MBA671
Chapter 11:
Chapter 12:
Chapter 13:
Global Industry: an industry that strategic positions of competitors in major geographic or
national markets are fundamentally affected by their overall global positions.
Global firm: A firm that operates in more than one country and captures R&D,
production, logistical, marketing and financial advantages in its costs and reputation that
are not available to purely domestic competitors.
WHY MORE COMPANIES ARE ENTERING THE INERNATIONAL ARENA:
 Global firms offering better products or lower prices can attack the company’s
domestic market place.
 The company discovers that some foreign markets present higher profit
opportunities than the domestic market.
 The company needs a larger customer base to achieve economies of scale.
 The company wants to reduce its dependence on any one market
 The company’s customers are gong and abroad and require international
servicing.
 BEFORE COMPANIES GO ABROAD THE MUST WEIGH SEVERAL RISKS:
 The company might not understand foreign customer preferences and fail to offer
a competitively attractive product.
 The company might underestimate foreign regulations and incur unexpected
costs.
 The company might realize that I lacks managers with international experience.
 The foreign country might change its commercial laws, devalue its currency, or
undergo a political revolution and expropriate foreign property.
Chapter 14:
CORE BENEFITS:
Basic product
Expected product
Augmented product
Potential product
Product mix: is the set of all products and items that a particular seller offers for sale to
buyers
Product Classification:
Non-durable goods: markup little, place everwhere, and advertise heavily to build
preference
Durable goods: require more personal selling and service, command higher
margins, and require more seller guarantees.
Services: require more quality control, supplier credibility, and adaptability.
CONSUMER GOOD CLASSIFICATION
Convenience Goods:
Shopping Goods:
Specialty Goods:
Unsought goods:
Product mix=product assortment
Just noticeable difference;
Weber’s law:
Six levels of meaning associated with Brands:
1.
Attributes
2.
Benefits
3.
Values
4.
Culture
5.
Personality
6.
User
Brand essence:
Laddering up: “why” questions used by marketers to help them get a deeper
understanding of the person’s motiatives.
Brands aren’t built by advertising they are built by brand experience.
BRAND EQUITY:= the positive differential effect that knowing the brand name has on
customer response to the product or service
Brand awareness
Brand acceptability
Brand preference
Brand Loyalty
5 levels of customer attitude
1. Customers will change brands especially for price
2. Customer is satisfied: no reason to change brand
3. Customer is satisfied: and would incur cost to change brand
4. Customer values brand and sees it as a friend
5. Customer is devoted to the brand.
BRAND VALUATION= job of estimating the total financial value of the brand.
Brand Sponsor Decisions
Manufacture or national brand
Distributor brand (reseller or store brand)
Licensed brand
Slotting fee:-fee for new brands
Functional brand: clean close, close shave
Image brand: mont blanc pens
Experiential brand: the people the place - starbucks
Co-branding: two or more well known brands are combined
CHAPTER 15
CHAPTER 17:
Introducing a middleman reduces the number of contacts a manufacture must make in
order to reach a given number of customers
*Flow is identical to function:
Backward flow includes:
Payment and ordering
*storage is a function:
ZERO CHANNEL=manufacture--- Consumer
ONE CHANNEL= ManufactureRetailerConsumer
*Horizontal marketing=two companies often link up because one lacks experience think
about how difficulit it would be to distribute new frozen goods if your company has
never done so.

Market channels=trade channels=distribution channels
PUSH strategy=appropriate where there is low brand loyalty in a category, branch choice
is made in the store, the product is an impulse product, and product benefits are well
understood.
PULL strategy=happens when customers are asking intermediaries for more of the
product.: good when there is high brand loyalty, and high involvement in the category,
when people perceive differences between brands, and when people choose the brand
before they go to the store.
Channel Design process; (does not start with objectives)
1. analyze customer needs
2. set objectives
3. identify alternatives
4. evaluate alternatives
CHAPTER 19
Steps in developing effective communication:
-Identify target audience
-Set objective
-design message
-select channels
-Establish budget
-Decide on media mix
-Measure results
-Manage integrated marketing communications
AIDA model=Attention, interest, desire, action
*RATIONAL APPEALS: engage self interest. Claims certain benefits
*Emotional Appeals: stirrup emotions
*Moral appeals:=right and wrong
*