Chapter 15 Flashcards
What are the advantages and disadvantages of being a global industry?
A:
Lower costs & higher brand awareness
D:
Variable exchange rate
Unstable governments
Tariffs and trade barriers
What is the global marketing environment?
What type of characteristics should a company assess within each foreign market?
economic
political-legal
cultural
When deciding to go abroad, what must the company look at? How does it make these decisions?
The volume of international sales they want
How many countries it wants to market in
Which specific markets to enter
By weighing the probable returns against the level of risk
What are the 3 key approaches to entering international markets?
Exporting
Joint venturing
Direct investment
most companies move through the 3 in order
what is exporting? what’s indirect vs direct exporting?
Company enters a foreign market by sending & selling products through international intermediaries (indirect exporting), or the company’s own department/branch/sales rep/agents (direct exporting)
What is a joint venture?
Entering foreign markets by joining with foreign companies to produce or market a product/service
What is licensing?
Entering foreign market and offering the right to use a manufacturing process, trademark, patent, trade secret or other item of value for fee/royalty.
What are the different ways companies can adapt their marketing strategies & marketing mix to foreign markets?
Standardized global marketing
Adapted global marketing
What is adaptable global marketing?
Adjust marketing strategy & mix to each target market, bearing more costs but hoping for larger ROI and market share
What is standardized global marketing?
All-or-nothing proposition
Which technique is better?
Companies should think globally, but act locally aka balance between globally standardized strategies and locally adapted marketing mix tactics.
What are the 5 global product & communication strategies
Straight extension
Communication adaptation
Product adaptation
Dual adaptation
Product invention
