10- International Markets And Marketing

Question 1

Market potential

Answer 1

Total number of units of product that could possibly be sold by all companies doing business in a specific market

Question 2

Sales potential

Answer 2

Percentage of market potential that a specific company expects to sell in specific international market.

Question 3

Market types

Answer 3

Consumer, industrial, government markets.

Question 4

Information required about a market

Answer 4

• Country’s population
• Income levels in proposed foreign markets
• GDP per capita
• comparison of average income of wealthiest 20% to poorest 20%
• age of population
• nations ethnicity and religions
• rural/local

Question 5

Standardisation

Answer 5

Marketing strategies used in international markets that are the same as used in domestic markets

Question 6

Adaptation

Answer 6

Marketing strategies used in international markets different from used in domestic market

Question 7

Glocalisation

Answer 7

Marketing strategy that involves pursuing standardisation in foreign markets and adaptation when necessary

Question 8

International marketing mix

Product

Answer 8

So same domestic product, modify, develop new, or incorporate product differences into one design for global product

Develop new product: new product ideas – evaluate – concept testing – business analysis – market testing – commercialisation

Question 9

Locating R+D facilities

Answer 9

Advantages to having 1 facility in home country and 1 or more in foreign markets: access to foreign scientists and engineers, product developed overseas more attuned to overseas markets, product developed for emerging markets can be sold successfully in developed markets, called reverse strategy.

Question 10

Product counterfeiting

Answer 10

Damage brand image, sales revenue lost to counterfeiter, costs of combating, dangerous to customers from defective and hazardous counterfeits

Question 11

Promotion

Answer 11

• advertising and personal selling (effective in international markets but costly)
• sales promotion (coupons, POS, sponsorships, trade shows)
• publicity: untold stories about a firm, p+s, executives

Question 12

Place - dist channels

Answer 12

– Indirect strategy: existing distribution channels to market products and services, require no upfront investment, market knowledge helpful

-Direct strategy: Bypass existing channels of distribution by using marketing/sales offices in foreign countries, requires upfront investment in recruiting salesforce, maintains control over marketing efforts

International distribution agent: represents firm in foreign market paid by commission, distributor – purchase products from firm doing business in foreign market and resells to other buyers

Physical distribution: storage and transportation operations- freight forwarders, containerisation, intermodal

Question 13

Pricing

Answer 13

Price setting factors- Product costs, attractiveness and price of competitor products, how competitive product is, how much marketing support received, demand.

Consider: price discrimination, regulations

Grey marketing: unauthorised importers selling in domestic markets

Dumping: selling at a price in foreign market that undercuts prices of competing local firms

Question 14

People - service

Answer 14

-share of wallet: % of purchases in a category a buyer gives to one vendor.

Customer service- empowering employees