marketing ch 6-10

Identifying different groups of buyers in the market is called...

segmentation

Identifying which market segment a firm can serve best and most profitable is called

market targeting

Identifying possible competitive advantages, choosing the right competitive advantage, selecting and overall positioning strategy and effectively communicating and delivering the right position are all part of

positioning

Making a product different from those of competitors is

differentiation

One reason why market segmentation has become increasingly important is because of

more varied customers

the most popular basis for segmenting markets is to use

demographics

A "natural" form of segmentation is called ______ segmentation since different buyers often buy a product for different reasons

benefit

One characteristic that market segments should have to be viable segments is that they are

measurable

Selecting to appeal to one target market and ignoring others is called

concentrated marketing

The most costly approach to markets is to practice market

differentiated

Changing the mental picture of a brand in the marketplace is called

repositioning

offering "more for less" is one possible

value proposition

factors that dictate the choice of a global market-entry strategy

- the potential for profit
- the amount of financial commitment
- the level of marketing control

joint venture

a global market-entry strategy that creates a partnership between a local and foreign firm that will share ownership, control, and profits from the new company

direct investment

generally the most costly or riskiest way to enter foreign markets

factors that a government may use when thinking about using protectionism measures

quotas and tariffs

NAFTA primarily deals with what factors?

North America and reducing trade barriers

in the context of global trade, dumping is...

selling a product in a foreign country below its domestic price or actual cost

Licensing

a global market-entry strategy in which a company offers the right to a trademark, patent, or other intellectual property in return for a fee.

global competition

exists in a firm when they originate, produce, and market their products worldwide.

global brand

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

The two functions of WTO

1. setting rules governing trade between its members
2. reviewing and issuing decisions regarding trade disputes

a gray market

when products are sold through unauthorized channels, often because of discrepancies in pricing between countries

The international firm

engages in trade and marketing in different countries as an extension of the marketing strategy in its own country

The multinational firm

Views the world as consisting of unique parts and markets to each part differently

The transnational firm

views the world as one market and emphasizes cultural similarities or universal consumer needs more than differences

Example of dual adaptation strategy

Nescafe is marketed using different coffee blends and promotional campaigns to match consumer preferences in different countries

global brands

tailored to specific cultures and countries when necessary, but typically offer consistent product formations and advertising

contract marketing

when a firm contracts with manufacturers in a foreign market to produce its product or provide its service. Benefits include faster startup, less risk, and the opportunity to form a partnership or to buy out the local manufacturer.

Management contracting

when the domestic firm supplies management skills to a foreign company that supplies capital. The domestic firm is exporting management services rather than products

product extension

selling virtually the same product in other countries. example- apple iPhone

Product adaptation

changing a product in some way to make it more appropriate for a countries climate or consumer preferences
example- Gerber's sells different baby foods in different countries

product invention

invent totally new products designed to satisfy common needs across countries

Identical promotional message

often used for the product extension/adaptation strategies around the world

Adapted promotion message

the same product may be sold in many countries but advertised differently

Response Rate

actual number of responses/desired number of responses = %

Maximizing response rate is desirable because ...

as response rate increases, nonresponse error will tend to decrease

the marketing research process involves...

1. define the problem
2. develop the research plan
3. collect the relevant information
4. develop findings
5. take marketing actions

introduction stage

gaining awareness and trial is an objective of this stage of the PLC

False

A skimming price policy involves setting an initial price low

Growth stage

real product differences are most noticeable in this stage of the PLC

early adopters

from a marketing perspective, the most critical group in gaining market acceptance is ____

brand

a means of distinguishing products sold by different sellers

license

the right when the college of Charleston sells an apparel maker the right to put the College's name and logo on a t-shirt

brand equity

the intangible value of a brand beyond its asset value

maturity stage

defending market share is an objective of this stage of the PLC

decline stage

during this stage of the PLC, marketing support is reduced

adoption process

In this process, individuals go through awareness, interest, evaluation, trial, and adoption.

innovator

a member of the first group to adopt a new product

laggards

the group most resistant to change

trademark

gives a brand legal protection

brand name

the part of a brand that can be vocalized

brand extension

using an existing brand name for a new product

multibranding

using a new brand name for a product added to an existing product line

express warranty

a written statement of sellers's liabilities

core product level

the basic need being satisfied by a product exists at this product level

product line

a group of related product items

convenience products

consumers are only willing to expend a minimal amount of effort to obtain this kind of product

homogeneous shopping goods

If consumers perceive minimal brand differences and want to compare brands based almost exclusively on price

Intensive distribution

Is critical for convenience products

speciality goods

Exclusive distribution is most appropriate of this kind of good

Firms need to introduce new products? yes or no

yes

Ten percent

only about what percent of new products are really new in the way we normally use the word "new

discontinuous innovations

new products that require the greatest amount of consumer learning and behavior change to use them

common reasons for the high failure rate of new consumer products once launched in the market include...

- overestimation of market size
- incorrect positioning
- high development costs

Idea generation

both internal and external sources may help this

Idea screening

the first "weed-out" of new product ideas occurs during this stage and evaluation stage of new product development

If FC= $250,000,000 and variable costs are $10/unit and price will be set at $35, what is the BEQ

10 million units

investment

the product development stage of new product development usually requires a huge jump in what?

standard test market

the type of test market that generally has the best predictability of future actual market behavior

market rollout plan

commercialization often requires this kind of market plan

inseparatable

a service rendered and the service provider are _____ fro each other

product innovation

rather than using the same or modified product in international markets, a firm may instead do this

indirect exporting

occurs when a domestic organization uses a third party to find foreign markets

exporting

generally the least expensive way to enter a foreign country

cultural differences

in choosing between greater standardization or greater adaptation, firms need to be knowledgeable about this

management contracting

one form of joint ventures

direct exporting

If a firm producing a domestic product uses its marketing team to begin finding buyers in foreign markets, the firm would engage in this type of exporting

contract manufacturing

when a firm might partner with a firm in a foreign country

communication adaptation

If a firm keeps the same product but modifies its promotion in different countries

licensing

selling intellectual property to another company

joint ownership

when a domestic firm and a foreign firm together establish a third company to conduct business, they would be involved in ___

dual adaptation strategy

firms that modify both their products and promotion messages in foreign countries

product adaptation strategy

keeping a standard promotional message but altering the product in foreign countries

a good problem definition results in

less cost and greater value

ethnographic research

observations in the "natural habitat"; yields richer understanding of consumers