Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/33

Click to flip

33 Cards in this Set

  • Front
  • Back
What Is The Marketing Mix?
The choices the firm offers to its targeted market

Product attributes
Distribution strategy
Communication strategy
Pricing strategy
What Is Market Segmentation?
identifying distinct groups of consumers whose purchasing behavior differs from others in important ways
Markets can be segmented by
geography
demography
socio-cultural factors
psychological factors
Two key market segmentation issues
The differences between countries in the structure of market segments

The existence of segments that transcend national borders
when segments transcend national borders, a global strategy is possible
How Do Product Attributes Influence Marketing Strategy?
A product is like a bundle of attributes

Products sell well when their attributes match consumer needs
consumer needs depend on
Culture

Level of economic development

Product and technical standards
Distribution strategy
the means the firm chooses for delivering the product to the consumer
How a product is delivered depends on the firm’s market entry strategy
firms that manufacturer the product locally can sell directly to the consumer, to the retailer, or to the wholesaler

firms that manufacture outside the country have the same options plus the option of selling to an import agent
There are four main differences in distribution systems
Retail concentration
Channel length
Channel exclusivity
Channel quality
Retail concentration
concentrated or fragmented

in a concentrated retail system, a few retailers supply most of the market – common in developed countries

in a fragmented retail system there are many retailers, no one of which has a major share of the market – common in developing countries
Channel length
the number of intermediaries between the producer and the consumer

short channel - when the producer sells directly to the consumer – common with concentrated systems

long channel - when the producer sells through an import agent, a wholesaler, and a retailer – common with fragmented retail systems
Channel exclusivity
how difficult it is for outsiders to access
Channel quality
the expertise, competencies, and skills of established retailers in a nation, and their ability to sell and support the products of international businesses
Which Distribution Strategy Should A Firm Choose?
The optimal strategy depends on the relative costs and benefits of each alternative

When price is important, a shorter channel is better
each intermediary in a channel adds its own markup to the products

When the retail sector is very fragmented, a long channel can be beneficial
economizes on selling costs
can offer access to exclusive channels
Why Is Communication Strategy Important?
Communicating product attributes to prospective customers is a critical element in the marketing mix
What Are The Barriers to International Communication?
Cultural barriers
Source and country of origin effects
Noise levels
Cultural barriers
it can be difficult to communicate messages across cultures
a message that means one thing in one country may mean something quite different in another
Source and country of origin effects
Source effects occur when the receiver of the message evaluates the message on the basis of status or image of the sender
Noise levels
the amount of other messages competing for a potential consumer’s attention

in highly developed countries, noise is very high
in developing countries, noise levels tend to be lower
Firms have to choose between two types of communication strategies
Push strategy - emphasizes personnel selling
Pull strategy - emphasizes mass media advertising
Which Is Better – Push Versus Pull?
The choice between strategies depends on product type and consumer sophistication

a pull strategy works well for firms in consumer goods selling to a large market segment
a pull strategy works better with longer distribution channels
Media availability
a pull strategy relies on access to advertising media

a push strategy works well for industrial products
Channel length
a push strategy may be better when media is not easily available
What Is The Optimal Mix?

In general, a push strategy is better
for industrial products and/or complex new products
when distribution channels are short
when few print or electronic media are available
A pull strategy is better for..
consumer goods products

when distribution channels are long
when sufficient print and electronic media are available to carry the marketing message
Should A Firm Use Standardized Advertising?
makes sense when it has significant economic advantages
creative talent is scarce and one large effort to develop a campaign will be more successful than numerous smaller efforts
In regard to pricing strategy firms need to consider 3 key points..
Price discrimination
Strategic pricing
Regulations that affect pricing decisions
Price discrimination
occurs when firms charge consumers in different countries different prices for the same product
For price discrimination to work
must be able to keep national markets separate
countries must have different price elasticities of demand - measure of the responsiveness of demand for a product to changes in price

demand is elastic when a small change in price produces a large change in demand
demand is inelastic when a large change in price produces only a small change in demand
Typically, price elasticities are greater in countries with lower income levels and larger numbers of competitors
Strategic pricing has three aspects
Predatory pricing
Multi-point pricing
Experience curve pricing
Predatory pricing
use profit gained in one market to support aggressive pricing designed to drive competitors out in another market
Multi-point pricing
a firm’s pricing strategy in one market may have an impact on a rival’s pricing strategy in another market
Experience curve pricing
price low worldwide in an attempt to build global sales volume as rapidly as possible, even if this means taking large losses initially
A firm’s ability to set its own prices may be limited by
Antidumping regulations –

Competition policy – regulations designed to promote competition and restrict monopoly practices
Where Should R&D Be Located?
New product ideas come from the interactions of scientific research, demand conditions, and competitive conditions

The rate of new product development is greater in countries where
more money is spent on basic and applied research and development
demand is strong
consumers are affluent
competition is intense