Cases Int Marketing Flashcards

Question

What does Access in the A-B-C-D paradigm involve?

Answer 1

Access: Can consumers obtain your product/service → invest to enter market - Economic access - affordability - Physical access – international trade barriers, distributions system, infrastructure

Answer 2

Buying behaviour: How is the decision to buy made by consumers? - Perceptions – country of origin (Brand equity; price-quality) – As a German company, Siemens is considered expensive, even if it isn’t. - Brand loyalty/store loyalty - General attitudes towards marketing/consumption (USA: necessary; German: critical) - Deeper analysis of consumer psyche, e.g. impact of social norms, psychological orientation etc.

Answer 3

SCUPS Consumption characteristics: What factors impact consumption patterns? (frequency) - Social class/reference group influence - Cultural orientation (traditional v modern) - Urban v rural sector consumption patterns (different or similar? GER: more homogenous than other metropolis like London, Paris) - Product v service consumption in culture (GER: product focus; Japan: service focus)

Answer 4

Disposal: How do consumers dispose of the product (resale, recycling, etc). What are the implications of product disposal? - Resale, recycling and remanufacturing considerations (Japan: unusual to buy used cars; if they do, they change the seats) - Social responsibility/environmental implications of product disposal

Answer 5

Product policy: E.g. - Cars in China: more legroom, smaller engines - Skin whiteners in Asian countries Pricing: - Customer’s willingness to pay for your product will vary across cultures - Odd pricing: 99 cent prices; some have rounded up prices - 9 versus 8 in Chinese cultures (“ba”, wealth), 4 has a bad image Distribution: - Avon had to change according to lifestyle, small kiosks, home shopping TV – e.g. Tupperware. Promotion - Low context versus high context cultures, dogs as unclean animals - Malaysia and public beer promotion (it’s an offence to promote beer in public)

Answer 6

TRIPSI • The political threats o Govt may confiscate assets, expropriate them or increase governmental control over the company assets. • Role of govt in the economy: o Participation vs regulator o From command (high political intervention) to market economy • Ideologies and marketing • Political stability: can I take the profits out of the country? How to operate in the country? • International relations o Between home government and host government (e.g. USA/Cuba → influence on Germany not going to Cuba) o Between host governments and future destinations

Answer 7

Look at your own and other countries’ laws – what permits do I need…Conflicting requirements in different countries? - Local domestic law: Common law, civil law/codified law, theocratic law - International law (exclude it?) - Domestic law: Export controls, abiding by national law locally and internationall - Laws and international market activity: Marketing mix will be affected by law

Answer 8

DEDUCE NT PPP - Disposable income and distribution (Gini coefficient) - Economic activity - Differential inflation (difference between the 2 countries) - Urbanisation - Climate (little manufacturing in Dubai) - Energy and communications (low energy costs) - Natural resources - Topography (alps divide Switzerland --> diff languages) - Population size and growth - Population density and concentration - Population age and distribution

Answer 9

- Can every company afford the latest technology? - Can technology reduce barriers? (e.g. music downloads…) - What are the opportunities coming from the internet? - Pressures on price and margins are at a global level

Answer 10

- Increasing competition both at local and global level | - Less developed countries are no longer satisfied by exporting raw materials (Juan Valdez, Colombia)

Answer 11

- Most changes are difficult to predict - Currency changes are outside the company's control - Changes can easily turn profit into loss (can't always keep up or increase prices as exchange rate worsens)

Answer 12

SAM - Similarity - Accessibility - Market potential Look as of now and in a few years time --> increasing potential so enter now before the others.

Answer 13

Market potential: - Market size - Competition - Resources - Customer demand, wants, income (e.g. do they drink coffee?)

Answer 14

- Geographical proximity (closer -> easier) | - Psychological proximity (cultural heritage too)

Answer 15

MP-GDP - Management communications - Political distance - Geographic (difficult to enter Afghanistan - war, commerce, language, mountains) - Delivery time - Psychological

Answer 16

x-axis: Country attractiveness (in the product category) - High, medium, low y-axis: Company's compatibility with each country - Low, medium, high Both high: P = primary market 1 high, 1 medium: S = secondary market Both medium or 1 high 1 low: T = tertiary market

Answer 17

- Economies of scale - Optimisation of marketing - Easier diffusion of production (distribution) - Ease of operation, management and control - Greater profitability.

Answer 18

1. Classify countries into primary, secondary, tertiary and avoidance markets 2. Identify customer segments within the chosen countries by demographics, buyer behaviour, consumer motivations and life styles.

Answer 19

1. Identify countries with sufficient infrastructure to support its product and which are lucrative to the company. 2. Screen those countries to arrive at a realistic short-list 3. Develop micro-segments within those countries identified by product characteristics required (e.g eat in/take away) 4. Identify the key characteristics of demand in each micro-segment searching for similarities in terms of behavioural patters 5. Through cluster analysis identify meaningful cross-national segments which would respond similarly to a consistent marketing mix strategy.

Answer 20

Goal: - Break down the market for a product/service into - different groups of customers who - differ in their response to the firm's marketing mix program --> tailor the marketing mix to the segment and therefore do a better job to satisfy the needs of the target segment.

Answer 21

- Identifiable: easy to define and measure (indicator!) - Sizeable: large enough to be worth going after (exception to the rule = high priced, long tail marketing) - Accessible: easy to reach through promotional and distributional efforts - Stable: If composition of target markets change over time, efforts are less likely to succeed. E.g. only get married once --> also offer baby items? - Responsive: Segments respond differently from each other to differentiated marketing mixes. - Actionable: the mix necessary to address their needs is consistent with the goals and the core competences of the company.

Answer 22

1. Country screening: preliminary screening of a few relevant indicators (go, no go, future possibilities) to decide about further examination. 2. Global marketing research: Country clusters are gathered to focus on a select few countries for initial research on customer needs. 3. Entry decision: to look for similar countries to the successful ones. 4. Segmentation decisions are instrumental in setting the company's product positioning strategy. 5. Resource allocation across different countries 6. Marketing mix policy

Answer 23

1. Country-as-segments or aggregate segmentation (e.g. culture/income segments) 2. Disaggregate international consumer segmentation 3. Two-stage international segmentation as a combination of both

Answer 24

= Classify countries as distinct segments. There are numerous country traits. The segmentation variables are usually collapsed into a smaller set of dimensions, using data reduction techniques like factor analyis. Flaws: Country boundaries rarely define differences in consumer response.

Answer 25

Approach = Focus on the individual consumer, lifestyle, demographic or values as segmentation basis. Problem: Geographically dispersed consumer segments are a logistical nightmare Possibilities: if you are world-class in one segment, e.g. pro golf, highly specialised equipment.

Answer 26

= a combination of country-as-segments or aggregate segmentation, and disaggregate international consumer segmentation. 1. (Aggregate or macro-level stage) Countries are grouped on general segmentation basis. Some bases are independent of the product or service. Unacceptable countries are screened out. 2. (Disaggregate or micro-level phase) - Data are gathered on product-specific bases and is used to identifiy the cross-national segment of consumers with the geographic segment chosen

Answer 27

- Customers are more responsive than for aggregate segmentation, as they focus on consumer needs - More accessible than purely disaggregate segmentations.

Answer 28

- Universal or global segments: segments that transcend national boundaries. Consumers in this segment have common needs, eg. MTV, business people, global elite - Regional segments: similarities in some regions are large - Unique (diverse) segments: the gaps in cross-country customer needs and preferences are so substantial that it becomes very hard to derive cross-border segments.

Answer 29

- Localise the marketing mix | - Pick the most attractive target markets in each market first

Answer 30

- Demographic - Socio-economic variables - Lifestyle - Behaviour-based segmentation

Answer 31

STEFF G - Self-centred - Thrifty shoppers - Entrepreneurs - Family-oriented - Falling behind - Good students

Answer 32

- Monetisation of transactions within a country - Grey and black sector of the economy - Income disparities

Answer 33

BLURP - Degree of brand loyalty - Usage rate - Product penetration

Answer 34

1. Identify a relevant set of competing products or brands. What is the competitive frame? 2. Determine current perceptions held by consumers about your product/brand and the competition 3. Develop possible positioning themes (e.g. Starbucks - 3rd place between work and home) 4. Screen the positioning alternatives and select the most appealing one 5. Develop a marketing mix strategy that will implement the chosen positioning strategy 6. Over time, monitor the effectiveness of your positioning strategy

Answer 35

- Specific product features - Product benefits (rational or emotional) solutions for problems - User category (target groups) - User application (e.g. for a certain environment) - Lifestyle (e.g. golf lifestyle)

Answer 36

- Global consumer culture positioning strategy: Sony, Nike - Local consumer culture poitioning strategy: Mercedes E-class in Japanese setting - Foreign consumer culture positioning strategy: Foster beer as 'Australian beer', Timberland

Answer 37

CNN-SLAPPIC-FM • Corporate objectives/ambition/resources: What do you want to/is it possible to achieve • Nature of markets/product category/competition: If BMW has a subsidiary there, Daimler must have one too – can’t go through a distributor. • Nature of consumer culture: Deal directly with the company? • Speed of entry: Local partner has network, knowledge → faster entry, less control • Level of control • Administrative requirements (not possible to buy land, so joint venture?) • Profit payback: When break even? • Personnel (easier through partner?) • Investment cost • Coverage of the market • Flexibility (the more people involved, the less flexible) • Marketing cost and commitment

Answer 38

1. Exporting (least control, least risk): Internet → Exporter → Importer → Distributor → Direct sales 2. Contractual agreement: → Licensing and franchising 3. Strategic Alliance: →Strategic alliance → Joint Venture and consortia 4. Ownership (Greatest control and risk) → Direct Foreign Investment.

Answer 39

1. Exporting | 2. Overseas production

Answer 40

Indirect exporting (PIDE): - Piggy-backing (using the infrastructure of another company) - International trading companies - Via domestic organisation (Overseas orgs with buyers in domestic market, or multinationals' procurement offices) - Export houses Direct exporting: Agents (issue of bribery to get the deal), distributors, company marketing subsidiary

Answer 41

Foreign manufacture without direct investment: Licensing, franchising, contract manufacture Foreign manufacture with direct investment: - Assembly - Joint Venture - Strategic alliances (no shared ownership, critical to one of the parties) - Acquisition - Greenfield development (from scratch)

Answer 42

- Acquisition - Greenfields development - Managing the licensing agreement - Franchising - Contract manufacture

Answer 43

Entry analysis: - Profitability - Assets - Finance - Costs - Risk Entry strategy implementation considerations: - Inventory - Personnel/admin - Intermediaries - Logistics Exit strategy

Answer 44

x-axis: Market (segment) - concentration, diversification y-axis: Country - diversification, concentration - Top left (both concentration): Narrow focus - Top right (market diversification, country concentration): Country Focus - Bottom left (Country diversification, market concentration): Country diversification - Bottom right (both diversification): Global diversification

Answer 45

Internal sources of financing: accumulated surpluses and cash External sources of financing SP-DCF-VAJ: - international stock markets - leasing hire purchase - discount markets - commercial and private banks - factoring and forfeiting - venture capital - bilateral and multilateral aid in cases of international development (e.g. World Bank) - joint financing

Answer 46

- Political reasons: changing political situations sometimes force companies to exit markets. Expropriation is often a risk in some countries. - Business failure: but to exit a major market can be very expensive and can be damaging to the global reputation (e.g. Renault, Peugeot and Fiat in US market)

Answer 47

The process of focusing an organisation's resources on the selection and exploitation of global market opportunities consistent with and supportive of its short- and long-term strategic objectives and goals.

Answer 48

- There is no such thing as local markets, and all markets tend towards a universal standard. - Companies should therefore consider marketing, production and service on a global basis.

Answer 49

- Domestic marketing - Export marketing - International marketing - Multinational marketing - Multiregional marketing - Global marketing

Answer 50

Marketing directed at the domestic or home market only

Answer 51

Making the product or service in the home markets and selling it in international markets

Answer 52

Moving beyond exporting; the organisation often still makes the product/service in the home market, but has its: - own representation for sales, marketing and distribution int he foreign markets.

Answer 53

= Multidomestic strategy Next stage of growth and involvement beyond international marketing. The organisation has greater proportion of its assets in markets other than its domestic base. Domestic market is now one of many markets all approached mainly on an individual basis.

Answer 54

Region = more than 1 country To find economies of scale in operations, the organisation has started to standardise its international marketing strategies around regional groupings of markets.

Answer 55

- The organisation defines a single strategy for a product, service or company that can be followedin all markets in which the organisation operates. - Typically senior management will set general strategic guidelines and local offices will develop these at local market levels.

Answer 56

- Ethnocentrism (domestic/export marketing orientation) - Polycentrism (international marketing orientation) - Regiocentrism (multinational marketing orientation) - Geocentrism (global marketing orientation)

Answer 57

- International flow of information - International spread of technology - Size of investment required (e.g. Starwars) - Reduction of trade barriers - Relative global peace (peace is good for business) - due to terrorism to be reconsidered. - Evolution of global market segments in recent years.

Answer 58

- Consumer tastes may require market adaptation of product and service - Culture can be a major barrier to globalisation strategies - Local market conditions: there are a number of other variables than culture, eg. topography, lack of wholesale network... - Pressure groups: growing pressure by various groups opposed to the global operators protesting at meetings like G8. Principl objection = perception that excessive profits are made at the expense of mainly developing countries.

Answer 59

- How to account for cultural diversity, complexity and sensitivity - How the culture sees the benefits of the product/service offered - How the local culture culture affects decision-making to purchase the product/service - Which aspects of the cultural map are particularly strongly triggered by the offering? - What aspects of the marketing mix might make the offer culturally sensitive? - What alternatives already exist for the proposed product/service, how are these related to the local culture?

Answer 60

Strategies are only worthwhile if they are implemented. Customer needs are the starting point for considerations and product, price, place etc follow from the customer need.

Answer 61

- Use Porter's value chain: Break the value chain into distinct area where value can be added. - Identify how, using superior technology, service, personnel or marketing factors he can add value to gain competitive advantage. - This can lead to a focus on one link in the value chain to do it better than the competition.

Answer 62

1. Intangibility: can't see, touch, smell or feel service 2. Perishability: can't store services and sell tomorrow what can't be sold today 3. Heterogenity: services are rarely identical from one delivery to the next 4. Inseparability: The consumption of the service normally takes place at the same point at which it is created, therefore being inseparable from the source of the service.

Answer 63

1. Standardisation/adaptation 2. Product/promotion mix 3. Image, branding and positioning 4. Packaging decisions 5. Application of portfolio analysis to international product range decisions

Answer 64

FAMES-FCR - The "French"/"American image" (even if it isn't original from there, e.g. Marlboro cowboys only since 1950s) --> less adaptation necessary, although can be influenced by another country, e.g. sushi - Californian roll. - Consumer mobility - confused customer if positioning is different everywhere - people might also expect the original food - Economies of scale in production, R and D and marketing - Spread and flow of technology - Flow of information - Cost of investment - Reducing trade barriers --> easier to have standardised products

Answer 65

- Differing use conditions - Government factors - Culture and language - Local market needs - Local tastes - Company history and operations - "Not invented here"

Answer 66

1. Core component 2. Packaging component 3. Support services component

Answer 67

- physical product - functional features - technology

Answer 68

- Price and quality - Styling and design - Packaging - Staff behaviour and appearance - Others

Answer 69

DWAMS - Delivery and installation – Ikea – you build it! - Warranty - Access points – where can you take the product back to? - Maintenance and repair - Spares

Answer 70

GLITIC - Government standards → need to change product - Labour costs and local income – affordable? Costs a lot to replace a part? - Technical skill - Isolation and climate

Answer 71

- Consumer tastes - Education and literacy - Languages, information needs and promotion - Distribution systems – service or self service - Protection and transportation – for transport / climate…

Answer 72

- Education - Geography, topography, distance from home - Use conditions - Communications and technology - Competitive strategy - Competition’s service level - Locally available services – can I do that with partners?

Answer 73

x-axis: Markets, supply, competition y-axis: National, regaional, global bubbles with arrows pointing opposite up and down.

Answer 74

- Driven by tastes, available distribution channesl, prices, trade barriers --> most markets exist on national/regional scale Market tendency for polarisation: - markets becoming more national and sub-national in search for products/services that reinforce local identity. - Markets becoming more regional as consumers responde to Economies of Scale from standardised product

Answer 75

- Technology, Economies of Scale, increasing costs of investment --> supply conditions tend towards regional and are being pushed global - BUT pulled local to satisfy increasingly individualistic/nationalistic needs

Answer 76

- Competition faced is predominantly regional - Larger international and multinational orgs operating globally or in Europe, N America or Pacific Rim are driving most competition in this decade. - Signs of polarisation towards local competition due to individualism and global competition.

Answer 77

- Promotion or performance promises can be standardised or adapted to the local target market Grid: x-axis: Product: Standard - Adapt y-axis: Promotion: Adapt - Standard ``` Top left (both standard): Global Top right (Product adapt, promotion standard): Product extension Bottom left (Product standard, promotion adapt): Promotion extension Bottom right (both adapt): Dual adaptation. ```

Answer 78

- the product's physical or objective attributes - its image or subjective attributes mainly formed through advertising NB: to offer a standardised consistent position in all markets a company operates in does not necessarily mean that the product itself is standardised (Coca Cola)

Answer 79

The names and personal we give our products and services

Answer 80

- Should brand names be internationalised and used everywhere the company operates? - Difficulties: cultural and linguistic differences between markets --> many brands, brand names, brand marks or brand concepts don't travel well - Brand equity shows the importance and value of a successful brand: important is the reach/degree of internationalisation at the interbrand method of measuring brand equity.

Answer 81

- Local distribution - service or self-service? - Climate - extreme climate swings? - Geographical - how far will the product travel? - Economic considerations: to what extent will packaging be used after the primary product has been consumed?