Chapter 12: Global Marketing Management and Organization

Question 1

6 Different Entry Strategies

Answer 1

1. Exporting
2. Licensing Contractual Agreement
3. Franchising Contractual Agreement
4. Strategic Alliance
5. Joint Ventures
6. Foreign Direct Investments

Question 2

Exporting definition and 2 types

Answer 2

Exporting is selling goods to another country

1. Direct Exporting
2. Indirect Exporting

Question 3

Direct Exporting

Answer 3

Selling to a buyer in another country

Question 4

Indirect Exporting

Answer 4

Company sells to a buyer locally who then resells to another internationally

Question 5

IIM

Answer 5

International Internet Marketing

Question 6

Direct Sales

Answer 6

For high technology and big ticket items

Question 7

Licensing Contractual Agreement

Answer 7

Establish footholds in foreign market without large outputs

Question 8

3 advantageous situations to License

Answer 8

1. No capital
2. Import Restrictions
3. Sensitive to foreign ownership by host country

Question 9

4 disadvantageous Situations to License

Answer 9

1. Choose wrong partner
2. Payment Problems
3. Contract Enforcement
4. Loss of Marketing control

Question 10

Franchising

Answer 10

Standard package of products, systems and management services

Question 11

3 Benefits of Franchising

Answer 11

1. Market Knowledge
2. Capital
3. Personal Involvement and Management

Question 12

Strategic Alliances

Answer 12

2 or more companies collab to achieve mutual goal

Question 13

Joint Ventures

Answer 13

When 2 or more companies join forces and create 1 separate entity

Question 14

FDR

Answer 14

Foreign Direct Investment

Question 15

Benefits of FDR

Answer 15

Capitalize on cheaper labour force

Access to raw materials