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60 Cards in this Set
- Front
- Back
Steps in Formulating Marketing Communications Strategy
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1. Assess marketing communications opportunities
2. Analyze marketing communications resources 3. Set marketing communications objectives 4. Develop and evaluate alternative strategies 5. Assign specific marketing communications tasks |
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Promotional Mix
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The tools the international marketer has available to form a total communications program for use in the target markets
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Push strategies
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Focus on the use of personal selling; pesuading a prospect to buy a good or service
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Pull strategies
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Focus on mass communications tools like advertising
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Integrated marketing communications
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Coordinated use of many promotional tools
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The choice of media is governed by the appropriate media's ____ and its ____ in reaching that audience.
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target audience, efficiency
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Broad-based media
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Magazines, newspapers
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Horizontal media
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Focus on a particular marketing task / function such as pricing
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Vertical media
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Focus on a particular market or industry such as trunking
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Direct marketing
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The use of various media to elicit an immediate sale or response from a consumer.
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Reasons companies might participate in trade shows
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1. Customer can examine the product
2. Goodwill and contact cultivation 3. Locating a trade intermediary 4. Opportunity to meet government officals and decision makers 5. Opportunity for market research 6. Exporters able to reach sales prospect sin brief time period at a reasonable cost per contact |
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Reasons companies might not participate in trade shows
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1. High cost
2. Identifying the "right" trade shows to participate int 3. Coordination |
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Channel length
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The number of levels, or different types, of intermediaries
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Channel width
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The number of institutions of each type of channel
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Character
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The nature of the product and how it impacts the dsign of the channel
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Coverage
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the number of areas in which a product is represented and the quality of that is represented
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Exclusive coverage
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Gives one merchant the sole right to sell a product within a defined geographical area
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Selective coverage
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gives several entities the right to sell a product in a defined geographical area
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Intensive coverage
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Makes a produc available in the maximum number of entities in each region to gain as much exposure and as many opportunities as possible
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Two intermediary relationships
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1. Distributorship - Purchases product for resale and usually provides complete marketing services. Has own sales force to call on.
2. Agency - Operates on a commission basis and does not physically handle the product |
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Terms of the Distribution Agreement
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1. Contract duration is usually short (1-2 years)
2. Well-defined territories and channels 3. Methods for determining payment amounts 4. Products to be sold and terms of sale 5. Means of communication 6. Method of arbitration in case things go wrong |
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Channale management
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Coordinating two independent entities with shared goals.
The business strategies of the manufacturer and the seller should be aligned. |
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Factors that complicate channel management
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1. Sharine of responsibilities and profits
2. varying expectations of parties involved 3. Different rules of law |
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Gray Trade
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Occurs when legitimate branded products are imported into a country by an unauthroized intermediary and offered for sale at a lower price than could be obtained by an authorized distributor
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What allows Gray Marketing?
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When companies have to sell the same product at different prices. GM can purchase them in a cheaper region and resell them where the price is higher.
Exchange rate fluctuations |
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How to minimize gray marketing
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1. Produce different versions of the product for different markets
2. Use a one price policy across all markets 3. Add the GM to the authorized network 4. Enforce stiff penalties |
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Redefined view of marketing research
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Systematic and objective identification of information, collection, analysis and dissemination of information for the purpose of improving decision making related to the identification and soluion of problems and opportunities in marketing
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Differences in international and domestic research
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1. New parameteres (duties, foreign currencies)
2. New environments (legal, consumption habits) 3. Number of factors involved 4. Broader definition of competition |
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Subsidiary
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Company controlled by another company or corporation.
Separate, distinct legal entities for the purpose of taxation and liability |
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Proactive Motivators why firms go international
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1. Profit
2. Unique products 3. Technological advantages 4. Exclusive information 5. Managerial urge 6. Tax benefit 7. Economies of scale 8. Pre-empt competition |
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Reactive Motivators why firms go international
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1. Competitive pressure
2. Overproduction 3. Declining domestic sales 4. Excess capacity 5. Saturated domestic markets 6. Proximity to customers and ports |
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Export Management Companies
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Domestic firms that specialize in performing international marketing services such as marketing research, ect.
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Two primary forms of EMC
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1. Distributor - Takes title of goods and operates internationally
2. Agent - Commissioned entity where title of goods is not taken |
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Trading company
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A company that provides a link between buyers and sellers in different countries
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Reason for success of sogo shosha
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1. Development of information systems to identify market opportunities
2. Economies of scale in the vast transaction volume to obtain preferential treatment 3. Access to vast quantities of capital on a global scale |
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Sogo shosha
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Famous, successful trading companies in Japan including Mitsubishi and Mitsui
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International freight forwarders
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Serves as an agent for exporter
Involved in 80% of commercial trade Provides help with invoices, shipping documentation, pricing, ect. |
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Licensing
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The granting of permission to use intellectual property rights under defined conditions
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Franchise
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A business operated by a franchisee who, in return for an investment and payment of royalties, agrees to use another company's trademarks, brands, logos and technology and operate a business in the name of the grantor
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Factors encouraging standardization
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1. Economies of scale in production
2. Economies in product R&D 3. Economies in marketing 4. "Shrinking" of the world marketplace |
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Factors encouraging Adaptation
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1. Differ use conditions
2. Government and regulatory influences 3. Differing consumer behavior patters and income levels 4. Local competition 5. True to marketing concept |
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Backward innovation
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To simplify a product or services due to lack of purchasing power or usage conditions
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Translation
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Simply translating a brand name into a foreign language
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Transliteration
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Testing existing brand name for emotional meaning in the language of the foreign market
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Transparency
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Develop a meainingless brand name
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Transculture
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Use foreign sounding language name for a brand due to specific country of origin benefits
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Major functsion of packaging
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1. Protection
2. Promotion 3. User convenience |
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Price Dynamics
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1. Pricing is the only revenue generating element of the marketing mix
2. Pricing is a means of attracting and communicating an offer to a potential buyer 3. Pricing is a competitive tool 4. Pricing can be used to position the product or service in the marketplace |
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Skimming
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Using high-priced unique products to achieve the highest possible profit in a short initial time period and gradually lowering the price as competitors enter the market.
Good for price insensitive consumers |
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Market pricing
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Following competitive pricing in the target market; adjusting production and marketing mix to competitive condiditons
More of a reactive approach to pricing |
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Penetration pricing
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Offerin low pricing to generate volume sales which hopefully will compesnate for low profit margins
Good approach for mass markets and price sensitive consumers |
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Variable cost pricing
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Variable costs associated with a product are the only costs allocated into the price. Fixed costs are not included.
Price is lower so consumers can afford it |
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Full cost pricing
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Variable and fixed costs are included into price
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Price escalation
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Clear-cut and hidden costs that drive export prices to a level that far exceeds those of domestic prices
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Causes of price escalation
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1. Cost of modifying a product for foreign markets
2. Cost of exporting the product 3. Costs of entering the foreign market (tariffs, duties, foreign exchange) |
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Cash in advance
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Favors the exporter because it relieves them of all risk and allows for immediate use of the money
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Letter of Credit
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Bank promises o pay a specified amount of money with documentation
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Irrevocable vs. Revocable L/C
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Irrevocable - L/C cannot be canceled of modified
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Confirmed vs. unconfirmed L/C
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Confirmed - Bank accepts responsibility to pay regardless of financial situation of buyer
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Revolving vs. non-revolving L/C
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Nonrevolving - L/C is good for this transaction and this transaction only
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