CH 14 - Global Marketing & Research

Question 1

Marketing mix

Answer 1

1. Product
2. Place
3. Promotion
4. Pricing strategy
5. People

Question 2

Theodore Levitt:

Answer 2

• technology drives a converging world
• the global corporation operates with consistency
• there is a standardization of products, manufacturing, and institutions

Question 3

Market segmentation

Answer 3

Identifying groups of customers, their needs, wants, and purchasing behaviour.

Markets can be segmented by:
- geography
- demography
- socioculturally
- psychologically

Question 4

Differences between countries (Distribution Strategy)

Answer 4

• Retail Concentration:
• Channel Lenght
• Channel Exclusivity
• Channel Quality

Question 5

Barriers to international communication

Answer 5

• Cultural barriers
• Source effects
• Noise levels

Question 6

International Pricing Strategy

Answer 6

• Price discrimination
• Strategic pricing
• Regulatory influences on prices

Question 7

Strategic pricing

Answer 7

• predatory pricing: price as as a competitive tool to drive weak competition out of the market
• multipoint pricing strategy: a firm’s pricing strategy may have impact on its rivals pricing
• experience curve pricing: low prices worldwide to build global sales

Question 8

Regulatory influences on prices

Answer 8

• anti dumping: dumping is when a firm sells a product for a price lower than the cost of production
• competition policy: regulations to promote competition and to restrict monopoly practices

Question 9

New product development

Answer 9

• location of R&D
• integrate R&D, marketing and production
• cross-functional teams
• building global R&D capabilities