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93 Cards in this Set
- Front
- Back
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segmentation
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the process of subdividing a market into distinct subsets of customers that behave in the same way or have similar needs
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criteria for segmentation
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substantiality, identifiability, accessibility, responsiveness
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a good segment is
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measurable, sizeable, accessable, actionable, competitive, has growth potential
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bases for segmenting consumer markets
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geography, demographics, psychographics, benefits sought, usage rate
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VALS
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research tool that defines customer segments on the basis of personality
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undifferentiated strategy (standard)
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same target, no specific focus
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concentrated strategy
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focus on one segment
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multisegment strategy (differentiated)
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focus on multiple segments
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undifferentiated strategy advantages
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potential savings on production and marketing costs
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undifferentiated strategy disadvantages
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unimaginative product offerings, company more susceptible to competition
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concentrated strategy advantages
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concentration of resources, meet needs of narrowly defined segment, small firms can compete, strong positioning
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concentrated strategy disadvantages
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segments too small, changing segments, large competitors may effectively market to niche segment
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multisegment strategy advantages
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wider market coverage, economies of scale
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multisegment strategy disadvantages
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high costs
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positioning
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how a consumer views a products
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market selection
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the process of evaluating opportunities prior to selecting foreign markets to compete in
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large scale entry
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a decision that has a long-term impact and is difficult to reverse; may cause competitors to rethink entry; may lead to host competitive response
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small scale entry
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time to learn about market; reduces exposure rish
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indirect export
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company uses the services of independent organizaions located in domestic wholesaler
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direct export
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company assumes responsibility for performing international export activities and handle intermediary relationship
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exporting advantages
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avoids cost of establishing manufacturing operations; may help achieve experience curve and location economies
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exporting disadvantages
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may compete with low-cost locations manufacturers; possible high transportation costs; tariff barriers; possible lack of control over marketing reps.
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piggyback
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arrangement where one manufacturer uses its foreign distribution facilities to sell another company's products alongside its own
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benefits of franchising
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an opportunity to become an independent businessperson; established product or service; technical training and assistance by franchiser; quality control standards by franchiser to ensure product uniformity
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licensing
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contractual arrangement whereby one company makes an asset available to another company in exchange for royalties, license fees, or some other form of compensation
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contract manufacturing
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restricted form of licensing
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problems with joint ventures
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lack of legal structure; lack of trust; profit sharing problems
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advantages of joint ventures
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benefit from local partner's knowledge; shared costs and risks; reduced political risk
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disadvantage of joint ventures
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risk giving control of technology to partner; may not realize experience curve or location economies; shared ownership
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advantage of wholly owned subsidiary
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no risk of losing technical competence; tight control of operations
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wholly owned subsidiary disadvantages
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bear full cost and risk
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advantages of exporting entry mode
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ability to realize locations and experience curve
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steps in export process
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determine entry method; manage export process; takes to be performed in market (4ps)
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government export license
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only needed in less developed countries
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shipper's export declaration
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required by government for export clearance and to control exports
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certificate of origin
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often required by importers country; determines taxes
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inspection certificate
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provided by independent testing organization
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export draft
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written order by exporter telling an importer to pay a specified amount of money at a specific time
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pro forma invoice
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offer to sell which also my serves as a sales contract
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commercial invoice
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exporters formal quotation containing a description of the merchandise, price etc...like a quotation
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packing list
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describes goods that are packed
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insurance certificate
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consignments coverage
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ocean/truck bill of lading or airway bill
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contract between owner of goods and the carrier
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incoterms
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conditions of sale of goods; decide who handles what part of transportation
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letter of credit
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buyers bank guarantee to exporter assuring payment; safe!!!!
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barter
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direct exchange of goods and or services without cash transaction
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counter-purchase
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reciprocal buying agreement for same amount
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offset
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setter required to assist in marketing the buyers products
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switch trading
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uses third party trading house
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buybacks
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foreign plant take products as contract
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standardization
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single product for all markets and segments; shrinking of the world ex. pepsi, coke, mcdonalds
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adaptation
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changing of products for different markets and segments
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straight extension
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dont change product; dont change promotion
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communication adaptation
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dont change product; change promotion
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product adaptation
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adapt product; dont change promotion
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dual adaptation
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adapt product and promotion
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product invention
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develop new product
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good brand names have...
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easy to pronounce, remember, recognize; short and distinctive; describes product, use, or benefits; has positive connotation
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product modification
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change quality, function, packaging, labeling, or guarantee
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why product repositioning
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changes in social environment, declining sales, changing demographics
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product line extension or contraction
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products not contributing to profit; items in the line have become obsolete because of new products
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new product development process
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new product strategy; idea generation; idea screening; business analysis; development; test marketing; commercialization; new product
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business analysis
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preliminary demand for new product; costs of expenses; sales; profitability
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product life cycle
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intro; growth; maturity; decline
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introductory stage of plc
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high failure rates; little competition; limited distribution; negative profits
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growth stage of plc
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increasing rate of sales; entrance of competitors; healthy profits; prices normally fall; wider distribution
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maturity stage of plc
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declining sales growth; minor product changes; extending product line; competitors drop out; prices and profits fall
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decline stage of plc
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long-run drop in sales; competitors forces out; small specialty firms manufacture product
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spread of new products
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innovators = 2.5%
early adapters = 13.5% early majority = 34% late majority = 34% laggards = 16% |
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international packaging
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protect product; assist in marketing product; cost effectiveness
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determinants of pricing
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product cost; competitive prices; optimum price
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high purchasing power-low demand
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premium pricing
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low purchasing power
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downsize product
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dumping
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selling a product in an export market at a price below that changed in its own domestic market
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transfer pricing
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it concerns transactions between buyers and sellers that have the same corporate parent
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distribution
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the physical flow of goods through channels
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major categories of channel utility
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place; time; form; information
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direct channel
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manufacturer sells straight to domestic customer overseas
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indirect short channel
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manufacturer outside country to retailers to domestic overseas customers
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indirect long channel
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manufacturer outside country sells to wholesalers to retailers to domestic overseas customer
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benefits of supply chain management
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reduced costs; improved delivery service; enhanced revenues
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push strategy
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manufacturer promotes to wholesaler; wholesaler promotes to retailer; retailer promotes to consumer; consumer buys from retailer
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pull strategy
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manufacturer promotes to consumer; consumer demands from retailer; retailer demands from wholesaler; wholesaler demands from manufacturer
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intensive level of distribution
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many intermediaries; achieve mass market selling; convenience goods
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selective level of distribution
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several intermediaries; work with selected intermediaries; shopping and some specialty goods
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exclusive level of distribution
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one intermediary; specialty goods and industrial equipment
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grey marketing
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by-pass existing channels to purchase at lower costs; products are imported outside of the established distribution channel
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role of promotion
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inform
persuade remind |
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promotional mix elements
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advertising; public relations; personal selling; sales promotions
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types of sales promotions
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free samples; contest; prizes; trade shows; coupons
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functions of public relations
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press relations; product publicity; corporate communications; public affairs; lobbying; crisis management
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interpersonal communication
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sales force promotions
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mass communication
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advertising and tv
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