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MARKETING > Chapter 15 Marketing Export > Flashcards

Chapter 15 Marketing Export Flashcards

1
Q

What moves products from their market entry points to final consumers?

A

Channels within nations

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2
Q

What moves company products from points of production to the border of countries within which they are sold?

A

Channels between nations

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3
Q

What must a company do to compete well internationally?

A

The company must effectively design and manage an entire global value delivery network

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4
Q

What considers the entire global supply chain and marketing channel?

A

Whole-channel view

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5
Q

How do companies mitigate price escalation from foreign pricing?

A

Companies can make simpler or smaller versions of their products at a lower price

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6
Q

What causes companies’ foreign prices to be higher than their domestic prices for comparable products?

A

Companies going through price escalation due to the cost of transportation, tariffs, margins

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7
Q

Through what method fully adapts advertising messages to local markets?

A

Communication adaption

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8
Q

What is a strategy companies do to avoid taboo in other countries?

A

Avoid taboos

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9
Q

What strategies are companies limited to in promotion?

A

Adopt the same communication strategy in home markets or change it for each local market

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10
Q

What consists of creating something new for a specific country market?

A

Product invention

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11
Q

Changing the product to meet local conditions or wants is?

A

Product adaption

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12
Q

How would you market a product in a foreign market without any change?

A

Straight product extension

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13
Q

What are the three main strategies used for adapting product and marketing communication strategies to a global market?

A

Product extension, production adaption, product invention

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14
Q

What is the fourth reason firms prefer direct investment approach?

A

The firm keeps full control over the investment

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15
Q

What is the third reason firms prefer direct investment as an approach?

A

Development of a deeper relationship with government, customers, local suppliers, and distributors

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16
Q

What is the second reason firms prefer the direct investment approach?

A

The firm may improve its image in the host country

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17
Q

What is the first reason some firms may rely on Direct Investment?

A

Lower costs in the form of cheaper labor or raw materials, foreign government investment incentives, and freight savings

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18
Q

What are the disadvantages of joint ownership?

A

Partners may disagree over policies, whereas US firms emphasize the role of marketing, local investors may rely on selling

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19
Q

What are the advantages of joint ownership?

A

A company can join forces with foreign investors to create a local business that shares joint ownership and control

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20
Q

What makes the conditions not necessary for management contracting?

A

If the company can put its management talent to better uses or if it can make greater profits by undertaking the whole venture

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21
Q

What is the benefit of management contracting?

A

It’s a low risk method of getting into a foreign market, and it yields income from the beginning

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22
Q

What are the benefits of contract manufacturing?

A

The chance to start faster, with less risk, and the opportunity to either form a partnership with or to buy out the local manufacturer

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23
Q

What are the disadvantages of contract manufacturing?

A

Decreased control and loss of potential profits over the manufacturing process

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24
Q

What is contract manufacturing?

A

When the company contracts with manufacturers in the foreign market to produce its product or provide its service

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25
Q

What is the profitability in licensing?

A

The licensee buys the right to use the company’s manufacturing process, trademark, patent, trade secret, for a fee or royalty

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26
Q

What are the advantages of licensing?

A

It’s a simple way for a manufacturer to enter international marketing

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27
Q

What are the advantages of direct exporting?

A

Higher potential return

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28
Q

What is direct exporting?

A

Where the company handles its own exports

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29
Q

What are the advantages of indirect exporting?

A

Involves less investment and less risk

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30
Q

What is indirect exporting?

A

Working through independent international marketing intermediaries

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31
Q

What are advantages to exporting?

A

It is the simplest way to enter a foreign market

32
Q

Global markets should be ranked on several factors.

A

Market size, market growth, cost of doing business, competitive advantage

33
Q

What is the fifth step a company should do before going abroad?

A

Evaluate each selected country

34
Q

What is the fourth step a company should do before going abroad?

A

Decide on the types of countries to enter

35
Q

What is the third step a company should do before going abroad?

A

Decide how many countries it wants to market

36
Q

What is the second step a company should do before going abroad?

A

Decide what volume of foreign sales it wants

37
Q

What is the first step a company should do before going abroad?

A

Define its international marketing objectives and policies

38
Q

What is a nontariff trade barrier?

A

Biases against certain kinds of bids for business contracts, restrictive product standards, and excessive or selective host-country regulations or enforcement

39
Q

What is a currency restriction?

A

A country may insist that sellers take payment in its own or a less widely accepted world currency

40
Q

What is the United States-Mexico-Canada Agreement (USMCA)?

A

Replaced the North American Free Trade Agreement

41
Q

What are free trade zones/economic communities?

A

Groups of nations organized to work toward common goals in regulation of international trade

42
Q

What are nontariff trade barriers?

A

Biases against U.S. company bids, restrictive product standards, or excessive regulations

43
Q

What is an exchange control?

A

Limits on the amount of foreign exchange and the exchange rate against other currencies

44
Q

Why would a country impose a quota?

A

To limit imports that it will accept in certain product categories

45
Q

Why are tariffs imposed on certain imported products?

A

To tax them to raise revenue or to protect domestic firms

46
Q

What are the three technological advances energized by global marketing?

A

Electronic networks, smart devices, digital commerce platforms

47
Q

How do societies that are high indulgence act?

A

Are open to individuals seeking goods, services and experiences that go beyond needs

48
Q

How do societies that are low indulgence act?

A

Have rigid norms that govern behavior, emphasize the fulfillment of basic needs, dislike flashy consumption

49
Q

How do short term orientation societies value the past and future?

A

Society isn’t ready for future changes and refuses to break from the past

50
Q

How do long term orientation societies value the past and future?

A

Societies are ready for future change, even when it requires them to break from the past

51
Q

How do societies who are low on the Uncertainty Avoidance Index fare?

A

Society is comfortable with uncertainty

52
Q

How do societies that are high on the Uncertainty Avoidance Index operate?

A

They dislike uncertainty, work in line with well-established belief and value system and try to control the future to reduce uncertainty

53
Q

What are core values for tender societies?

A

Cooperation, modesty, empathy for less fortunate or weak society members, quality of life

54
Q

What are core values for tougher societies?

A

Achievement, heroism, assertiveness, and material rewards

55
Q

How does individualism compare to collectivism?

A

Individualism is focused on themselves and family members, collectivism is focused on strong social networks

56
Q

What is beneficial to highly collectivistic society?

A

People are embedded in strong social networks and expect that the large social group will take care of their needs

57
Q

What is most important in individualistic societies?

A

People are more focused on the needs and well-being of themselves and their immediate family members

58
Q

How is Power Distance Index measured?

A

It deals with the extent to which less powerful members of society are comfortable with an unequal distribution of power across its members

59
Q

What does a developing economy experience?

A

Rapid economic growth and industrialization

60
Q

What actions and identity do developing economies play in improving both businesses and consumer goods and services?

A

Large middle classes and their varied manufacturing activities

61
Q

What are examples of developed economies?

A

United States, Japan, South Korea

62
Q

What role in action do Subsistence economies play?

A

They consume most of their output and barter the rest for simple goods and services. They offer few market opportunities.

63
Q

What does a company’s industrial structure define as a whole?

A

Products and service needs, income levels, and employment levels

64
Q

What are the two economic factors that reflect the country’s attractiveness as a market?

A

Industrial structure and Income distribution

65
Q

What can a company do if there are serious political concerns?

A

It may decide to enter in a way that its commitment can be reversed quickly and efficiently

66
Q

What must a company do before committing to entering a country?

A

It must evaluate both the nature and the certainty of the political climate

67
Q

What does PESTLE stand for?

A

Political, Economic, Sociocultural, Technological, Legal/Institutional, Environmental/Ecological

68
Q

How does PESTLE aid global companies?

A

The framework analyzes the forces that impact marketing decisions in various global environments

69
Q

What are the benefits of being a global company?

A

It minimizes the importance of national boundaries and develops global brands through seeing the world as one market

70
Q

How do firms make direct investments?

A

By developing assembly or manufacturing facilities

71
Q

What are the means into joint venture?

A

Licensing, contract manufacturing, management contracting, and joint ownership

72
Q

What are two forms of exporting?

A

Indirect and direct

73
Q

What are the top two factors that draw a company into international areas?

A

Global competitors might offer products or lower prices, The company might discover foreign markets that present higher profit opportunities than the domestic market does

74
Q

What are the three models on how to go global?

A

Exporting, joint venture, direct investment

75
Q

How does global marketing work?

A

The process of marketing products and services within and across multiple countries.

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