Ib test marketing

Marketing

The sum total of all activities involved in getting goods and services from the original producer to the ultimate consumer.

Purpose of marketing

To sell the output of production

Market research

Finding or collecting data to help solve marketing problems

Secondary data

Data that you can look up because it has been collected by others

Statistics Canada

A great source of demographic data in specific areas of Canada.

Primary data

Information that businesses gather that relates specifically to their problems

Logistics

The management of the flow of goods and services both into and out of an organization

What is the difference between selling directly to the public or through a retailer when it comes to price?

The price is less if you sell directly to the the public. Retailers need to make a profit so they take a markup on the price they pay for a product from a manufacturer or distributor

What are the packaging issues that have to be considered when selling products outside of Canada ?

Package weights,package colors,legal requirements and language requirements

What system do all industrialised nations use to measure weights and volumes

Metric

How should weights be expressed when selling to the US?

Imperial weights and volumes

What other two countries use Imperial weights and volumes

Myanmar and Liberia

Are Canadian/British gallons the same size as US gallons

No Canada/British gallons are larger

What does the colour white symbolize in Canada/china?

Purity in Canada, death in china

What does the colour yellow symbolize in Canada/japan

Canada-cowardice,japan-courage

What's a potential drawback of using environmentally unfriendly packaging?

Importing country may charge a fee on each package imported

What would a potato chip manufacturer need to be converted about when selling to a Hindu country?

That the chips were not fried in beef fat because Hindus do not eat beef

Vegetarian or vegan may not purchase what items?

Wool,leather and other product's that come from animals

Why won't Sarah's onesies with hockey logos on them, sell well in London, england ?

Hockey is not popular in England

In terms of “location of operations” a centralized strategy means what?

All manufacturing and marketing performed in one location.

A decentralized operational strategy might mean what?

That you would set up a manufacturing plant in another location, hire sales force.

What’s the easiest way to enter a foreign market?

E-Commerce

B2C

Business to Consumer

B2G

Business to Government

B2B

Business to Business

Which e-commerce transaction is the easiest?

B2B

Can you think of any examples of businesses that just exist online?

Amazon, Instagram, Netflix, NordVPN

If a company wants to manufacture in Canada but sell in another country. How should it enter the market?

Sales agent or sales agency.

When a collection of manufacturers and distributers of similar products rent space, set up display booths and sell their products to registered buyers.

Trade Show

What is the most expensive market entry strategy?

Building and staffing a branch plant

3 Major advantages of owning a brand plant in a foreign market

Low Shipping Costs

Import Regulation nd Tariffs are not an Issue

Product modifications are easier

A contract giving someone the right to use a paten or trademark is called a

Licensing Agreement

A fee paid to the owner of a trademark or patent which usually amounts to a percentage of the sale of a licensed product is called a

Royalty

3 Main licensing agreements

Manufacturing Agreement

Distribution Agreements

Franchising Agreements

An agreement for the right to manufacture a product under license is called a

Manufacturing agreement

When an importer or retailer agrees with the manufacturer of a product to have the right to distribute the product within a country this is

Distribution agreement

An agreement between a business that permits an individual or other business to run a business using Business A’s name

Franchise agreement

Business A is called

Franchisor

Business B is called

Franchisee

When you get a mortgage loan from a bank the bank is the lender and is called the

Mortgagee

You, the borrower are called

Mortgager

What is the most effective way to deal with competition, whether in a foreign or domestic market?

Acquisition: Buy the company that competes with your company then close the company down or use the firms resources and marketing to expand market

What image does price skimming convey

That your product is innovative and exclusive

Once early adopter have responded to skimming by buying your product, what might the company do?

Lower the prices

Why is premium pricing different from price skimming

With premium pricing, the high price is sustained

2/10 net 30 is an example of a cash discount and means what?

2 percent discount it goods are paid within to days, full amount owed if paid after (30 days)

Selling “10 for the price of 8” is an example of a

Quantity or volume discount

What to the price of a product being sold internationally?

Price increase

What factors might decrease the price of a product made in a foreign country?

lower labour, transportation and manufacturing costs

In general businesses entering a foreign product have to make sure that the price of their products is what?

Competitive

Why are Oreos sold in a smaller package in China than they are in North America

Incomes are lower in China, consumers are not willing to spend money on a larger package and space is limited in money stores

Markup

The additional percentage added to cost to determine price. This percentage is the profit

Tend to have smaller markups

Products with a consistent demand such as groceries

Tend to have Higher Markups

Products with inconsistent demand such as high-fashion clothing and jewellery

Penetration Pricing

Entering a market at a lower price than the competition to influence customers to buy your product

Price skimming

Entering a market at a high price during the introductory phase.

Premium Pricing

Setting the price higher than the competition’s price to evoke an illusion of luxury and high quality.

Discount pricing

Often used in a B2B situation where the producer wants to sell high volumes to a wholesaler or retailer

Psychological Pricing

Choosing a particular price in the hope that it will sell the product e.g. setting a price at $199 instead of $200 because consumers tend to concentrate on the first number rather than the whole number

3 Ways to Sell products internationally

Using existing ads, translating ads, and creating new ads

A U.S company would be able to use the same ads in what country?

Canada

What do you need to be concerned about when translating ads

Difficult to say same thing in another language

The 2-C’s of international marketing

Consumer and Competition

International target market

The characteristics of the consumers who will likely buy your products or services

Ethnocentrism

A belief that your own culture values beliefs, represents the right way of doing things and other countries values aren’t important

Market size

The population of the market you’re selling to

Demographic Info

Statistical data of various characteristics of population

Face

The ability to face others without embarrassment and have them think well of you

Discretionary of Income

The money left over from your salary or wages after you’ve paid for essentials

Spending patterns

Spending habits of a population

Direct Competition

Firms that provide products or services that are almost identical to other products or services

Indirect competition

Firms that provide products or services that are not identical to other products or services

Competitive advantage

Make product cheaper than another company

Economies of Sale

The theory of more products you make in a factory the cheaper the unit will be to make.

Product diff

A difference in flavour quality colour or scent

Brand Equity

The value of a product’s brand in a market or the number of consumers that can identify the brand.