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64 Cards in this Set
- Front
- Back
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What is the key difference between the InternationalMonetary Fund (IMF) and the World Bank? |
IMF rescues countries (ex: Greece), World Bank is alender for infrastructure/growth. |
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What was the General Agreement on Tariffs and Trade(GATT) and what was its purpose? |
It was a catalyst for free trade. The purposewas to reduce tariffs and lower trade barriers. |
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How did the GATT operate to achieve its purpose? |
Worked through multi-lateral negotiations to reducetariffs. Everybody get benefits of the negotiations. It was very successful. |
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What is the successor organization to the GATT? |
WTO (WorldTrade Organization) |
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What is the Gross Domestic Product (GDP) |
GDP is the total value of all goods and servicegenerated within an economy in one year (internal) |
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What is the Gross National Income (GNI)? |
GNI takes into account external income intoconsideration (all of the money generated by the country). External would beany income that a country gets from trade. |
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What is Purchasing Power Parity (PPP)? |
Theorythat states that if the exchange rate of 2 countries is in equilibrium, aproduct purchased in one will cost the same in the other. |
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What is the “infrastructure” of a country and what arethe key elements that marketers are especially concerned about it? |
Infrastructure in the networks within a country; Marketers are looking at distribution and communication(because they affect the marketing mix). |
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What is a tariff? |
A tax on an import (duty); benefits producers but at the cost of the customer |
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What constitutes “dumping” in international trade? |
Dumping is when a company sells a product in an overseas marketbelow their cost. The product is at such a low-cost that it will wipe outthe competition and once the competition is gone, they will raise their priceand end up with a monopoly |
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What is a quota? |
A limitation on the amount of a product that can bebrought in (ex: Florida has a quota on the amount of orange juice that can beimported) Benefits producers but at the cost of the customer |
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What is exchange control? |
Permissionto buy foreign exchange (ex: Venezuela. Countries hang on to their reserves and to be protectionist |
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What is a trade agreement? |
An agreement between or more governments to reducetariffs Free Trade Agreement = No tariffs |
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What is a boycott? How does it differ from an embargo? |
Both are absolute prohibitions to trade. A boycott is a prohibition to buy; country tellscitizens that they are forbidden from buying from a certain country An embargo is a prohibition to sell |
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Geert Hofstede’s 5 cultural dimensions: Individualism/collectivismindex: |
Focuses on self-orientation, initiative. Cultures highin this index place more importance in group loyalty, group action. (USA is thehighest scoring, USA encourages individualism) |
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Geert Hofstede’s 5 cultural dimensions: Powerdistance index: |
Focuses on authority orientation, hierarchy. Cultureshigh on this index tend to be hierarchical, whereas cultures low in this indextens to value equality more. (Measures distance in social classes; Mexicoscores high) |
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Geert Hofstede’s 5 cultural dimensions: Uncertaintyavoidance index |
Focuseson risk orientation, rules. Cultures high in this index depend more on rigidrules and regulations, distrust new ideas or behavior, and are moretraditional, in order to avoid risk. Cultures low in this index are morewilling to take risks in return for higher rewards. |
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Geert Hofstede’s 5 cultural dimensions: Masculinity/femininityindex: |
Focuseson male achievement orientation, sex roles. Cultures high in this index aremore assertive, emphasize more making money, not caring for others, more rigidmale/female roles. Cultures low in this index emphasize equality between thesexes, and interdependence. |
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Geert Hofstede’s 5 cultural dimensions: Timeorientation index: |
Focuseson long-term versus short-term orientation. Cultures high in this index makeplans for the long-term, whereas cultures low in this index plan for muchshorter time periods. |
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Whatmethod of entering a foreign market is the least risky? |
Export:Least risky/easiest; you take your present product and present packaging andsimply ship it overseas. |
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What method of entering a foreign market gives themarketer the least control over his/her marketing strategy? |
Export |
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Whatmethod of entering a foreign market is the most risky? |
DirectInvestment: Absolute control; create a fully owned subsidiary. You either a)buy a local company (how Walmart operates) or b) build it from scratch(greenfield operation). |
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What method of entering a foreign market gives the marketer the most control over his/her marketing strategy? |
Direct Investment |
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Whatare the different types of consumer buying decisions? |
Routineresponse behavior (habitual): little involvement Limited decision making: Consult various factors to help you reach a decision (ex: when your favorite brand of cereal is out, what do you do?) Extended decision making: Decisionsthat have long-lasting consequences; high level of involvement |
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5 factors that determine the level of consumer involvement |
1. Previous experience 2. Interest 3. Perceived risk 4. Situation 5. Social visibility |
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Stepsin the consumer decision process |
1. Need recognition 2. Information search 3. Evaluation of alternatives 4. Purchase 5. Post purchase |
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Whatis post purchase behavior? |
The feeling of anxiety that consumers feel after completing a purchase, essentially doubting whether they made the right choice. |
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Whatdo consumers do to try to reduce cognitive dissonance? Howcan marketing managers help to reduce it? |
To reduce cognitive dissonance consumers look for validation of their purchase by seeking information. They ask their network, look for reviews, news, etc. Marketers should follow-up, publish favorable reviews, and offer a guarantee (satisfaction guaranteed) |
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Whatis culture? |
Culture is a set of inter-related beliefs, values, attitudes and ways of doing things that is characteristic of a similar group of people, who learn their behavior through socialization |
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Whatis a subculture? |
Each culture contains smaller groups with more specific socialization and identification Typesof subcultures: Nationality, religious, racial, geographic groups |
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Whatare the characteristics of social classes in the United States? |
Persons within a class behave more alike. Socialclass is not indicated by a single variable. Factors are income, how long have you had this income (new money/old money), occupation, and your education. Socialclass is continuous rather than discrete, with individuals able to movebetween classes. |
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Whatis a reference group? |
A reference group is a group of people you consult when making a purchasing decision |
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What kinds of reference groups are there? |
Directgroup: Face-to-face membership; (Primary is small, informal; includes friends/teammates) (Secondary is large, formal group; students of UM) Indirectgroup: Non-membership (aspirational; nonaspirational) |
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Whatis an opinion leader? What are thecharacteristics of opinion leaders? What is the best way to reach opinionleaders? |
Opinionleader: Person who sets the tone on a particular area of expertise. Promote your product in a specialized way to reach these niche groups. They are: Curiouson the are they are interested in; alwayswant the latest thing; tendto be innovators/early adapters; tendto be young and discretionary income |
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Selective attention? |
Wesee something but the brain filters is out and it does not go any further (ex:tuning out TV commercials) |
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Selective distortion? |
Consultswith your attitudes, motives, learning and personality. In the process ofinterpretation, your message could become distorted |
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Selective retention? |
Peoplewill selective remember a message or not. Repetition helps in retention |
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Whatare the 6 basic principles of Maslow’s theory of motivation? |
1. Needs to motivate people 2. There is a hierarchy of needs 3. Humans tend to satisfy basic needs first 4. Once a need is satisfied, it no longer serves as a motivator 5. Satisfied needs don’t totally disappear; instead, a change in emphasis occurs. 6. Humans are never completely satisfied. |
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What is a value? |
Value: an enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct. It defines culture |
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What are some core American values? |
Core American values: 1. Importanceof hard work, success 2. Ownershipof tangible goods 3. Religiousand political freedom 4. Importanceof technological advances 5. Lookingyoung 6. Capitalism |
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What is segmentation? |
Segmentation consists of forming groups of your population that have similar characteristics |
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What is targeting? |
Targeting is to select a segment(s) that you are going to concentrate on serving very well |
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The four characteristics of a “good” marker segment |
1. Homogeneouswithin the segment (members of the segment are alike) 2. Heterogeneousbetween the segments 3. Substantialin purchasing power 4. Operationalvariables (a variable that you use to segment have to have something to do withthe product/need you’re trying to satisfy) |
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What are the variables of segmentation bases for consumer markets? |
1. Geography 2. Demographics 3. Psychographics 4. Benefit sought 5. Usage rate |
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What is the basic premise of “geodemographics?” |
Geodemographics is a segmentation system that is based on “you are where you live” (Combination of demographics and geography) People with similar characteristics tend to live together |
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What are the 3 (4*) strategies that could be used for selecting target markets? |
1. Undifferentiated strategy: Try to serve everyone; very large market/volume; Disadvantageis that they are not specialized 2. Concentratedstrategy: Specializedstrategy; only serves a very limited segment 3. Multisegmentstrategy: Morethan one but less than all segments; More than one marketing mix because you are providing multiple product for multiple people. 4. One-on-onetargeting (micromarketing): Trying to serve the needs of one customer (mass customization) |
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What is the danger that marketers run when they introduce new products in market segments that are adjacent to those of their existing products? |
Cannibalization:When you introduce a product in one segment that is adjacent to anothersegment. Takes away market share from one of your sister products. (iPod and iPhone) |
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What is positioning? |
Positioning is the image that you want your customers to have about your brand |
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What is repositioning? |
Repositioning is when you take the image the customer has and change it. Can happen when you’re changing your target market. Customers are the ultimate arbiters about image and once they form an opinion, it is very hard to change. |
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On what basis are consumer products classified? |
1. A product is anything that can solve a customers needs and wants 2. A product is a bundle of benefits or satisfactions 3. A product platform allows you to produce different versions of the product using the same basic platform to satisfy different needs/markets(ex: cars) |
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Example of a pure tangible good |
Packagedfoods, soap, toothpaste |
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Example of a tangible good with accompanying services |
Privatecar transportation |
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Example of a major service with accompanying minor goods and services |
Airlinetransportation |
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Example of a pure service (intangible) |
Babysitting,haircut, massage, therapy |
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What is a convenience product? |
Convenience products: items the consumer needs, but isn’t willing to spend much time shopping for 1. Staples:goods bought often and routinely, without much thought (milk, bread, butter,eggs) 2. Impulsegoods: goods bought quickly, without planning, because of a strong felt need(candy, magazine)
3. Emergencygoods: goods purchased only when need is great (hurricane supplies) |
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What is a shopping product? |
Shopping products: more expensive items that are usually bought after comparison 1. Homogeneousshopping products: consumers perceive them as essentially the same, and buy thelowest price (certain brands of washers, dryers, refrigerators)
2. Heterogeneousshopping products: consumers perceive them as different, so they purchase onthe basis of quality and suitability (furniture, dress, suit) |
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What are specialty products? |
Consumers search extensively for a particular item and are very reluctant to accept substitutes (Rolex watches, Bose speakers) |
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What are unsought products? |
Products the consumer is not actively seeking because they don’t know they exist or they feel they don’t need (new products, life insurance) |
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What is the difference between product line breadth and product line depth? |
Breadth means width, it’s the number of product lines a company has. Depth is the number of categories within a product line. |
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What is a trademark? How are trademark rights determined in the USA? |
A trademark is the legal protection that is given to a brand. In the US, trademark protection is on the basis of use. The first company to use the brand is the one that owns it and they have to continue to use it to own it. |
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How long does trademark protection last? |
Trademark protection last forever (as long as you are using it) or if you lose it (which happens if your brand becomes generic) |
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How can you loose your trademark protection? How can you prevent this from happening? |
You loose trademark when you become generic. |
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What is a manufacturer’s brand? What is a private brand (private label)? |
A manufacturer’s brand is a brand that belongs to the company that makes the product (Ex: Procter & Gamble, Unilever). A private brand is a brand that belongs to a distributer, either a wholesaler or a retailer (Ex: Publix brand products) |
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What is cobranding? |
When you have more than 1 brand on your product (Tide with Febreze). |
