Lesson 11 Global Marketing

1. Lesson 11Global Marketing Key Vocabulary

2. Cost-Plus Strategy • Pricing a product using a set formula, such as cost plus a certain percentage for profit. It is a common pricing strategy.

3. Cottage Industry • An industry where the creation of products and services is home based rather than factory-based and is often part-time.

4. Direct Marketing • Marketing methods that communicate directly with prospective customers via communication media (such as mail, phone calls, or email) that address them individually.

5. Distribution Strategy • The way a product reaches the customers in a market (for example, in stores, through wholesalers, via door-to-door sales, via catalog shopping, on the Internet).

6. Four Ps of Marketing • Also called a marketing mix, they consist of price, product, place, and promotion. Marketers look for the best combination of these aspects of a product to create a marketing mix.

7. Indirect Marketing • The promotional strategy that uses ways other than direct marketing to target customers (for example, reaching them through media such as television, radio, or magazine advertising).

8. Market Segmentation • A group of people with similar attributes that influence their demand for a product or service.

9. Marketing Mix • Also know as four Ps of marketing, they consist of price, product, place, and promotion. Marketers look for the best combination of these aspects of a product to create a marketing mix.

10. Penetration Pricing Strategy • Pricing a product initially at a low price that yields a very low profit, or even a loss, with the idea that it will sell in large volumes. Unit costs will then fall, owing to economies of scale in production and distribution, and good profitability will be achieved later. This strategy is also used to gain an entry to a market, to gain product acceptance, or to get customers to try a product when there is a strong competitor.

11. Place • In the context of the four Ps of marketing, the particular distribution channel that a product goes through to reach a consumer. Generally, this refers to where a product is sold to a customer.

12. Premium Pricing Strategy • Selling a product at a high price to recoup costs, earn high margins, and appeal to certain buyers who are prepared to pay extra for what they perceive as a superior product.

13. Price • In the context of the four Ps of marketing, the right amount to charge for the chosen marketing strategy. Marketers can choose to use premium, cost plus, or penetration pricing strategies.

14. Product • In the context of the four Ps of marketing, the level of customization a product needs to meet the economic, cultural, and regulatory needs of a target market.

15. Product Attributes • The qualities and characteristics inherent in a product.

16. Product Differentiation • The degree to which a product is customized or standardized that makes it different from other products.

17. Promotion • In the context of the four Ps of marketing, the way a product is introduced/marketed to the target market, including advertising, public relations, and both direct and indirect marketing media.

18. Sales Technique • One aspect, in addition to advertising and publicity, of how a product is promoted, usually an in-person suggestion.

19. Target Market • A group of potential customers that a marketing strategy is designed for and for which a marketing mix is created.

20. Value Added Pricing • A pricing technique that is based on the value that a customer will derive from a product as compared with its competition’s products.