international marketing athenadocs

• When analysing markets, a range of assumptions are made about the rationality of economic agents involved in the transactions
• The Wealth of Nations was written

  1776
• Rational


  (in classical economic theory) economic agents are able to consider the outcome of their choices and recognise the net benefits of each one
• Consumers act rationally by


  Maximising their utility
• Producers act rationally by


  Selling goods/services in a way that maximises their profits
• Workers act rationally by


  Balancing welfare at work with consideration of both pay and benefits
• Governments act rationally by


  Placing the interests of the people they serve first in order to maximise their welfare
• Groups assumed to act rationally


  • Consumers
  • Producers
  • Workers
  • Governments
• Rationality in classical economic theory is a flawed assumption as people usually don't act rationally
• A firm increases advertising

  Demand curve shifts right
• Demand curve shifting right

  Increases the equilibrium price and quantity
• Marginal utility


  The additional utility (satisfaction) gained from the consumption of an additional product
• If you add up marginal utility for each unit you get total utility
• Needs


  Physical, social, and individual needs
• Wants


  The form human needs take as they are shaped by culture and individual personality
• Demands


  Occur when human wants are backed by buying power
• Market offerings


  Combinations of products, services, information, or experiences offered to a market in order to satisfy a need or a want
• Market offerings can also include persons, places, organizations, information, ideas, or other entities
• Sellers often make the mistake of focusing too much on the specific products a company offers instead of paying attention to the benefits and experiences produced by these products, which leads to market myopia
• Marketing


  Takes place when customers choose to satisfy their needs and wants through an exchange, which is the act of obtaining a desired object from someone by offering something in return
• Market


  The set of actual and potential buyers of a product or service who have a common particular need or want that can be satisfied through exchange relationships
• Concepts under which organizations design and implement their marketing strategies

  • Production concept
  • Product concept
  • Selling concept
  • Marketing concept
  • Societal marketing concept
• Customer relationship management


  The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
• Customer-perceived value


  The customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers
• Customer satisfaction


  The extent to which a product's perceived performance matches a buyer's expectations
• Customer-engagement marketing


  Making the brand a meaningful part of consumers' conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community
• Consumer-generated marketing


  Brand exchanges created by consumers themselves – both invited and uninvited – by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers
• Partner relationship management


  The process of working closely together with partners in other company departments and outside the company to jointly bring greater value to customers
• Customer lifetime value


  The value of the entire stream of purchases a customer makes over a lifetime of support of the company
• Share of customers


  The portion of a customer's purchasing that a company gets in its product categories
• Customer equity


  The total combined customer lifetime value of all the company's current and future customers, a measure of the future value of the company's customer base
• Categories of customer relationship groups

  • Not specified
• Major developments changing the marketing landscape

  • The digital age: online, mobile, and social media marketing
  • The changing economic environment
  • The growth of not-for-profit marketing
  • Rapid globalization
  • Sustainable marketing – the call for more environmental and social responsibility
• Strategic planning involves the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities
• Steps in strategic planning

  • Defining the company mission
  • Setting company objectives and goals
  • Designing the business portfolio
  • Planning marketing and other functional areas
• Business portfolio


  The collection of businesses and products that make up the company
• Portfolio analysis


  Where management evaluates the products and businesses that make up the company
• Growth-share matrix


  A portfolio-planning method that evaluates a company's SBUs in terms of market growth rate and a relative market share
• Product/market expansion grid


  A device for recognizing growth opportunities
• Value chain


  The series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products