Marketing Chapters 6-11

Shopping product

Consumer good that the customer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price, and style

Unsought product

Consumer product that the consumer either does not know about or knows about but does not normally think of buying

Convenience product

Consumer product that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort

Specialty product

Consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort

Product Life Cycle

Describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline

industrial espionage

Gathering corporate information illegally or unethically

Trademark

Identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it

Competitive Forces

In addition to considering the types of competition (i.e., brand, product, generic, and total budget competition) and types of competitive structures (i.e., monopoly, oligopoly, monopolistic competition, and pure competition), a) Be aware of competitive forces in countries being targeted b) Identify the interdependence of countries and the global competitors in those markets. c) Be mindful of a new breed of customer: the global customer.

The World Trade Organization (WTO)

International organization dealing with the rules of trade between nations Officially founded in 1995 Successor to GATT 153 members representing 95% of global trade

Influence of Sociocultural Forces

Marketing activities are influenced by beliefs and values regarding family, religion, education, health and recreation

Consumer product

Product bought by final consumer for personal consumption

Industrial product

Product bought by individuals and organizations for further processing or for use in conducting a business

Market Modification

Strategies in which a company tries to find new customers, increase a product's use among existing customers, or create new use situations

Product Modification

Strategies that alter a product's characteristic, such as its quality, performance, or appearance, to increase the product's value to customers and increase sales

Product quality

The ability of a product to perform its functions—it includes the product's overall durability, reliability, precision, ease of operation and repair, and other valued attributes

Packaging

The activities of designing and producing the container or wrapper for a product

Brand Equity

The added value a brand name gives to aproduct beyond the functional benefits provided

Brand equity

The positive differential effect that knowing the brand name has on customer response to the product or service

Product mix (or product assortment)

The set of all product lines and items that a particular seller offers for sale

Analytics Software

allows managers who are not computer experts to gather all kinds of different information from a company's data bases

open-ended questions

ask respondents to elaborate

double barreled questions

asking two questions in the same question

Clickstream data

data generated about the number of people who visit a Web site and its various pages, how long they dwell there, and what they buy or don't buy

depth interview

engaging in detailed, one-on-one, question and answer sessions with potential buyers--is an exploary tory research technique

Causal research design

examines cause-and-effect relationships

descriptive research

gathering hard numbers, often via surveys to describe or measure a phenomenon so as to answer the questions of who, what, where, when, and how.

reliable

if you repeated the study and the same results would occur

scanner-based research

information collected by scanners and checkout stands

Primary data

information you collect yourself, using hand-on tools such as interviews or surveys

market intelligence

involves gathering information on a regular, ongoing basis to stay in touch with what's happening in the marketplace

case study

looks at how another company solved the problem that's being researched

intranet

looks like the web and operates like it, but only ana organizations employees have access to the information

marketing research aggregator

marketing research company that doesn't conduct its own research and sell it. it buys it from one company and sells it to another.

physiological measurements

measure people's involuntary physical responses to marketing stimuli, such as an advertisement

probability sample

one in which each would-be participate has a known and equal chance of being selected

test market

place the experimented is conducted or the demographic group of people the experiment is administered to

focus group

potential buyers who are brought together to discuss a marketing research topic with one another

syndicated research

primary data that marketing research collect on a regular basis and sell to other companies

Marketing research

process of collecting, analyzing, and reporting marketing information that can be used to answer questions or solve problems so as to improve a company's bottom line

data mining

process of extracting information from large data bases to uncover patterns and trends

data cleaning

process of removing data that has accidentally been duplicated or correcting data

market research

process of research a specific market to determine its size and trends

Importing and Exporting

require the least amount of effort and commitment of resources.

ethnography

researchers interview, observe, and videotape people while they work, live, shop, and play

nonprobablity sample

sample that's not drawn in systematic way

9 Environmental Forces in International Markets

sociocultural, economic, political, legal, Regulatory, Ethical and Social, competitive and technological forces

back translation

speaker translates to one language than back to the other.

sample

subset of potential buyers that represent entire makret

International marketing

the development and performance of marketing activities across national boundaries.

Internationally Integrated Structures

• Firms with internationally integrated structures are most likely to engage in direct ownership internationally • Three most common: product division, geographic and global matrix

Economic Forces Global marketers must understand:

• International trade systems • Economic stability/instability of nations • Trade barriers • Economic disparities between nations

Multibranding

A branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment

Private Branding

A branding strategy used when a company manufactures products but sells them under the brand name of a wholesaler of retailer. Also called private labeling or reseller branding

Mixed Branding

A branding strategy where a firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market

Trade Name

A commercial, legal name under which a company does business

Franchising

A form of licensing in which a franchiser, in exchange for a financial commitment, grants the franchisee the right to market a product in accordance with the franchiser's standards

Brand

A name, term, sign, symbol, or design, or a combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors

Product

Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need

Trading Down

Reducing the number of features, quality, or price

research objective

goal the research is supposed to accomplish

research design

plan of attack

valid

tested what it was designed to test

marketing information system (MIS)

way to manage the vast amount of information firms have on hand--information marketing professionals and managers need to make good decions

exploratory research design

when you are initially investigating a problem but you haven't defined it well enough to do an in-depth study of it.

Political, Legal and Regulatory Forces

• A nation's legal and regulatory infrastructure reflect its political situation

Export Departments

• A subunit of the marketing department • Not present in all firms

Technological Forces

• Email • Interactive web systems • Instant messaging • Podcasting

Packaging

A component of a product that refers to any container in which it is offered for sale and on which label information is conveyed

Brand Licensing

A contractual agreement whereby one company (licenser) allows its brand name(s) or trademark(s) to be used with products or services offered by another company (licensee) for a royalty or fee

Warranty

A statement indicating the liability of the manufacturer for product deficiencies

Licensing

An alternative to direct investment that requires a licensee to pay commission or royalties on sales or supplies used in manufacturing An attractive alternative when: Resources for direct investment are not available Product sold is outside the core competency of a company A foreign country is politically unstable

Service

Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything

Brand Name

Any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller's goods or services

International Divisions

Centralizes all of the responsibility and communications related to international operations

Product Class

Consists of the entire product category or industry

Product Form

Consists of variations of a product within the product class

Social marketing

The design, implementation, and control of programs seeking to increase the acceptability of a social idea, cause, or practice among a target group

secondary data

already been collected by someone else for another purpose

field experiment

an experiment conducted in a natural setting such as a store

closed-ended questions

limit respondents answers

Trading Companies

links buyers and sellers in different countries but is not involved in manufacturing and does not own assets related to manufacturing

sampling frame

list from which sample is drawn

convenience sample

type of nonprobability sample

Projective techniques

used to reveal information research respondents might not reveal by being asked directly

Direct Ownership

A company owns subsidiaries or other facilities overseas Owning facilities may be too expensive for many firms

Joint Ventures

A partnership between domestic and a foreign firm or government • Popular in industries requiring large investments • May be a political

Ethical and Social Responsibility Forces

Accepted business practices vary from country to country • Differences exist in ethical standards • Bribes • Intellectual property protection • Different modes of operations

Contract Manufacturing

Hiring a foreign firm to produce a designated volume of the domestic firm's product or a component of it to specification The final product carries the domestic firm's name Marketing may be handled by the contract manufacturer or by the contracting company

Benefits of International Franchising

Minimizes risks to franchiser: Does not have to put up a large capital investment Revenue stream is fairly consistent because franchisees pay a fixed fee and royalties Retains control of its name and increases global penetration Franchise agreements ensure a standard of conduct and protect the franchise name

Strategic Alliances

Partnerships formed to create global competitive advantages • Firms may be traditional rivals competing for the same market • Firms may compete in some markets while collaborating in others

The Common Market of the Southern Cone (MERCOSUR)

South American Common Market • Argentina • Brazil • Paraguay • Uruguay • Bolivia, Chile, Colombia, Ecuador and Peru are associate members Promotes free circulation of goods, services and production factors Common external tariff and commercial policy among member nations

Multiproduct Branding

A branding strategy in which a company uses one name for all its products in a product class

Product line

A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges

Branding

A marketing decision in which an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competitors

Brand Personality

A set of human characteristics associated with a brand name

European Union (EU)

A union of European nations established in 1958 to promote trade among its members One of the largest single markets in the world today • Twenty-seven countries

Trading Up

Adding value to the product (or line) through additional features or higher-quality materials

North American Free Trade Agreement (NAFTA)

Agreement that eliminates most tariffs and trade restrictions on agricultural and manufactured products to encourage trade among Canada, the U.S., and Mexico

Label

An integral part of the package that typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients

Asia-Pacific Economic Cooperation (APEC)

An international trade alliance that promotes open trade and economic and technical cooperation among members 21 member nations