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74 Cards in this Set
- Front
- Back
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Porter Diamond of Competitive Advantage of Nations |
-factor conditions -demand conditions -related and supporting industries -company strategy, structure, rivalry |
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Factor Conditions |
-natural resources -education/skill level -wage rate -infrastructure |
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Demand Conditions |
-size of market -sophistication of consumers (expectations) -media exposure of products |
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Related and Supporting Industries |
-existence of supplier clusters |
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Company Strategy, Structure, Rivalry |
-number of companies in industry -intensity of competition -public or private ownership |
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Trends in Borderless Economic World |
-decline of economic protectionism (less tariffs/quotas and more agreements) -rise of economic integration (EU + NAFTA) -global competition for global customers -emergence of networked global marketplace (internet for exchanging and promoting) |
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Types of Global Firms |
-international firm (product same in home country as everywhere) -multinational firm (market to each country separately by altering name, formula, packaging) -transnational firm (adapt only at times) |
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Global Environmental Scan |
-cultural, economic, political-regulatory |
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Global Environment: Culture |
-values (India=no beef and Germany=no credit) -customs (France=cosmetics and Japan=chocolate) -symbols (unlucky numbers) -language (unintended meanings) -cultural ethnocentrism (don't buy foreign foods) |
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Global Environment: Economic |
-stage of economic development (develop vs developing) -economic infrastructure -consumer income and purchasing power -currency exchange rates |
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Global Environment: Political-Regulatory |
-political stability -trade regulations (how good to be made and marketed) |
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Global Market Entry Strategy |
-exporting -licensing -joint venture -direct investment |
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Product and Promotion Strategies |
-product extension -product adaptation (L'oreal tanning but skin protection in another) -communication adaptation -dual adaptation -product invention |
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Distribution Strategy |
-seller -seller international headquarters -channels between nations -channels within foreign nations -final consumer |
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Pricing Strategy |
-no dumping (selling below cost or below home price) -variations in prices could lead to grey market |
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Benefits of Being an International Player |
-increased market size -greater returns -greater economies of scale/scope -competitive advantage through location |
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Types of Marketing Research |
-exploratory research (better understanding of problem -descriptive research (describe basic characteristics of problem) -causal research (cause and effect) |
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Benefits of Good Research |
-lower costs (identify good trends and opportunities to max chance of success) -effective use and allocation of time/resources (more effective long term strategic planning) -better understanding of products, consumers, and markets -internal development of workforce (confidence and knowledge) -selling idea is easier (homework is done) |
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Exploratory Research Example |
-why is Canada drinking less milk?
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Descriptive Research Example |
-size of milk market -demographics of milk consumers -usage of milk consumers -attitudes towards milk consumption |
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The Scientific Method |
-reliable (replicate) -validity (tell us what need to know) |
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4 Stages of Marketing Research Process |
-problem definition -formal research design -data collection + analysis -conclusion and report |
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Marketing Research Process: Problem Definition |
-is there a market opportunity for this product in this country? -conduct exploratory research -secondary data, focus groups, depth interviews |
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Marketing Research Process: Formal Research Design
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-after clarifying problem, determine framework to find solution to problem -survey, experiment, observation |
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Sampling |
-who to sample and how large is N -probability and non probability sampling |
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Types of Surverys |
-telephone -personal -online |
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Problems with Survey Questions |
-leading -ambiguous -unanswerable -two questions in one (what if yes to only one question) -nonexhaustive (other box?) -non mutually exclusive (which to pick?) |
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Why Companies Need New Products |
-consumers demand them -companies need them |
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Product Mix and Product Line |
-many products in line is depth -many lines (product mix) is breadth |
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Classifying Products |
-type of user (consumer or business) -degree on tangibility (durable or non durable) |
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Classification of Consumer Goods |
-differ in effort and frequency -convenience goods (place) -shopping goods (all 4 Ps) -specialty goods (product) -unsought goods (price and promotion) (infomercials) |
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Classification of Business Goods
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-production goods -support goods |
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Newness Compared with Existing |
-new to world product -improvements |
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Newness from Company |
-line extention -improvement (significant jump) -new to company (innovation) |
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Newness to Consumer |
-based on degree of learning -continuous innovation (toothpaste) -dynamically continuous innovation (electric toothbrush) -discontinuous innovation (e-book) |
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Marketing Reasons for New Product Failure |
-insignificant points of difference -incomplete market and product definitions (protocol: target, need/want, product will do) -too little market attractiveness -poor execution of marketing mix -poor product quality on critical factors -bad timing (consumer tastes shifting or competitor faster) -no economical access to buyers (shelf space) |
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Organizational Reasons for New Product Failure |
-not listening to "voice of consumer (think you're smarter or no research) -skipping 7 steps in new product process -pushing poorly conceived product -group think -not learning from past failures |
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The 7 Step New Product Process |
-new product strategy development (type of product, how big a leap, role in company) -idea generation -screening and evaluation -business analysis (features, marketing strategy, financial projections, logistics, legal examination) -development -market testing -commercialization |
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Factors Affecting Product Diffusion |
-relative advantage -compatibility -observability -complexity -trialability |
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Product Life Cycle |
-intro (gain awareness/educate) -growth (stress differentiation/P.O.D.) -maturity (maintain brand loyalty/reminder) -decline (delete or harvest) |
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Four Dimensions of Product Life Cycle |
-length of life cycle -shape of life cycle -what level of product -rate of adaptation |
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Managing Product Life Cycle |
-modify product -modify market -reposition the product |
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Repositioning a Product |
-react to competitor position (new balance) -reach new markets -catch rising trend -change value offered (trade up or downsize) |
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Brand |
-name -logos/symbols -slogans -etc |
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Value of Branding for the Customer and the Marketer |
-facilitate purchasing -establish loyalty -protect from competition -reduce marketing costs -assets -impact market value |
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Brand Equity |
-the added value that a given brand name gives to a product beyond the functional benefits provided |
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Components of Brand Equity |
-brand awareness -perceived value -brand loyalty -brand association |
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Creating Brand Equity |
-identity -meaning -response -relationships |
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Branding Strategies |
-multiproduct branding (Honda) -multi branding (P&G) |
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Brand Extension (multi product branding) |
-practice of using a current brand name to enter a completely different product class |
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Brand Dilution |
-using names on bad products -don't extend name too far -use extensions with similar attributes |
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Customer Value through Packaging |
-communication benefit (info) -functional benefit (storage) -perceptual benefit (looks) |
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Packaging Challenges |
-connecting with customers -environmental concerns -health, safety, security -cost reduction |
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Uniqueness of Service |
-intangibility (cannot fell or touch before buy) -inconsistency (depends on person) -inseperability (cannot separate production/consumption and cannot seperate service/service giver) -inventory (demand and service provider must be available at the same time) (manage capacity) |
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Inventory Carrying Costs |
-from real estate to airlines/hotels |
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Service Continuum |
-from salt to fast food to teaching |
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Gaps Model |
-knowledge gap (what consumer wants) -standards gap (poor performance standard set) -delivery gap (service personnel) -communication gap (service not met what was communicated) |
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Evaluating Service Quality |
-tangibles (environment) -reliability (trust) -responsiveness (care) -assurance (quality) -empathy (human touch) |
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The Eight Ps of Service |
-people -psychical evidence (environment) -process (audit) -productivity (capacity management) |
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Services in the Future |
-technological development -expanding global economy -change in consumer tastes -aging population -more competitive landscape |
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Communicating the Service Promise |
-manage customer expectations -promise only what you can deliver -communicate service expectations |
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Service Recovery |
-resolve problem quickly (more irritated) -listen to the customer (want to vent) -provide a fair solution |
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Functions of an Intemediary |
-transactional -logistical -functional |
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Transactional Functions |
-buy -sell (promote, contact customers, take orders) -risk taking (buy inventory that could obsolete) |
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Logistical Function |
-assorting -sorting -storing -transporting |
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Facilitating Function |
-financing -grading -marketing information (assist producers in making goods more attractive to buyers) |
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When to have Wholesaler |
-typically when low cost and low unit value items that are frequently purchased (candy) |
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When to have Agent |
-many small retailers and small manufacturers |
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More Direct Channels |
-more common when retailer or business is large and so can by large quantities |
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Multichannel Distribution |
-reach with many channels like own store, best buy, and website |
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Strategic Channel Alliances |
-use another firm's marketing channel |
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Channel Choice and Management |
-environmental factors -consumer factors (what/when/how do they buy) -product factors (how large or valuable) -company factors (financial or tech resources) |
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Channel Design Considerations |
-target market coverage (intense to selective to exclusive) -satisfy buyer requirements (information, convenience, variety, services) -profitability (margins for all involved) |
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Channel Relationships |
-conflict (horizontal and vertical) -cooperation (channel captain) -legal |
