Marketing 3000 Exam 3

*Contents of a New Product Strategy:* (3 things)

*1.) Focus:* a clear technology dimension and a clear market dimension that match and have good potential. *2.) Goals/Objectives:* what the project(s) will accomplish. *3.) Guidelines:* rules, requirements, time/quality/cost, etc.

*The Importance of New Product Development* (3 things)

*1.) Key to Profitability:* ex. glade plug-ins made more profit than all of their other products put together *2.) Sustainable Competitive Advantage (SCA) Survivability:* ex. apple and their platform of products *3.) Capacity to Change Lives*

*Why Does a Firm Need a New Products Strategy?* (3 reasons)

*1.) To chart the group's/team's direction.* -what technologies/what markets? *2.) To set the group's goals and objectives.* -why does it exist? *3.) To tell the group how it will play the game.* -what are the rules/constraints? -any other key information to consider?

What is the fastest growing licensing category?

*corporate brand licensing* -more and more for-profit and not for profit organizations are licensing their names to generate additional revs and brand recognition.

*Distinctive Benefit*

*the new product fills an unfulfilled need.* (ex. is how Honda identified the gap for a slightly less luxurious but more economical sedan by using an automobile positioning map with luxury and economy as the relevant dimensions to inspire the Acura line. -*a product needs to provide a distinctive benefit to a substantive(separate/important) segment.*

Hofstede's 5 Dimensions *6. Uncertainty Avoidance* What should marketers stress to consumers when there is *high levels* of uncertainty avoidance?

- the extent to which the members of a society are uncomfortable with unclear, ambiguous, or unstructured situations. -members of uncertainty accepting cultures are *more tolerant* or persons whose opinions differ from their own. (ex. denmark and the u.s) (ex. of non-accepting is greece and portugal) -in countries with high levels of uncertainty avoidance, marketers should stress warranties, money-back guarantees, and other risk-reducing features.

*Pricing*

-"one price fits all" strategy -adaptation or polycentric pricing: changing price based on the country -geocentric pricing: the company itself decides pricing based on geographical location

*Product Adaptation*

-*Straight Extension:* do not change product or communications. (rebrand, discount prices, or seek new markets) -*Product Adaptation:* adapt product but do not change communications (modify an existing product) -*Communication Adaptation:* adapt communications but do not change product (change in strategy or line extension (new flavors, sizes or ingredients) -*Dual Adaptation:* adapt product and adapt communications (ex. disney in paris) -*Product Invention:* just develop new product

*The Relative Importance of Different Types of Information Sources in the Adoption Process:*

-*personal and interpersonal sources:* starts at a low importance level with a positive slope as you go through the stages of the adoption process. -*impersonal mass-media sources:* (advertising) starts with a high level of importance and has a negative slope thru the adoption process. -later stages involve family and friends or a sales person.

*PLC Stage 1: Introduction* -marketing efforts?

-*product innovation* is introduced, marking the beginning of a *new product category*. -*targets risk takers* aka *innovators* which are consumers who buy or adport the product -ex. MillerLite marked the beg. of light beer categories. -Pioneer: the 1st product -Marketing Efforts: to stimulate primary demand (demand for product category itself)

*Product Improvements*

-GoGurt, windows 7, 2010 ford taurus, new car or new taste

*New Category Entries*

-Hewlett-Packard PCs, hallmark gift items, discover card

*Joint Venture Advantages*

-Joint Venture: a strategic alliance in which partners (parents) share equity investment in a n independent entity (child). -they offer two or more companies the opportunity to *share risk* and *combine complimentary strengths.* -advantages: limit its *financial risk* as well as its *exposure to political uncertainty*. -also allows partners to achieve synergy by combining diff value chain strengths. -also it may be the only way to enter a country if the gov prohibits foreign control. (ex. in china, the only market entry method allowed to foreign auto makers is to partner with a chines automobile company)

*Promotion, Advertising, and Selling* things to keep in mind for that ^

-Legal Restrictions: islamic law bans alcohol advertising and the U.S. bans cigarette advertising on TV. -Sense of humor or sexual appropriateness: Pepsi slogan, "Pepsi Brings you Back to Life", in Chinese means, "Pepsi Brings you Ancestors Back from the Dead". lol -Use the same advertising messages globally. (ex. coca cola's, "I'd like to Teach the World to Sing" ad.) -Develop advertising specific to a region that speaks to a more targeted group of consumers.

*Licensing Advantages*

-Licencing: can generate revenue flow with little new investment; good choice for a company that possesses advanced technology, a strong brand image, or valuable intellectual property. -advantages: bc the licensee is typically a local business that produces and markets local or regional goods, it enables companies to circumvent tariffs, quotas, or similar export barriers.

Understanding the *time orientation* of one's native culture compared to others' is crucial. What's the example in the book about *time orientation*?

-When in New York, Joel made about 20 sales calls over two days because clients wanted a short sales pitch and were ready to make a decision. In Nogales, Mexico, he devoted the first 2 weeks to socializing before discussing advertising at all and only talked to about 10 clients during 3 weeks.

Is New Product Development a high risk / high reward marketing activity? Also which has a higher failure rate: *innovations or incremental brand extensions?*

-Ya bro -*innovations* have a much higher failure rate than *incremental brand extensions* (like fruit juices fortified w/ calcium)

*Product Line*

-a group of closely related products such as the Proctor & Gamble detergents.

*High brand equity provides a company with many competitive advantages such as: * Also what's the fundamental asset underlying brand equity?

-a high level of consumer brand awareness and loyalty (ex. coke) -*consumer equity:* the value of the customer relationships that the brand creates.

*Chinese Value Survey (CVS)* Long-term vs Short-term orientation:

-a long-term orientation (LTO) vs. short-term orientation (STO) is to asses the sense of immediacy within a culture (immediate or deferred?) -LTO: values include persistence or perseverance -*thrift* manifests itself in high savings rates. a *sense of shame* leads to sensitivity in social contacts. -one shouldn't put too much trust in these generalizations.

*Competitive Advantage Model* *What are the attributes that influence industry development:* (4 things)

-a model for analyzing attractiveness as a home base for industry. 1.) Factor Conditions 2.) Demand Conditions 3.) Related and Supporting Industries 4.) Firm Strategy, Structure, and Rivalry

*Branding*

-a name or symbol that identifies a particular product and differentiates it form competing products. -represent consumers' perceptions and feelings about a product -we expect a consistent level of quality every time for a brand so thats why food and agricultural commodities are often not branded.

*Enthocentric* What type of company is associated with this? What do enthocentric views lead to? How are foreign markets viewed?

-a person who assumes that his/her home country is superior to the rest of the world. -*international companies:* ethnocentric companies that conduct business outside their home country (believe that products that succeed in the home country are superior) -leads to a *standardized* or *extension* approach which is the belief that products can be sold everywhere without adaptation. -foreign markets are viewed as inferior (lower in rank) to the home market. -also headquarters knowledge is applied everywhere; local knowledge is viewed as unnecessary.

Hofstede's 5 Dimensions: *2. Individualism*

-a reflection of the degree to which individuals in a society are integrated into groups.

Hofstede's 5 Dimensions: *5. Masculinity* What is femininity? Masculine views vs Feminine views?

-a society in which men are expected to be assertive, competitive, and concerned with marital success, and women fulfill the role of the nurturer. -femininity: describes a society in which the social roles of men and women overlap, with neither gender exhibiting overly competitive behavior. (ex. spain, taiwan, and the netherlands) -masculine views = importance of achievement and possessions -feminine views = helpfulness and social support

*Multi-Branding Advantages and Disadvantages:*

-adv: establish *different features* and appeal to *diff buying motives*. also allows a co to lock up *more reseller shelf space*. -disad: each brand might obtain only a small market share. offering too many new brands can result in a company *spreading its resources too thin*.

Hofstede's 5 Dimensions: *4. Collectivist Cultures* Who is featured in ads for collectivist cultures?

-all of society's members are integrated into cohesive in-groups. (ex. japanese and other asian cultures. -ads often feature groups

*Channel Members*

-also called distributors, intermediatries, resellers, or middlemen, and membership includes wholesalers (who sell to other intermediaries) as we as retailers (who sell to consumers)

*6. Evaluation of Results*

-analysis of the performance of the new product and making appropriate modifications

*Manufacturer Brand*

-are the types of brands we commonly think of when we think of branding, ex. coca-cola, kodak, ford, kraft. -owned by the producers of the particular product. -*Individual Branding:* diff brand names are used for diff products, ex. procter&gamble detergent products include Cheer, Dash, Tide and Bold. -*Family Branding Strategy:* sony uses its name on radios, tv sets, and other electric products.

*Limitations of Competitive Advantage Model:*

-because of trade liberalization it is much easier for multinationals to operate in strong markets across the globe w/o much regard to their "home country" -also, Joel feels that the suggestion for firms to seek out the toughest rivalry and demand conditions does not take into account the difficulty of survival in the short term (even tho they may be stronger global competitors in the long run)

*PLC Stage 4: Decline*

-competition *outside* the product class *increases* due to better technology or changing taste (ex. CDs and soon DVDs) -competition *decreases within product class* -Marketing Efforts: find new uses, target *laggards* which are the last to adopt a product and slow to accept change. and low budget/costs. -Ex. smart glasses are being "cannibalized" by growing smart clothing and smart contacts sales. -*ex. on test: Department Stores*

*PLC Stage 2: Growth* -price starts in increase or decline? -marketing efforts?

-competition expands (ex. bud light and coors light enter category) -price starts to decline -Marketing Efforts: differentiate product and stimulate secondary demand (demand for brand) and attract *early adopters* or 'imitators' which are typically *role models* who provide *crucial influence* over others thru word-of-mouth communication. -ex. phillips flat-screen tv's who promote, "unique ambient lighting", or google glasses which emphasize lightweight and comfort. -other ex. air B&B, uber, social media

*PLC Stage 3: Maturity*

-competition is at its highest within the product category (almost all brewery competitors have a light beer category) *new competition outside the product category* has begun, ex. low carb beer. -Marketing Efforts: differentiation (somewhat superficial now like diff colors, flavors, etc.), *promotion increases*(highest levels of promotional expenditures are made) while *price declines* (stabilization), targets "early and late majority" which is where most people adopt the product, and try to remove risk/skepticism or new uses for new segments. -ex. google comes out with cheaper glasses in diff colors -may stay in this stage for a while ( automobiles, soft drinks, brooms, etc.)

*Stage 3: Evaluation*

-consumer decides whether or not to believe that this product or services will satisfy the need - a kind of "mental trial" -ex. after talking w/ a knowledgable friend, david decides that his camera should be able to provide him with the photos he needs to use in PowerPoint presentations. He also likes the fact that it uses "standard" floppy disks for storage.

*Stage 1: Awareness*

-consumer is first exposed to the product innovation. -ex. david sees an ad for a new digital camera in the newspaper.

*Stage 2: Interest*

-consumer is interest in the product and searches for additional information. -ex. david reads about the camera on the manufacturer's web site ad then goes to a camera store near his office and has a salesman show him the camera.

*Stage 4: Trial*

-consumer uses the product on a limited basis -ex. since camera cannot be "tried like a small bottle of a new shampoo, david buys the camera from a dealer offering a 14 day full refund policy.

*Chapter 8: Distribution*

-decisions involve managing the marketing channel, which is the pipeline of organizations through which a product passes from producer to consumer.

*Global Marketing*

-describes a company's effort in applying / adopting marketing strategy / tactics to create an integrated global marketing strategy. -it focuses its resources and competencies on global market opportunities and threats in a comprehensive manner. -random: "arguing against globalization is like arguing against the laws of gravity."

*3. Product Development*

-development of prototypes and/or the product -1.) *Prototype:* interact physically w/ consumers. ex. cars 2.) *Alpha Testing:* internal or secretive testing. (disadv=more bias.) 3.) *Beta Testing:* google - outside users test. (adv= better variety of testers.)

*1. Idea Generation*

-development of viable new product ideas -has a source of ideas: brainstorming, customer input, competitors' products and other stuff i cant read. Internal R&D maybe? idk -requires brainstorming* where groups work together to generate ideas and no idea can be immediately accepted or rejected. -quantity based. quality is not the focus rn. -*customer input* as much as 85% of new business to business product ideas come from customers. *lead users* modify existing products according to their own specific needs (ex. nike running shoes or nascar's oil, tires, etc.

*Joint Venture Disadvantages*

-disadvantages: partners much share rewards as well as risks so there is potential conflict between partners -*Foreign Direct Investment:* a higher level of involvement outside the home country can be used to establish company operations through *greenfield investment* (constructing new operational facilitates in a foreign country), *acquisition* of a minority or majority equity stake in a foreign business or taking *ownership* of an existing business entity through merger or outright acquisition.

*Licensing Disadvantages*

-disadvantages: there is *limited market control* and it *may have a short life* if the licensee develops and innovates the product or technology area well which develops them into strong competitors or even industry leaders. (ex. xerox licensed copying technology to Canon) -Cooperative alliances (global strategic partnerships (GSP)) are ambitious, reciprocal, cross-border alliances that may involve business partners in a # of diff country markets. (Japan's *keiretsu* and South Korea's *chaebol*)

Hofstede's 5 Dimensions: *3. Individualist Cultures* Who is featured in ads for highly individualistic cultures?

-each member of a society is primarily concerned with his or her own interest and those of the immediate family. (ex. the u.s. and europe) -ads often feature one person

*Advantages of Global Branding*

-economy of scale -greater brand awareness (ex. of global branding is coca cola)

*Repositionings*

-ex. arm and hammer baking soda

*5. Product Launch*

-full-scale commercialization of the product.

*Examples of The Excitement of Winners*

-gatorade -spotify -budlight -amazon.com -john deere fabreeze

*What are the main types of brands? *

-generic, private(store), and manufacturer brands.

Competitive Advantage Model Attribute #: *4. Firm Strategy, Structure, and Rivalry*

-helps to determine in which types of industries a nations's firms will excel. -local conditions affect firm strategy. for ex. german co's tend to be hierarchical and italian co's tend to be smaller and run like extended families. -typically, low rivalry makes an industry attractive, but over the long run, more local rivalry is better bc it forces firms to innovate and improve. -high local rivalry results in less global rivalry.

*Stage 5: Adoption (Rejection)*

-if trial is favorable, consumer decides to use the product on a full, rather than a limited basis. If unfavorable, the consumer decides to reject it. -ex. david finds that the camera is easy to use and the results are excellent; consequently, he keeps the digital camera.

*Adopter Categories*

-innovators: venturesome 2.5% -early adopters: respected 13.5% -early majority: deliberate 34% -late majority: skeptical 34% -laggards: traditional 16%

*Product Management*

-involves making decisions regarding the product line

*Brand Extension*

-involves the use of a successful brand name to launch new or modified products in a new category. -gives new product instant recognition and faster acceptance. -also saves high advertising costs. -risk: may confuse the image of the main brand. may harm consumer attitudes toward the other products if the brand extension fails. -ex. Law and Order --> Law and Order SVU

*Private Brands (Store Brands)* Are sales growing or declining? Advantages?

-is owned by a wholesaler or retailer. (ex. "sam's choice" and "equate" are private brands sold at wal-mart) -sales are growing, accounting for more that 20% of sales at U.S. mass merchandisers, drugstores, and supermarkets. Advantages: higher profits and positive benefit to the store's overall image.

*Supply Chain*

-is the network of business entities that support or preform marketing channel functions.

*Generic Brands* What is the area of greatest success?

-it is a low-prices product identified only by its generic name. (ex. "green beans") -area of greatest success: is in pharmaceuticals (generic drugs = market share > 50%)

*Additions to Product Lines*

-line extensions or flankers -ex. ralph lauren cologne

*Multi-Branding*

-marketing of more than two competing and almost identical products, that belongs to a single organization and is filed under diff and unrelated brands. -ex. Unilever's personal care brands (dove, axe, suave, etc)

*Direct Investment, Acquisition, or Ownership Advantages*

-may provide instant market success -offers greater control than other market entry methods

*Line Extensions* Advantages vs Disadvantages

-occur when a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes. -adv: it's a low cost, low risk way to introduce new products. risks: overextended brand name can lose its specific meaning or cause consumer confusion or frustration. also sales of an extension may come at the expense of other items in the line. -ex. Marriott hotels bc of downmarket (fairfield) and upmarket (Marquis) segments

*Co-Branding*

-occurs when two establish brand names of different companies are used on the same product. -recent resurgence and growth in co-branding -advantages: each brand dominates in a diff category and creates a broader consumer appeal and greater brand equity. -a co. can expand its existing brand w/o the difficulty of trying to do it alone. -ex. PC and Dell and HP co-brand their computers w/ Intel.

*Examples of Breakthrough Innovations that Changed Our Lives*

-personal computer, cell phones -washing macine -google -air conditioning -birth control

*Direct Investment, Acquisition, or Ownership Disadvantages*

-requires most commitment in terms of managerial effort and investment. -foreign investment may cause resentment in targeted market (negative country of ownership effect) Ex. is Anheuser Busch had negative feedback on social media so they hired Melbourne IT to manage their online reputation.

*Distribution*

-sell the product to a trading company -set up a company's own distribution network -joint venture/locate company sales agent in the target market/contact with local independent sales agents -export strategy: if a co. grows enough then they may have their own distribution facilities (a train)

*New-to-the-World Products*

-success rate = 20%, fail rate = 80% -ex. tide pods, red bull energy drink, in-line skates, kevlar, word processing software, google glasses, tesla

*New Product Development* Are new products or existing products more successful? What threatens a co when existing products are the only profitable product? Why is new product development important?

-successful *new products* are usually more profitable than successful *existing products* bc they avoid intense price competition. -note that co's that solely depend on profits of existing products are threatened by *changing consumer tastes* or *new products from competitors*. (ex. when wonder bread and hostess filed for bankruptcy bc people wanted healthier stuff vs when sara lee adapted to the low-carb healthier trend) -important from a societal perspective. They not only reflect the world we live in (reality tv, iPad, healthy foods), but new product innovations can change our lives and determine the type of world we will live in (ex. the microwave oven, the computer, hybrid automobiles)

*Technology Drivers*

-technological development, progress, achievement, innovation, etc. -*Materials:* corning's glass video -*Processes:* Deloitte & Touche's financial info analytical capabilities. -*People:* a scientist, an engineering group, even a product management group. -*Facilities:* kimbery-clark's paper making lines, white consolidated's assembly lines. -*Other:* any strong competency (industry knowledge in the beer business.

*4. Market Testing*

-testing the actual products in a few test markets -*Premarket Tests:* a.) customers exposed. b.) customers surveyed. c.) firm makes decision. -*Test Marketing:* a.) mini product launch. b.) more expensive than premarket tests. c.) market demand is estimated.

*2. Concept Testing*

-testing the new product idea among a set of potential customers -*concept* is a brief written description of the product. -customers reactions determine whether or not it goes forward -triggers the marketing research process

*The Product Life Cycle (PLC)*

-the PLC is used to understand and analyze product categories or industries. -sales and profits help describe each of the stages. *1.) Introduction*(sales and profits are low) *2.) Growth* (sales and profits start to take off) *3.) Maturity* (sales and profit growth start to slow) *4.) Decline* (sales and profits decline) -has a bell curve life cycle

*Polycentric* What type of company is associated with this? What do polycentric views lead to?

-the belief that each country in which you do business is unique. -*multinational company* -leads to a *localized* or *adaptation* view which assumes products MUST be adapted to succeed.

*Brand Equity* What is the measure of a brand's equity?

-the differential effect that knowing the brand name has on customer response to the product or service. -a measure of a brand's equity is the extent to which customers are willing to pay more for the brand. -*Brand Valuation:* the process of estimating the total financial value of a brand (difficult to meas)

Hofstede's 5 Dimensions: *1. Power Distance (PDI)* What does power distance measure?

-the extent to which the less powerful members of a society accept power to be distributed unequally. -power distance reflects the degree of trust; the higher the power distance (PDI), the lower the level of trust. -high PDI = hong kong or france -low PDI = austria or scandinavia

Competitive Advantage Model Attribute #: *2. Demand Conditions* *What are 3 characteristics of Home Demand:* they are important to the creation of competitive advantage.

-the nature of home demand conditions determines the *rate* and *nature of improvement and innovation* by the firms in the nation. *1.) Market Size:* when the market for a particular product is larger locally than in foreign markets, the local firms devote more attention to that product than do foreign firms, leading to a competitive advantage when the local firms begin exporting the product. *2.) Demanding customers:* a more demanding local market leads to national advantage. *3.) Market Sophistication:* a strong, trend-setting local market helps local firms anticipate global trends.

*Regiocentric* What is the management's goal? What type of company is associated with this?

-the region becomes the relevant geographic unit. -management's goal is to develop a regional integrated strategy (NAFTA or the EU) -it's a variant of *multinational companies* (ex. Ripley is a Chilean based retailer that has stores in Colombia and Peru so South America is their relevant geographic unit.)

Competitive Advantage Model Attribute #: *1. Factor Conditions* (5 of them) Also what is *Competitive Advantage*?

-this refers to a country's endowment with resources. *1.) Human Resources:* the quantity of workers available, the skills possessed by these workers, the wage levels, and the overall work ethic of the workforce together constitute a nation's human resource factor. *2.) Knowledge Resources:* the availability within a nation of a significant population having scientific, technical, and market-related knowledge *3.) Physical Resources:* the availability, quantity, quality, and cost of land, water, minerals, and other natural resources *4.) Capital Resources:* among countries, they vary in the availability, amount, cost, and types of capital available to the country's industries. *5.) Infrastructure Resources:* includes a nation's banking, healthcare, transportation, and communication systems, as well as the availability and cost of using these systems. -*Competitive Advantage* accuses to a nation's industry if the mix of factors available to the industry is such that it facilitates pursuit of a generic strategy. - the greater the availability of these resources, the greater the nation's advantage

*Market Drivers*

-underlying forces that compel consumers to purchase products and pay for services. Makes market develop and grow -*Customer Group or Resellers:* ski shops, european importers, ford motor co, etc. -*End Users:* all skiers, beginning skiers, professional skiers. -*End Use - Activity:* skiing, food manufacturing, etc. -*Others:* mass customizing (focusing on everyone individually, such as courtyard and dow jones personal journal), a competitor's customers, etc.

*Geocentric* What type of company is associated with this? This is a combination of what two other views?

-views the entire world as a potential market and strives to develop integrated global strategies. -*global* or *transnational companies* -it's a synthesis (combination) of ethnocentrism and polycentrism - it has a 'world view' -seeks to build a global strategy that is responsive to local needs and wants. *"think globally, act locally"* philosophy

Competitive Advantage Model Attribute #: *3. Related and Supporting Industries*

-when local supporting industries are competitive, firms enjoy more cost effective and innovative inputs. ex. japanese gov helped subsidize auto parts which ultimately benefitted the deveopment of the jap automobile industry.

*A Global Marketing Strategy (GMS) is developed in order to address the following:* (5 things)

1.) *Global Market Penetration:* the extent to which a company has operations in major world markets. 2.) *Standardization vs Adaptation:* the degree to which global, marketing-mix activities are planned and executed interdependently. 3.) *Coordination of Marketing Activities:* the extent to which each marketing mix element can be standardized (used the same way) or must be adapted (used in different ways) in different country markets. 4.) *Concentration of Marketing Activities:* the extent to which activities related to the marketing are performed in one or only a few country locations. 5.) *Integration of Competitive Moves:* the extent to which a firm's competitive marketing tactics in different parts of the world are interdependent.

*Challenges of International Business:* ( 7 main challenges)

1.) *Language Barriers:* obviously people speak different languages around the world 2.) *Currencies:* prices may change but not value, usually 3.) *Culture:* shaking hands vs bowing or monogamy vs polygamy 4.) *Geographies:* different locations 5.) *Political Issues:* -political systems: democracy or dictatorship? -economics systems: market economy(gov hands off), command economy(hands on) and mixed economy(mix of both) -political instability 6.) *Legal Differences:* ex. african gov: if current president is on currency that's a bad sign pointing towards corrupt governments. 7.) *Trade Policies and Tariffs:* trade barriers give domestic users an advantage. -benefits: environmentally good for not shipping stuff so far. -potential problems: another country may retaliate and require a tariff which causes home consumer problems and less diversity which makes us weaker in the long-run

*Stages in the Individual's Adoption Process:* (5 stages)

1.) Awareness 2.) Interest 3.) Evaluation 4.) Trial 5.) Adoption (Rejection)

*The World View of a Company's Mangement can be described as either:* (4 diff types)

1.) Enthocentric 2.) Polycentric 3.) Regiocentric 4.) Geocentric - international growth evolves from an enthocentric, polycentric, or regiocentric orientation into a geocentric orientation over time.

*How Firms Develop New Products* (6 step process)

1.) Idea Generation 2.) Concept Testing 3.) Product Development 4.) Market Testing 5.) Product Launch 6.) Evaluation of Results

*Global Marketing Entry Strategies*

1.) Licensing (contract manufacturing and franchising are 2 specialized forms of licensing) 2.) Joint Ventures 3.) Direct Investment, Acquisition or Ownership

Hofstede's Cultural Typology: *Cultures of Different Nations can be compared in terms of 5 Dimensions:* (technically 6 i guess)

1.) Power Distance 2.) Individualism 3.) Individualist Cultures 4.) Collectivist Cultures 5.) Masculinity 6.) Uncertainty Avoidance

*Reasons to not rely on Hoftede's Cultural Typology:*

1.) frameworks suggest tendencies that may be *difficult to interpret.* (the u.s. has a masculinity score of 62 compared to argentia's of 56. is this significantly diff enough to make diff promotional decisions in those 2 selling markets?) 2.) his methodology has been questioned bc it was originally built on survey responses to IBM employees in diff countries and some claim that the *questions were too limited* and the *samples were not representative enough of entire national cultures.* 3.) due to greater mobility, there is a mixing of national cultures so the *differences may be becoming smaller.* 4.) they *ignore differences in subcultures, demographics, buying preferences, etc.* (treats national cultures uniformly. so it assumse male and females ahve the same masc/fem attitude but this is highly doubtful.)

*Desirable qualities for a brand name include the following:* (6 things)

1.) it should suggest something about the product's benefits and qualities 2.) it should be easy to pronounce, recognize, and remember. short names help 3.) the brand name should be distinctive 4.) it should be extendable 5.) the name should translate easily into foreign languages 6.) it should be capable of registration and legal protection

*Factors that speed Diffusions of and Innovation:* (5 factors)

1.) large relative advantage 2.) high level of compatability 3.) easily observed 4.) uses are simple / complex 5.) easy to try (trial ability) ex. flat screen tv

*Reasons for International Trading Growth:* (5 reasons)

1.) the internet 2.) increasing trade liberalization through multilateral trade agreements (NAFTA, TPP) 3.) saturated domestic markets 4.) improved transportation/communication infrastructures 5.) growing prosperity in developing economies (ex. China)

*Strategic Alliances exhibit 3 characteristics:*

1.) the participants *remain independent* subsequent to (after) the formation of the alliance. 2.) the participants *share the benefits* of the alliance as well as control over the performance of assigned tasks. 3.) the participants *make ongoing contributions* in technology, products, and other key strategic areas.

A Manufacturer has *Four Brand Sponsorship Options* What used to dominate the retail scene? And what is the recently increasing type now?

1.) the product may be launched as a *manufacturer's brand* (or *national brand*) 2.) the manufacturer may sell to resellers who give it a *private brand* (*store brand* or *distributor brand*) 3.) other manufacturers *market license brands* 4.) two companies can join forces and *co-brand* a product -manufacturers' brands have long dominated the retail scene but in recent times, an increasing # uses their own private brands or (*store brands*)

*Why International Business?* (3 main reasons)

1.) to increase sales or market share 2.) to gain new resources / knowledge 3.) to reduce risk (in case something bad happens in a certain country's economy)

*Chapter 7: Product Management Decisions*

Product decisions are usually the *most critical* in determining *marketing success*. If a product cannon provide a distinctive benefit to the consumer, it will not survive.

T/F: Private brands can be hard to establish and costly to stock and promote.

True. -also private brands yield higher profit margins for the reseller.

New Product Development at General Mills vs. Shakespeare's Pizza Example:

level of importance is higher for general mills bc it is national but shakespeare's is also important.

*International Marketing*

the marketing of products outside of one's domestic market (currently booming with between 80-90 thousand multinational corporations)