—the degree to which the innovation appears superior to existing products.

—the degree to which the innovation matches the values and experiences of the individuals.

—the degree to which the innovation is difficult to understand or use.

—the degree to which the innovation can be tried on a limited basis.

—the degree to which the benefits of use are observable or describable to others.

The internationalization process typically has four stages:

buy the manufacturer’s products and then sell them abroad.

including trading companies, seek and negotiate foreign purchases for a commission.

conduct exporting activities for several producers

companies agree to manage a company’s export activities for a fee.

Indirect export has two advantages.

is a simple way to engage in international marketing .

foreign investors have often joined local investors in a joint venture company in which they share ownership and control. - may be necessary or desirable for economic or political reasons

The ultimate form of foreign involvement is direct ownership: the foreign company can buy part or full interest in a local company or build its own manufacturing or service facilities.

At one extreme is _______ worldwide, which promises the lowest costs;. At the other extreme is an _______ in which the company, consistent with the marketing concept, believes consumer needs vary and tailors marketing to each target group.

Global Similarities and Differences Hofstede identifies four cultural dimensions that differentiate countries:

Marketing Adaptation The company should review the following elements and determine which add more revenue than cost if adapted:

are the mental associations and beliefs triggered by a country. Government officials want to strengthen their country’s image to help domestic marketers who export, and to attract foreign firms and investors.

A firm normally gets into international marketing by simply shipping out its goods

Sooner or later, companies that engage in several international markets and ventures create an international division to handle all this activity.

firms have become truly global organizations. Their top corporate management and staff plan worldwide manufacturing facilities, marketing policies, financial flows, and logistical systems.

. Appointing teams to manage customer-value-building processes and break down walls between departments

. Buying more goods and services from outside domestic or foreign vendors

. Studying “best practice companies” to improve performance

Partnering with fewer but better value-adding suppliers

Working more closely with customers to add value to their operation

. Acquiring or merging with firms in the same or complementary industries to gain economies of scale and scope\

. Increasing efforts to “think global” and “act local”

. Reducing the number of organizational levels to get closer to the customer

. Determining the most profitable businesses and customers and focusing on them

. Becoming more accountable by measuring, analyzing, and documenting the effects of marketing actions

. Designing the organization and setting up processes to respond more quickly to changes in the environment

. Encouraging and empowering personnel to produce more ideas and take more initiative

. Factoring the interests of customers, employees, shareholders, and other stakeholders into the activities of the enterprise

tracking what is said online and elsewhere and studying customers, competitors, and others to improve business practice

requires that everyone in the organization accept the concepts and goals of marketing and engage in choosing, providing, and communicating customer value.

Organizing the Marketing Department

Raising the level of socially responsible marketing calls for making a three-pronged attack that relies on proper legal, ethical, and social responsibility behavior.

Organizations must ensure every employee knows and observes relevant laws.

Business practices come under attack because business situations routinely pose ethical dilemmas

Individual marketers must exercise their social conscience in specific dealings with customers and stakeholders.

links the firm’s contributions to a designated cause to customers’ engaging directly or indirectly in revenue-producing transactions with the firm.

Cause marketing is part of ______), which Minette Drumwright and Patrick Murphy define as marketing efforts “that have at least one noneconomic objective related to social welfare and use the resources of the company and/or of its partners.”

can improve social welfare, create differentiated brand positioning, build strong consumer bonds, enhance the company’s public image, create a reservoir of goodwill boost internal morale and galvanize employees, drive sales, and increase the firm’s market value.

is the process that turns marketing plans into action assignments and ensures they accomplish the plan’s stated objectives. A brilliant strategic marketing plan counts for little if not implemented properly. Strategy addresses the what and why of marketing activities; implementation addresses the who, where, when, and how.

is the process by which firms assess the effects of their marketing activities and programs and make necessary changes and adjustments.

is a comprehensive, systematic, independent, and periodic examination of a company’s or business unit’s marketing environment, objectives, strategies, and activities, with a view to determining problem areas and opportunities and recommending a plan of action to improve the company’s marketing performance.

marketing audit’s four characteristics:

3M, Dow, and General Mills have assigned new-product development to venture teams, cross-functional groups charged with developing a specific product or business.

are informal workplaces, sometimes garages, where intrapreneurial teams attempt to develop new products

Many top companies use ___________ to divide the innovation process into stages, with a gate or checkpoint at the end of each. The project leader, working with a cross-functional team, must bring a set of known deliverables to each gate before the project can pass to the next stage.

framework is designed to provide companies with an unbiased view and an outside-in perspective of demand opportunities. It has three parts:

—Use observational, anthropological, and ethnographic methods or consumer self-reports to map consumer needs, wants, and even beyond.

—Use conceptual lens and structured innovative-thinking tools to achieve market perspectives from different angles.

—Think about how the new product can fit into customers lives and how it can be distinguished from competitors.

means inviting the Internet community to help create content or software, often with prize money or a moment of glory as an incentive.

Adopting Creativity Techniques

occurs when the company dismisses a good idea. It is extremely easy to find fault with other people’s ideas.

is a possible product the company might offer to the market.

is an elaborated version of the idea expressed in consumer terms

is a necessary but not sufficient step for new product success. Marketers must also distinguish winning concepts from losers.

means presenting the product concept to target consumers, physically or symbolically, and getting their reactions. conjoint analysis, a method for deriving the utility values that consumers attach to varying levels of a product’s attributes. .

are the sum of estimated first-time sales, replacement sales, and repeat sales.

The job of translating target customer requirements into a working prototype is helped by a set of methods known as

. When the prototypes are ready, they must be put through rigorous functional and customer tests before they enter the marketplace.

the product within the firm to see how it performs in different applications. After refining the prototype further, the company moves to beta testing with customers.

Here are four major methods of consumer-goods market testing, from least to most costly.

. Consumers who initially try the product at no cost are reoffered it, or a competitor's product, at slightly reduced prices.

. Thirty to 40 qualified shoppers are asked about brand familiarity and preferences in a specific product category and attend a brief screening of both well-known and new TV commercials or print ads.

. The company with the new product specifies the number of stores and geographic locations it wants to test.

. The ultimate way to test a new consumer product is to put it into full-blown test markets

incurs the company’s highest costs to date. Most new-product campaigns rely on a sequenced mix of market communication tools

The company faces three choices:

—The first firm entering a market usually enjoys the “first mover advantages” of locking up key distributors and customers and gaining leadership.

—The firm might time its entry to coincide with the competitor’s entry.

—The firm might delay its launch until after the competitor has borne the cost of educating the market, and its product may reveal flaws the late entrant can avoid. .

Most companies will develop a planned market rollout over time. In choosing rollout markets, the major criteria are market potential, the company’s local reputation, the cost of filling the pipeline, the cost of communication media, the influence of the area on other areas, and competitive penetration.

Within the rollout markets, the company must target initial distribution and promotion to the best prospect groups.

Because new-product launches often take longer and cost more than expected, many potentially successful offerings suffer from underfunding.

is an individual’s decision to become a regular user of a product and is followed by the consumer loyalty process.

ADOPTED PROCESS

—The consumer becomes aware of the innovation but lacks information about it.

—The consumer is stimulated to seek information about the innovation.

—The consumer considers whether to try the innovation.

—The consumer tries the innovation to improve his or her estimate of its value.

—The consumer decides to make full and regular use of the innovation.

• are technology enthusiasts; they are venturesome and enjoy tinkering with new products and mastering their intricacies.

are opinion leaders who carefully search for new technologies that might give them a dramatic competitive advantage

five adopter groups

are deliberate pragmatists who adopt the new technology when its benefits are proven and a lot of adoption has already taken place.

are skeptical conservatives who are risk averse, technology shy, and price sensitive.

are tradition-bound and resist the innovation until the status quo is no longer defensible.

, the effect one person has on another’s attitude or purchase probability, has greater significance in some situations and for some individuals than others, and it is more important in evaluation than the other stages.

Five characteristics influence an innovation’s rate of adoption.