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84 Cards in this Set
- Front
- Back
Global Targeting
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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
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Global Segmentation
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An effort to identify and categorize groups of customers and countries according to common characteristics, like PC's categorized as home, corporate.....
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Pluralization of Consumption
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Similar demands come up in many different areas of the world, sushi. pizza.....
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Demographics
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dividing the segment by age, income, race, population....
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Majority of the worlds GNI
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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.
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World population vs. U.S. population
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World population is 7.2 Billion and the U.S. population is 312 million. (lots of potential outside the borders)
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Standard of living and income in lower class countries.
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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.
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McDonalds location strategy
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Although they operate in 120 countries, 90% of their stores are located in the densest population areas of the world.
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Psychographic Segmentation
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Involves grouping people together based on lifestyle, hobbies, attitudes, and values. VAlS analysis.
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Behavioral Segmentation
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Groups people based on their consumer behavior, usage amount, heavy user/light user, the 80/20 rule...
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Benefit Segmentation
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Positioning things based on their benefits, toothpaste for whitening power, soap for moisturizing...
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Target Market Strategy Options
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Standardized Global marketing
Concentrated Global marketing Differential Global marketing |
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Standardized marketing
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Creating a single marketing mix to suite everyone in the world.
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Concentrated marketing
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Devising a marketing mix to reach a niche market.
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Differentiated marketing
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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.
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Positioning
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Attribute or Benefit
Quality and Price Use or User Competition |
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Attribute or Benefit
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Positioning a product based on its Benefits or Attributes, toothpaste for whitening or tarter control, cars for accessories or features...
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Quality and price
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If it expensive it must be high quality, rolse royce, rolex... position it as superior quality
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Use or User
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Die hard users, coupons, frequent user benefits, positioning max factor makeup as the makeup makeup artists use.
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Competition
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positioning your product in comparing it with the competitor, directly competing with the competitor
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GCCP
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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.
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GCCP
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Brand identity is a global product, Sony, Nike.....
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FCCP and LCCP
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FCCP- Positioned as a foreign brand, VW as a german brand.
LCCP- Positioned as a local brand, Chevy, Budweiser, Levi... |
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Export selling vs. export marketing
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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. |
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Subsidies and CAP
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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 |
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Tariffs and Duties
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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 |
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HTS
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Harmonized Tariff System- importers and exporters have to determine the correct classification number for a given product or service that will cross borders.
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Quotas
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A specified amount of something that either must be reached or can not be exceeded
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Single Column vs. Two Column tariff
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Single- All countries involved get the same duty charges for example the NAFTA
Two- No agreements and all countries get different rates. |
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Preferential tariffs
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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 |
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Ad valorem duty
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A percentage of the value of the goods being exported.
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Countervailing duty
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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
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Antidumping duty
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You cannot dump products at less than cost in other countries if it compromises the market there
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Key export participants
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Purchasing agent
Export broker Freight forwarder |
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Purchasing agent
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Work for overseas customer, seeking foreign companies that will get them the best deal on the product
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Export Broker
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Third party dealer who is payed to bring the seller and buyer together
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Freight Forwarder
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Licensed specialists in traffic operations, they buy shipping space then sell it
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Components of a brand
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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 |
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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 |
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Local products and brands
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Large push to promote local brands as apposed to mega organizations.
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International Brands
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Brands that are well known throughout a country
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Global brands
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Brands that are known all over the world Nike, Coke....
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What is Tiered Branding
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where you promote the brand in the title, example Ford Focus...
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What is Co-branding
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Joining two companies together to promote a product, dell with intel inside, Campbells soup and the NFL...
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Brand Extension
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Extending your brand to many different product categories for example Richard Branson and Virgin mobile.
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Maslows Hierarchy of needs
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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 |
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Maslows needs and marketing
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Marketers use these needs to appeal to us in the positioning of their products
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Can the same product meet different needs in different countries
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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.
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Country-of-origin effect?
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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.
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Brand quality extending back to country of origin?
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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
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Packaging, Labeling and Aesthetics
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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.
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Product Extension
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A company that has a good local product may choose to extend its distribution outside of the borders unchanged, simply extending your product out
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Product adaptation
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This involves changing certain elements of your product or promotion to sell it across borders.
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Product Invention
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developing new products from the ground up with the world market in mind
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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
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Global Strategy 2
Product extension/ Communication adaptation |
Same product/different promotion, Leaving the product the same and developing new marketing schemes for other countries
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Global strategy 3
Product adaptation/ communication extension |
Alter the product and change the promotion scheme.
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Global Strategy 4
product/communication adaptation |
Changing the product and the marketing scheme to suite the new market segments
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Global Strategy 5
New product invention |
Completely new product and marketing scheme,
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Discontinuous innovation
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Making completely new product or technology that phases out an older one, for example the ipod making CD's obsolete
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Dynamically continuous innovations
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Products that incorporate pieces of old technology in the new product.
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Continuous innovation
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Simply a new or improved version of an existing product, new car/ iphone4
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Price Skimming
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Basically testing the market segment to see how high consumers will pay.
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Price Penetration
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Setting prices for a product low enough to enter the segment quickly and gain attraction
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Companion products
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Razors and blades, Make the blades so expensive you can practically give the razor itself away
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Cost-based pricing
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Calculating the cost of the product for the company then adding the desired margin
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Rigid cost plus pricing
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Pricing is fixed and and little room for negotiation is left
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Flexible cost based pricing
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Adjusting the price for items up and down accordingly
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Incoterms
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The different terms of trade when dealing with buyers and sellers, who is responsible for what?
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Ex-works
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Buyer pays all
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Delivered duty paid
DDP |
Seller pays
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Free Carrier F.O.B.
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seller is responsible until it gets on the ship
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Cost insurance freight CIF
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Responsible until it reaches the port of destination and passes the ships rails
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Pricing Policy Alternatives
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Extension-ethnocentric, same price in all markets
Adaptation-polycentric, managers set prices in each country Geocentric, coordinated global strategy |
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Fluctuation of currency
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currency fluctuation can often make cross border business difficult due to differing values of money and contracts
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Inflation
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Inflation can often cause issues too because of quotes and trying to base future prices and predicting what inflation is going to do
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Government controls
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Governments have crazy policies and quotas sometimes
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Gray market areas
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Goods that are smuggled from one country to another and distributed by unauthorized dealers and distributors.
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Black market products
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Products that are actually illegal.
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Parallel importing
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Occurs when companies employ a polycentric multinational pricing policies that calls for setting different prices in different country markets.
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Dumping
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selling below cost, illegal
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Horizontal price fixing
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When two companies selling the same product agree to fix their prices similarly usually to keep the price high
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Vertical price fixing
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When a manufacturer conspires with wholesalers or retailers to channel and secure different levels of the distribution chain
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Barter
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straight trade for items no money involved.
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