They are referred as intrapreneurs who are given a budget and a garage to develop new products. This team tries to push new products into the business markets by collaborating and using new developments in the new product. They help engineers to create what the customers really want and meet their expectations.
According to an article (Introducing new market offerings, 2008), some of the venture teams criteria include desired skills and expertise for team members, leadership skills and interest & potential for developing new products and services.
Richard M. Hill and James D. Hlavacek (1972) says that in order to efficiently meet customer needs, large number of organizations use venture teams to manage and create new product innovations from idea conception to full commercialization.
2. _____ is a method for deriving the utility values that consumers attach to varying levels of a product’s attributes.
According to Kotler (2009), conjoint analysis is a method for deriving the utility values that consumers attach to varying levels of can be priced.
Marketers use this analysis to find what new features can be added to the product for its enhancement and how it can be priced. By the combination of different levels of attribute this method allows the respondents to see different hypothetical offers. The most appealing offer and its market share and profits can be identified using this method.
According to an online article (Conjoint Analysis, 2010), this analysis breaks the product or services into small constituent parts and then the marketers test these parts to identify what the customer actually wants.
3. _____ is the practice of buying goods and services from foreign vendors.
According to Kotler (2009), outsourcing is the practice of buying goods and services from foreign vendors. This is can help the company have fresh ideas using which it can achieve its business goals.
According to an article in business week, (Rod Kurtz, 2008), says that some of the benefits of outsourcing are that it reduces the overhead to hire individual or a team and just outsource an expert. Eliminates bias and leverage a different perspective, improves company focus and helps the company jump star its marketing instantly.
4. In a _____ foreign investors join with local investors to create a company in which they share ownership and control.
According to Kotler (2009), in a joint venture foreign investors join with local investors to create a company in which they share ownership and control.
A company might not have the physical, management or even financial resources that are needed to take the venture alone in today’s market. Hence this may require joint ownership with other companies existing in the market as a condition for entry. However this method has many disadvantages like the partners might disagree over investment, marketing and one might want to reinvest while other might want to declare more dividends.
5. A _____ industry is an industry in which the strategic positions of competitors in major markets are fundamentally affected by their overall global positions.
According to Kotler (2009), a global industry is an industry in which the strategic positions of competitors in major markets are fundamentally affected by their overall global positions.
A global company operates in many countries and hence captures R & D, production, financial advertisements that are not available to domestic competitors.
1. List the “seven notions of innovation”
Companies try to enter new markets to develop new products for their customers by focusing on incremental innovation. Kotler (2009) uses the examples of Scott Paper and Southwest Airlines who made use of incremental innovation to explain this. Kassir Hussain (2010) says that in order make the company’s innovations successful, it is important that the companies first identify and kill the barriers to innovation.
According to Kotler (2009), the seven notions to innovation are listed as follows.
See the future through the eyes of your customer
Intellectual property and brand power are key assets
Use digital technology to create tools for customers
Build a championship team, not a group of champions
Innovation is a state of mind
Speed is critical, so push your organization
Partner up if you’re not the best in something
According to an article online (Mistakes Made On The Road To Innovation, 2006), companies must watch for treacherous shifts, get the best people involved in its program, give importance to its new initiatives and make that the employees understand what and how the company focuses on its innovation to avoid any mistakes.
2. Discuss the advantages and disadvantages of licensing.
According to Kotler (2009), licensing is a simple way to involve in international marketing. License is issued to a foreign company by the licensor to use manufacturing processes, trademarks, patent and trade secrets. Thus, production expertise is gained by the licensee.
The disadvantages of licensing are listed as follows.
(a) The licensee can become the licensor’s competitor. When the licensee is successful, the company might gain profits and by the end of the contract, the company gets a competitor. To avoid this, the licensor must supply some proprietary products to the licensee company so that it always has to depend on the licensor company to succeed in business.
(b) According to an article online (What are the advantages and disadvantages of licensing, 2009), the licensee company might ask for training and technical assistance for its employees which might increase the costs for the licensor company. Hence it is important that both the companies clearly define their roles and responsibilities initially in the agreement.
(c) According to an article online (What are the advantages and disadvantages of licensing, 2009), the licensor had to depend on the licensee’s skills and resources for the company’s success.
Advantages of licensing are listed as follows.
(a) According to an article online (What are the advantages and disadvantages of licensing, 2009), companies with license agreement that gives access to new technologies that govern the current markets can help the company effectively enter the new markets quickly to develop new products.
(b) According to an article online (What are the advantages and disadvantages of licensing, 2009), small companies that do no have the skills and abilities required to develop products and services can set up a license agreement with big companies to succeed in business.
(c) Companies can also enter the foreign market through franchising. The franchisee invests and pays fees to the franchisor. For example: McDonald’s KFC and Avis.
Also, Kotler (2009) says that some companies sell management contracts to foreign owners to manage business for a fee. By this, some share in the managed company can be bought by the management firm. Companies also use contract manufacturing to product new products by hiring local manufacturers. This way companies risk losing potential profits. However, the company can later buy the local manufacturer and form partnership to succeed in business.
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3. Name several of the factors that draw companies into the international arena.
According to Kotler (2009), companies that have established themselves in the domestic market would prefer to remain in domestic. Managers of these companies need not know other countries languages, laws and face legal and political issues to succeed in business. However, the following are the factors according to Kotler (2009) that draw companies into the international arena.
The company discovers that the international markets would present more profits to the company than its domestic market
The company require large customer base to widen its opportunities
The company does not have to depend on any one market
The company might want to counterattack these competitors in their home markets to tie up their resources
The customers of the company want to go abroad and need international service
The company must assess the several risks and answer many questions about its ability to operate globally.
The company might fail to produce the desired product by not understanding the foreign preferences.
The foreign business culture needs to be understood properly by the company.
The foreign regulations must not be underestimated by the company and should avoid incurring unexpected costs.
Managers with international experience might be needed by the company.
It is important that the company understands the changing foreign commercial laws, currency value, and political revolutions and expropriate foreign property.
I understand that the company should try to properly define its international marketing objectives and policies. Also, it is important for the company to choose how many countries it has to market in, and it also needs to decide on the different types of countries to enter. Once the decision has been made to sell in a foreign country, the company must determine the best mode of entry to succeed in its business.
4. Discuss the three types of potential product-team structures and depict each graphically.
According to Kotler (2009), there are 3 types of product-team structures in product management that are explained as follows.
Vertical Product team
This type of product team structure involves the product manager (PM), associate product manager (APM) and the product assistant (PA). The product manager is the team leader and is responsible to gain other’s cooperation. The product manager is assisted by the associate product manager. Analysis and paperwork is done by the product assistant.
Figure. 1. Vertical Product Team. From: Kotler, P., & Keller, K. L. (2009). Marketing Management (13th ed.). Upper Saddel River, New Jersey: Pearson Prentice Hall.
Triangular Product Team
This type of Product team involves the product manager (PM), market researcher (R) and communication specialist (C). The product manager has two key representatives who take care of marketing research and marketing communications.
Figure. 2. Triangular Product Team. From: Kotler, P., & Keller, K. L. (2009). Marketing Management (13th ed.). Upper Saddel River, New Jersey: Pearson Prentice Hall.
Horizontal Product Team
This type of product team involves the product manager (PM), market researcher (R), communication specialist (C), sales manager (S), distribution specialist (D), finance / accounting specialist (F) and an engineer (E).
Figure. 3. Horizontal Product Team. From: Kotler, P., & Keller, K. L. (2009). Marketing Management (13th ed.). Upper Saddel River, New Jersey: Pearson Prentice Hall.
Also, according to Kotler (2009), the triangular and the horizontal product teams are run by brand-asset management team (BAMT) that consists of key representatives. The company has many BAMTs who report to the BAMT director committee periodically who in turn report to the chief branding officer.
What do Chick-fil-A, Ben & Jerry’s ice cream, and Patagonia clothing company have in common? They are all organizations that take social responsibility in marketing seriously.
Many organizations in the United States embrace social responsibility. Though the term is sometimes loosely applied, organizations that are serious about their role in social responsibility use a three-pronged attack strategy based on proper legal, ethical, and social responsibility behavior. Marketers should practice a “social conscience” in dealings with shareholders and consumers. In their own industries, Chick-fil-A, Ben & Jerry’s ice cream, and Patagonia clothiers exemplify corporate social responsibility in marketing.
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Georgia-based Chick-fil-A restaurant chain has a wide range of policies that help integrate social responsibility into the very fabric of their organization. Chick-fil-A closes on Sundays to encourage worship, offers substantial scholarships to employees who will commit to finishing their education, and works to strengthen marriages by counseling employees and offering weekend stays at resorts to encourage communication between spouses. This company is often ranked at the top of its industry with respect to social responsibility integration and practice.
Ben & Jerry’s ice cream and Patagonia clothiers are huge supporters of the “green movement.” Environmental advocacy is part of their corporate credo and mission statement. Both companies not only encourage environmentalists and their causes but also practice environmentalism in the manufacture of their products. Both companies also use their Web sites to advance the environmental agenda. As more organizations place an accent on holistic marketing, environmental awareness and responsibility increases. Social responsibility is becoming the corporate mantra of the 2000’s.
Case study developed by Dr. John R. Brooks, Jr., Houston Baptist University.
What are the three prongs of the social responsibility attack strategy embraced by some firms today?
According to Kotler (2009), the three prongs of the social responsibility attack relies on proper legal, ethical, and social responsibility behavior.
According to Kotler (2009), all employees in the organization must know their company laws and regulations. For example: sales people in the company must not mislead or lie to their customers. Their statements must match the company’s advertising claims. They must not offer bribe to the purchasing agents and also not use the company’s competitor’s trade secrets or industrial espionage. It is equally important that the sales representatives also understand the company’s laws and acts.
It’s important for companies to differentiate between ethical and unethical marketing practices. For example: Kotler (2009) says that though Kraft stopped advertising its less healthy products like Chips Ahoy by targeting children between ages 6 to 11, some watch groups felt it was not enough.
Some unethical behavior in business practices are bribery, trade secret thefts, false advertising and warranties, incorrect labeling, price-fixing and safety defects. The company’s code of ethics must be written in a way that it follows a strict ethical behavior.
Social Responsible Behavior
Marketers must practice a “social conscience” in specific dealings with customers and stakeholders. I strongly feel that every company should interact with its environment, be supportive and remain committed to the community in which it operates. Secondly, to attract the public and to create goodwill, it is important for the companies to do charitable services and environmental awareness programs. For example: Microsoft and the Gates Foundation. They not only focus on their business (Microsoft) but also on social responsibility (Gates Foundation). Thirdly, the social responsibilities of the company can help its continuous operations / existence in the future.
These are the three prongs of the social responsibility attack strategy embraced by some firms today.
Hence, I believe that people would definitely look for information about a company’s record on social and environmental responsibility to help decide which companies to buy from, invest in, and work for. The only concern in this fast changing world is that the companies struggle to determine what the new emerging markets would need tomorrow. Hence it is important for them to understand and consider the latest trends and regulations they must follow to remain conscious of their surrounding environments.
How would you describe proper socially responsible behavior?
I strongly feel that every company should interact with its environment, be supportive and remain committed to the community in which it operates. Secondly, to attract the public and to create goodwill, it is important for the companies to do charitable services and environmental awareness programs. For example: Microsoft and the Gates Foundation. They not only focus on their business (Microsoft) but also on social responsibility (Gates Foundation). Thirdly, the social responsibilities of the company can help its continuous operations / existence in the future.
C.B. Bhattacharya (2009), in an online article says that the present financial crisis has made companies to identify themselves as responsible and trustable. He suggests that the company realigns both internally and externally with people its image so that it attracts more people and at the same time supports its environment.
I understand and believe that Corporate Social Responsibility (CSR) is built on the company’s shared values to maximize client satisfaction and sustain in the environment in which it operates and also be responsible for all the impacts of the company’s activities on the society.
Dan Keeler (2010) says that it is important that companies must have effective CSR policies. Today, the level of challenges in the market is growing big and hence the companies must generally try and improve themselves to become a better corporate citizen.
Kotler (2009) also discusses that a company that scores well on sustainability factors has high levels of management quality and can support & compete in any kind of environment. Boston’s Cone Inc offers certain considerations like defining proper CSR for the company, building a diverse team, analyzing and improving the company’s CSR practices and NGO relationships and developing a cause- branding initiative that helps them to execute an effective CSR.
Thus, as Kotler (2009), I also believe that people would definitely look for information about a company’s record on social and environmental responsibility to help decide which companies to buy from, invest in, and work for. The only concern in this fast changing world is that the companies struggle to determine what the new emerging markets would need tomorrow. Hence it is important for them to understand and consider the latest trends and regulations they must follow to remain conscious of their surrounding environments.
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