Marketing Exam Ii

Front 1

What is "D" Personality Type?

Back 1

*Absolute best deal
*Need choices,D's dont want you to decide
*Dominant,decisive,demanding
*Task Oriented
*Want problem solved Now

Front 2

What is "I" Personality Type?

Back 2

*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

Front 3

What is "S" Personality Type?

Back 3

*Motivating factor is Relationships
*Hate conflict and never show up to complain
*Patient and one day explode
*great service people

Front 4

What is "C" Personality Type?

Back 4

*Analytical
*Long time to make decision
*Research,preparation
*The most picky customers

Front 5

Why are Personality Types important?

Back 5

Predict demands, buying characteristic condideration of marketers.

Front 6

C and D personality types are?

Back 6

Task oriented, outgoing, and expressive

Front 7

I and S personality types are?

Back 7

Relationship-oriented,passive, and quieter

Front 8

Success Principle?

Back 8

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.

Front 9

What is the success principle when Marketing?

Back 9

"Under Promise and Over Deliver"
*Exceeded the customer's expectations, customers become more satisfied
*Value Withdraw-negitive
*Vlaue Deposit-Positive

Front 10

What is Business Marketing (B2B)?

Back 10

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.

Front 11

What are Organizational Buyers?

Back 11

*Buy goods services for resale
*Wholesalers,government agencies, retailers

Ex: Manufacturers are organizational buyers to raw materials sellers.
*Industrial Group
*Government
*Resellers

Front 12

What does Industrial Markets include?

Back 12

Industrial Markets include over 12 million firms:
*26% sell physical products
*73% sell services

Front 13

What are Reseller Markets?

Back 13

Resellers do not add any transformation to the products,they just pass them on to the next customers

Front 14

What are the Characteristics of Organizational Buying?

Back 14

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

Front 15

What are the Organizational Buying Objectives?

Back 15

Marketing B2B:
*Primary motive in purchase decision-cost,service, sicial issues, environmental issue.
E.X. fair trade
*and Almost all B2B=direct marketing

Front 16

What is the Key organizational buying criteria?

Back 16

Price, Quality Specifications, Delivery Schedules, Past Performance, Production Facilities/Capacity, Warranty/Claim Policies, and Technical Capability

Front 17

What is Reverse Marketing?

Back 17

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.

Front 18

What is the Golden Rule in B2B Marketing?

Back 18

Both sides better off by B2B relationship
*Win/Win situation
*Supplier-buyer long-terms relationships

Front 19

What is the Buyer-Supplier Relationships?

Back 19

Organizational buying is more likely to involve complex and lengthy negotiations concerning delivery shedules, price, technical specifications, warranties, and claim policies.

Front 20

What is the Buyer-Supplier Relationship reguarding Reciprocity?

Back 20

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.

Front 21

What is the Buyer-Supplier Relationship reguarding Supply Partnership?

Back 21

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

Front 22

What is a Buying Center?

Back 22

*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)

Front 23

What are the 3 Buying situtation classes?

Back 23

Straight re-buy, Modified re-buy, and New buy

Front 24

What is a Straight re-buy?

Back 24

repetitive action, involve a person.
*Reordering a existing product from a supplier.
*E.X. office supplies or maintenance services.
*involves usually one person

Front 25

What is a Modified re-buy?

Back 25

Modified deal from same supplier.
*Change in specifications,price, and delivery schedule.
*involves in a few people making the decision

Front 26

What is a New-buy?

Back 26

Organization first time buyer of a product or service.
Contains lots of people in the decision making.

Front 27

"Buying Center" What are the stages in the Organizational Buying Process?

Back 27

*1.Problem recognition
*2.Information search
*3.Alternative evaluation
*4.Purchase decision
*5.Post-Purchase evaluation

Front 28

What is a Traditional Auction?

Back 28

Occurs when a seller puts an item up for sale and would be buyers bid in competitions with each other

Front 29

What is a Reverse Auction?

Back 29

Occurs when a buyer communicates a need for something and would be suppliers bud in competition with each other.

Front 30

What is a Reverse Auction?

Back 30

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.
*Initiator:GE
*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

Front 31

What are the Dynamics of World Trade?

Back 31

*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

Front 32

What are the Four trends that affected World Trade?

Back 32

*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"

Front 33

What is Protectionism?

Back 33

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

Front 34

What has lead to the Decline of Economic Protectionism?

Back 34

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

Front 35

What is a Tariff?

Back 35

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

Front 36

What is a Quota?

Back 36

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

Front 37

What is the World Trade Organization know as (WTO)?

Back 37

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.

Front 38

Whats the Rise of Economic Integration Groups?

Back 38

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

Front 39

What where the (3) trade groups formed?

Back 39

*1.European Union(EU)
*2.North American Free Trade Agreement(NAFTA)
*3.Asian Free Trade Agreements

Front 40

What is the European Union?(EU)

Back 40

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

Front 41

What is the North American Free Trade Agreement (NAFTA)?

Back 41

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

Front 42

What is the Asian Free Trade Agreement?

Back 42

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

Front 43

What is Global Competition amoung Global Companies for Global Consumers?

Back 43

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

Front 44

Global Companies consist of what 3 types of Companies?

Back 44

International firms, Multinational firms, and Transnational firms.

Front 45

What are International Firms?

Back 45

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

Front 46

What are Multinational Firms?

Back 46

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

Front 47

What are Transnational Firms?

Back 47

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

Front 48

What are the 4 Emergence of a Networked Global Marketspace?

Back 48

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

Front 49

What is a Global Environment Scan?

Back 49

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

Front 50

How does Cultral Diversity relate to Aspects of culture?

Back 50

Values,Customs,symbols, and Language

Front 51

Economic Considerations

What is Economic Infrastructure?

Back 51

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

Front 52

What is Consumer income and Purchasing Power?

Back 52

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

Front 53

What is Currency Exchange Rate?

Back 53

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.

Front 54

What is Political-Regulatory Climate?

Back 54

Trade Regulations: Countries have rules that govern business practices within their borders which often serve as trade barriers

Front 55

What are the Global Market-Entry Strategies?

Back 55

1.Exporting
2.Licensing
3.Joint Venture
4.Direct Investment
1-4 4 being the most risk and marketing control

Front 56

What are the 2 forms of exporting?

Back 56

Indirect Exporting and Direct Exporting

Front 57

What is Indirect Exporting

Back 57

is when a firm sells its domestically produced goods in a foreign country through an intermediary

Front 58

What is Direct Exporting?

Back 58

When a firm sells its domestically produced goods in a foreign country without intermediaries.
more rist and more profit

Front 59

What is Licensing?

Back 59

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

Front 60

What are the Advantages of Licensing?

Back 60

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

Front 61

What are the Disadvantages of Licensing?

Back 61

-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

Front 62

When A variation of licensing is franchising?

Back 62

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

Front 63

What is Joint Ventures?

Back 63

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

Front 64

What is the Advantage of Joint Venture?

Back 64

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

Front 65

What is the Disadvantage of Joint Venture?

Back 65

1.The two companies may disagree about policies or courses of action
2.Government bureaucracy may bod down the effort

Front 66

Direct Investment of a Firm?

Back 66

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

Front 67

Advantages to Direct Investment?

Back 67

Include cost saving,better understanding of local markets,conditions,and fewer local restrictions

Front 68

Disadvantages to Direct Investment?

Back 68

Financial commitments and risks, policies, currency, are involved

Front 69

Steps involved in task designing,implementing, and controlling marketing programs worldwide?

Back 69

1.Product extension, Product adaptation, and Product invention

Front 70

A product maybe be sold globally in three ways?

Back 70

Product extension,Product adaption, and Product invention

Front 71

What is Product Extension?

Back 71

Selling virtually the same product in other countries. Works best when the target markets share the same desires,needs,and uses for the product

Front 72

What is Product Adaptations?

Back 72

Changing a product to make it more appropriate for a country's climate or consumers preferences

Front 73

What is Product Invention?

Back 73

Companies can invent totally new products designed to satisfy common needs across countries

Front 74

When you have Same Product and Same promotion?

Back 74

Product extension strategy

Front 75

When you have Same Product and Adapt Promotion?

Back 75

Communication adaptation strategy

Front 76

WHen you Adapt Product and Same Promotion?

Back 76

Product adaptation strategy

Front 77

When you Adapt Product and Adapt Promotion?

Back 77

Dual adaptation strategy

Front 78

What you Creat new product and Same Promotion and Adapt Promotion?

Back 78

Product invention strategy

Front 79

Whats the Distribution Strategy?

Back 79

The availability and quality of retailers and wholesalers, communication,and warehouseing facilities are determined by a country's stage of economic development

Front 80

What is Global Brand?

Back 80

Is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs

Front 81

What are Global Consumers?

Back 81

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

Front 82

What is Dumping?

Back 82

When a firm sells a product in a foreign country below its domestic price or beliw its actual cost

Front 83

What is Grey Market?

Back 83

Situation where products are sold through unauthorized channels of distribution. Also called parallel importing

Front 84

CNS'S Breath right:Licensing

Back 84

-Took advantage of free publicity (sports press)
-Per capita spending
-Size of market
Considerations
-Change in color of packages
-Retail Price
-Use of local distributor/channels that were familiar with local markets(Italia,Blue farm)

Front 85

What is Marketing Research?

Back 85

Is the process of defining a marketing PROBLEM and OPPORTUNITY, systematically COLLECTING and ANALYZING information, and recommending actions

Front 86

What are the difficulties Marketing researchers face?

Back 86

Asking Consumers about new,unknown,or personal-type products

Front 87

Whats the Task in Marketing Research?

Back 87

Overcome these difficulties and to obtain the information to make reasonable estimates about what consumers will or won't buy

Front 88

What is the 4 Step Marketing Research Approach?

Back 88

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

Front 89

Step 1: Define the Problem

Back 89

-Set research objectives
-Identify possible marketing actions

Objectives-
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

Front 90

Step 2: Develop the Research Plan

Back 90

-Identify Data Needed for Marketing Actions

-Determine How to Collect Data
key elements in collecting Data
1.Concepts
2.Methods

Concepts-ideas about products or services

Methods
1.Can we ask consumers Quetions that they can answer
2.Is observing consumers' behavior better than asking them questions

Front 91

What are the Special Methods vital to Marketing?

Back 91

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

Front 92

Step 3: Collect Relevant Information

Back 92

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

Front 93

Secondary Data: Internal

Back 93

Collected and exist inside the organization

E.X. Sales reports or customer calls

Front 94

Secondary Data: External

Back 94

Published data from outside the organization

E.X. U.S Census Bureau

Front 95

What is Primary Data?

Back 95

Facts and figures newly collected from the project

Front 96

2 types of Primary Data?

Back 96

Ovservational data (watching people), E.X.Nielsen Media

and Questionaire date(asking people)

Front 97

Advantages of Secondary Data?

Back 97

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

Front 98

Disadvantages of Secondary Data?

Back 98

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

Front 99

Observational Data Collection Methods?

Back 99

Mystery Shoppers, Watching Consumers and video taping them in person