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99 Cards in this Set

  • Front
  • Back
What is "D" Personality Type?
*Absolute best deal
*Need choices,D's dont want you to decide
*Task Oriented
*Want problem solved Now
What is "I" Personality Type?
*High ego drive
*Are suitable to be sales people
*Buy with their hearts
*Outgoing,expressive,party people
*Want stuff that make them look better
*Impressing,care about impression
*Exaggerate everything
What is "S" Personality Type?
*Motivating factor is Relationships
*Hate conflict and never show up to complain
*Patient and one day explode
*great service people
What is "C" Personality Type?
*Long time to make decision
*The most picky customers
Why are Personality Types important?
Predict demands, buying characteristic condideration of marketers.
C and D personality types are?
Task oriented, outgoing, and expressive
I and S personality types are?
Relationship-oriented,passive, and quieter
Success Principle?
Your skills and abilities will only take you so far in life.

*Your ability to develp interpersonal relationships with others will play an equally if not a greater role in determining your future opportunities.
What is the success principle when Marketing?
"Under Promise and Over Deliver"
*Exceeded the customer's expectations, customers become more satisfied
*Value Withdraw-negitive
*Vlaue Deposit-Positive
What is Business Marketing (B2B)?
Marketingg of goods and services to companies,governments,or not-for profit-organizations for use in the creation of goods and services that they can produce and market to others.
What are Organizational Buyers?
*Buy goods services for resale
*Wholesalers,government agencies, retailers

Ex: Manufacturers are organizational buyers to raw materials sellers.
*Industrial Group
What does Industrial Markets include?
Industrial Markets include over 12 million firms:
*26% sell physical products
*73% sell services
What are Reseller Markets?
Resellers do not add any transformation to the products,they just pass them on to the next customers
What are the Characteristics of Organizational Buying?
Demand Characteristics-
*Consumer Demand
*Derived demand: demand for the specific products are derived from consumers
*B2B's Size of Purchase Order: a lot higher than B2C
*Number of Potential Buyers: much smaller than B2C
What are the Organizational Buying Objectives?
Marketing B2B:
*Primary motive in purchase decision-cost,service, sicial issues, environmental issue.
E.X. fair trade
*and Almost all B2B=direct marketing
What is the Key organizational buying criteria?
Price, Quality Specifications, Delivery Schedules, Past Performance, Production Facilities/Capacity, Warranty/Claim Policies, and Technical Capability
What is Reverse Marketing?
Process that a company(buyer) goes to potential supplier and offer selling the suppliers products through their business.
E.X. Walmart(buyer) offer a tire supplier to build partner relationship for lower cost by selling their tires at Wal-Mart.
What is the Golden Rule in B2B Marketing?
Both sides better off by B2B relationship
*Win/Win situation
*Supplier-buyer long-terms relationships
What is the Buyer-Supplier Relationships?
Organizational buying is more likely to involve complex and lengthy negotiations concerning delivery shedules, price, technical specifications, warranties, and claim policies.
What is the Buyer-Supplier Relationship reguarding Reciprocity?
Reciprocity- is an industrial buying practice in which two organizations agree to purchase each other's products and services
*You buy Ours, We will buy Yours.
What is the Buyer-Supplier Relationship reguarding Supply Partnership?
Supply Partnership-Exists when a buyer and its supplier adopt mutually beneficial objectives,policies,and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer.
E.X. Walmart
What is a Buying Center?
*Users=(person at the table)
*Influencers=(expert in industry, who can affect the decision)
*Buyers(who has the authority to make the deal)
*Deciders(formal and informal power to decide)
*Gatekeepers(Secretary,who determines what deals come in)
What are the 3 Buying situtation classes?
Straight re-buy, Modified re-buy, and New buy
What is a Straight re-buy?
repetitive action, involve a person.
*Reordering a existing product from a supplier.
*E.X. office supplies or maintenance services.
*involves usually one person
What is a Modified re-buy?
Modified deal from same supplier.
*Change in specifications,price, and delivery schedule.
*involves in a few people making the decision
What is a New-buy?
Organization first time buyer of a product or service.
Contains lots of people in the decision making.
"Buying Center" What are the stages in the Organizational Buying Process?
*1.Problem recognition
*2.Information search
*3.Alternative evaluation
*4.Purchase decision
*5.Post-Purchase evaluation
What is a Traditional Auction?
Occurs when a seller puts an item up for sale and would be buyers bid in competitions with each other
What is a Reverse Auction?
Occurs when a buyer communicates a need for something and would be suppliers bud in competition with each other.
What is a Reverse Auction?
Is an online auction in which a buyer communicates a need for a product or service and would be suppliers are invited to bid in competition with each other.
*Post-auction negotiation
*Unintended consequences might take place
*70% of suppliers retaliate on low bid
*Suitable for Commodity
*Not for quality products
*So many hidden cost
*Building relationship with suppliers-the best strategy
What are the Dynamics of World Trade?
*The dollar value of world trade has more than doubled in the past decade
*Manufactured goods and commodities account for 75% of world trade
*Service industries account for the other 25% of world trade
What are the Four trends that affected World Trade?
*1.Gradual decline of economic "Protectionism" by individual countries.
*2.Formal economic integration and "Free Trade" among nations
*3.Global "Competition" among global companies for global consumers
*4.Development of a networked global "Market Space"
What is Protectionism?
Protectionism-The practice of sheilding one or more industries within a country's economy from foreign competition, usually through the use of tariffs or quotas
What has lead to the Decline of Economic Protectionism?
The economic argument for protectionism is that it limits the outsourcing of jobs, protects a nation's political security, discourages economic dependency on other countries, and encourages the development of domestic industries.
*Tariffs* and *Quotas* discourage world trade
What is a Tariff?
Tariff=Is a tax on goods and services entering a country. Because tariffs raise the price of imported goods, they give a price advantage to domestic goods competing in the same market
*Tariffs are more obvious taxes on consumers
What is a Quota?
Quota=Is a restriction placed on the amount of a product allowed to enter or leave a country. Import quotas seek to guarantee domestic industries access to a certain percentage of their domestic market
*quotas limit supply which result in the increase of the price at the end.
*quotas are hidden taxes on consumers
What is the World Trade Organization know as (WTO)?
Wealth nations formed WTO in 1995 in order to address world trade issues.
*149 WTO member countries and this accounts for 90% of World Trade
*WTO sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.
Whats the Rise of Economic Integration Groups?
A number of countries with similar economic goals have formed transnational trade groups or signed trade agreements to promote free trade among member nations and enhance their individual economies
What where the (3) trade groups formed?
*1.European Union(EU)
*2.North American Free Trade Agreement(NAFTA)
*3.Asian Free Trade Agreements
What is the European Union?(EU)
The EU consist of 25 member countries that have eliminated most barriers across their borders.
*As a single market, the EU has mor than 500 million consumers with a combined GDP larger than the U.S.
*12 of the EU countries have adopted a common currency called the Euro
*Pan-European marketing strategies are possible due to: Greater uniformity in product and packaging standards. Fewer regulatory restrictions on transportation, advertising and promotion imposed countries.
*Removal of most tariffs that effect pricing practices
What is the North American Free Trade Agreement (NAFTA)?
NAFTA lifted many trade barriers between Canada, Mexico and the U.S. to create a marketplace with more than 435 Million consumers.
*NAFTA has stimulated trade among member nations as well as cross-border retailing, manufacturing, and investment
What is the Asian Free Trade Agreement?
Effort to liberalize trade in East Asia are growing with some reductions in tariffs, but these trade agreements are less formal than the EU and NAFTA
What is Global Competition amoung Global Companies for Global Consumers?
The emergence of a borderless economic world ahs created a new reality for marketers

*Global competition exist when firms originate, produce, and market their products and services worldwide
Global Companies consist of what 3 types of Companies?
International firms, Multinational firms, and Transnational firms.
What are International Firms?
Market their existing products and services in other countries the same way they do in their home country
-International firms use extension of its hoome country marketing strategy
What are Multinational Firms?
View the world as consisting of unique parts and markets to each part differently.

Using a multi-domestic marketing strategy, which means they have as many different product variations, brand names, and advertising programs as countries in which they do business
-Multinational Firms-use Multidomestic in their marketing strategy
What are Transnational Firms?
View the world as one market and emphasize cultural similaritites

Employ a global marketing strategy-the practice of standardizing,marketing activities when they are cultural similarities and adapting them when cultures differ

Market a global brand-a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs
-Transnational Firms use Global marketing strategy
What are the 4 Emergence of a Networked Global Marketspace?
Interent-based technology is a growing tool for exchange goods,services,and information on a global scale

-Slaes arising from electronic commerce are projected to represent 11% of world trade in 2008

-90% of global e-commerce revenue arises from B2B transactions

-Companies manage multiple country and language websites that customize content and communicate with consumers in their native tongue
What is a Global Environment Scan?
Global companies conduct continuous environment scans. Three of the environmental forces are Culture,Economic, and Regulatory affect global marketing practices differently than those in domestic markets
How does Cultral Diversity relate to Aspects of culture?
Values,Customs,symbols, and Language
Economic Considerations

What is Economic Infrastructure?
Consists of a country's economic communications, transportation,financial, and distribution systems.
The communication infrastructure in many developing countries is limited or antiquated compared with that of developed countries.
The lack of formal financial and leagal systems in some countries can cause problems when dealing with financial institutions or engaging in private property transactions
-High crime, lack of infrastructure
-Bribe is common in Russia
What is Consumer income and Purchasing Power?
Global marketers must consider what the Per Capita or household income is among a country's consumers.
Generally speaking,the greater the nu;mber of middle-class households,the greater a nation's purchasing power

People in developing countries,who often have government subsidies for food,houseing,and health care, are actually promising customers for a variety of products
-Economic Considerations-
-Per Capita Income
-Target is usually middle class
What is Currency Exchange Rate?
A currency exchange rate is the price of one countries currency expressed in terms of another countries currencey

Fluctuations in exchange ragtes among the world's curencies can affect everyone from international tourists to global companies.
What is Political-Regulatory Climate?
Trade Regulations: Countries have rules that govern business practices within their borders which often serve as trade barriers
What are the Global Market-Entry Strategies?
3.Joint Venture
4.Direct Investment
1-4 4 being the most risk and marketing control
What are the 2 forms of exporting?
Indirect Exporting and Direct Exporting
What is Indirect Exporting
is when a firm sells its domestically produced goods in a foreign country through an intermediary
What is Direct Exporting?
When a firm sells its domestically produced goods in a foreign country without intermediaries.
more rist and more profit
What is Licensing?
Under Licensing, a company offers the right to a trademark,patent,trade secret, or other similarly valued items of intellectual in return for a royalty or a fee
What are the Advantages of Licensing?
Low risk- allowing the licensee to gain information that allows it to start with a competitive advantage

-Chance to enter a foreign market at virtually no cost

-Foreign country gains employment by having the product manufactured locally
What are the Disadvantages of Licensing?
-Licensor gives up controls of its product and reduces the potential profits gained from it

-The licensor may be creating its own competition because some licensees are able to modify the product and enter the market themselves with the product and marketing knowledge gained from the licensor

-If the licensee is a poor choice, the name or reputation of the company may be harmed
When A variation of licensing is franchising?
In franchising, a company contacts with an individual to set up an operation to provide products or services under the company's established brand name.

Franchising is one of the fastest growing market-entry-strategies
What is Joint Ventures?
Occurs when a foreign company and a local firm invest together to create a local business. These two companies share ownership,control,and profit of the new company
What is the Advantage of Joint Venture?
1.One firm may not have the necessary financial,physical, or managerial resources to enter a foreign market alone
2.A government may require or encourage a joint venture before it allows a foreign company to enter its market
What is the Disadvantage of Joint Venture?
1.The two companies may disagree about policies or courses of action
2.Government bureaucracy may bod down the effort
Direct Investment of a Firm?
Biggest commitment a firm can make when entering the global market is direct investment, which entails a domestic firm actually investing in and owning a foreign subsidiary or division
Advantages to Direct Investment?
Include cost saving,better understanding of local markets,conditions,and fewer local restrictions
Disadvantages to Direct Investment?
Financial commitments and risks, policies, currency, are involved
Steps involved in task designing,implementing, and controlling marketing programs worldwide?
1.Product extension, Product adaptation, and Product invention
A product maybe be sold globally in three ways?
Product extension,Product adaption, and Product invention
What is Product Extension?
Selling virtually the same product in other countries. Works best when the target markets share the same desires,needs,and uses for the product
What is Product Adaptations?
Changing a product to make it more appropriate for a country's climate or consumers preferences
What is Product Invention?
Companies can invent totally new products designed to satisfy common needs across countries
When you have Same Product and Same promotion?
Product extension strategy
When you have Same Product and Adapt Promotion?
Communication adaptation strategy
WHen you Adapt Product and Same Promotion?
Product adaptation strategy
When you Adapt Product and Adapt Promotion?
Dual adaptation strategy
What you Creat new product and Same Promotion and Adapt Promotion?
Product invention strategy
Whats the Distribution Strategy?
The availability and quality of retailers and wholesalers, communication,and warehouseing facilities are determined by a country's stage of economic development
What is Global Brand?
Is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs
What are Global Consumers?
Consist of customer groups living in many different countries or regions of the world who have similar needs or seek similar features and benefits from products or services
What is Dumping?
When a firm sells a product in a foreign country below its domestic price or beliw its actual cost
What is Grey Market?
Situation where products are sold through unauthorized channels of distribution. Also called parallel importing
CNS'S Breath right:Licensing
-Took advantage of free publicity (sports press)
-Per capita spending
-Size of market
-Change in color of packages
-Retail Price
-Use of local distributor/channels that were familiar with local markets(Italia,Blue farm)
What is Marketing Research?
Is the process of defining a marketing PROBLEM and OPPORTUNITY, systematically COLLECTING and ANALYZING information, and recommending actions
What are the difficulties Marketing researchers face?
Asking Consumers about new,unknown,or personal-type products
Whats the Task in Marketing Research?
Overcome these difficulties and to obtain the information to make reasonable estimates about what consumers will or won't buy
What is the 4 Step Marketing Research Approach?
1.Define the Problem carefully
2.Develop a research Plan to collect the most appropriate information to solve the problem
3.Collect the relevant Data
4.Develop a report to management that converts the data into Findings and Recommendations
Step 1: Define the Problem
-Set research objectives
-Identify possible marketing actions

1.increase revenues and profits
2.Discover what consumers are aware of and want
3.Find out why a product is not selling

Develop a measure of success;based on measure of success will lead to different marketing actions

-Defining the problem is difficult
Step 2: Develop the Research Plan
-Identify Data Needed for Marketing Actions

-Determine How to Collect Data
key elements in collecting Data

Concepts-ideas about products or services

1.Can we ask consumers Quetions that they can answer
2.Is observing consumers' behavior better than asking them questions
What are the Special Methods vital to Marketing?
Sampling-selecting representative elements from a population,such as distributors,customers,or prospects,asking them questions, and treating their answers as typical of that group

-Statistal inference-involves Generalizing the results from the sample to a larger group to help decide on marketing actions
Step 3: Collect Relevant Information
Secondary data-facts and figures that have Already been recorded before the project at hand

Primary data-facts and figures that are newly collected for the project
Secondary Data: Internal
Collected and exist inside the organization

E.X. Sales reports or customer calls
Secondary Data: External
Published data from outside the organization

E.X. U.S Census Bureau
What is Primary Data?
Facts and figures newly collected from the project
2 types of Primary Data?
Ovservational data (watching people), E.X.Nielsen Media

and Questionaire date(asking people)
Advantages of Secondary Data?
Time saving if data have already been collected or exist internally

Low cost, such as free or inexpensive Census Reports

Greater level of detail, especially in Census data
Disadvantages of Secondary Data?
May be out of date especially if Census data, which are collected every 5 t0 10 years

The categories may not be quite right for the project

The Data are collected fro another purpose and may not be specific enough for the project
Observational Data Collection Methods?
Mystery Shoppers, Watching Consumers and video taping them in person