how to prepare MKX9550 (2)

the weather changed again, some people said there will be a huge rain on today or tomorrow. well, wish us luck.

here is the second revision notes of MKX9550, different from last one, it contains some key terms which needed to be remeber but not in the Week 13's lecture notes. these terms are important too, and also need to remember the details of these term. base on these two revision notes, i got 30 or more out of 40 in the last semester's MKX9550 exam.

Chapter 21: Tapping into global markets


1In deciding to go abroad, the candidate countries should be rated on three criteria: market attractiveness, the lower risk and competitive advantage.

2 Once a company decides on a particular country, it must determine the best mode of entry. Its broad choices are indirect exporting, direct exporting, licensing, joint venture and direct investment. Each succeeding strategy involves more commitment, risk, control and profit potential.

Chapter 17 Designing and managing integrated marketing communications


1. 8 major modes of marketing communication:

Advertising,

Sales promotion,

Public relations and publicity,

Events and experiences,

Direct marketing,

Interactive marketing,

Word-of mouth marketing,

Personal selling


2. Nine Elements in the Communications Process

Sender, receiver, message, media, encoding, decoding response, feedback and noise




3 Eight Steps in Developing Effective Communications


1 identify the target audience

2 determine the communications objectives

3 design the communications

4 select the communications channels

5 establish the total communications budget

6 decide on the communications mix

7 measure the communication results

8 manage the integrated marketing communication process


4 Communications Objectives

Category need

• Brand awareness
• Brand attitude
• Purchase intention

Designing the Communications: what to say (message strategy)


How to say it( creative strategy) -Informational appeals

-Transformational appeals

Who should say it(message source)

Celebrity Characteristics


– Expertise

-Trustworthiness

– Likeability


5 Factors in Setting the Communications Mix, marketers must examine the advantages and costs of each communication tool and company’s market rank


They must consider

• Type of product market in which they are selling

• Buyer-readiness stage: how ready consumers are to make a purchase

• Product life-cycle stage: product’s stage in the product life-cycle


6 Integrated Marketing Communications(IMC)

Implementing IMC p529


Chapter 15 designing and managing integrated marketing channels


1 companies use intermediaries when they lack the financial resources to carry out direct marketing, when direct marketing is not feasible and when they can earn more by doing so.


Channel Member Functions


2 The functions of intermediaries are information, promotion, negotiation ordering, financing, risk taking, physical possession, payment and title

• Gather information

• Develop and disseminate persuasive communications

• Reach agreements on price and terms

• Acquire funds to finance inventories

• Assume risks

• Provide for storage

• Provide for buyers’ payment of their bills

• Oversee actual transfer of ownership



3 Deciding which types of Marketing Channel to use

1. Analyse customer needs

2 Establish channel objectives

2. 3. Identify major channel alternatives

4. Evaluate major channel alternatives

4 Marketing channels are characterized by continuous and sometimes dramatic change. 3 trends ：

• Vertical marketing systems

– Corporate VMS

– Administered VMS

– Contractual VMS

• Horizontal marketing systems

• Multi-channel systems


Channel-Management Decisions

• Selecting channel members

• Training channel members

• Motivating channel members

• Evaluating channel members

• Modifying channel members

5 Strategies for Managing Channel Conflict：
• Adoption of super ordinate goals

• Cooptation: co-option the support of leaders in different parts of the channel

• Employing Diplomacy：

• Exchange of employees: exchanging staff among two or more channel levels

• Joint membership in trade associations：

• Mediation：

• Arbitration：

• Pursuing Legal recourse：

Causes of Channel Conflict：
• Goal incompatibility

• Unclear roles and rights

• Differences in perception

• Intermediaries’ dependence on manufacturer



Chapter 14 Developing pricing strategies and programs


Steps in Setting Price

1 Select the price objective

2 Determine demand curve, the probable quantities it will sell at each possible price
3 Estimate costs： it estimates how its costs vary at different levels of output, at different level of accumulated production experience and for differentiated marketing offers.
4. Analyse competitor’s price, costs and offers ：

5. Select pricing method: making-up price, target-return pricing, perceived-value pricing, value pricing, going-rate pricing, auction-type pricing

6. Select final price

Companies do not usually set a single price, but rather a pricing structure that reflects variations in geographical demand and costs, market-segment requirement, purchase timing, order levels and other factors.


Price-Adaptation Strategies

􀁺 Geographical pricing

􀁺 Price Discounts and allowances Cash discount，Seasonal discount，Quantity discount

􀁺 Promotional pricing  Loss-leader pricing  ，Special-event pricing  Cash rebates ，Low-interest financing， Longer payment terms， Warranties and service contracts ， Psychological discounting

􀁺 Differentiated pricing  Product-form pricing，Time pricing


 Companies often face situations in which they need to change prices:

A price decrease: excess plant capacity
Declining market share

Desire to dominate the market by lower costs or economic recession


A price increase: cost inflation and over-demand


 Price Increase Alternatives ：

􀁺 Shrink product amount

􀁺 Substitute less-expensive materials or ingredients

􀁺 Reduce or remove product features

􀁺 Reduce or remove product services

􀁺 Reduce packaging costs

􀁺 Reduce sizes and models offered

􀁺 Create new economy brands

 Brand Leader Responses to Competitive Price Cuts

􀁺 Maintain price

􀁺 Maintain price and add value

􀁺 Reduce price
􀁺 Increase price and improve quality

􀁺 Launch a low-price fighter line


Chapter 8 Identifying marketing segments and targets


1 Target marketing includes 3 activities: market segmentation, market targeting and market positioning

2 Target markets at 4 levels: Segment, Niche, local area and individual.

Market segments are large, identifiable groups within a market.

A niche is a more narrowly defined group.

Marketers appeal to local markets by grassroots marketing for trading areas, neighborhoods and even individual stores.


segmenting consumer markets:

Consumer characteristics and consumer response

egmentation variables for consumer markets

geographic, demographic, psychographic and behavioral


 Also with operating variables, purchasing approaches, situational factors



 To be useful, market segments must be measurable, Substantial, accessible, differentiable and actionable.

 A company must evaluate the various segments and decide how many and which ones to target:

A single market, several segments, a specific product, a specific market or the full market, if it serves the full market, it must choose between differentiated and undifferentiated marking.


Monitor segment relationship and seek economies of scope and the potential for marketing to super-segments


Chapter 6 Analyzing consumer markets


1 Consumer behavior is influenced by 3 factors:

Culture (culture, subculture 􀁺 Nationalities, Religions, Racial groups, Geographic regions social class􀁺 Reference groups 􀁺 Family 􀁺 Social roles􀁺 Roles and status)

Personal 􀁺 Age 􀁺 Life cycle stage 􀁺 Occupation 􀁺 Personality and self concept 􀁺 Values 􀁺 Economic circumstances 􀁺 Lifestyle

Social( reference groups .family and social roles and statuses)



2 4Key Psychological Processes affect consumer behavior

􀁺 Motivation Maslow’s Hierarchy of Needs P171

􀁺 Perception


􀁺 Learning

􀁺 Memory

Consumer Buying Process
FIG 6.5 in the textbook
The marketer’s job is to understand the behavior at each stage. The attitudes of others, unanticipated situational factors and perceived risk may all affect the decision to buy, consumer’s levels of post-purchase product satisfaction, use and disposal.