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84 Cards in this Set

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Global Targeting
The process of evaluating the segments and focusing market efforts on a country, region, or group of people that have high potential to respond. Specific marketing
Global Segmentation
An effort to identify and categorize groups of customers and countries according to common characteristics, like PC's categorized as home, corporate.....
Pluralization of Consumption
Similar demands come up in many different areas of the world, sushi. pizza.....
dividing the segment by age, income, race, population....
Majority of the worlds GNI
75% of the worlds GNI comes from the U.S. Japan, and Western Europe. For low cost items such as shampoo and such population might be more important then class or income.
World population vs. U.S. population
World population is 7.2 Billion and the U.S. population is 312 million. (lots of potential outside the borders)
Standard of living and income in lower class countries.
Standard of living can be higher than most people think in these countries because they grow and make a lot of what they use they have higher discretionary income.
McDonalds location strategy
Although they operate in 120 countries, 90% of their stores are located in the densest population areas of the world.
Psychographic Segmentation
Involves grouping people together based on lifestyle, hobbies, attitudes, and values. VAlS analysis.
Behavioral Segmentation
Groups people based on their consumer behavior, usage amount, heavy user/light user, the 80/20 rule...
Benefit Segmentation
Positioning things based on their benefits, toothpaste for whitening power, soap for moisturizing...
Target Market Strategy Options
Standardized Global marketing
Concentrated Global marketing
Differential Global marketing
Standardized marketing
Creating a single marketing mix to suite everyone in the world.
Concentrated marketing
Devising a marketing mix to reach a niche market.
Differentiated marketing
Multisegment targeting involves targeting two or more distinct market segments with multiple marketing mixes. making several different ads for s single product positioning it to taylor different groups.
Attribute or Benefit
Quality and Price
Use or User
Attribute or Benefit
Positioning a product based on its Benefits or Attributes, toothpaste for whitening or tarter control, cars for accessories or features...
Quality and price
If it expensive it must be high quality, rolse royce, rolex... position it as superior quality
Use or User
Die hard users, coupons, frequent user benefits, positioning max factor makeup as the makeup makeup artists use.
positioning your product in comparing it with the competitor, directly competing with the competitor
Global Consumer Culture Positioning, strategy that identifies the brand as a symbol of a particular global culture or segment. Using the product as the symbol.
Brand identity is a global product, Sony, Nike.....
FCCP- Positioned as a foreign brand, VW as a german brand.
LCCP- Positioned as a local brand, Chevy, Budweiser, Levi...
Export selling vs. export marketing
Export selling- Selling across borders without modifying any of the 4 P's
Export Marketing- Selling across borders and changing one or more of the 4P's to do so.
Subsidies and CAP
Subsidies are supplements from the government to help get a product going or not promote it because there is already too much.
CAP- Common Agriculture Policy, guaranteed prices on stuff
Tariffs and Duties
Tariffs- Fees for bringing products into other countries, not just fees but paperwork, rules, regulations...
Duties- Taxes that punish individuals for making choices of which their governments disapprove
Harmonized Tariff System- importers and exporters have to determine the correct classification number for a given product or service that will cross borders.
A specified amount of something that either must be reached or can not be exceeded
Single Column vs. Two Column tariff
Single- All countries involved get the same duty charges for example the NAFTA
Two- No agreements and all countries get different rates.
Preferential tariffs
Reduced tariff rate given to less developed countries, only allowed for 3 reasons
1- Historical or grandfathered rights such as british common wealth preferences
2- Preferences that are apart of a formal treaty such as free trade agreements
3- Industrial countries can grant lower tariffs to companies based on less developed countries
Ad valorem duty
A percentage of the value of the goods being exported.
Countervailing duty
Additional duties used to offset the subsidies given in the country of origin, for example higher duties on canadian timber because of the subsidies on canadian timber
Antidumping duty
You cannot dump products at less than cost in other countries if it compromises the market there
Key export participants
Purchasing agent
Export broker
Freight forwarder
Purchasing agent
Work for overseas customer, seeking foreign companies that will get them the best deal on the product
Export Broker
Third party dealer who is payed to bring the seller and buyer together
Freight Forwarder
Licensed specialists in traffic operations, they buy shipping space then sell it
Components of a brand
Complex bundle of images and experiences in the customers mind. Brands perform two important tasks.
1- represents a promise by a particular company about a particular product
2- brands enable customers to better organize their shopping experience by helping them seek out and find a particular product
Brand equity
(4 components)
Represents the the total value that accrues to a product as a result of a companies cumulative investments in the marketing of the brand. All components of the brand
Brand loyalty
Brand awareness
Perceived quality
Brand Image
Local products and brands
Large push to promote local brands as apposed to mega organizations.
International Brands
Brands that are well known throughout a country
Global brands
Brands that are known all over the world Nike, Coke....
What is Tiered Branding
where you promote the brand in the title, example Ford Focus...
What is Co-branding
Joining two companies together to promote a product, dell with intel inside, Campbells soup and the NFL...
Brand Extension
Extending your brand to many different product categories for example Richard Branson and Virgin mobile.
Maslows Hierarchy of needs
First are Physiological needs
Then are safety needs
Then are social or belonging needs
Then are Esteem or ego needs
And finally there are self actualization needs
Maslows needs and marketing
Marketers use these needs to appeal to us in the positioning of their products
Can the same product meet different needs in different countries
Absolutely, take the refrigerator for example, a product that means different things in different countries, some places a complete luxury item, others not as much.
Country-of-origin effect?
It becomes part of a brands image, Things made in italy are high quality and expensive things made in china are low quality and cheap.
Brand quality extending back to country of origin?
Nokia is a brand from finland, not many people knew that, as Nokia gained popularity and awareness people began to see where it was from and associate it with high quality
Packaging, Labeling and Aesthetics
These are all extremely important factors because all of these can have very strong effects on the product based on the perception of the culture it is being introduced into.
Product Extension
A company that has a good local product may choose to extend its distribution outside of the borders unchanged, simply extending your product out
Product adaptation
This involves changing certain elements of your product or promotion to sell it across borders.
Product Invention
developing new products from the ground up with the world market in mind
Promotion Strategy 1 when persuing global markets
Product/ Communication extention
Involves using the same product and promotions schemes as in the original country in other countries
Global Strategy 2
Product extension/ Communication adaptation
Same product/different promotion, Leaving the product the same and developing new marketing schemes for other countries
Global strategy 3
Product adaptation/ communication extension
Alter the product and change the promotion scheme.
Global Strategy 4
product/communication adaptation
Changing the product and the marketing scheme to suite the new market segments
Global Strategy 5
New product invention
Completely new product and marketing scheme,
Discontinuous innovation
Making completely new product or technology that phases out an older one, for example the ipod making CD's obsolete
Dynamically continuous innovations
Products that incorporate pieces of old technology in the new product.
Continuous innovation
Simply a new or improved version of an existing product, new car/ iphone4
Price Skimming
Basically testing the market segment to see how high consumers will pay.
Price Penetration
Setting prices for a product low enough to enter the segment quickly and gain attraction
Companion products
Razors and blades, Make the blades so expensive you can practically give the razor itself away
Cost-based pricing
Calculating the cost of the product for the company then adding the desired margin
Rigid cost plus pricing
Pricing is fixed and and little room for negotiation is left
Flexible cost based pricing
Adjusting the price for items up and down accordingly
The different terms of trade when dealing with buyers and sellers, who is responsible for what?
Buyer pays all
Delivered duty paid
Seller pays
Free Carrier F.O.B.
seller is responsible until it gets on the ship
Cost insurance freight CIF
Responsible until it reaches the port of destination and passes the ships rails
Pricing Policy Alternatives
Extension-ethnocentric, same price in all markets
Adaptation-polycentric, managers set prices in each country
Geocentric, coordinated global strategy
Fluctuation of currency
currency fluctuation can often make cross border business difficult due to differing values of money and contracts
Inflation can often cause issues too because of quotes and trying to base future prices and predicting what inflation is going to do
Government controls
Governments have crazy policies and quotas sometimes
Gray market areas
Goods that are smuggled from one country to another and distributed by unauthorized dealers and distributors.
Black market products
Products that are actually illegal.
Parallel importing
Occurs when companies employ a polycentric multinational pricing policies that calls for setting different prices in different country markets.
selling below cost, illegal
Horizontal price fixing
When two companies selling the same product agree to fix their prices similarly usually to keep the price high
Vertical price fixing
When a manufacturer conspires with wholesalers or retailers to channel and secure different levels of the distribution chain
straight trade for items no money involved.