Marketing Midterm 3 Review 04 15 2014 Chapter 7 Global Marketing Kraft Global Marketing Pushed foods that sold well in US around the globe Factor in cultural identity culinary egos and more Kraft keeps producing Tang because it provides them with 750 million in sales in developing markets China and Brazil Reformulated Oreo s have quadrupled in China China only behind US in Oreo sales Globalization refers to the processes by which goods services capital people information and ideas flow across national borders Cause of Globalization o Reductions or eliminations of trade barriers o Decreasing concerns of distance and time with regard to moving products and ideas across countries o Standardization of laws across borders and globally integrated production processes Globalization of marketing and production Globalization of production off shoring manufacturers procurement of goods and services from around the globe to take advantage of national differences in the cost and quality of various factors of production General agreement on tariffs and trade GATT organization established to lower trade barriers such as high tariffs on imported goods and restrictions on the and types of imported products that inhibited the free flow of goods across borders World Trade Organization Replace GATT in 1994 established institution based in Geneva Switzerland Represents the only international organization that deals with the global rules of trade among nations International monetary fund primary purpose is to promote international monetary cooperation and facilitate the expansion and growth of international trade Pity the Poor Behemoth Nike and Wal Mart have been involved in scandals regarding poor working conditions struggled to rebuild reputation Walmart Bangladesh workers working 19 hours shifts and making 20 month Trade deficit importing more goods than you export Trade surplus higher levels of export than import Gross National Income GDP plus the net income earned form investments abroad same in the other Purchasing Power parity a theory that states that if the exchange rates of two countries are in equilibrium a product purchases in one will cost the Human Development Index composite metrics of three indicators of the quality of life in different countries Life expectancy at birth Educational attainment Whether average incomes meet basic needs of life in that country Retail Concerns for India Traditional shops account for 95 of India s retail commerce Biyani supermarkets in India were redesigned and moved away from a western look to appeal to more customers Walmart taking over crop business o Providing more efficient ways to produce crops o Cuts out transportation costs as well Culture Differs on five dimensions 1 Power distance willingness to accept social inequality as natural 2 uncertainty avoidance the extend to which the society relies on orderliness consistency structure and formalized procedures to address situation that arise in daily life 3 Individualism perceived obligation to and dependence on groups 4 Masculinity extent to which dominant values are male oriented 5 Time orientation short versus long term orientation Chapter 9 Market Research Domino s pizza Stopped caring about speed and began to focus more on taste of Began toasting sandwiches targeted Quiznos Added dessert items like brownies and Oreo dessert pizza Brought new pizza to houses of customers who complained and had them try the new recipe The Marketing Research Process Step 1 Defining the objectives and research needs o Poor design arises from three major sources 1 basing research on irrelevant research questions 2 focusing on research questions that marketing research cannot answer 3 addressing research questions to which the answers are already known Step 2 Designing the research looking for in step 1 Step 3 Data collection process o The process of determing how to get the information you are o Secondary Data info collected prior to the start of the focal research project External data collected from sources outside the firm Syndicated external data data you pay for Internal data collected form a firms day to day operations Step 4 Analyzing data and developing insights o Data raw s and facts o Information organized analyzed interpreted data that offer value to marketers o Churn the of consumers who stop using a product or service divided by the average of consumers of that product or service Step 5 Action plan an implementation o After analyzing the data that has been collected create a plan to better what you originally were looking to improve in Step Company that gathers information about consumer tendencies and then compares it to client data bases in order to create accurate consumer projections Crowd sourcing a company obtains ideas and content from a large 1 Symphony IRI Social Mobile Marketing group of people P G Video Big ideas and innovations are always encouraged Questions what are investments required what are possible returns what are risks what are variables on returns Launch of febreze fabric refreshers o Big success at first o Needed to find an innovative way to expand o Launch febreze air effects car fresheners o Ambipure febreze of Asia and Europe Allowed P G to not have to create a new brand and assimilate febreze Creation of Glad force flex leading trash bag in the country o Investment it was going to require to place into market was too hefty o Partnered with Clorox for trash bags What are the most important things finance people need to understand about marketing o One team o Here to delight consumers o Give shareholders a return on investment What do marketing people need to understand about finance o Not always about saying no o Understand finance and ask questions Greatest marketing idea o Bringing frebreze into car airfreshner scent Chapter 15 Retailing Home Shopping Network Began in 1982 Simulcast all shows on website and YouTube Talk show lifestyle oriented atmosphere to promise exclusive branded products YouTube reaches 40 50 of target market Retailing Defined as the set of business activities that add value to products and services sold to consumers for their personal or family use Factors for Choosing Retail Partners o 1 manufacturers assess how likely it is for certain retailers to carry their products Where customers expect to find product o 2 Identify the types of retailers that would be appropriate to carry their products o 3 develop their strategy by implementing the four P s o 4