficult part of the market research process tends to be 12. B2B selling is... 13. B2C selling is 14. B2G selling is... 15. The OCEAN approach's first major impact was 16. If you want to open a school on how to become a leading YouTuber, which OCEAN segment is best? 17. Having a hub and outposts refers to 18. For an integrated marketing campaign which is not used? 19. For the busy mom who wants her mother in law to approve, we offer on-demand cleaning services

1. Competitive marketing intelligence 2. Psychographics 3. GDPR 4. The right to be forgotten 5. Face-to-face/personal 6. Bound by WTO common laws 7. One size fits all mass marketing 8. Fads 9. A trend towards healthy living 10. A random sample of 30 people from 5 upscale neighborhoods 11. Defining the right questions 12. When a tomato canning company sells its cans to restaurants 13. A salesperson at Zara 14. A government asking for a bid for service 15. The Ted Cruz Republican presidential campaign 16. E- Extroversion 17. A blog on your website that has links on other sites 18. Advertising and sales promotion, Direct marketing personal selling, Public relations 19. This is an ad and a positioning statement

Identify the core elements of the Marketing Information System and give examples of how these elements support a marketing strategy.

1. Internal databases 2. Marketing intelligence 3. Market research The marketing information system focuses on the information you need to have about a customer in order to best cater towards them. Its features 3 components of developing information through internal databases, marketing intelligence and marketing research. This is taken from and used for the marketing environment comprised of publics, macro-environment forces, competitors, and target markets. The customer and market insights are taken from the 3 components are then used to asses, use and analyze information. - Ex. Tesco in England was very successful and then they decided to change how it worked and their customers got angry - Ex. In 2004, KLM created CRM Dept & CIOA (Customer Insight, Opportunities & Analysis) -- Objective: "Obtain new customers and ensure the loyalty of established customers by providing continuous, permission-based and promotional communications, according to the customer interests." -- ^^Started doing research to see what they can find out about their customers -- Identify various customer segments: --- Budget-conscious people --- Families --- Business class --- First class -- Understand customer needs and preferences -- Create targeted marketing and sales campaigns for specific segments -- Monitor customer responses -- Apply experiences to future campaigns -- Steer customer buying and traveling behavior CRM: Customer Relationship Management - Ended up improving customer satisfaction - And then they merged with AirFrance -- It was very hard and complicated

Be able to discuss the main steps of segmentation and targeting.

1. Measurable - Create metrics - Call the segments something 2. Accessible - Need to be able to reach your demographic 3. Substantial - The way you can run your business and sustain that marketing interaction 4. Differentiable - You want them to be different from each other 5. Actionable - You can take some kind of action to reach that market

Explain the differences between B2C and B2B business operations.

B2C→ Business to consumer - Ex. When you buy an airplane ticket - Ex. A salesperson at Zara B2B→ Business to business - 2 businesses, more personalized - Sales reps - Selling Boeings to Lufthansa - Ex. When a tomato canning company sells its cans to restaurants - B-to-B marketers are now using a wide range of digital and social media marketing approaches B2G→ Business to government - A government asking for a bid for service

Explain the definition of marketing and what it means in the context of international communication.

Definition: Marketing is a process of building profitable customer relationships by creating value and capturing value in return. - If marketing people are under pressure and have to deliver results now, sometimes they lower the price of the product, thus lowering the quality of the product -- What can be done to improve quality? --- Research- understand the marketing environment --- Always understand your customer

Discuss the core aspects and value of an integrated marketing campaign.

Definition: The concept under which a company carefully integrates its many communication channels to deliver a clear consistent and compelling message - "All singing from the same hymn sheet" Importance: - Coherency - Significance in managing the customer relationship over time

Five Global Product and Communication Strategies

How much should a company standardize or adapt its product and marketing across global markets?

IMPORTANT: Explain and discuss the key aspect discussed in class concerning CSR and Marketing's role in environmental sustainability.

How we use products

Explain NPS and its value in a marketing program.

NPS- Net Promoter Score - For those brands that define loyalty as having a maximum of repeat customers... -- ...the question "On a scale from 0 to 10, how likely is that you would recommend brand x to your friends and family?"... -- ...is found to identify the repeat customers as those that give a score of 9 or 10... -- ...and "at risk" customers those that give a score between 0 and 6. - Other correlations were found (not surprisingly) with: -- Growth of customer base -- Share of wallet -- Average purchase amount

4 P's

Product, Price, Place, Promotion

Explain and discuss the SWOT Analysis.

SWOT analysis is a useful technique for understanding strengths and weaknesses, but also see the opportunities open to you and the threats you see.

When it comes to digitization, be able to identify how companies are transforming and what challenges they face.

Techniques used in online marketing: - Online listening - via Yelp, feedback platforms - Behavioral targeting - uses online consumer tracking data to target ads to specific consumers - Social targeting - While pure interest-based targeting allows advertisers to find an audience online based on the affinities they have expressed in their web behaviors (i.e., what sorts of websites they have visited), social targeting combines that logic with social network logic, helping brands to find the people who are connected to their best existing customers. Omnichannel - A type of retail which integrates the different methods of shopping available to consumers (e.g. online, in a physical shop, or by phone). - The end to end experience - Ex. When someone goes into Starbucks, they're not walking into the internet but walking into the story (brick and mortar) - Can also interact with Starbucks in many different ways (Instagram, Facebook, etc.) What about Tools? - Real-time data - Unified view - Comprehensive profiles and analytics--not huge data silos - Front line info and access--avoid customer knowing more than you do - Customers don't want to have to re-explain their story all the time - IT needs to focus on research and development Standing Out in a Search! - Google's computer algorithms dynamically determine which web page on the internet is the most relevant for a specific keyword or key phrase and displays it first - It then displays the second most relevant page, and so on. The resulting list of web pages is known as a Search Engine Results Page (SERP)

Toxic, Commodity, and Love brands

Toxic Brands - Customers will defect when they can - They stay because -- They are bound by contract -- The cost to switch to another brand is too high -- They perceive the alternatives as equally bad - Customers expect all your products and services to be equally flawed - But! They have low expectations, and any decent performance will increase the score rapidly Commodity Brands - By far the largest group of brands - The expectation-fulfillment model explains the pressure towards this group - Customers switch brands easily, but come back easily - The emotional component of loyalty is mostly absent Love Brands - Customers will only defect when: -- You disappoint them strongly (becomes more likely over time as expectations increase) -- External conditions force them to - Customers consider everything you do as "awesome" - Haters are going to hate...the promoters

Value-based Pricing vs. Cost-based Pricing

Value-based Pricing - Good-Value Pricing -- Offering just the right combination of quality and good service at a fair price. - Value-Added Pricing -- Attaching value-added features and services to differentiate a marketing offer and support higher prices, rather than cutting prices to match competitors. Company and Product Costs - Types of Cost -- Fixed costs - costs that do not vary with production or sales levels -- Variable costs - costs that vary directly with the level of production. - Cost-Based Pricing -- Cost-plus pricing -- Break-even pricing (target-profit pricing)

IMPORTANT: VUCA

Volatility Uncertainty Complexity and Ambiguity - The world we are in today is under a lot of strain because it was built in another time - Captures the experience of operating in complex environments - Made prevalent by the rise of globalization and information technology - Traditional industrial age strategy is not designed for VUCA environments Volatility: means liable to change rapidly and unpredictably - Complex systems can flip from one state to another rapidly - In systematically volatile environments, change is a constant - Strategy needs to evolve from resisting it to working with it Uncertainty: the inability to know everything fully - Comes from the large number of elements with nonlinear interactions and their capacity to adapt to local events as they co-evolution over time - Strategy shifts from defining one environment in the future that is most probable and creating a single optimal strategy for this to developing organizations that can operate under multiple outcomes by increasing diversity Complexity: refers to many parts being interconnected and interdependent - Managing complexity means giving up traditional conceptions of strategy and leadership Ambiguity: the quality of being open to more than one interpretation - Results in the haziness of reality and the potential for misreading