Marketing Study Guide
MAR 301 EXAM 2 STUDY GUIDE
Global Marketing Key Concepts
Metrics to Evaluate Economic Strength * Gross Domestic Product: market value of the goods and services produced by a country in a year * Gross National Income: GDP plus net income earned from investments abroad * Human Development Index: a composite measure of quality of life based on life expectancy, education levels, and average incomes * Purchasing Power and Consumer Price Indexes: theory --- if the exchange rates of 2 countries are in equilibrium, a product should cost the same in both, if expressed in the same currency. CPI example: the Big Mac index
Standardization vs. Customization * Standardization * Benefit: lower cost structure due to economies of scale * Drawback: may not fit foreign market’s real needs and desires * Customization * Benefit: product is custom tailored to the foreign market’s preferences * Drawback: higher costs due to product modifications
Assessing Global Markets
Choosing a Global Entry Strategy
Market Research Key Concepts
Reasons For and Uses of Market Research * Goal: to understand… * Customer characteristics and needs * Why, where, and when they buy * What media they pay attention to * The DMP and DMU * Emerging market trends
Three Roles of Market Research (and types of questions answered by each type) * Descriptive: describing facts about the present state or history of the market * Historic sales trends? * Consumer attitudes toward brand X? * Diagnostic: gathering facts to explain why something happened in the market * What was the impact of our changed packaging on sales? * Why did sales plummet when we started our new ad campaign? * Predictive: using facts to predict what might happen in the future in the market * How well will our planned new product do in the market? * What new features are
Global Marketing Key Concepts
Metrics to Evaluate Economic Strength * Gross Domestic Product: market value of the goods and services produced by a country in a year * Gross National Income: GDP plus net income earned from investments abroad * Human Development Index: a composite measure of quality of life based on life expectancy, education levels, and average incomes * Purchasing Power and Consumer Price Indexes: theory --- if the exchange rates of 2 countries are in equilibrium, a product should cost the same in both, if expressed in the same currency. CPI example: the Big Mac index
Standardization vs. Customization * Standardization * Benefit: lower cost structure due to economies of scale * Drawback: may not fit foreign market’s real needs and desires * Customization * Benefit: product is custom tailored to the foreign market’s preferences * Drawback: higher costs due to product modifications
Assessing Global Markets
Choosing a Global Entry Strategy
Market Research Key Concepts
Reasons For and Uses of Market Research * Goal: to understand… * Customer characteristics and needs * Why, where, and when they buy * What media they pay attention to * The DMP and DMU * Emerging market trends
Three Roles of Market Research (and types of questions answered by each type) * Descriptive: describing facts about the present state or history of the market * Historic sales trends? * Consumer attitudes toward brand X? * Diagnostic: gathering facts to explain why something happened in the market * What was the impact of our changed packaging on sales? * Why did sales plummet when we started our new ad campaign? * Predictive: using facts to predict what might happen in the future in the market * How well will our planned new product do in the market? * What new features are