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Market + ing, where market is a group of buyers and sellers with something of value for exchange
3 components=(1) target market, (2) 4Ps (Price, Product, Promotion, Place), (3) environment (e.g., economy)
What are the differences between final and industrial consumers?
Final consumers purchase items for their own use or to be used by others in a household setting. Industrial consumers purchase goods and services that further a product/service or in some ways add value to the product/service and resell it to the final consumers.
What are the differences between goods and
Products are tangible items that are purchased by consumers immediately or for later use: nondurables and durables. Services, are intangible items that consumers purchase, inseparability, perishability, and heterogeneity.
Contrast standardization and localization (situations, advantages)?
Standardization is selling the exact same product and marketing strategy in every country. Advantages: economies of scale in production, R&D efficiency, distribution effectiveness and strategic synergy, resulting in cost savings, avoids duplication of efforts and streamlines operations, able to compete strongly with other global brands.
Discuss international product life cycle.
introduction to decline, may vary in length of time. Depending on the stage of a product’s life cycle, different marketing strategies may be applied. International marketers have the opportunity to extend the life of a product by exploiting the differences in economic and mark conditions between countries. That is, a product that is developed in an industrial country may be introduced in emerging countries at a later time making it possible for the product’s life to be extended.
dividing heterogeneous group into a subset of homogeneous groups.
create perception of consumers in the way we want them to perceive.
making my product unique, different from competitors’
Identify the critical issues in international distribution.
channel management, logistics, transportation, and inventory management.
Describe communication process (7 components) and IB implication
Noise: cultural barriers, Sender, Encoding, Medium, Decoding: people may interpret different way, Receiver, Feedback. Study how they decode before we encode anything!!
Explain situation where (1) pull strategies are emphasized, and (2) push strategies are emphasized (L)
pull Strategy: manufacturers go to consumer directly with incentives (e.g., coupons). Consumers will influence retailers to order. Push Strategy: Manufacturers go directly influence retailers with incentives (e.g., push money) to sell more to consumers.
two most important factors influencing price elasticity of demand.
Availability of substitutes: the more possible substitutes the greater the elasticity, Degree of necessity or luxury: luxury products tend to have greater elasticity. Some products can become necessities with consumers.
consumer goods, Large market segment, Long distribution channels, Mass communication has cost advantages
Industrial products or complex new
products, Direct selling allows firms to educate
users, Short distribution channels, Used in poorer nations for consumer goods where direct selling only way to reach consumers
List and define three types of price elasticity
Elastic demand: consumers are very sensitive to price change and they switch to competitors’ when price is raised. Globalization leads to more elastic demand. Inelastic demand: consumers are less sensitive to price change. Good for marketers. Pricing power. Unitary demand: gain due to price increase is equal to loss.
Describe two concepts (1) antidumping, and (2)
transfer pricing (L)
antidumping: Governments enforce antidumping regulation when too low import price jeopardizes domestic competition. Transfer Pricing: when firms charge a transfer price to their various international branches or subsidiaries but then give local managers in each country wide latitude to charge their customers whatever price they think is most appropriate