MGT 302 - Chapter 18-Global Marketing and R&D PDF

Preview

Summary

Chapter 18-Global Marketing and R&D...

Description

MGT 302 -Chapter 18: Global Marketing and R&D Marketing Mix: Choices about product attributes, distribution strategy, communication strategy, and pricing strategy that a firm offers its targeted markets. Choices about product attributes, distribution strategy, communication strategy, and pricing strategy that a firm offers its targeted markets. Market Segmentation: Identifying groups of consumers whose purchasing behavior differs from other groups in important ways. Intermarket Segment: A segment of customers that spans multiple countries, transcending national borders.

DIFFERENCES BETWEEN COUNTRIES The four main differences between distribution systems worldwide are: 1. 2. 3. 4.

Retail concentration Channel length Channel exclusivity, and Channel quality.

A) Retail Concentration Concentrated Retail System: A retail system in which a few retailers supply most of the market. Fragmented Retail System: A retail system in which there are many retailers, no one of which has a major share of the market. B) Channel Length Channel Length: The number of intermediaries that a product has to go through before it reaches the final consumer. Ø -Short channel – sells direct to the consumer Ø Long channel has many intermediaries – import agent, wholesaler, retailer C) Channel Exclusivity -how difficult for outsiders to access the channel -Japan’s system is very exclusive -Relationships and history Exclusive Distribution Channel: A distribution channel that outsiders find difficult to access. D) Channel Quality Channel Quality: The expertise, competencies, and skills of established retailers in a nation, and their ability to sell and support the products of international businesses. Ø Good quality– generally developed countries and varies in emerging markets Ø Firms may devote considerable resources to upgrade channel quality Source Effects: Effects that occur when the receiver of the message (i.e., a potential consumer) evaluates

the message on the basis of status or image of the sender. Country of Origin Effects: A subset of source effects, or the extent to which the place of manufacturing influences product evaluations. Noise: The number of other messages competing for a potential consumer's attention.

Push Strategy: A marketing strategy emphasizing personal selling rather than mass media advertising. industrial products or complex products ,-Short distribution channels , -Few print or electronic media

Pull Strategy: A marketing strategy emphasizing mass media advertising as opposed to personal selling. - Consumer goods, -Long distribution channels , -Sufficient print or electronic media to carry the message

1. Price discrimination – firms charge consumers in different countries different prices • Keep national markets separate •

Countries have different price elasticity of demand

Price Elasticity of Demand: A measure of how responsive demand for a product is to changes in price. Elastic: A small change in price produces a large change in demand. (vacations) Inelastic: When a large change in price produces only a small change in demand. (gasoline)...