MKTG 3110 - EXAM #2

Content Marketing

- Marketing technique of creating and distributing valuable, relevant and consistent content to attract and acquire a clearly defined audience - with the objective of driving profitable customer action -strategic approach focused on creating & distributing content that will attract & retain a clearly defined audience -Channel agnostic, i.e. look at all available channels-print, in person, online, mobile -traditional marketing doesn't work the way it used to because the customers are in control-if they don't want to pay attention, they won't -can be like butter, making the bread (i.e. traditional marketing) tase better -e.g. infographics (statistics, charts, graphs, etc.), web pages, podcasts, videos/Youtubes, books, articles, presentations, white papers, blogs

Cultural symbols

- represent ideas & concepts semiotics = study of symbols & their meaning -learn & recognize sensitive and sacred issues, e.g. Coca Cola campaign - not okay to use Parthenon; cultural sensibilities about quality -Chinese New Year Spring Festival; 15 days of celebrations Tuesday Feb.5, 2019 celebrated in China, Brunei, Hong Kong, Indonesia, Malaysia, Philippines, Singapore, Taiwan, Thailand -many people travel from cities to home towns; this is the world's biggest annual human migration big clean-up in homes (sweep away bad luck) -family union dinner with ≥ 10 course meal, featuring whole fish entrée symbolizing abundance for the whole year red; no black & white fireworks at midnight

Pepsi's famous barter deal with Russia

-1959 Pepsi introduced to Russia -1972 Pepsi concentrate bartered for Stolichnaya vodka. -1990 Pepsi barter trade with Russia reached $3 billion -2005 Coke > Pepsi in Russia -One of the earliest barter arrangements occurred between Russia and PepsiCo before the ruble was convertible and before most companies were trading with Russia. PepsiCo wanted to beat Coca-Cola into the Russian market. -1959 landmark event when Pepsi legend Donald M. Kendall, then head of Pepsi-Cola International, first introduced brand to Russians, including then-Soviet Premier Nikita Khrushchev at American National Exhibition in Moscow. -1972 Deal that ultimately brought Pepsi to Russian market hinged on famous barter agreement brokered by Kendall: Pepsi concentrate for Stolichnaya vodka. The only way possible was for PepsiCo to be willing to accept vodka (sold under the brand name Stolichnaya) from Russia and bottled wines (sold under the brand name of Premiat) from Romania to finance Pepsi-Cola bottling plants in those countries. PepsiCo dominated the cola market in Russia and all the former Soviet republics in part because of its exclusive countertrade agreement with Russia. -1990 Barter trade reached $3 billion with Pepsi trading its product not only for vodka but also for ocean going freighters and tankers which were earmarked to be sold as scrap. By this point, Pepsi Co was not just selling syrup but was expanding in fast food business via its Pizza Hut franchise. 2005 Pepsi was not able to maintain exclusivity in Russia. With Soviet collapse, Coca-Cola introduced to Russian market and captured significant market share eventually overtaking Pepsi. -After the Soviet Union was dismembered, the Russian economy crashed and most of the Russian payment system broke down into barter operations. Truckloads of aspirin were swapped by one company, then traded for poultry, which in turn was bartered for lumber, in turn to be exchanged for X-ray equipment from Kazakhstan—all to settle debts. Many of these transactions involved regional electricity companies that were owed money by virtually everyone.

Emerging Markets

-28-150 emerging markets worldwide

Importance of Earned Social Media

-70% of brand conversation takes place on earned channels -earned audiences more fully reflect the voice of the customer -earned social is 40% more likely to spur consumers to take action (twitter)

80/20 rule

-80% of company's sales come from 20% of its customers

How much world trade is there?

-A LOT (approx. $20 trillion) -US & World Trade -US Balance of Trade DEFICIT -Biggest US Trading Partners (Mexico, Canada, China, Japan, Germany)

Organizational buying criteria

-ALL LEAD TO PROFIT RESPONSIBILITY -price -quality specifications -delivery schedules -past performance -production facilities/capacity -warranty/claim policies -technical capability

Language Blunders

-Advertising slogans and company documents should be carefully translated so messages are received precisely as intended. -Japanese knife manufacturer labeled its exports to the United States with "Caution: Blade extremely sharp! Keep out of children." -English sign in a Moscow hotel read, "You are welcome to visit the cemetery where famous Russians are buried daily, except Thursday." -Sign for non-Japanese-speaking guests in a Tokyo hotel read, -"You are respectfully requested to take advantage of the chambermaids." -Sign in English at Copenhagen ticket office read, "We take your bags and send them in all directions." -Braniff Airlines' English-language slogan "Fly in Leather" was translated into "Fly Naked" in Spanish

How BIG DATA Creates Value

-BIG DATA can make information transparent & usable at much higher frequency. -As organizations create & store more data digitally, they can collect more accurate & detailed performance information, to boost performance. -BIG DATA enables finer segmentation of markets and better tailoring of products & services. -Sophisticated analytics can improve decision-making. -Development of next-generation products & services can be improved. -Organizations create and store more transactional data digitally, so they can collect more accurate and detailed performance information on "everything from product inventories to sick days, and therefore expose variability and boost performance. Leading companies are using data collection and analysis to conduct controlled experiments to make better management decisions; others are using data for basic low-frequency forecasting to high-frequency nowcasting to adjust their business levers just in time." -Big data can be used to improve the development of the next generation of products and services, e.g. manufacturers are using data obtained from sensors embedded in products to create innovative after-sales service offerings such as proactive maintenance (preventive measures that take place before a failure occurs or is even noticed).

Product (=service)

-Branding becomes very important. -Branding will distinguish particular services in consumers' minds. -Brand extensions = creative efforts to penetrate consumers' homes

BRIC

-Brazil, Russia, India, China

What is B2B Marketing?

-Business transactions between businesses -e.g. manufacturer-and-retailer, or agent-and-wholesaler -often involves middlemen -overall volume of B2B transactions > B2C transactions -typical B2B supply chain involves multiple raw materials and sub-components, whereas B2C transaction involves sale of finished product to the consumer/end-user

B2B Buyers

-Buyers are MORE demanding -They have a duty and responsibility to come to the right decision when buying on behalf of their firms -They perform fewer risks and this need quality to get it right -They have the knowledge to ascertain a bad offering or not -They are also used to getting what they really want -They are usually paying more than they would as end consumers and this expect more in return -Are likely to view themselves as interacting with the service or product supplied to them, not just playing the role of passive recipient

Semiotics

-CAN MAKE OR BREAK A BRAND -study of symbols & their meaning - closely related to the field of linguistics -studies the structure and meaning of language -every cultural phenomenon may be regarded as a communication -Studies have shown that semiotics may be used to make or break a brand. Culture codes strongly influence whether a population likes or dislikes a brand's marketing, especially internationally. If the company is unaware of a culture's codes, it runs the risk of failing in its marketing. Globalization has caused the development of a global consumer culture where products have similar associations, whether positive or negative, across numerous markets. -A good example of branding according to cultural code is Disney's international theme park business. Disney fits well with Japan's cultural code because the Japanese value "cuteness", politeness, and gift giving as part of their culture code; Tokyo Disneyland sells the most souvenirs of any Disney theme park. In contrast, Disneyland Paris failed when it launched as Euro Disney because the company did not research the codes underlying European culture. Its storybook retelling of European folktales was taken as elitist and insulting, and the strict appearance standards that it had for employees resulted in discrimination lawsuits in France. Disney souvenirs were perceived as cheap trinkets. The park was a financial failure because its code violated the expectations of European culture in ways that were offensive. -However, it is possible to pass a sign perceived as a cultural icon from one culture to another, e.g. Coca Cola; McDonald's

Geographic Segmentation

-Can be strengthened by adding past purchase behavior data -nation, religion, city, neighborhood -e.g, Campbell's sells gumbo soup in Louisiana & Mississippi -people living in the same geographic area often show similar buying patterns -reinforced by local weather, environment, culture

CIVETS

-Colombia, Indonesia, Vietnam, Egypt, Turkey, South Africa -are now touted as hot markets because they have diverse economies, fast-growing populations, relatively stable political environments and the potential to produce outsized returns in the future." -Far-flung geographically and shaped by vastly different cultural, religious and political structures, the CIVETS countries show the potential to develop quickly and reward investors willing to take on emerging market risk beyond the more-established BRIC countries, experts say. -The BRIC's combined GDP will surpass U.S.'s GDP by 2018 and that will account for half the global economy by 2020. (Goldman Sachs) -The CIVETS countries will grow at an annual rate of 4.5% during the next 20 years. (The Economist) That's far above the rate of 1.8% forecast for the world's richest -- or "G7" -- nations. -(By the way, a civet is a nocturnal, cat-like mammal found in at least two of the CIVETS countries -- Indonesia and Vietnam.) -CIVETS attractions: low labor costs, low production costs, and the countries' growing domestic markets. -CIVETS weaknesses: political instability, corruption, a lack of transparency and infrastructure, and homegrown companies without much of a reputation or brand identification. According to Wharton management professor Witold Henisz, while there are a total of 150 emerging markets worldwide, a catchy name and focus may give multinationals and investors more incentive to look toward these lesser-known countries. "An acronym is a simplification, but it calls attention to growth opportunities in rapidly growing markets abroad that managers need to come to understand," he says. -"Instead, the CIVETS are second-tier emerging markets that have relatively sophisticated financial systems and do not face runaway inflation, massive current-account deficits or public debt, according to the research firm." Published Jan.19, 2011 in Knowledge@Wharton

Why segment?

-Companies divide large heterogeneous markets into smaller segments that can be reached more efficiently & effectively with products & services that match their unique needs -Different markets have different needs -One-size-fits-all mass markets are gone -Product differentiation is used for different markets

Franchising

-Company (franchiser) supplies another company (franchisee) with intangible property over an extended period -Company has greater control over sale of product in foreign market -Primary use in service sector -must often follow strict rules about product quality, day-to-day management functions, marketing promotions. -often provide startup capital, usually management training, location advice, advertising assistance. US companies dominate the international franchising world. -Franchises for hotels have problems in Eastern Europe

Licensing

-Company owning intangible property (licensor) grants another firm (licensee) the right to use its property for a specific time -Company has less control over sale of product in foreign market -Primary use in manufacturing

Political Risk

-Conflict & Violence -Terrorism & kidnapping -Property Seizure -Policy changes -Local content requirements -Trade regulations In the broadest sense, we speak of political risk as belonging to one of two types. -Macro risk threatens all companies regardless of industry and affects both domestic and non-domestic businesses. -Micro risk threatens companies within a particular industry or even a segment of an industry. ADAPTATION incorporates risk into business strategies. Adaptation strategies: Forming informal or formal partnerships to leverage expansion plans - e.g. joint ventures, strategic alliances. Local partners can share risk of loss, and head off political disruptions of operations. Local partners can include trade unions, local companies, financial institutions, government agencies. Localizing (or modifying) operations, the product mix, or some other element (even company name) to suit local tastes and culture; e.g. Hindustan Lever (name); MTV (programming mix) -Offering development assistance to help the host country improve its distribution and communications networks and improve the quality of life for locals. Corporate responsibility programs common among MNCs overseas - support local education, social programs, water purification plants, etc. -e.g. Give A Drop is a partnership between Project Clean Water, Virgin Unite, and the Voss Foundation to address the lack of clean water in sub-Saharan Africa. Give A Drop supports water projects in Sub-Saharan Africa, implemented by the Voss Foundation and on-the-ground partners. Since 2009, Give A Drop has funded four clean water projects in Mali and Ethiopia. www.thevossfoundation.org -Obtaining insurance to protect the company against losses and to obtain project financing. Overseas Private Investment Corporation (OPIC) insures US companies investing overseas. Foreign Credit Insurance Association (FCIA) insures US exporters against loss due to various causes. -GATHERING INFORMATION improves forecasting. Sources of information include: -Employees who currently work in the country, or worked there in the recent past, and have valuable local contacts and knowledge. -Agencies specializing in political-risk services, including banks, political consultants, and risk-assessment services. Home government diplomatic resources e.g. US State Department Trade regulations e.g. Saudi Arabia bans Mattel's Barbie dolls, because symbol of Western decadence Sweden bans advertising to children Japanese car safety rules require all car replacement parts to be made in Japan EU has 10,000 rules re manufacturing & marketing goods

Marketing Information System

-Consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers

Customer Contact & Relationship Marketing

-Consumers judge services as a whole, i.e. series of steps that combine to make up the service

Strategic alliances

-Countries form these to cooperate to reduce of eliminate barriers to facilitate the international flow of products (goods), people (services), and capital -European Union -NAFTA Pros: -specialization -efficiency -trade -consumption -standards of living -political benefits Cons: -Trade diverted to cheaper countries -protectionism -national sovereignty -divergent rules/standards

Cultural Literacy

-Cross-cultural analysis -Values -Customs -Cultural symbols -Language -Ethnocentrism

Classification of Services

-Delivery by people or by equipment -unskilled or skilled labor or professionally trained -Profit or Non-profit -non-profit organizations in the US employ 10% of the work force -non-profits must satisfy consumers & donors -CAUSE marketing -Government-sponsored e.g. USPS, Fannie Mae, Freddie Mac

Growth in Emerging Markets

-Dell Listened Changes in Dell's global strategy: -Sales & distribution -'experience centers' -Quote from Steve Felice, president of Dell Asia Pacific & Japan Dell's 'signature' custom sales and direct distribution strategy has grown and changed as the company has globalized. -Emerging Markets = Emerging Economies = countries in the process of rapid growth & industrialization

Economic considerations

-Developed or developing country -Economic infrastructure - communications, transportation, financial, distribution systems -Consumer income & purchasing power -Currency exchange rates - price of one currency in terms of another Bottom of the Pyramid 2.7 billion people; < $2.50/day Microfinance - offering small, collateral-free loans to people outside conventional capital markets

Take Marketing Actions

-Effective marketing research will be translated into marketing actions, which in turn will be implemented, and finally evaluated -analytical models for sensitivity analysis (what ifs) -evaluate decision -evaluate decision process

4 Lions

-Egypt, Morocco, Tunisia, South Africa

BIG DATE = Competitive Advantage

-Future challenges associated with BIG DATA -shortage of talent with analytic skills -privacy, security, intellectual property, liability -Big data analytics tools use both STRUCTURED & UNSTRUCTURED data -the US faced a shortage of 140 - 190000 people with deep analytical skills as well as 1.5 million managers and analysts with the know-how to use the analysis of big data to make effective decisions

Countertrade

-Global marketer must know: Which markets will require this? -Eastern Europe -old USSR states -some Latin American countries -some African countries -may include 1.) direct exchange of goods 2.) part payment in goods, part in cash -In tourism -Canadian farmers supplying barley to US were offered trips to Las Vegas in exchange -The continuing growth of Third World markets coupled with their lack of investment capital has increased the importance of countertrades for most marketers, making countertrading an important tool to include in pricing policy. -Although cash may be the preferred method of payment, countertrades are an important part of trade with eastern Europe, the newly independent states (ex-USSR), China, and, to a varying degree, some Latin American and African nations. Barter or countertrades still constitute 20 - 40% of all transaction in the economies of the former Soviet bloc. Corporate debts to suppliers, payment and services, even taxes - all have a non-cash component or are entirely bartered. Today, an international company must include in its market-pricing tool kit some understanding of countertrading.

Process of Globalization

-Global transactions touch us every day -Imports & exports come from & go to remote areas -Technology & e-business facilitate spread of trade -Everyone has an example of globalization on them at any given time -Zambian craft market

GDP

-Gross Domestic Product = Monetary value of goods and services produced in a country in one year

4 Tigers

-Hong Kong, Singapore, South Korea, Taiwan

Globalization is old news

-Human beings have always moved from place to place and traded with their neighbors, exchanging goods, skills and ideas. Throughout history, Eurasia was crisscrossed with communication routes and paths of trade, which gradually linked up to form what are known today as the Silk Roads; routes across both land and sea, along which silk and many other goods were exchanged between people from across the world. Maritime routes were an important part of this network, linking East and West by sea, and were used for the trade of spices in particular, thus becoming known as the Spice Routes. -These vast networks carried more than just merchandise and precious commodities however: the constant movement and mixing of populations also brought about the transmission of knowledge, ideas, cultures and beliefs, which had a profound impact on the history and civilizations of the Eurasian peoples. Travelers along the Silk Roads were attracted not only by trade but also by the intellectual and cultural exchange that was taking place in cities along the Silk Roads, many of which developed into hubs of culture and learning. Science, arts and literature, as well as crafts and technologies were thus shared and disseminated into societies along the lengths of these routes, and in this way, languages, religions and cultures developed and influenced each other. -Silk was developed in China around 2,700 BC. It was a fiercely guarded secret process for 3,000 years. It was traded extensively, at first with neighboring countries, then further afield. Eventually the secret spread through India, Japan, then to the Persian Empire, and eventually to the West. -The most lasting legacy of the Silk Roads has been their role in bringing together cultures and peoples, and facilitating exchanges between them. On a practical level, merchants had to learn languages and culture of countries where they traveled, in order to negotiate and trade successfully. People began to travel not just for trade but to participate in intellectual and cultural exchanges. In this way, there was a spread of science, arts, literature, crafts, technology. Languages, religions and cultures developed and influenced each other. -UNESCO - SILK ROAD. Dialogue, Diversity & Development. www.unesco.org

Comparing Revenue

-If Walmart were a country, it would rank just behind Switzerland in terms of economic power. -GDP = Gross Domestic Product = monetary value of all goods and services produced in a country in one year

Protectionism hinders world trade

-Import duties on sugar are 151% in the US, 176% in Western Europe, 278% in Japan. "In Uganda the rate is only 25% and yet we are told to reduce it, and this will affect the 250,000 people involved in sugar in the country. It is a sad story" (Ugandan Sugar Producer Mr M. Mahdevi speaking of striking inequalities in the trade system that make it harder for developing countries to compete. Speaking at the Kampala meeting, Uganda, end of August 2001, Martin Kohr.) www.gatt.org -"The Multi Fibre Arrangement (MFA), started in 1974, was originally intended as a temporary agreement, however it lasted until 2005. The MFA allowed industrialised countries to apply for quotas to restrict the amount of textiles and clothing exported from developing countries to the EU and US. (Quotas restrict quantities of goods that can be imported or exported but are most often applied to imports). Developing countries have a competitive advantage in the garment sector, with significantly lower labor costs. The MFA was introduced to allow developed countries to adjust to the competition of imports from developing countries. World Bank studies have suggested that 19 million jobs have been lost in developing countries due to quota restrictions imposed by the MFA, plus 8 million due to high tariffs." http://www.ethicalfashionforum.com/the-issues/trade-tariffs-and-barriers -Since 2005, 5 - 6% of quotas and tariffs have been lifted from textiles and clothing in US and EU.

Bottom of the pyramid

-In economic terms this is the largest, but poorest socio-economic group -2.7 Billion people live on < $2.50/day

Buyer-Seller Negotiations

-Include 1.) delivery schedule 2.) price 3.) technical specifications 4.) warranties 5.) shipping 6.) currency 7.) terms

Synergy

-Increased customer value from performing organizational functions (such as marketing or management) more efficiently -e.g. more products, better quality products, lower prices, better access via better distribution

Global Companies

-International Company -Multinational Company (MNC) -Transnational Company

Networked Global Marketspace

-Internet enables exchange of goods, services & information anywhere, any time, & at lower price -global electronic commerce grown especially by B2B -most active B2B commerce countries: US, Canada, UK, Germany, Sweden, Japan, India, China, Taiwan -90% of global electronic revenue from B2B transactions among a dozen developed countries. -Marketers use networked global marketspace to access prospective consumers on every continent -e.g. Nestlé has 65 individual country web sites in > 20 languages, on 5 continents. (See next slide)

Demographic segmentation

-MOST COMMON BASIS OF SEGMENTATION -age, gender, family size, life cycle, race, income, occupation, religion, education, generation, nationality -e.g. Whole Foods targets high income, educated city dwellers, who are health or eco conscious -one group of businesses that uses this to great effect are manufactures of hair care, beauty, and other grooming products -Based on research, companies devise different ways to sell products to men and women by using different colors, music, spokespeople, and verbiage, i.e. different marketing strategies

How to segment? PT 2

-MULTIPLE products & MULTIPLE segments -P&G sells 7 brands of laundry detergent in the US -these brands compete with each other on same supermarket shelves -customers want different mixes of benefits, e.g. economy, bleaching power, fabric softening, fresh smell, strength/mildness, lost of/few suds -different priorities for each benefit -2-tier segmentation strategy (Gap Vs. BR Vs. Old Navy) -"shotgun" (scattered) approach Vs. "rifle" (focused) approach

Evidence management

-Marketers demonstrate benefits of using service to help consumers assess, compare & appreciate. Marketer of service must make service tangible to send right signals about quality

Mapping Segments

-Marketing managers can see how competing brands compare to their own products/brands by using a perceptual map -Areas where there is a cluster of ideal points indicates a market segment -A company considering the introduction of a new product/brand will look for an area on the map free from competitors

NAFTA

-North American Free Trade Agreement -POP: 444 million -GDP: $21 trillion -Members: 3 -Began in 1994 -took effect in January 1994 and seeks to eliminate trade barriers on most goods originating from North America. -The agreement calls for liberalized rules on government procurement practices, the granting of subsidies, and the imposition of countervailing duties. -Other provisions deal with trade in services, intellectual property rights, and standards of health, safety, and the environment. -Products may qualify for tariff-free status if they meet regional content requirements or if sufficient value was added to them within the NAFTA region. -Major renegotiation of NAFTA under Trump Administration

How to segment? PT 1

-ONE Product & MULTIPLE segments -e.g. Harry Potter which has sold more than 400 million copies in 68 languages -best selling series of all time

Brexit

-On June 23, 2016, Britain held a referendum to decide whether or not to remain in the EU -Leave won by 52% to 48% -How does this affect Britain's economy? -How does Brexit affect the remaining 27 EU countries? -EU law prevails until Britain stops being a member - whenever that turns out to be -Britain = England + Wales + Scotland + Northern Ireland -Value of the £ (British pound) is near a 30-year low (Britain never adopted the EU currency, €, the EURO.) This increases costs of businesses that must buy raw materials overseas It also makes local (British) exports more attractive to buyers overseas -Britain lost its AAA credit rating. This means cost of government borrowing will be higher. -Share prices have recovered; FTSE 100 & FTSE 250 (dropped 14% in 2 days after Brexit vote) indexes are trading higher than before the Brexit referendum. (FTSE = Financial Times Stock Exchange index = share index of 100 or 250 companies on London Stock Exchange with highest market capitalization. It is seen as a gauge of prosperity for businesses regulated in the UK. Equivalent in US is S&P 500; also NASDAQ and DJIA.) -Process trying to unravel 43 years of treaties and agreements covering thousands of different subjects. Brexit was supposed to take effect on March 29, 2019, but it has been extended a couple times. Its political fallout has so far caused 2 prime ministers to resign. It's a mess. -Britain will face a similar dilemma to Switzerland vis-à-vis the EU. Whatever access Britain maintains to the single market (EU), the rules will inevitably change. If Britain does not apply them automatically, it will be progressively excluded. Its biggest trading partner will make rules in which Britain has no say.

Europen Union

-POP: 500 million -GDP: $18 trillion -Members: 28 -Began in 1951 - European integration began shortly after the Second World War when a small group of Western European countries began cooperating in a few key industries. -Today, the 28-member European Union has a population of 500 million people and a GDP of $15 trillion. -Brexit is in process - Britain is in process of divorcing the European Union

Inseparability

-Physical goods are produced, then stored, then sold, and finally consumed. -Services are first sold, then produced & consumed at the same time. -Service INSEPARABILITY means services cannot be separated from their PROVIDERS, whether providers are people or machines. -If a service employee provides the service, the employee is part of the service. -Consumer may have to be physically present to receive service.

What are services?

-Professional services (physicians, pharmacists, dentists, attorneys, architects, civil engineers, teachers) -Business services (advertising, financial planning, mail, computer & data processing, consulting, training, recruiting) -Counseling services (weight loss, career planning, pastoral, psychiatric) -Transportation services (trucks, buses, taxis, limos, car rental) -Personal services (pets, health clubs, catering, barbers, hairdressers, beauticians, realtors, funeral parlors, wedding planning) Restaurants & lodging (diners, hotels, resorts) -Social services (child day care, residential care) -Maintenance services (landscaping, plumbing & electrical, equipment, cars)

Marketing in a borderless economic world?

-Protectionism -Tariffs still most common barrier to entry -Quotas discouraged by WTO -WTO deals with rules of trade between nations; ensures trade flows smoothly

Content Marketing

-Quality content that engages, makes you want to watch/read -Lego Movie is a great example -IS APART OF INBOUND MARKETING -Educate current & prospective customers -Add value -ROI is easy -Build trust -Buying cycle: AIDA

Steps to create a perceptual map

-Reposition chocolate milk to make it more appealing to adults 1.) Identify important attributes for adult drinks 2.) Find out how adults perceive various drinks in the market 3.) Find out how adults see chocolate milk 4.) Reposition chocolate milk to make it more appealing to adults

Collect relevant information

-Secondary Data (INTERNAL SOURCES), ASKING people (questionnaire data) -Primary Data (EXTERNAL SOURCES), WATCHING people (observational data)

How to segment? PT 3

-Segments of ONE: Mass Customization -Dell uses Built-to-Order systems -Computer manufacturing line restricted to a few basic models the can be assembled in 4 MINUTES -good (but limited) choice + quick delivery -BMW uses Just-In-Time manufacturing to customize care in 10 days

Inseparability Example

-Service = Service Deliverer -Consumer does not separate service from provider. -To receive an education, you attend a university. The quality of the education may be high, but if the student has difficulty interacting with the instructors, or finds some other aspect of the education bothersome (library service, availability of computers, accommodation, food, etc.), s/he may deem the whole experience unsatisfactory. Consider MOOCs. Some food service requires customer to participate in delivery of service. Piano lessons require customer participation. -ATM banking uses self-service technology but gives up interaction opportunity. Without the opportunity for relationship development, what will keep you coming back as a loyal customer? -Grocery self-service checkouts (scanning stations) facilitate independence, but not necessarily accuracy or speed. AVIS's famous "We try harder" tagline prevails on customer to notice service and effort. -"The phrase "We Try Harder" has gone down in advertising history as one of the longest-lasting and respected taglines. The origination of the slogan was not to create a cute, gimmick, but instead it was - and is -- a business philosophy that every Avis employee holds true. "We Try Harder" has helped Avis earn a reputation as one of the most admired businesses in the world." www.Avis.com

Service is 'big time'

-Service is a significant element of US & global economies >42% of GDP from services -19% of world's export trade -86% of employment comes from service sector -Today manufacturing is the dominant industry in only 7 US states, service is the rest -Health care & social assistance industries are the largest employers in 34 states -in the US, finance, insurance and real estate (FIRE) sector accounts for 20% of GDP

Service Continuum

-Services (compared with goods) can also be viewed on a spectrum. -Not all products are pure goods, nor are all pure services. -e.g. a restaurant, where a waiter's service is intangible, but the food is tangible

Intangibility

-Services are INTANGIBLE because they can't be seen, tasted, felt, heard or smelled before purchasing. -"Signals" of service quality reduce uncertainty. -Marketer of service must make service tangible to send right signals about quality = evidence management -Consumers look for "signals" of service quality to reduce uncertainty & reassure themselves. They draw conclusions about quality from the place, people, price, equipment & communications that they can see, i.e. the physical evidence.

Inventory

-Services are perishable. They cannot be stored for later sale or use. -Inventory cost of a service = cost of paying service provider + associated equipment e.g. fixed cost of idle doctor, barber, plumber, lawyer, etc. -Idle production capacity = service provider is available but there is no demand, e.g. appointment scheduling for doctors, hairdressers, lawyers, etc. -Inventory costs can be lowered by designing compensation systems accordingly, e.g. paying on commission -Value of TIME to consumers adds pressure to service providers maintaining production capacity. -Perishability of services is not a problem when demand is steady. When demand fluctuates, service organizations have challenges. -e.g. Public transportation companies have to own enough equipment to accommodate rush-hour demand. They own and operate more equipment than if demand were steady throughout the day. -Service companies often design strategies for producing a better match between demand and supply.

Define the problem

-Set research objectives 1.) Exploratory Research 2.) Descriptive Research 3.) Casual Research

Barter

-Ships for oil (1/20/2009) -Brazil proposed that South Korea supply drill ships in return for stakes in Brazil's Santos oil fields, which Korea would also manage (1/19/2010) USSR collapse in 1990s - not enough foreign currency - 50-75% Russian trade in form of barter

Develop the research plan

-Specify CONSTRAINTS (time & money) -Identify DATA needed -e.g. it might be nice to know children's favorite colors, if they prefer wood or plastic material, but rather focus on main problem, i.e. which DESIGN? -Data collection METHOD (sampling methods)

Fresh Express Example

-Target = Helen (28% of market) + Sarah (32% of market) -Target focuses on 2 key consumer groups in developing innovative new products PRIMARY TARGET -Helen: The health conscious woman -She loves salads for their natural fresh taste and uncomplicated healthy benefits. She is very open to trying new things that are real and authentic and aline to her taste and freshness SECONDARY TARGET -Sarah: The experimental salad shopper -Loves salads for the treat of trying something new and fun. The new blends appeal to her as they're an elegant salad that she can prepare fro her family and friends -Fresh Express distributes about 250 different salad, vegetable and fruit products in the US

Intangibility Example

-The Mayo Clinic -Hard to evaluate quality of hospital's service. People look for evidence they understand -Mayo Clinic offers visual clues: e.g. facilities designed to be user-friendly & convey respect & consideration. -Mayo Clinic offers experiential clues: e.g. staff well trained in "patient-first" philosophy. -Hard for average patient to evaluate quality of hospital's service. You can't try it on, return it if you don't like it, & need specialized training to understand it. Many people look for evidence of competence, caring & integrity. -Mayo Clinic carefully manages set of visual & experiential clues. Mayo offers patients & families concrete evidence of its strengths & values. -e.g. Staff at clinic are trained to act in ways that clearly communicate its 'patient-first' focus. Doctors may call patients at home to check how they are doing. -Mayo's physical facilities also send the right signals: They are designed to relieve stress, offer places of refuge, create positive distractions, convey caring and respect, signal competence, accommodate families, make it easy to find your way around. -The result of Mayo's attention to these marketing details? Exceptionally positive word-of-mouth & enduring customer loyalty. Mayo Clinic has what may be the most powerful brand in health care, and with very little advertising. -Mayo Clinic CEO John Noseworthy, M.D., was a key force behind Mayo Clinic establishing its Center for Social Media and the Social Media Health Network. In his address to the 2011 Social Media Summit at Mayo Clinic, Dr. Noseworthy offered his thoughts on the essential role of social media in the future of health care, and why Mayo Clinic is helping to lead the way in promoting effective adoption: -The Mayo Clinic Center for Social Media exists to improve health globally by accelerating effective application of social media tools throughout Mayo Clinic and spurring broader and deeper engagement in social media by hospitals, medical professionals and patients. -Mayo Clinic's Social Media Philosophy: Mayo Clinic believes individuals have the right and responsibility to advocate for their own health, and that it is our responsibility to help them use social media tools to get the best information, connect with providers and with each other, and inspire healthy choices. -Dr. John Noseworthy, Mayo Clinic CEO, established the Center for Social Media, which embraces the belief that individuals should be able to advocate for their own health, and that medical service providers should help patients use social media tools to obtain and/or connect to the best resources possible. -Interestingly, Mayo Clinic is one of Bloomberg Businessweek's Top 25 Ideal Employers

B2B is 'big time'

-The US government is the biggest single purchaser of products & services in the country -B2B accounts for > half activity in developed countries -More marketing majors being their careers in B2B than in consumer marketing

Mixed Signals

-Thumbs Up -Middle East, West Africa, South America, Iran, Sardinia, Bangladesh: rude, insulting; obscene gesture -Italy, Germany, Greece, Hungary: #1, or 'okay' -Russia, Finland, Australia: 'good', 'well done' -UK: farewell or greeting between young men -Japan: male gender -Egypt, Iraq, Israel: 'perfect' -SCUBA diving: "go up (to the surface)" Hitchhiker: "I need a ride"

US Imports and Exports

-US IMPORTS the most from China -US EXPORTS the most to Canada

World Map of Literacy

-Unless a country has a literacy rate of at least 50%, it will not be able to grow economically. -Worldwide, around 800 million adults are illiterate. -"Many policy analysts consider literacy rates as a crucial measure of the value of a region's human capital." Wikipedia e.g. Literate "people can be more easily trained than illiterate people - and generally have a higher socio-economic status; thus they enjoy better health and employment prospects. Literacy increases job opportunities and access to higher education."

Quality of services

-Users = consumers, customers, clients, patients, students, etc. -Users of services use multiple means of judging services. Examples: -price -performance of provider -quality of location -reputation -brand -prior experience -endorsement -word-of-mouth information -3rd party recommendation/ accreditation -reviews on social media -YOU MUST KNOW HOW TO JUDGE SERVICE QUALITY

Cultural appreciation

-Values -Customs -Symbols -Language

Inbound Marketing Advantages

-Works by earning attention, rather than buying it -permission based marketing -everything is digital, everything is quantifiable, i.e. easy to see ROI -building a following creates an asset

Promotion

-advertising, publicity, personal selling, sales promotion, direct marketing - to communicate benefits of service -Like for products, advertising is used to demonstrate benefits of service. -Publicity is especially valuable because it's FREE e.g. public service announcements -personal selling, e.g. 'up sell' -sales promotions, e.g. coupons, free trials, contests -direct marketing - specific markets, niches

Size of purchase order

-big -bids

Export Quota

-boost supplies of a product in a home market, such as when a country blocks the export of a natural resource -increase supply of product in home market, e.g. natural resources essential to local business or long-term survival and global price -decrease supply on world market -consumers can benefit from this if domestic producers do not cut back production and prices fall e.g. OPEC restricts supplies to the world of crude oil, in the interest of greater profit for OPEC countries

Global Brands

-brand is marketed under the same name in multiple countries, using similar and centrally-coordinated marketing programs -strong corporate identity same product formulation, same benefits, consistent advertising across borders -e.g. McDonald's' "food, fun, and families" in 120 countries/territories; some aspects customized -McDonald's' customizing: -beer in Germany -wine in France -tropical shakes in Hong Kong -kosher in Israel -no beef in India -separate eating areas for families & single men in Saudi Arabia

Supply partnership

-buyer & supplier adopt mutually beneficial objectives, policies, procedures to lower costs or increase value delivered to ultimate consumer

Gap Analysis

-can be used to identify differences between expectations and service experiences delivered. -Expectations are created from word-of-mouth communications, past experiences, organization's promotional communications. Actual experiences determined by service delivery experience. -If these two diverge (i.e. if a customer is dissatisfied), customer satisfaction may be regained depending on how well the complaint is addressed. -5 - 10 % customers voice their complaints. Others change providers and/or tell others. -Rule of thumb: 4 complaints for every 1 compliment. -The Internet provides a formidable forum for complaints to go 'viral'.

Product REpositioning

-changing the place a product occupies in consumers' minds

Off-peak pricing

-charging different prices at different times to reflect or offset different levels of demand

off-peak pricing

-charging different prices at different times to reflect or offset different levels of demand -e.g. Hotels & resorts charge lower prices in the off-season to attract more guests at those times. (These rates apply to Ichobezi river safaris, Botswana) -e.g. Restaurants hire part-time employees for busy times. -e.g. Stores hire seasonal help during holiday season shopping times. -e.g. Farmers hire extra help for harvest time.

BIG data

-collection of huge, complex data sets -difficult to capture, archive, manage & process using traditional tools & methods of analysis

Indirect Exporting

-company sells to a buyer (importer or distribution) in home country, who in turn exports the product

Direct Exporting

-company sells to a customer in another country -most common initial approach

Nielsen Total Audience Report

-contrasts radio and TV for new consumption -Nielsen's Total Audience Report for Q4 2016 (4th quarter of 2016) placed a focus on news. The results showed how much of a role radio plays in news consumption for U.S. adults. -The weekly gross amount news consumption on radio in PPM markets rose from 10.5 billion minutes in 2015 to 11.5 billion minutes in 2016. Radio trailed behind all three television outlets, with national cable TV news leading at 27.1 billion minutes in 2016. Local broadcast TV news in LPM markets secured 15.1 billion minutes while national broadcast TV news had 14.3 billion minutes. -(PPM = Portable People Meter = Nielsen Meter = system developed by Arbitron (now Nielsen Audio) to measure how many people are exposed or listening to individual radio stations and TV stations, including cable TV.)

Earned social media

-conversations about you -what people are saying ABOUT YOU -Engaged audiences -anyone's electronic discussions or remarks about your product/service

Owned social media

-conversations you control -What people are saying TO YOU -Fans/critics -your company web site, your Facebook page, your Twitter handle

Emerging Markets

-countries in the process of rapid growth & industrialization =Emerging Economies = countries in the process of rapid growth & industrialization

People

-create & deliver services - integral in delivering customer service experience -Many services depend on people for creation & delivery of service experience. -Customers often judge quality of service experience based on performance of provider. -Training programs can be critical in preparing providers appropriately and in ensuring consistent quality. -e.g. Starbucks, Disney, Ritz-Carlton

Behavioral segmentation

-customer knowledge, attitudes, uses or responses to a product -e.g. occasion (breakfast - orange juice), benefits sought (P&G detergent), loyalty (brands, stores, companies; completely or somewhat loyal) -usage rate (light, medium, heavy - fast food)

Derived Demand

-demand for industrial products & services is driven by demand for consumer products & services -The demand for industrial goods is ultimately derived from the demand for consumer goods -A single consumer market demand can give rise to hundreds of business market demands -is the demand for a basic good, not for its own sake but for the product it helps create -e.g. demand for textiles is derived from demand for clothing

Balance of Trade

-difference between a nation's imports & its exports

Analytics

-discovery and interpretation of meaning fully patterns in data -helps organizations make better decisions using new insights from volume & variety of BIG DATA

Why do currency values matter?

-exchange rates affect demand -Exchange rates can increase or decrease world prices and, therefore, demand for a nation's exports. -Exchange rates affect activities of both domestic and international firms -weak currency (valued low versus other currencies) price of exports decreases and price of exports increases -strong currency (valued high versus other currencies) price of exports increase and price of imports decreases

Barter/Countertrade

-exchanging goods or services which are paid for, in whole or part, with other goods or services, rather than with money

Primary data

-facts and figures collected specifically for this project -newly collected -observational data (watching people) -questionnaire data (asking people) -other sources -Facts & figures: specifically collected for this project -Advantage: customized -disadvantages: expensive + time consuming

Secondary data

-facts and figures that have been collected and recorded before the current project, and usually by other parties -previously collected -can be INTERNAL (from records inside the company) or EXTERNAL (from sources outside the company) -facts & figures: already recorded inside or outside the company -advantages: already exists + low cost -disadvantages: out of date; categories can be "off" for project -sales reports, customer inquiries/complaints (internal sources) -census bureau, trade associations, business journals, syndicated panel data, scanner data (external sources)

Globalization Today

-farther, faster, cheaper, and deeper -barriers to trade PRO: poor countries develop economically & raise standards of living Con: Growth of international free market benefits MNCs at expense of locals -Globalization = process of interaction and integration among the people, companies, and governments of different nations driven by international trade & investment, and aided by technology effects on environment, culture, political systems, economic development, & human physical well-being in societies around the world many current features are similar to features before World War I in 1914 -Distinguishing this current wave of globalization from earlier ones, author Thomas Friedman has said that today globalization is "farther, faster, cheaper, and deeper." This current wave of globalization has been driven by policies that have opened economies domestically and internationally. In the years since the Second World War, and especially during the past two decades, many governments have adopted free-market economic systems, vastly increasing their own productive potential and creating myriad new opportunities for international trade and investment. Governments also have negotiated dramatic reductions in barriers to commerce and have established international agreements to promote trade in goods, services, and investment. Taking advantage of new opportunities in foreign markets, corporations have built foreign factories and established production and marketing arrangements with foreign partners. A defining feature of globalization, therefore, is an international industrial and financial business structure. Technology has been the other principal driver of globalization. -Globalization is deeply controversial, however. Proponents of globalization argue that it allows poor countries and their citizens to develop economically and raise their standards of living, while opponents of globalization claim that the creation of an unfettered international free market has benefited multinational corporations in the Western world at the expense of local enterprises, local cultures, and common people. Resistance to globalization has therefore taken shape both at a popular and at a governmental level as people and governments try to manage the flow of capital, labor, goods, and ideas that constitute the current wave of globalization. Globalization 101. A project of SUNY Levin Institute

Customer contact audit

-focus on service encounter opportunities, when there is interaction between providers and consumers -Think of bank tellers vs ATMs -This is valuable in high-contact services, e.g. hotels, schools, car rental agencies

Questionnaire data

-from people's responses about attitudes, awareness, intentions, behaviors

Tariffs

-government tax on goods entering or leaving a country -directly increases price of imported product (more expensive + less appealing 1.) Export Tariff 2.) Transit Tariff 3.) Import Tariff Advantages: -Protect domestic producers - raises the cost of imports relative to domestically produced goods -increase government revenue - A LDC (less-developed country) may impose an import or export tariff because it has difficulty recording and taxing domestic transactions which should be reduced as a country develops Disadvantages: -Domestic producers less competitive and less efficient -increase consumer prices Tariffs can protect domestic producers because an import tariff raises the cost of imports relative to domestically produced goods.

Perceptual map

-graphing the locations of products or brands in consumers' minds, so marketing managers can see how competing products/brands compare to their own products/brands -shows a picture of how customers perceive different competitors

Market segments

-groups of consumers with common needs & similar responses to marketing stimuli -Zappos (online shoe retailer, customer-focused) illustrates this carefully -"We refer to her as the happy hunter. She is 25 to 49 years old and has a medium household income of $75,000-plus. She is most likely well educated and married with kids." -Zappos target customers want a wide selection of shoes, online shopping convenience, and guaranteed quick delivery and free returns -75% of Zappos customers are repeats. > 8 million customers; 5000 calls per day

Casual Research

-how change in one factor causes change in another factor -e.g. Would a 10% reduction in tuition at a private college boost enrollment enough to offset the reduced tuition?

Content Marketing Football Example

-if content marketing were a football field, inbound marketing would get to the 35-yard line -definitely critical, but hard to score from that distance -once you've attracted the attention of your target customer (via inbound marketing and/or other methods), you need to nurture that customer until s/he ultimately becomes a customer, and then pay attention to retention and loyalty -relationship management is in play here too

Physical environment

-important influence on customers' perception of service -Physical evidence can be important influence on customer experience. -Tangibles: buildings, landscaping, vehicles, furnishings, signage, printed matter, equipment -e.g. Port Louis, Mauritius -Heritage Awali Resort, Mauritius

Organizational buying objectives

-increase profits via reduced costs or increased revenue -are usually more complex than those of individuals; similarly with organizational purchase decisions regarding those needs and wants -can include supporting particular groups/businesses, e.g. women/minority vendors/suppliers, environmentally responsible companies, organizations that embrace efficiency

Reciprocity

-industrial buying practice where two companies agree to buy each other's products & services -a waiter's tips increased by 3% when diners give a mint, 14% when they're given two mints, when the waiter left one mint with the bill but quickly returned to offer a second mint, the tips increased by 23% -example: a customer who spends $50 or more on your Web site might earn a coupon good for a discounted purchase on your partner's site

Unstructured data

-information, in many different forms, that doesn't conform to conventional data models and this typically isn't a good fit for a mainstream relational database -one popular use is CUSTOMER ANALYTICS -social media is a common and rich source of this -is raw and organized -e.g. email, video and audio files, images, sensor date, server logs, and text files

Internet marketing

-initially focused on domestic sales. -International internet marketing developed from companies receiving orders from customers overseas.

Services

-intangible activities or benefits provided in exchange for money or something of value -any activity or benefit that one party can offer to another, that is essentially intangible and does not result in ownership of anything

Questionnaire data

-interviews - individual, in-depth, focus group -questionnaires - personal, mail, phone, online -open-ended questions - collect ideas, opinions -closed questions - fixed choices -dichotomous (binary) questions - yes/no -semantic differential questions - 5-point scale -likert scale questions - extent agree/disagree -idea generation methods -idea evaluation methods

Just in time inventory management system

-inventory management system reduces inventory of production components to those to be used within hours or days

Industrial Demand

-is DERIVED DEMAND -i.e. it develops from demand for consumer products & services

Government sponsored enterprise (GSE)

-is a financial services corporation created by the US Congress. -Its function is to enhance the flow of credit to targeted sectors of the economy and to make those segments of the capital market more efficient and transparent. -Residential mortgage borrowing segment is biggest GSE.

Joint Venture (JV)

-is a separate company that is created and jointly owned by 2 or more independent entities to achieve a common objective. -partners can be privately owned companies, government agencies, government-owned companies -There may be multiple partners -Each partner is expected to bring valued contribution to partnership, e.g. managerial talent, marketing expertise, production technology, financial resources, R&D, local connections Advantages: -reduce risk by sharing investment -penetrate markets usually reserved for locals -access to local party's distribution channels Disadvantages: -partner conflict if objectives change, cooperation & trust fade -control may be unpredictable if local government involved in JV

Body Language

-is communicated through unspoken cues, including hand gestures, facial expressions, physical greetings, eye contact, and the manipulation of personal space. -People use it to communicate information and feelings and it differs significantly among cultures.

Structured data

-is highly organized, mechanized, manageable information -such as the transaction data in financial systems and other business applications, conforms to a rigid format to ensure consistency in processing and analyzing it

Size of market

-is small

International Trade

-is the exchange of capital, goods, & services across international borders -Without this, nations would be limited to the goods and services produced within their own bordersMeMit

World Trade Organization (WTO)

-is the international organization that regulates trade between nations -it seeks to promote and facilitate international trade and remove barriers to trade -since 1955 -164 member counties -23 observer countries

Unique Features of Services

-is used and consumed simultaneously -the use is subjectively experienced, meaning that several persons experiencing a service would each experience it uniquely -Services (compared to goods) can also be viewed as a spectrum. Not all products are pure goods, nor are all pure services -ex., a restaurant, where the waiter's service is intangible. but the food is tangible

Ethnocentrism

-judging others relative to one's own group or culture, especially regarding language, behavior, customs, religion -e.g. hanging laundry outside to dry - US vs Australia

Import Quota

-limit the quantity of an import and thereby protect domestic producers and help them to maintain market shares and prices -can also force non-domestic firms to compete for market access by lowering prices or by giving other concessions -protects domestic producers, consumers often suffer higher prices and fewer product choices -companies that rely on imported goods in the manufacture of their products can also suffer from this -foreign companies compete for market access -Decreases competition and consumer choices -Increases consumer prices -limit the quantity of an import and thereby protect domestic producers and help them to maintain market shares and prices. Import quotas can also force non-domestic firms to compete for market access by lowering prices or by giving other concessions. -Although domestic producers obtain protection from import quotas, consumers often suffer higher prices and fewer product choices. Companies that rely on imported goods in the manufacture of their products can also suffer from import quotas. -e.g. Textile & apparel products (subject to Multi-Fibre Arrangement, expired in 2005) -U.S. milk producers pay no tariff on low-fat milk if it is imported into Canada within the quota allocation, but a whopping 241% tariff outside the quota. www.howtoexportmore.com

Productivity

-limited capacity due to inseparability -Inseparability of service & provider means the service capacity is limited. -Challenges to match demand with supply = capacity management e.g. airline contracts, price codes, etc. -Technology will be key. -"Think global and act local" to optimize service quality.

Archive data

-maintain and store data so it is available for later use and preservation -ACTIONABLE INTELLIGENCE

Relationship marketing

-managing relationships with current and future customers/clients, in order to retain their support in the long term -Understanding service characteristics that lead to repeat purchases can help service managers allocate their resources to appropriate relationship marketing activities. -relationship requires balance of loyalty, benefits, & privacy

Values

-modes of conduct that prevail over time -e.g. McDonald's does not sell beef in India (40% Indians do not eat meat); Maharaja Mac = Big mac made with chicken patties instead of beef

Buyer-Seller Relationships

-negotiations can be complex & lengthy -reciprocity -supply partnerships -e.g. Walmart with vendors through Retailink

Customs

-normal & expected behaviors in a country gift-giving is common and an art form in many countries, but there is line between gifts and bribes -FCPA = Foreign Corrupt Practices Act - US corporations are not permitted to bribe foreign officials (etc.), no matter the prevailing customs.

Traditional (outbound) marketing

-not as effective as it once was -45% of direct mail never gets opend -200 million people are on the national Do Not Call Registry -85% of people fast forward through commercials -84% of 25-35 year olds are likely to click off a website with excessive advertising -You have a better chance of surviving an airplane accident that having someone convert on a banner ad

Dumping

-occurs when company exports a product at a price that is either lower than the price normally charged in its domestic market, or lower than the cost of production -WTO settles disputes that involve the granting of subsidies and this

Microfinance

-offering small, collateral-free loans to people outside conventional markets

E-Marketplaces

-online trading communities that bring together buyers & supplier organizations

Non-profit organizations

-organizations whose principle aims in life are focused on causes rather than on marketing profits -distinguished by tax status -Marketing is unfamiliar to many non-profit organizations, but is essential to their success

Ann Taylor segmentation

-original Ann Taylor chain targets sophisticated women -Ann Taylor Loft targets women seeking moderately priced, trendy, clothes they can wear to work

Banner ad

-popular form of website advertising -trying to promote a brand and/or to get visitors from the host website to go to the advertiser's website

Currency exchange rates

-price of one currency in terms of another

Process

-procedures, mechanisms & flow of activities involved in providing service -Creation & delivery steps that provide evidence on which consumer judges the service. -"WHAT" is created + "HOW" it is created Customer contact audit can serve as basis for improving service creation & delivery process. -e.g. oil change service; hospital experience

Marketing research

-process of defining a marketing problem and opportunity, then systematically collecting and analyzing information, and recommending actions -can help understand customer satisfaction & purchase behavior, assess market potential & market share & measure the effectiveness of pricing, product, distribution and promotion activities

Globalization

-process of interaction and integration among the people, companies, and governments of different nations -driven by international trade & investment, and aided by technology -effects on environment, culture, political systems, economic development & human physical well-being in societies around the world -many features are similar to features before World War 1 in 1914

Foreign Direct Investment

-purchase of physical assets or a significant ownership share of company overseas, in order to control management -usually involves management participation, joint venture, transfer of technology or expertise, or any combination -focuses on productive assets: factories, land, organizations -can be made by individuals, private or public companies, governments, or any combination -The U.S. Commerce Department stipulates that stock ownership of at least 10% constitutes FDI. -Most governments set the FDI threshold at 10 - 25 % of stock ownership in a company overseas.

Usage rate

-quantity consumed or number of store lists during a specified period of time -e.g. US seafood market; <5% of shoppers buy 64% of unbreaded seafood -2.6% of shoppers buy >54% of breaded seafood (fish sticks, fish fillets)

back translation

-re translating by different translators, in order to catch errors

Product positioning

-refers to place a product occupies in consumers' minds on important attributes relative to competitive products -the way the product is defined by consumers on important attributes -e.g. Tide is positioned as a power, all-purpose, family detergent; Ivory Snow is positioned as a gentle detergent for fine washables & baby clothes -product repositioning -position by differentiation or head-to-head -ex. Car Market

ISO 9000

-refers to standards regarding quality systems -It is an internationally recognized family of quality standards -international organization for standardization

Syndicated panel data

-requires consistent data collection over time, usually using electronic diary -e.g. Nielsen Media Research, JD Power & Associates

Business to Business (B2B) marketing

-requires understanding of business markets & business buyer behavior -also called industrial marketing -more marketing majors begin their careers in this

Quotas

-restriction imposed on quantity of a product allowed to enter or leave a country -MOST COMMON NON-TARIFF BARRIER

Normal Trade Relations

-says that members must extend the same favorable term to all members that they extend to any single member -WTO rules force members to follow the nondiscrimination principle

Idle production capacity

-service provider is available but there is no demand

GATT

-set of rules governing international trade -General Agreement on Tariffs and Trade

Protectionism

-shielding one or more industries in a country from foreign competition, usually using tariffs, sometimes quotas

Psychographic segmentation

-social class, lifestyle, personality -e.g. Pottery Barn customers want furniture that meshes with their lifestyles

Other Sources

-social networks -data mining -panels & experiments

Supplier Development

-systematic development of networks of supplier-partners to ensure appropriate and dependable supplies of products and materials used in making their own products

Inbound Marketing

-technique for attracting customers to products/ services via content marketing, social media marketing & search engine optimization -marketing strategy focused on attracting, educating, and empowering consumers via relevant content that helps them and guides them until they are ready to purchase your product or service

Market segmentation

-the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups

International Company

-trades overseas as extension of marketing at home -e.g. Avon

Ethnographic Research

-trained observers endeavor to discover subtle behavioral and emotional reactions as consumers use products in their natural environment, like homes/cars -personal observation is useful but expensive; being very specific is useful but limiting

Cross-cultural analysis

-understand & appreciate values, customs, symbols & language of other cultures

Multinational Company (MNC)

-uses multidomestic strategy, using many different brands & variations for different markets -e.g. Unilever

Product differentiation

-using selected marketing mix activities (e.g. product features & advertising) to help consumers perceive a product as being different from and superior to competitive products

Cultural diversity

-values, customs, symbols -language problems

Language

-verbal & non-verbal communication -back translation

Transnational Company

-views world as one market; focuses on cultural similarities across countries, or universal consumer needs & wants; global marketing strategy standardizes marketing activities -e.g. Caterpillar, Swatch, Coke, Pepsi, Nike, McDonald's

Global Competition

-when companies originate, produce & market their products & services worldwide -widens competitive landscape for marketers -can give rise to global strategic alliances -Global competitors: Coke vs Pepsi; Pampers vs Huggies; Boeing vs Airbus -Global alliance: e.g. Cereal Partners = Nestlé + General Mills. This alliance produces > $2b sales in > 130 countries.

Cannibalization

-when new products or a new chain steals customers and sales from its old, existing products or stores

Market Entry Strategies

1. Exporting 2. Licensing / Franchising 3. Joint Ventures 4. Foreign Direct Investment

Develop findings

1.) Analyze the data -Interpret results -Draw conclusions 2.) Present findings -Keep it simple (K.I.S.S) -Keep it objective -Offer different interpretations where relevant

Buying cycle: AIDA

1.) Awareness (prior to awareness a customer may have a need, but may not be aware there is a solution 2.) Interest (once a customer is aware a solution exists. he will do research to educate himself. ex., a manufacturer will try to find out what different types of machines exist, and which one will fit his needs) 3.) Decision (at this point customers start comparing different products from different vendors to make sure they're getting high quality products at fair prices) 4.) Action (finally, the customer makes their decision and moves forward with the transaction)

5 step marketing research approach

1.) Define the problem 2.) Develop the research plan 3.) Collect relevant information 4.) Develop findings 5.) Take marketing actions

Ways to segment

1.) Geographic 2.) Demographic 3.) Psychographic 4.) Behavioral -segmenting makes the parts GREATER than the whole

Why is demand for services growing so fast in the US?

1.) Increased affluence - As consumers have raised their standard of living, they have increasingly chosen to purchase services such as lawn maintenance & carpet cleaning that they previously took care of themselves. 2.) Increased leisure time - Some segments of the population have been able to garner larger chunks of free time; this trend, coupled with increased wealth, has spurred a higher demand for certain service businesses such as travel agencies and resorts, adult education courses, guide services, golf courses, health clubs, etc. 3.) Greater life expectancy - This development has had an impact on certain service sectors, particularly in the health care industries. 4.) Changing work force demographics - Over the past few decades, increasing numbers of women have entered the work force. This has spurred greater demand for services like child care, housekeeping, dry cleaning, etc 5.) Increased complexity of products technological advancement - High-tech products have created a corresponding increase in demand for specialists who can fix and maintain those products, e.g. computers, cars, electronic equipment, etc. 6.) Increased complexity of life - Many service sectors have enjoyed tremendous growth because of their orientation toward helping individuals and businesses stay on top of the many facets of today's fast-paced society, e.g. tax preparers, psychiatrists and counselors, legal advisors 7.) Increased environmental awareness - General trends toward increased ecological sensitivity and enlightened natural resource management practices have spurred growth in environmental service sectors, e.g. waste management, recycling, environmental advocacy. 8.) Increased number of available services - Technological advances have spurred development of service industries, e.g. programming

Unique Features of B2B markets

1.) Industrial demand 2.) Size of purchase order 3.) Size of market 4.) Organizational buying objectives 6.) Buyer-Seller Relationships 7.) Buying Center

4 I's of Services

1.) Intangibility - they can't be held, touched, or seen before purchasing 2.) Inconsistency - hard to standardize 3.) Inseparability -from the people who deliver those services 4.) Inventory - carrying costs of services are related to idle production capacity, when the service provider is available but not "in use." consider the fixed costs of standing ready to provide a service on demand

Exporting

1.) Internet marketing 2.) Direct exporting 3.) Indirect Exporting 4.) Direct sales -accounts for 10% of global economic activity -Can either be direct or indirect

Observational Data

1.) Mechanical Methods -Nielsen's TV Ratings (guarantees the production of reliable, independent and transparent television audience measurement data) -what about TiVo? -people skipping commercials? 2.) Personal Methods -mystery shopper -ethnographic research 3.) Neuro-marketing methods -brain scanning -mechanical methods -personal methods -neuro-marketing methods

B2B Stages in buying process

1.) Problem recognition (make/buy decision) 2.) Information Search - (can include value analysis, i.e.systematic appraisal of deign, quality, performance of product to reduce purchasing cost) 3.) Evaluation of options 4.) Purchase decision 5.) Post-purchase behavior

8 P's of Marketing Services

1.) Product (service. Branding becomes more important for services than products) 2.) Price - charges, fees, tuition & rates 3.) Place (distribution) - provides access & convenience 4.) Promotion - advertising, publicity, personal selling, sales promotion, direct marketing - to communicate benefits of service 5.) People - create & deliver services - integral in delivering customer service experience 6.) Physical environment -important influence on customers perception of service 7.) Process - procedures, mechanisms & flow of activities involved in providing service 8.) Productivity - limited capacity due to separability

Social Media in Market Research

1.) Track trends with social media for real-time insights - search latest posts, use popular terms, get insight into trends; see what customers are talking about; e.g. use hashtag search on Twitter and receive instant notifications when customers, clients and competitors use key words. 2.) Improve marketing communication by learning the language used by customers - listen to what customers are saying about value, quality and other important terms; create brand/image customized to your target market. 3.) Use real-time advantages of social media research to short-cut feedback about marketing effectiveness -Traditional market research methods (surveys, study groups) can take months to plan and execute. Social media research can be done in minutes or hours. 4.) Social media can broaden the scope of market research - A Nielson report (2011) on the state of social media found that ±80% of people with Internet access use social media. This makes it possible to conduct market research with an audience many times bigger than any other media source. Social media is casual and easy, making its information useful, accurate and honest. 5.) Discover unnoticed trends & insights by engaging rather than leading - A significant weakness of conventional market research is that its driven by questions. So accurate questioning is crucial. Your market research is only as good as your questions. When social media is the source of information, the researcher can just observe, or interact, either way not leading the discussions. Otherwise hidden insights may come to the fore. 6.) Improve cost efficiency - Conventional market research (focus groups, panels, studies and surveys) is expensive, due to the time and cost of trained people needed to perform the research. Free tools exist for many social media platforms to help gather and scrutinize information.

Big Data Issues

1.) Volume (increasing amount of data) 2.) Velocity (speed of data in and out) 3.) Variety (range of data types and sources) 4.) Veracity (accuracy)

What grows global markets?

1.)Globalization 2.)Greater access to markets 3.)Global Competition 4.)Multinational Corporations

Price

= charges (hospitals, hotels); fees (doctors, lawyers, accountants, consultants); fares (airlines, taxis, trains); rates (hotels); tuition (educational institutions) -Price as a quality cue -Pricing can be used as a tool to manage demand, e.g. off-peak pricing

Place

= distribution - provides access & convenience -Place is a major factor in marketing strategy because of INSEPARABILITY of service provider. -Consumer usually must go to service provider's physical location to purchase or receive service. Technology is used to deliver services remotely. Electronic dissemination is increasingly valuable e.g. education, travel, entertainment

inconsistency

= variability of quality -Quality of services depends on who provides them; also when, where & how they are provided. -Quality varies with each person's capabilities & day-to-day performance. -Inconsistency is more of a problem for services than for goods. -Organizations try to minimize inconsistency by standardization & training.

WTO members and observers

Consensus decisions levels the playing field - especially beneficial for smaller countries. Afghanistan is the newest member of the WTO; member #164; joined in December 2015.rka

Big Data + Analytics

businesses make smarter decisions + improve productivity + make better predictions

Descriptive Research

describe research potential or demographics of consumers

Direct Sales

especially for high tech & big ticket industrial products

Exploratory Research

helps define problem and suggest hypothesis

Research objectives

specific measurable goals of marketing research

Neuro marketing research

using brain scanning to analyze consumer responses

Why countertrade?

when cash reserves are low