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

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


Play button


Play button




Click to flip

49 Cards in this Set

  • Front
  • Back
Information technology (def)
refers to an organizations procesess for creating, storing, exchanging, using, and managing information
marketing information systems (MIS) defintion
provides marketers and managers with a continuous flow of information about company operations
tools of marketing information systems (MIS)
intranet - intrernal communications newtwork
electronic data interchange
efficient consumer response system
electronic point of sale
customer relationship management
a new business model that helps companies collect, store, and analyze customer data
safe harbors agreement
establishes principles for privacy protection for companies that transfer data from US to Europe
- must be an 'opt out' option
global market segmentation
grouping people together with similar interests that will likely exhibit similar behavior to a company's marketing mix no matter where in the wizorld thye are
demograhic segmentation
segmenting peeps in measurable ways
population, income, education, age, gender, occupation
what percent of world GNP is contributed by the triad a

who makes up triad
75% of global GNP by triad, but only 13% of world is made by triad

USA, western europe, japan
psychographic segmentation
grouping peeps by attributes, lifestyles, values

porsche example
top guns purchasers (27%) ambition, powerful, controlling
elitists (24%) old money, car is just a car
proud patrons (23%) car is reward for hard work
bonivants (17%) car for excitement or adventure
behavior segmentation
grouping peeps on whether peeps purchase product and how often they use it

user rates- heavy, medium , light, non-user
user status- classification of users/ past users
law of disproportionalit/ pasato's law- 80% of revenue generated by 20% of customers, so keep em happy
benefit segmentation
focuses on the value eqaution

value= benefits/prices

based on
1)understanding the problem the product/service solves
2) the benefit it offers
3) issue it addresses
assessing mkt potential
mindful of pitfalls:
current size of trgt mkt and opportunity of growth- large enough to make a profit? if no, does it have a large growth potential?
competition- strong/vulnerable competition?
compatability with company's overall objective and how feasible it is to reach the tgt mkt - will the company need to adapt? if so is it cheap? will import restrictions, tarrifs, or strong home country currency drv up price and ruin demand? can you source locally? does the tgt mkt reflect company's goals, image?
framework for selecting target markets
demographic info is starting point but not decision factor
product market must be considered
- product mkt defined by product category
marketing model drivers
- factors req'd for businesses to grow
any enabling conditions?
- absence or presence may determine success of business
target market strategy options
standardized global marketing
- imdifferent target mkting (low production cost)
-mass mkt, min adaptation, standard mkt mix, intense distr.

concentrated global marketing
- niche marketing
- more in depth, not wide

differentiated global marketing
- multisegment targeting
- 2 or more distsinct mkts, wider coverage
locating a brand in consumers minds
- goal is to locate it over/ against competitors in terms of attributes offered
positioning strategies
attribute or benefit (visa, volvo - safety)
quality and price (grey goose)
use or user
positioning using global consumer culture positioning (GCCP)
identifies the brand as a symbol of global culture or segment (killians)
high touch and high tech products
positioning using foreign consumer cultire positioning
associates the brand's users, use occasions, or product origins with a foreign country or culture (fosters)
positioning using local consumer culture (LCCP)
ifentifies with the local cultural meanings
consumed, produced for and by locals
- usally food, personal, household non durables (kentcky proud)
export marketing tailors....whereas export selling involves...
the marketing mix to international customers

selling involves.... same mix, price, product, and everything in a different place
potential export problems
trade restrictions
4 tigers
honk kong
s. korea
free trade zones
geographic areas that offer manufacturers simplified customs procedures, operational flexibility, and a general environment of relaxed regulations
can be thought of as the three R's if global business: rules, rate schedules, and regulations of countries
non tarriff barriers
discriminatory procurement policies:
gvnt rules and administrative regulations thatgive local vendors priority
preferential tarriff
reduced tariff rate applied to imports from certain countries

prohibited under GATT except if
1)historically existed
2) preference is part of formal economic integration TREATY
3)industrial countries are allowed to give preferential treatments to less developed countries.
customs duties
ad valorem: percentage of value of goods
specific duty: expressed as specific amount of currency per weight
variable import levies
applies only to a certain category of agriculture IMPORTED.

keeps domestic products fairly priced if the introduction of imported goods undercut domestic prices
temporary surcharges
rare, but they protect local industries and usually are in response to having too much imports (balance of payment)
direct market representation in different country
advantages- more control and better communications
intermediary representation in different country
advantages- better for countries/companies with small volume of sale
documentary credits (def)
letters of credit aka

guarentee payment for a good
Customs trade partnership against terrorism

US and Canada's way of helping fight terrorism

border patrol inspects cargo, and companies that abide by this code get special priority.

this is an added import/export issue to consider
sourcing decisions
added export/import issue

whether or not to buy/make products and where it makes/buys them from

outsourcing vs manufacturing

advantages gained by:
concentrating some of the mkting activities in a single location
leveraging a company's know how
tapping opportunity for product development and r&d
risk evaluation
from least risk/reward to highest risk/reward

contract manufacturing
joint venture
direct investment
contractual agreement when a company makes an asset available to another comapny in exchange for compensation
licensed assets
patent, trade secret, brand name (subway), company name, product formulations (kfc)
adv/disadv of licensing
additional profitability
little initial investment
finds ways around tarrifs, quotas, other export barriers
low cost to implemtn

disadvantages (microsoft vs apple)
limited participation
returns may be lost
lack of control
licensee may become competitor
licensee may exploit company resources
special licensing arrangements
contract manufacturer (nike)- company makes the product while the firm designs it and tells them what to make
franchising (subway)-contract that gives franchisee the power to open store using franchise stuff with obligation to give fee and adhere to company policies
franchising questions
will the peeps buy your product?
what is the competition like?
does the gvnt respect trademarks and franchiser rights?
can you source locally?
is commercial space available?
are local partners sound? do they understand what/how to franchise?
investments (def)
partial or total ownership of operations outside of home country

foreign direct investment (fdi): these figures reflect all the cash flows from the home country into the foreign country as they acquire land, plant, assets etc.
forms of investment
joint venture- entry strategy for single target country, owners both own part of the new business entity
minority/majority equity stakes-
outright acquisition
terms to describe foreign companies joining together to purse common goals
collaborative agreement
strategic alliance
strategic international alliance
global strategic partnership
3 characteristics of strategic alliances
parties remain independant
enjoy the benefits of the alliance and oversee tasks
contribute to make it worthwhile

this GSP must have governance- consensus must be the norms and individuals must be seen as equal
next step in strategic alliance
relationship enterprise
virtual corporation
sources of mkt information
personal (2/3 of all info gathered)
direct sensory perception- going and actually seeing waht is going on in a particular country
global marketing research
systematic way of gaterhing data on a global basis

the challenge is to recognize and react to national differences that may make the way info is gathered.
step 1 of mkt research
what info do i need?
existing markets-customers needs already being served by a company so there is info available probly

potential mkts
-latent mkts- mkts that are undiscovered that could be profitable
-incipient mkts- the mkt will emege as soon as macroenvironmental trends continue

why do i need this information?
step 4 mkt research
examina available data
- from existing companies
- from trade journals
-gvt publications
-commercial sources