define marketing

the management process of predicting, identifying and meeting the needs and wants of
customers in a predictable way. right product at right price at right and convenient location is
promoted effectively

what is the relationship between finance and marketing

setting appropriate marketing budgets , the finance department will advise the marketing
department to stick to its given budgetary allocations.

what is the relationship between HR and marketing

- identifying staffs needs in the marketing department
- enable more effective workforce planning
- ensuring the right quality of salespeople are hired

what is the relationship between production and marketing

- forecasting sales
- launching new products

what are the differences between the marketing of goods and services
- intangibility: challenging to communicate benefits of a service
- inseparability: service is consumed at time of purchase cannot be taken back
- heterogeneity: different experience for every customer so difficult to rate and compare
- perishability : service cannot be stored, so an empty cinema seat means a loss
- people (staff) , process (ease aftersales) , physical evidence (cleanliness, design)

what is market orientation

making products that can sell by intensive market research to identify and supply products in
demand

advantages of market orientation

- greater flexibility to respond to market change
- lower risk as product will sell

disadvantages of market orientation

- market research can be very expensive
what is product orientation
selling products that can be produced effectively by the business and are high quality
(says law: supply creates its own demand)

advantages of product orientation

- quality is assured
- firm controls its operations
- low market research costs

disadvantages of product orientation

- taking risk that may lead to eventual business failure or closure
- spending money on research and development without considering consumers needs could
be costly and not yield any promising results

what is commercial marketing

marketing activities that determine customer needs and wants before using appropriate
strategies to market the product

what is social marketing

a marketing approach aimed at influencing a positive change in individual behavior and
improvements in societal well-being

what is a market

there are two types, a consumer market and a product market. it’s a place or process whereby
customers and suppliers trade

what are the market characteristics that managers consider

1) market size: the total sales of all firms in a market
2) customer base
3) barriers to entry
4) competition
5) market growth: the percentage in the total market size over a period of time

what is market share

the percentage of all sales in a market held by a business

the equation for market share

firms sales revenue
-------------------------- x 100
industry sales revenue
what is market leader
a firms with the highest market share in a given market

what are the advantages of being a market leader

- business is more competitive than rivals
- higher sales and profits
- corporate and brand image
- economies of scale

what are the marketing objective for ( for-profit organizations)

- identify, design and develop marketing strategies that will ultimately be profitable to the
business
- a market-led approach focusing purely on the needs and wants of customers
- acquiring higher proportion of industry’s sales
- enjoying benefits of having the largest market share

what are the marketing objective for (non-profit organizations)

- build memberships and connect with new donors
- generate awareness for a cause
- improve brand recognition

how do marketing strategies evolve as a response to changes in customer preferences

- changing customer tastes and preferences
- shorter product life cycle
- internet- more choices for consumers
- globalization- adapt marketing strategies to carrying cultures and norms

what are ethics in business

moral principles and values that guide business behavior

what are the ethical issues that may influence marketing

1- pester power- using children to harass parents (buyers)
2- bait and switch- the schemes and pricing promoting and advertising is rarely available
3- information disclosure
4- fraud
5- misrepresentation
4.2 marketing planning

what are the elements of a marketing plan

- key marketing objectives
- key marketing strategies to achieve them
- marketing budget
- marketing mix outline

what is marketing planning

the process of devising marketing objectives and appropriate marketing strategies to achieve
these objectives

what is the role of marketing planning

- helps the firm identify potential problems and seek solutions for them
- improves the chances of success of a firms marketing strategy
- sharing it with other business departments improves coordination
- devising a market budget ensures resources are not wasted
- improve employees motivation and inspire

what is the marketing mix

combination of various elements needed to successfully market a product

what is a product
the good or services being marketed to satisfy customer needs and wants

what is a consumer product

product sold to end user

what is a producer product

industrial products sold to other businesses

what is price
amount that customers pay for a particular good or service

what is promotion
strategies used to attract customers to buy a firms products

what is place
methods of distributing products to customers

what are the factors limiting effectiveness of any marketing strategy

1- finance
 2- costs of production
3- social issues in society
4- time lags
5- actions and reactions of competitors
6- political and legal environment

what is a market segment

a distinct group of customers with similar characteristics and similar needs and wants

what is a target market

refers to each distinctive market segment having its own marketing mix

what is niche marketing

targeting a specific and well defined market segment

advantages of niche marketing

- better marketing focus
- less competition and higher profit margins
- easier to gain customer loyalty

disadvantages of niche marketing

- limit customer base and potential customers
- few opportunities for EOS
- profitable niche markets attract competition
- must do costly market research

how to target and segment markets

- demographics
- geographical factors
- psychological factors

what is mass marketing

undifferentiated marketing where individual market segments are ignored

advantages of mass marketing

- economies of scale
- no need to modify market strategies for different customer segments
- larger customer base
- higher profits

disadvantages of mass marketing

- fierce competition, marketing budgets must be substantial to be competitive
- high barriers to entry
what are consumer profiles
the characteristics of consumers of a particular product in different markets based on their
gender, age and income levels, among other characteristics

why are consumer profiles important

enable firms to target their products effectively to the right consumers using appropriate
marketing strategies

what is a product position map

a visual tool that reveals customers perceptions of a product in relation to other in the market

illustrate a product position map

what are premium products

high quality and high price products

what are economy products

low quality at appropriately low price

what are bargain products

high quality with low prices, not sustainable strategy used as short-term tactics

what are cowboy products

poor quality and high prices, these products are positioned to deceive customers. short-term
tactic to gain revenue

advantages of a product position map

- allow businesses to identify any gaps in its product portfolio
- helps businesses refine their marketing strategies
- simplicity
- informs about market opportunities and threats, managers can reposition products
what is a unique selling point
any aspect of a businesss product or bran that makes it stand out from its competitors

what are some sources of USP

- being the only firm
- first-mover
- reputation of the “best”
- popular slogan

what is brand differentiation

the act of distinguishing a business and its products from rivals in the industry. making a
product stand out

how can a business differentiate itself

- meth0ds of the Ansoff matrix
- offer exclusive services
- find holes in the market
- create a USP
- fix any of the marketing Ps

advantages of business differentiation

- price advantages due to added value
- brand recognition and loyalty
- improved distribution as retailers only stock best-selling brands

disadvantages of business differentiation

- expensive
- economies of scale are not exploited due to differentiation
- excessive differentiation can confuse customers

4.3 sales forecasting

define sales forecasting
a quantitative technique used to predict the level of sales revenue that a firm expects to earn
over a certain period of time

define moving average

a quantitative method used to discover the underlying trend by levelling out variations in a data
set. such deviations are typically caused by seasonal, cyclical and random variations

what are the two steps used to calculate the moving average
- calculating the moving total
- calculate the centered average of this data set
how to calculate a 4- year moving average
- given a set of actual sales, you take the average of four points (4 values of revenue/month)
and average them, moving left to right

define exploration
a sales forecasting method that identifies and emphasizes the direction of a trend

how to predict future sales using exploration

once the trend line has been drawn, this line can be extended using a “line of best fit”, shown
by a dotted line to predict future sales

define variation
difference between actual sales and trend values

how to calculate average cyclical variation

the sum of variations over the period divided by the number of years within the period

define seasonal variations

expected periodic fluctuations in sales revenues over a given time period
change in demand because of the varying season in the year

define cyclical variations

refers to the recurrent fluctuations in sales revenues linked to the business cycle in the
economy

define random variations

unpredictable and erratic fluctuations in sales revenues, caused by irregular factors

the benefits of sales forecasting

- helps to identify trends by smoothing out seasonal, cyclical or random variations in the data
set
- helps managers reduce the uncertainties of the future
- enables the business to extrapolate or predict future sales revenue as a basis of strategic and
financial planning.
- enables managers to allocate various budgets for the different functional areas of a business

the limitations of sales forecasting

- only sales forecasts for a short period of time
- inaccurate
- not cheap or easy to collect data to produce a reliable forecast
- less accurate when predicting for firms that sell a broad range of products

4.4 market research

define market research

refers to marketing activities that are designed to discover the opinions and preferences of
potential and existing customers

why is market research carried out

- reduce risk associated with new product launches
- predict future demand changes
- gives business up to date information on new products and trends
- assists in improving the marketing strategy by developing the marketing mix

what is the process of market research

- identifying consumer needs and tastes
- form product ideas and packaging design
- pre-testing the product image /advertisement
- launch product and monitors sales and customer response

define primary research

the process of collecting, recording, analyzing new data and information about a specific issue

ads and disads of primary research

ads:
- up-to-date and unique to the requirement of the business
- competitive edge from new data and information
- detailed information

disads:
- limited perspective
- often biased
- expensive
- time-consuming
- misleading research findings

what are the methods of primary market research

- surveys
- interviews
- focus groups
- observations
what are surveys
surveys are a method of gathering both qualitative and quantitative information from a sample
of individuals for market research purposes

what are surveys used for

- gain customer feedback from people who have recently bought a good or service
- ask consumers or potential customers for their opinions and preferences about a particular
good or service

limitations of surveys:
- tome consuming
- expensive
- bias
- poorly worded questions
- findings can be misleading or inaccurate

what are interviews

conducted by an interviewer who asks respondents a series of questions

what is the purpose of interviews

- they help to determine the interviewees opinions and beliefs

ads and disads of interviews

ads:
- more detailed than surveys
- specifically designed to meet the needs of the organization
- resolve the issue of culture and linguistic bias

disads:
-small group, results might not reflect the views of the market
- potential interviewer bias
- time consuming, costly

what are focus groups

small groups of customers and consumers who meet together with a researcher for market
research purposes

what is the purpose of focus groups

enable detailed investigation of the psychology of customers to identify the needs and wants of
different market segments

limitations of focus groups

- costly as participants are usually provided with financial incentives

what are observation

involves researches watching and recording customer behavior

ads and disads of observations

ads: more objective and accurate as there is no interviewer bias
disads: very labor-intensive, time consuming

what is secondary market research

is the collection and interpretation of existing data and information from previously available
sources

ads and disads of secondary market research

ads:
- faster and cheaper
- ease of access to data sources
- allow access to a wide range of sources

disads:
- have to be adapted to firms needs
- outdated data
- rival firms have access to this data too
- bias

what are the types of secondary research:

- market analyses
- academic journals
- government publications
- media articles

what is market analyses

the collection of data and information about market characteristics of a particular good, service
or industry

what is market analysis used for

- analyses reports to prepare business plans
- included as part of a firms SWOT analysis
what is academic journals
formal scholarly journals related to a specific academic discipline , written by academics such as
lecturers and professors

what is government publications

official documentation and information released by local, national, international governments
or treaty organizations

what is media articles

documents or articles that appear in print or online media

what is the ethical consideration of market research

- ethical considerations result in the expectation that market research is conducted objectively,
using honest, unbiased and reasonable techniques
- the protection of research subjects like the respondents regarding the confidentiality of their
personal data

why is ethical consideration important for firms

-in order to avoid a public backlash if their market research practices are perceived as
unprincipled and immoral
- unethical behavior can negatively impact a firms relationship with its key stakeholders

define quantitative research

data based on facts and figures, results are predictive rather than descriptive

what are the features of quantitative research

- relies on a large number of responses to get numerical results
- quicker and easier to collect and interpret than qualitative responses
- help to make decision making more objective

define qualitative research

data based on opinion, feelings and perspective, results are descriptive rather than predictive

what are the features of qualitative research

- in-depth investigation into the motivations and reasons behind consumer behavior
- based on opinions an perspectives
- often uses primary research
- provides far more details and honest information

what is sampling
the practice of selecting a small group of customers from the population of a certain market for
the purpose of market research

what are the types of sampling

- quota sampling
- random sampling
- stratified sampling
-cluster sampling
-snowballing
-convenience

what is quota sampling

a quota refers to a pre-determined allocation of specific sub-groups of the population for
sampling, it involves selecting a certain number of people from different market segments with
shared characteristics
used when investigating a trait or characteristic of a certain sub-group

what is random sampling

selecting individuals in such a way that everyone in the total population has an equal change of
being chosen , research subjects are chosen randomly by a computer using information stored
in a database

what is stratified sampling

a stratified sample requires the proportions in the sample to reflect in the population as a
whole, based on common strata such as age or gender

what is cluster sampling

involves selecting several geographical areas and then randomly choosing people within these
areas for market research purposes

what is snowballing sampling

snowball sampling involves the use of customer referrals to reach out to their friends family or
colleagues for market research purposes

what is convenience sampling

samples are created using subjects who are easily accessible to the researcher

define sampling errors

the mistakes that arise from sampling design

define non-sampling errors

are market research mistakes that are not attributed to human errors

4.5

define the product life cycle

a marketing theory that illustrates the different stages a typical product goes through from its
launch to its eventual withdrawal from the market

draw the product life cycle

what is the research and development stage

the first stage of the OLC which involves designing and developing a product before being
launched for sale

what is the introduction stage

when the product is launched onto the market for sale it usually requires significant investment
in promotion and advertising to sustain sales

what is the growth stage

when sales increase rapidly with the product becoming well known to the market

what is the maturity stage

when sales revenue are at, or near , their maximum with minimal or no more scope for growth

what is the decline stage

the last stage in a products life cycle, when sales continually decline. the product is eventually
withdrawn from the market

what is the relationship between research and development stage and the marketing mix
- expenditure on market research to refine the product
- pricing, distribution and promotion ideas are discussed prior to launch

what is the relationship between the introduction stage and the marketing mix
- marketing efforts to raise brand and product awareness
- advertising expenditure is high in an attempt to boost sales
- limited distribution channels so sales are generally low
- possible high prices if there is limited competition and to recoup R and D costs or low prices to
gain market share
-investment in branding to differentiate the product from rivals

what is the relationship between the growth stage and the marketing mix
- brand and product preference develop so sales increase
- marketing efforts to build brand preference and customer loyalty
- stabilizing prices to ensure market growth and value for money
- sales promotion and other marketing campaigns to get potential customers to switch from
rival brands

what is the relationship between the maturity stage and the marketing mix
- marketing efforts focus on holding the market position to maximize profits
- product differentiation is vital to lengthening this stage in the PLC
-promotion is widespread
-price competition can become intense
- possible extension strategies to prolong life of product

what is the relationship between the decline stage and the marketing mix
- lower prices, possibly aiming to be the lowest cost provider
- decision made either to continue with marketing efforts to sell the product or to pull it if loss
incurred
define extensions strategies
marketing techniques used to prolong a products life cycle

what are examples of extension strategies

- cutting prices
-product enhancements
- redesigning or repackaging products
- short-term promotions
-exporting overseas

when are extension strategies used

- when a product is in a saturated market or as it enters the decline stage of the product life
cycle

draw a diagram showing the extension strategies and the product life cycle

the relationship between the product life cycle, investment, profit and cash flow
draw a diagram showing the relationship between the PLC and profit

define the BCG matrix

the Boston consulting group BCG matrix is a marketing tool used to examine and organizations
product portfolio

draw a BCG matrix

what are question marks in the BCG matrix

- high market growth
- low market share
- introduction stage in the PLC
- drain cash flow

what are the starts in the BCG market

- high market growth
- high market share
- growth stage in the product life cycle
- invest to turn into cash cow
what are the cash cows in the BCG market
- low market growth
- high market share
- maturity stage in the PLC
- main generation of cash

what are the dogs in the BCG market

- low market growth
- low market share
- decline stage in the PLC
- divest to prevent further losses

the benefits of a product portfolio

- developing a group of products in the portfolio can help to increase brand awareness
- reduces the risks of relying on a single product
- increases the revenue streams of the business
- having a variety of products helps to limit the impact of seasonal fluctuations in demand

what is the role of branding for a business

- creating a legal identity for its goods and services
- acting as a source of product differentiation
- budling brand awareness
- encouraging brand loyalty
- creating a particular corporate image

what are the aspects of branding

- brand awareness
- brand development
- brand loyalty
- brand value

what is brand awareness

- the extent to which people recognize and remember a particular brand
- it is largely about gaining new customers and adding value for the business
- familiarity with a brand leads to higher sales volume of a good or service

what is brand development

- brand development is an aspect of marketing strategy about what a brand stands for it
- it is also about communicating the value of a brand to customers
- concerned with establishing the relevant valuable aspects of the brand to different customer
profiles
what is brand loyalty
- brand loyalty happens when customers repeatedly purchase their favorited brand, rather than
switching to a rival brand

benefits of brand loyalty

- it makes customers less price sensitive so higher price can be charged, allowing the firm to
earn higher sales revenue
- it encourages repeat customers and prevents customers from switching to rival brands
- loyal customers are likely to recommend products that they like to their family and friends
- it can lead to an increase in the value of the business as brand are intangible assets
- it increases the chances of success when launching new products under the same brand name

what is brand value

what a brand is worth to the business and its shareholders

what is the importance of branding

- branding encourages customer loyalty
- it creates a unique identity for a product, enabling it to be distinguished from other rival
products on the market
- it enables businesses to charge higher prices, thereby improving their profit margins
- branding can enable customers to know what to expect, irrespective of where they are in the
world
- brands add value so customers get more than just the good or service they buy

what is the importance of packaging

- packaging is an important aspect of product differentiation
- helps customers to identify and recognize the brand or product
- it helps to shape customers perception of a brand
- packaging has a functionality role

what are the pricing strategies

- cost-plus
- penetration
-skimming
- psychological
-loss leader
- price discrimination
- price leadership
- predatory

define cost-plus pricing

adding a profit element to the cost of production, the markup is a percentage or an absolute
amount
advantages and disadvantages of cost-plus pricing

define penetration pricing

setting the price low enough to enter an industry and gain market share from existing firms

advantages and disadvantages of penetration pricing

define skimming pricing

involves setting a high price when launching a new and unique product

advantages and disadvantages of skimming pricing

define psychological pricing

psychological pricing involves setting prices to make them seem at least slightly lower
advantages and disadvantages of psychological pricing

define loss leader pricing

involves setting the price of a good or service below its cost of production in order to attract
customers to buy the product along with others with higher profit margins

advantages and disadvantages of loss leader pricing

define price discrimination

occurs when a business charges different prices to different customers for essentially the same
product

advantages and disadvantages of price discrimination

define price leadership

occurs when one business sets prices which are closely monitored and followed by its rivals
advantages and disadvantages of price leadership

define predatory
involves charging a low price even below costs of production in order to harm the sales of
competitor firms and to restrict competition

advantages and disadvantages of predatory

define the promotion

the marketing process of raising customer awareness and interest in a product or brand in
order to generate sales

what are the objectives of promotion

- building product and band awareness
- creating customer interest
- providing product information
- stimulating demand for the product
- differentiating the product from rival products
- reinforcing and developing the brand name

define above-the-line promotion

paid-for marketing communication via independent media
advantages and disadvantages of above-the-line promotion

+ wide reach
+ establishes brand awareness
- expensive
- success rate is hard to measure

define below-the-line promotion

refers to promotional activities that the business has direct control over

advantages and disadvantages of below-the-line promotion

+ much cheaper
+more control for business
+ can measure success or response rates
- captures smaller audience
- small scale brand awareness more focused on making sales

define promotional mix

refers to the combination of different appropriate methods of ATL and BTL promotion aimed at
specific target markets

what are the components of the promotional mix

- advertising
-personal selling
-public relations
- direct marketing
-sales promotion

how does changing technology impact promotional strategies

through:
-viral marketing
- social media marketing
- social networking

what is viral marketing

the spread of information about a firms goods or services from one internet user to another,
possibly creating exponential growth in a marketing message

what is social media marketing

the use of online tools and websites to promote products in a less formal way
what is social networking
refers to the use of internet-based tools and platform to create and share online content. it
enables people to connect and communicate online

define guerilla marketing

refers to the use of unconventional and memorable methods of promotion that communicate a
products benefits

advantages and disadvantages of guerilla marketing

+ can lead to viral marketing
+ very low costs and low risk
+ promotes creativity and innovative techniques
- may add to daily advert clutter since it is intrusive
- controversial and unethical
- does not always work

define place in the marketing mix

is about making the good or service available to consumers

why is place important in the marketing mix

- ensures consumers are able to purchase the product easily
- there is no purpose of the product price and promotion of the customers are unable to find a
retailer nearby that sells it

define distribution channel

refers to the process or system of getting the product to consumers

what is a zero-channel network

producer to consumer

ads and disads of zero-level distribution

+ business has control over price
- more costly than simply sending to wholesalers or distributors

what is a one-channel network

producer to retailer to consumer

ads and disads of one-level distribution

+ product reaches more markets due to many retailers
- less control
what is a two-channel network
producer to wholesaler to retailer to consumer

what is a three-channel network

producer to agent to wholesaler to retailer to consumer

define direct distribution

zero channel network involves the producer selling the good or service without using an
intermediary, the producer dealing directly with the consumers

define retailers
retailers are businesses that sell direct to customers

define wholesalers
wholesalers buy large quantities of products direct from manufacturers then sell these to
customers in smaller quantities

define mail orders

use of the postal systems to distribute goods

ads and disads of mail orders

+ cheap
- usually ignored
-low success rate

the three extended Ps

- people
-processes
-physical evidence

factors to consider when choosing the appropriate distribution channels

- type of product
- frequency of purchase
- the price of the product
- location of customers
- the availability of rival products
- the size of the market
- the available finance
- the degree of control expected
- legal considerations
4.6

the importance of employee-customer relationships in marketing a service and cultural

variation in these relationships
- to the customers when a service is being delivered the person delivering is not detached from
the product itself
- people deliver a physical service with a visible result
- successful organization focus on investing in their people by training and developing workers
to deliver good customer service
- social networks/media makes the extended marketing mix more important as news spread
fast

define processes
- the operational aspects of a service such as the procedures protocol timing and sequences of
activities related to the service

the importance of delivery processes in marketing in a service and changes in these processes
- ensure the same level of service delivery to every customer
- enable specific customer preferences to be accommodated

define physical evidence

any form of tangible representation of a service which creates customer perceptions about a
service

the importance of tangible physical evidence in marketing a service

- it affects the level of customer satisfaction
- customers use this to gauge the level of comfort and attractiveness of a service
- employees are directly affected by the physical environment which impact on their level of
motivation

what is the difference between the 4ps and the 7ps

the 7ps is applicable to the marketing of services
whereas the 4ps are suitable for the marketing of physical goods

why is the extended marketing mix important

- the marketing of services need to be different to that of good because of the unique
characteristics of services
- the marketing strategy for the provision of services must be effective as satisfied customers
are the best publicity for a firms products
4.7

what are the methods of entry into international markets

- exporting
- direct investment
- franchising
- strategic alliance
- joint venture

define “exporting” as a method of entry into international markets

this involves a firm selling its products to overseas buyers without having to physically expand
in an overseas market

ads and disads of exporting as a method of entry into international markets

+ low-risk growth option, if the export strategy is unsuccessful the firm can withdraw with
minimal costs or losses
- international price is higher due to postage or transportation costs
- the imposition of tariffs (tax on foreign exports) can also make exports more expensive
- the effectiveness and profitability may be reduced is the exchange rate appreciates, resulting I
higher prices exports

define “Direct investment” as a method of entry into international markets

this involves setting up overseas production or distribution facilities

ads and disads of direct investment as a method of entry into international markets
+ business is closer to its customers
+ more aware of their needs and tastes
+ get around the problem of exchange rate fluctuations if they rely on export markets
+ invest in production or distribution facilities in foreign countries to avoid tariffs/quotas
- higher risk growth strategy than exporting, due to high capital investment required
- external factors negatively impact profits

define “franchising” as a method of entry into international markets

this growth strategy involves using a third-party provider to supply the goods and services of
the business in return for payment of a licensing fee and royal payments

ads and disads of franchising as a method of entry into international markets

+ less risky
+ less costly as franchisees pay license fee
+ existing customer connections and relations
- lower quality if standards not monitored carefully
- create a negative impact on global brand image

define “strategic alliance” as a method of entry into international markets

this growth strategy involves using foreign partners working together on a particular business
venture

ads and disads of strategic alliance as a method of entry into international markets
+ help business overcome the potential problems of social cultural and linguistic differences
+ safe method of entry as agreement can be retracted if one partner fails to satisfy the
agreement
+ cheap and quick
- risk that partners can easily enter and exit the alliance

define “joint venture” as a method of entry into international markets

this involves the formation of new business with two or more other firms using their shared
resources

ads and disads of joint venture as a method of entry into international markets
+ common for growth
+ shared expertise
+ reduced risk
- more costly than strategic alliance
- can fail due to management and cultural incompatibilities

the opportunities of entry into international markets

- profitability
- benefit from economies of scale
- spread risks
- relaxed laws and legislation
- less competition in certain countries
- lower cost of production
- financial incentives from foreign governments
- help extend a products life cycle= higher profits

the threats posed by entry into international markets

- change in marketing mix to suit customers overseas because of social cultural and
demographic factors
- language barriers
- legal and political barriers
- additional working capital needed to expand
- may face strong competition
- exchange rate fluctuations
- additional costs due to market research in new international markets

define international marketing

the marketing of an organizations products In foreign countries

what are the strategic and operational implications of international marketing

- extending current marketing practices is unlikely to work well in overseas markets
- what works well in one part of the world does not necessarily succeed in other areas

what is the role of cultural differences in international marketing

- cultural awareness is important in order to avoid major damage to their reputation sales and
credentials
- international business etiquette awareness Is important to prevent marketing blunders
- cultural difference also provide opportunities for businesses and industries to exploit cultural
exports ( introduce different countries to their culture|)

define globalization
the increases integration and interdependence of economies around the world, with
converging habits and tastes

define glocalization
the use of differentiated international marketing mix to meet local tastes and cultures

4.8
define e-commerce
the trading of goods and services using online electronic systems and computer networks such
as the internet

define e-tailers
businesses that operate predominantly online

what are the features of e-commerce

- breaks time barriers (24-hour access)
- breaks geographical barriers (worldwide shipping)
- low set up costs
- e-commerce websites are interactive to engage online customers
- social media links encourage online purchases
- no physical stores reduce costs such as rents and utilities
- empowerment of customers, they can compare prices easy and quick
- credit card payments

what is the effect of changing tech and e-commerce on products

- target to the right audience online
- not limiting to potential market or location
- easier to provide up-to-date info about product to customers
- less focus on functionality therefore reduce costs and the firms impact on the environment
- allows personalization of products
- offers suggestion of additional and complementary products

what is the effect of changing tech and e-commerce on price

- allows customer to compare prices
- reduce operational costs helps lower prices
- currency can be chosen to appeal to international buyers
- pricing is hard internationally because different countries are prepared to pay different prices

what is the effect of changing tech and e-commerce on promotion

- information about products can be provided in more details and in a more engaging or
interactive way
- increasing use of viral marketing
- greater reliance on social media to promote firms products

what is the effect of changing tech and e-commerce on place

- access large numbers of customers directly
- reduce operating costs
- delivery companies are provided with limitless opportunities
- provides customers with an alternative distribution channel

what is the effect of changing tech and e-commerce on people

- reduced need for sales staff
- people as part of the marketing mic becomes less important
- customer service staff needed for after-sales care and support

what is the effect of changing tech and e-commerce on processes

- online payments are straightforward
- it may cause internet fraud
- easy to reward loyal customers for repeat purchases
what is the effect of changing tech and e-commerce on physical evidence
- this becomes far less of an issue for marketers as customers do not care about the
environment of retailers or packaging of products virtually

define business to business e-commerce

e-commerce between two or more businesses where trading is based on large orders at
competitive prices

define business to consumer e-commerce

businesses that sell directly to the general public using internet technologies

define consumer to consumer e-commerce

e-commerce platforms that enable customers to sell directly to other customers. e.g. eBay

benefits of e-commerce to firms

- avoid paying high costs of rents in prime locations
- cut the supply chain, reducing costs and reliance on sales people
- reach wider customer base
- available for customers 24/7 throughout the year
- reduced the costs of promotion because of online advertising

limitations of e-commerce to firms

- lose ability to charge higher prices
- easy access to product information can be easily copied by competitors
- fraudulent trade
- network breakdowns cause loss to firms
- additional costs to consider like ICT specialists
- e-commerce causes unemployment and pressure from stakeholders and trade unions

benefits of e-commerce to consumers

- great price transparency and easily comparing prices
- easy access from their mobile devices
- reduced supply chain means lower prices
- shopping anywhere anytime
- convenient payment systems
- free shipping

limitations of e-commerce to consumers

- security issues (online fraud)
- data theft
- no interaction so service is impersonal
- wait for delivery
- expensive and time consuming to return the products
- online spam
- many people do not have access to internet