Final Review

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Review for Test 3
MKTG 3781

Chapter 15
Buyers vs. Sellers Market:
-making things convienent
-Buyers market: supply is less then demand, there is more competition, more competition
-Sellers: demand is less then supply, there is less competition (monopoly), manufacturers

Factors affecting channel choice:
-Before deciding those answer these questions:
1. target market
2. market goals
3. find
-6 C’s:
Cost, Capital Requirements, Control, Coverage, Character, Continuity -Intensive: as many as possible
-Selective: only some stores
-Exclusive : certain specific stores, select places

Channel Management-Locating, Selecting, Motivating, Terminating, and Controlling Middlemen

Difference between agent middlemen and Merchant middlemen
-Agent Middlemen: represent the principal rather than themselves, small risk
-Merchant Middlemen: take title to the goods and buy and sell on their own account, big risk

Chapter 16
Sales Promotions:
-Marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation
-short term efforts directed to the consumer or retailer to achieve specific objectives

-in markets with media limitations, budget allowed for sales promos may have to be increased
-product sampling
-Price discrimination
-Off peak pricing

International Communications Process:
-(ven diagram), encoding, message channel, decoding, receiver, feedback, information source, Noise

Legal constraints:
-comparitive advertising, advertising of specific products, control of advertising on tv, accessibility to broadcast media, limitations on length and number of commercials, internet services, special taxes that apply to advertising

Tactical Considerations
Avaliability, cost, coverage, lack of market data, newspapers, magazines, radio and tv, cable tv, direct mail, the Internet, Social media, mobile phone applications, other media Difference between frequency and reach?????

Chapter 17
Recruiting personnel (3 options available)
-largest force is sales force
-Expatriates: numbers declining, important for highly technical products, high cost, cultural and legal barriers, limited number of personnel willing to live abroad
-Virtual expatriates: manage operations in other countries but don’t live there

Motivating sales people
-National differences must always be considered, individual incentives that work in the US may be different in other countries, communications are important in maintaining high levels of motivation, company needs to make clear the opportunities for growth within the firm

-designing compensation systems, use consistant performance measured, allow local countries flexibility in implementations, use consistent communication and training

Reducing the rate of early returns
-evaluation of an employee’s family, cross cultural training for families and employee, local ombudsmen,????,

Chapter 18
What is parallel importing?
-Develop when importers buy products from distributors in one country and sell them in another to distributors who are not part of the manufacturer’s regular distribution system -occurs whenever price differences are greater than cost of transportation between two markets -major problem for pharmaceutical companies

-exclusive distribution

Full-cost vs. Variable cost
-Variable cost: firm is concerned only with marginal or incremental cost of producing goods to be sold in overseas markets
-Full cost: companies insist that no unit of a similar product is different from any other unit in terms of cost
-each unit must bear full share of the total fixed and variable cost

Skimming, penetrations and prestige pricing
-Skimming: when the objective is to reach a segment of the market that is relatively price insensitive
-market is willing to pay a premium price for the value received

-Penetration: used to stimulate market and sales growth by deliberately offering products at...
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