MKT 301 Ch.8-11
MKT 301 Ch.8-11 80302 - MKT 3010 - 002
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80302 - MKT 3010 - 002
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Popular in Marketing
80302 - MKT 3010 - 002
verified elite notetaker
This 21 page Bundle was uploaded by Nicole Dunne on Tuesday September 29, 2015. The Bundle belongs to 80302 - MKT 3010 - 002 at Clemson University taught by Carter Willis McElveen in Summer 2015. Since its upload, it has received 114 views. For similar materials see Principles of Marketing in Marketing at Clemson University.
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Date Created: 09/29/15
Chapter 8 Global Marketing Ford 0 Fist time since its debut in 1964 it will be sold overseas o Slimmed down to make it more ef cient version of the car Globalization refers to the process by which goods services capital people information and ideas ow across national boarders o The creation of a global economy 0 The creation of a global culture 0 The concentration of power in a smaller number of hands and or nations 0 The erasure of the boarders that divide us 0 The greater the wealth of people in a country the better the opportunity a rm will have in that particular country Rewards of Globalization Global Vision 0 Recognizing and reacting to international marketing opportunities 0 Using effective global marketing strategies 0 Being aware of threats from competitors The Fear of Trade and Globalization 0 Millions of Americans have lost jobs 0 Millions fear losing theirjobs o Threat of outsourcing if workers do not accept pay cuts 0 Vulnerability to operations moving offshore Bene ts of Globalization 0 Expands economic freedom 0 Spurs competition 0 Raises productivity and living standards 0 Offers access to foreign capital global export markets and advanced technology 0 Promotes higher labor and environmental standards 0 Acts as a check on government power Globalization of McDonalds 0 Corporate policy to adapt to cultural expectations of local consumersdifferent menus o Branding sign languagelanguageRonald McDonald Big Mac Index and Burgernomics o Burgernomics is based on the theory of purchasing power parity a dollar should buy the same amount in all counties 0 exchange rates between two counties should equalize prices of an identical good in each country 0 this quotidentical goodquot is a McDonald s Big Mac produced in about 20 countries O quotThe Big Mac Indexquot is the exchange rate that would mean Big Macs cost the same everywhere 0 Organizations Involved in World trade 0 O O O GATT general agreement on tariffs and trade IMF international monetary fund WTO world trade organization World Bank Group Assessing Global Markets 0 China big business Fail 0 O O 0 Home depot not a quotdo it yourselfquot country or quotbig boxquot Barbie no wanted to be Barbie Google government censors Ebay they wanted to know their sellers 0 Economic Analysis General Economic Environment 0 O 0 Healthy economies provide better opportunities for global marketing expansions Trade deficit results when a country imports more goods then it exports Trade surplus occurs when a country has higher level of exports than imports countries like to manufacture in foreign countries with a trade surplus Gross Domestic Product GDP de ne as the market value of the goods and services produced by country in year the most widely used standardized measure of output Gross national income consists of GDP plus the net income earned from investments abroad Purchasing power parity a theory that states that if the exchange rates of two counties are in equilibrium a product purchased in one will cost the same in the other expressed in the same currency The Human Development Index HDI is a summary measure of average achievement in key dimensions of human development a long and healthy life being knowledgeable and have a decent standard of living The HDI is the geometric mean of normalized indices for each of the three dimensions 0 Market Size and Population Growth 0 O Wants to go to a country that is growing China India Distribution of population within a particular region rural or urban o Determines wherehow products can be delivered 0 Evaluating Real Income O 0 Firms can make adjustments to an existing product or change the price to meet the unique needs of a particular country market Ex Cocacola in rural India lowered its prices The best outcome from everyone involved is not just a higher share of an existing market but rather the ongoing development of the market for everyone 0 Analyzing Infrastructure and Technologies Capabilities O O O 0 Infrastructure the basic facilities services and installations ended for a community or society to function transportation communication systems water and power lines and public institutions like schools post offices and pdsons Must be a system to transport goods Distribution channels must exist to deliver products in a timely manner Communications systems media so consumers can nd out information on products Need commercial infrastructure legal bankingregulatory systems allows marketing to function 0 Analyzing Government Actions 0 O O Tariffs a tax levied on a good imported into a country duty Intended to make imported gods more expensive thus less competitive with domestic products Arti cially raises prices Lowers demand Quotas designates the maximum quantity of a product that may be brought into a country during a speci ed time pedod Reduce availability of imported merchandises Maximum limit Tariffs and quota bene t domestically made products because they reduce foreign competition 0 Trade Agreements 0 00 Trade agreements intergovernmental agreements designed to manage and promote trade activities for speci c regions Trading bloc consist of those countries that have signed a particular trade agreement European Union highest level of integration across international nations NAFTA CAFTA Mercosur 0 ASEAN Analyzing Sociocultural Factors 0 Culture Power Distance willingness to accept social inequality as natural Uncertainty Avoidance the extent to which the society relies on orderliness consistency structure and formalized procedures to address situations that arise in daily life Individualism perceived obligation to and dependence on groups Masculinity the extent to which dominant values are male oriented A lower masculinities raining indicates that men and women are treated equally in all aspects of society a higher masculinity ranking suggests that men dominate in positions of power Time Orientation shortversus longterm orientation A country that tends to have a long term orientation values longterm commitments and is willing to accept a pong term time horizon for the success of a new product introduction planning ahead or looking at the right now Choosing A Global Entry Strategy Exporting producing goods in one country and selling them in another Franchising a contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor Ex McDonalds Pizza Hut Starbucks Strategic Alliances a collaborative relationship between independent rms though the patterning rms do not create an equity partnership they do not invest in one another Ex Starbucks partnered with Barnes and Nobles Joint Venture formed when a rm entering a market pools its resources with those of a local rm and ownership control and pro ts are shared 0 Share nancial burdens local partners offers the foreign entrant greater understanding of the market and access to resources such a vendors and real estate 0 Ex Hulu News Corps Disney and Comcast all own it Direct Investment when a rm maintains 100 ownership of its plants operation facilities and of cers in a foreign country often through the formation of wholly owned subsidiaries Choosing a Global Marketing Strategy A global marketing strategy includes two components determining the target markets to pursue and developing a marketing mix that will sustain a competitive advantage over time Global segmentation targeting and positioning STP are more complicated for 3 reasons 0 Dif culty understanding the cultural differences 0 Subcultures within each country also must be considered 0 Consumers often view products and their role as consumers differently in different countries ex small cars are wanted in India for Ford s trucks don t do as well The Global Marketing Mix Product or Service Strategies 0 Sell the same picture of service in both the home and host country 0 Sell a product or service similar to that sold in home country but include minor adaptions 0 Sell totally new products or services 0 The level of economic development as well as differences in product and technical standards helps determine the need for and level of product adaption Globalization the process of rms standardizing their products globally but using different promotional campaigns to sell them ex Pringles has different avors in different countries Reverse innovation when companies initially develop products for niche or underdeveloped markets and then expand them into their original or home markets ex General Electric made a cheap battery operated portable EKG machine then realized it would be efficient to have in the US The Global Marketing Mix Pricing Strategies 0 Difficult to determine tariffs quotas antidumping policies economic conditions competitive factors The Global Marketing Mix Distribution Strategies 0 Additional middle men add cost and ultimately increase the nal selling price of a product 0 These cost factors create a pressure to simplify distribution channeb The Global Marketing Mix Communication Strategies 0 Literary levels differences in language customs and culture thong is US vs UK Chapter 9 Segmentation Targeting and Positioning 0 segmentation the process of diving the market into groups of customers with different need wants or characteristics who therefore might appreciate products or services geared especially for them 0 targeting the process of evaluating the attractiveness of various segments and then deciding which to pursue as a market 0 positioning involves the process of defining the marketing mix variables so that target customers have a clear distinctive desirable understanding of what the product does or represents in comparison with competing products 0 Zappos 0 Customer servicecore values 0 How the segment I Large selection 39 Shopping from home 39 Overnight delivery I Have a successful business on loyalty The Segmentation Targeting and Positioning Process 1 Establish Overall Strategy or Objectives 0 The segmentation strategy must be consistent with and derived from the firm s mission and objectives as well as its current situationSWOT 0 Check yourself 2 Segmentation Methods Describe Segment 0 Geographic segmentation the grouping of consumers on the basis of where they live 0 Most useful for companies whose products satisfy needs that vary by region Market size Market density Climate New ways to generate sales in sluggish and competitive market Scanner data allows assessment of best selling brans in region Regional brands appeal to local preferences 0 Quicker reaction to competition 0 Demographic Segmentation the grouping of consumers according to easily measured objective characteristics such as age gender income and education 0 Psychographic Segmentation delves into how consumers actually describe themselves using characteristics that help them choose how they occupy their time behavior and what underlying psychological reasons determine those choices 0 Self values goals for life not just the goals one wants to accomplish in a day ex self respect fulfillment OOOOOO O Selfconcept the image a person has of him or herself 0 Lifestyles the way a person lives his or her life to achieve goals what is valued by the segment 0 Personality adventure seekers 0 Social class lower middle upper Benefit Segmentation the grouping of consumers on the basis of benefits they derive from products or services Behavioral Segmentation divides customers into groups based on how they use the product or service 0 Occasion segmentation a type of behavioral segmentation based on when a product or service is purchased or consumed ex Men s Warehouse Frito Lays individual packs or party packs 0 Loyalty Segmentation strategy of investing in loyalty initiatives to retain the firm s most profitable customers ex Airlines with loyalty points Geodemopgraphic Segmentation grouping of consumers on the basis of combination of geographic demographic and lifestyle characteristics 0 Consumes in the same neighborhood tend to buy same stuff Evaluate Segment Attractiveness Marketers must determine whether the segment is worth pursing using several descriptive criteria is the segment Identifiable substantial reachable responsive and profitable Identifiable 0 Who is in their market 0 Are the segments unique 0 Does each segment require a unique marketing mix Substantial 0 If a market is too small or its buying power insignificant It wont generate sufficient profits or be able to support the marketing mix activities ex foreign automakers only started making entry level cars for China when their middleclass grew Reachable O The best product or service cannot have impact unless it can be reached accessed through persuasive communications and product distribution Consumer must know the product exits Understand what it can do Recognize how to buy it 0 Internet makes this easy OOO Responsive 0 Customers in the segment must react similarly and positively to the firm s offerings 0 Accept the firm s value proposition 0 More toward the firms productsservices 0 Ex GM introduced a line of luxurious cars to people who typically purchase Porsches BMW s 0 Profitable 0 Is it making money Select Target Market 0 Determining which segments they can serve best I Should only enter segments where company can create superior customer value and gain advantages over competitors 0 A market is people or organizations with needs or wants and with the ability and willingness to buy lack of any of these is NOT a market I Undifferentiated Targeting Strategy 0 When everyone might be considered a potential used of its product 0 Focuses on the similarities in needs of the customers as opposed to the differences 0 Used for many basic commodities like salt or sugar 0 Advantages I Potential savings on production and marketing costs 0 Disadvantages I Unimaginative product offerings I Company more susceptible to competition Differentiated Targeting Strategy 0 Target several market segments with a different offering for each 0 Ex Conde Nast magazine company vogue Bon Appetite GQ 393 Advantages I greater financial success I economies of scale 393 Disadvantages I High costs I Cannibalization refers to a reduction in m volume sales revenue or market share of one product as a result of the introduction of a new product by the same producer ConcentratedNiche Targeting Strategy 0 Selecting a singly primary target market and focusing all energies on providing a product to fir that market s needs 393 Advantages I Concentration of resources I Meets narrowly defined segment I Small firms can compete I Strong positioning 393 Disadvantages I Segments too small or changing I Large competitors may market to niche segments 0 Micromarketing OnetoOne Marketing 0 An extreme form of segmentation that tailors a product or service to sit an individual customer s wants or needs 0 EX Nike custom design shoes MampM s Internet helps facilitate this strategy Cookies computer program installed on hard drives that provides identifying information Recommendations on websitespromotions through email Individualized Information intensive Longterm Personalized Cost reduction Customer retention Increased revenue Customer loyalty 5 Identify and Develop Positioning Strategy 0 Involves a process of defining the marketing mix variables so that target customers have a clear distinctive desirable understanding of what the product does or represents in comparison with competing products 0 Value proposition the unique value that a product or service provides to its customers and how it is better than and different from those of competitors 0 Positioning Methods 0 Can help communicate the firm s or the product s value proposition the unique value that a product or service provides to its customers 0 Value re ects the relationship of benefits to costs or what the consumer gets for what he or she gives Salient attributes Volvo the car is safe Symbol Volvo symbol 0 Competition Goodrich tires were promoted as the other guys or blimp to set them apart from Goodyear tires 00 000000000 00 0 Positioning Using Perceptual Mapping O Positioning is the place the product occupies in a consumer s mind relative to competing products 0 Should be tied to competitive advantage starbucks vs Dunkin O Perceptual map displays two or more dimensions the position of products or brands in the consumer s mind 0 Ideal points the position at which a particular market segment s ideal product would lie on a perceptual map o ea39 sew 1C9 t or 5311 a spa I 2 a f x M A t2 0 i 153 g T 39ebes 313 1 13 Chapter 10 Marketing Research Marketing research is prerequisite of successful decision making The Marketing Research Process 1 De ning Objectives and Research Needs Researches assess the value of a project though a careful comparison of the bene ts of answering some of their ques ons Designing the Research 0 Researchers identify the type of data needed and determine research necessary to collect it Data Collection 0 Secondary data pieces of information that have already been collected from other sources 0 Primary data data collected to address speci c research needs 0 Must choose a sample a group of customers who represent the customers of interest in a research study Analyzing Data and Developing Insights Data raw umbers of facts 0 When data is interpreted it becomes information organized analyzed interpreted data that offer value to marketers Action Plan and Implementation 0 Analyst prepares the results and presents them to the appropriate decision makers who undertake appropriate marketing strategies 0 Marketing research presentation includes an executive summary the body of the report the conclusions the limitations and appropriate supplemental tables gures and appendixes Secondary Data Might come from free or inexpensive external sources such as a census data information from trade associations and reports published in magazines Can also purchase more speci c or applicable secondary data from specialized research rms Can be accessed through internal sources company s sales invoices customer lists Inexpensive External Secondary Data 0 US census 0 May not be relevant or timely 0 May not be trustworthy Syndicated External Data data available for a fee form commercial research rms such as Information Recourses Inc IRI National Purchase Diary Panel and ACNielsen 0 Provide information about shifting brand preferences and product usage in households which they gather from scanner data and consumer panels 0 Scanner Data a type of syndicated external secondary data used in quantitative searcher that is obtained from scanner reading of UPC codes at checkout counters 0 Panel Data information collected from a group of consumers lnternal Secondary data 0 Data warehouse large computer les that store millions and even billions of pieces of individual data 0 Data mining the use of variety of statistical analysis tools to uncover previously unknown patterns in the data stores in databases or relationships among variables ex member loyalty card 0 Churn the number of consumers who stop using a product or service divided by the average number of consumers of that product or service Primary Data Collection Techniques Qualitative Research used to understand the phenomena of interest thought broad openended responses More informal research method includes 0 Observations an exploratory research method that entails examining purchase and consumption behaviors thought personal or video camera scrutiny Ethnographic research the study of human behavior in its natural context involves observation of behavior and physical setting 0 Social Medialistening to customers blogs tweets Sentiment mining data gathered by evaluating customers comments posted through social media sites such as Facebook and Twitter 0 lndepth lnterviews an exploratory research technique in which trained researchers ask questions listen to and record the answers and then pose additional questions to clarify or expand on a particular issue 0 Focus Groups a research technique in which a small group of persona 812 comes together for an intensive discussion about a particular topics with the conversation guided by a trained moderator using an instructed method of inquiry Quantitative Research can be statistically tested Provides information needed to con rm insights and hypothesis generated via qualitative research of secondary data and helps mangers pursue appropriate cores of actions Formal studies includes 0 Survey Research a systematic means of collecting information from people Questionnaire a form that features a set of questions designed to gather information from respondents and thereby accomplished the researcher39s objectives Unstructured questions open ended questions hat allowed respondents to answers in their own words Structured questions closed ended questions for which a discrete set of response alternatives or special answers is provided for respondents to evaluate Opened ended Closed ended Scaled response Must not be misleading Address one issue at a time Easily worded sequences appropriately general to more speci c and demographics at the end Online survey responses are high Responders may life less It is inexpensive Results are processed and received quickly 0 Panel and Scanner Based Research Can be primary or secondary Scanner Data a type of syndicated external secondary data used in quantitative searcher that is obtained from scanner readings of UPC codes at checkout counters Panel Data information collected from a group of consumers 0 Experimental Research a type of conclusive and quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on another variable 0 Advantages and Disadvantages of PrimarySecondary Research distinct advantages and disadvantages For a summary of the 39 tagss 1 17quot and disadvantages qf each type of research see 6 Chapter 11 Product branding and packaging decisions 0 Coca Cola 0 History building the brand from the beginning 0 Brand name brand logos trademark bottle design legally protected marks brand feeling trade secret 0 Brand storytelling brand communication Virtual marketing Happiness Project Worldwide o Interbrands top brand for 2013 13 years in a row moved to 3 in 2013 o What is a product 0 Anything that is of value to a consumer and can be offered through a voluntary marketing exchange 0 Ex tangible service or idea 0 Product is the starting point of marketing mix Complexity and Types of Products 0 Complexity of products 0 Core customer value the basic problem solving bene ts that consumers are seeking 0 Actual product the physical attributes of a product including the brand name featuresdesign quality level and packaging 0 Associated services augmented product the nonphysical attributes of the product including product warranties nancing product support and aftersale service 0 Types of Products 0 Consumer products products and services used by people for their personal use 0 Specialty productsservices products of services towards which the customers shows a strong preference and for which he or she will expend considerable effort to search for the best supplier wedding dress 0 Shopping productsservices those for which consumers will spend time comparing alternatives such as apparel fragrances and appliances 0 Convenience productsservices those for which the consumer is not willing to expend any effort to evaluate prior to purchase food 0 Unsought productsservices products of services consumers either do not normally thing of buying or do not know about Product Mix and Product Line Decisions 0 Product mix the complete set of all products and services offered by a rm 0 Product lines groups of associated items that consumers tend to use together or think of as part of a group of similar products or services Kellogs cereal toaster parties oat meal Breadth number of product lines offered by a rm variety KeHogs 0 Depth the number of categories within a product line kellogs has cereal nutria grain bars pop tarts cheese its 0 Increase in depth 0 Firms might add items to address changing consumer preferences or to preempt competitors while boosting sales 0 Bandaid now has over 40 products to heal cuts Decrease in depth 0 From time to time it is also necessary to delete products within a product line to realign the rm s resources 0 McComick spices eliminated dozens of products each year 0 Increase in breadth 0 Firms often add new product lines to capture new or evolving markets and increase sales 0 True religion brand jeans now have apparel belts swim wear and fragrances Decrease in breadth 0 Sometimes it is necessary to delete entire product lines to address changing marketing conditions or meet internal strategic priorities 0 Due to competitive changes TCBY is now focusing on yogurt Types of Product Modi cations Quality modi cation 0 Functional modi cation 0 Style modi cation 0 Planned obsolescence apple with new phones 0 Branding Value of branding for the customer 0 Brands facilitate purchases Brands are easily recognized by consumers and because they signify a certain quality level and contain familiar attributes brands help consumers make quick decisions especially about their purchases Physiological rewards from ownership A means of distinguishing one brand from another 0 Brands establish loyalty 0 Brands Protect from Competition and Price Competition 0 Brands Are Assets 0 Brands affect market value 0 Value of branding for the Company 0 A mean of communicating features and bene ts 0 An opportunity to create and sustain an image 0 Customer satisfaction and repeat purchase opportunity 0 Perceived value the relationship between a product s or service s bene ts and its cost whether to buy store brand or real brand What makes a brand 0 Brand name 0 Spoken component of branding 0 Can describe the product or service characteristics or can be derived from a comtemporary language Logos and symbols 0 Visual branding elemnts that stand for corporate names and trademarks URL s and Domain NamesL o The locaton of the pages on the internet which often substirtures for the rms name Characters 0 Brand symbol that can be humnas anima or animated Slogans 0 Short phrases ued to describe the brtand or pursued consumers about charactertis of the band Jingles and Sounds 0 Audia messages about a brand that are composed of words or distinct music How do we know how good a brand is 0 Brand awareness measures how many consumers in a market are familiar with the brand and what it stands for created through repeated exposures of the various brand elements brand name logo symbol character packaging or slogan in the rm s communications to consumers Kleenex Brand equity perceived value the set of assets and liabilities linked to a brand that add or subtract from the value provided by the product or service 0 The value of a brand in its holistic sense to its owners as a corporate asset Brands have VALUE 0 Equity is derived from Effective marketing strategies A brands status in the market place A brands position among customers Brand associations the mental links that consumers make between a brand and its key product attributes can involve a logo slogan or famous personality priusgood for environment Brand personality human traits you associate with brand 0 McDonaldshappy Brand loyalty occurs when a consumer buys the same brands product or service repeatedly over time rather than buying from multiple suppliers within the same category 0 Degree of consumer attachment 0 Recognition awareness of name bene t and package 0 Preference is the useful consumer will buy if available Evoked set 0 lnsistence will search for must have Branding Strategies Brand Ownership 0 Manufacture brands national brands owned and managed by the manufacturer 0 Retailerstore brands privatelabel brands brands developed and marketed by a retailer and available only from that retailer Naming Brands and Product Lines 0 Family brands a rm s own corporate name used to brand its product lines and products 0 Individual brand the use of individual brand names for each rm s product 0 Cobranding the practice of marketing tow or more brands together on the same package or promotion Brand and Line Extensions 0 Brand extensions the use of the same brand name for new products being introduced to the same or new markets 0 Line extension the use of the same brand name within the same product line and represents an increase in a product line s depth 0 Brand dilution occurs when a brand extension adversely affects consumer perceptions about the attributes and the core brand is believed to hold life saver drinks Cobranding the practice of marketing two or more brands together on the same package promotion or store Brand Licensing a contractual arrangement between rms whereby one rm allows another to use its brand name logo symbols or characters in a enhance for a negotiated fee 0 Brand repositioning rebranding a strategy in which marketers change a brand s focus to target new markets or realign the brand s core emphasis with changing market preferences Packaging Roles of Packaging 0 Protect the product 0 Market the product 0 Provide convenience to distributors and consumers Primary packaging the packaging the consumer uses such as the toothpaste tube from which he or she typically seeks convenience in terms of storage use and consumption 0 Secondary package the wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners can contain additional product information that may not be available on the primary package 0 Product Label 0 Provide information the consumer needs for his or her purchase decision Fair packaging and label act of 1967 Nutrition labeling act FDA 0 Communication tool 0 Cosmetic Labeling 0 Before a new cosmetic goes on the market the FDA does nothing they only approve manufacturing 0 No such thing as a Natural cosmetic Hypoallergenic Cruelty free Socially Responsible Labeling 0 Clearly de ned Certi ed humane raised and handled Grass def Fair trade certi ed Organic USDA label 95 organic Greenwashing o Unclearterms o Antibiotic free banned by the FDA means they weren t exposed but mother could have been 0 Free ragefree roaming outside for 5 min 0 Hormone free no de nition by the USDA 0 Fresh never been frozen cooked preservatives chicken 26F OOO
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