chapter 19

Question 1

business analytics

Answer 1

the knowledge, skills, and technology that allow for the exploration and investigation into business strategies and activities to gain insight and drive future strategy development and implementation
- 3 types (descriptive, predictive, prescriptive)

Question 2

descriptive analytics

Answer 2

simple statistics (demographics, market share and trends)

Question 3

predictive analytics

Answer 3

advanced statistical techniques to identify and build predictive models to identify trends and relationships (cause and effect, market sizing etc)

Question 4

prescriptive analytics

Answer 4

management science (applied mathematical techniques)- how to best use resources

Question 5

the marketing mix

Answer 5

the choices the firm offers to its targeted market (is comprised of the 4Ps)

Question 6

the 4 Ps

Answer 6

Product- product attributes
Place- distribution strategy
Promotion- communication strategy
Price- pricing strategy

Question 7

market segmentation

Answer 7

• identifying distinct groups of consumers whose purchasing behavior differs from others in important ways
• segments- purchasing/needs and wants are similar
• segmentation by:
  - geography: urban/rural, country
  - demography: gender, age, education
  - sociocultural factors: social class, values, lifestyle
  - psychological factors: personality

Question 8

summarize localization strategies and why it makes sense to vary products from country to country

Answer 8

*the current consensus is that while the world is moving towards global markets, global standardization is not possible because of these things:

• cultural differences among nations (product, promotion)
• economic differences among nations (pricing)
• infrastructure, trade barriers- distribution (place)
• differences in product and technical standards (product, price)

Question 9

the differences between countries in the structure of market segments:

Answer 9

• may have to develop a unique marekting mix to appeal to a certain segment in a given country
• ikea store design in china

Question 10

the existence of segments that transcend national borders

Answer 10

• when segments transcend national borders (known as intermarket segments) a global stratey is possible
• example ikea in europe

Question 11

distribution strategy

Answer 11

• the means the firm chooses for delivering the product to the consumer
• depends on market-entry strategy
  - firms that produce locally: sell directly to consumer, retailer, or wholesaler
  - firms that produce outside of the country may also sell to an import agent (utalize export agent)

Question 12

retail concentration (recall why and how firms distribution strategy might vary among countries)

Answer 12

• concentrated retail system has a few retailers (developed countries)- like walmart (short channels)
• fragmented retail systems (has many (developing countries) none of which has a major share of the market- like mom and pop retailers (long channels)

Question 13

channel length

Answer 13

• number of intermediaries
• short channel: sells directly to the consumer (developed countries/concentrated systems)- or maybe one middleman
• long channel: has many intermediaries- import agent, wholesaler, retailer (developing countries and fragmented systems)- require a few middleman to help get product to market

Question 14

channel exclusivity

Answer 14

how difficult for outsiders to access the channel (Mcdonlds only using coke products not pepsi)
- japan’s system is very exclusive
- relationships and history

Question 15

channel quality

Answer 15

• expertise, competencies and skills of established retailers and their ability to sell and support the products of international businesses
  
  • good quality:generally developed countries and varies in emerging markets
  • firms may devote considerable resources to upgrade channel quality

example: how apple does their stores

Question 16

distribution- channel quality example apple

Answer 16

• expertise- education
• competencies- customer support
• skills of established retailers
• ability to sell and support products
  
  • point of sale for new or sophisticated products

Question 17

communication channels available to a firm include (why and how promotional strategies might vary among countries)

Answer 17

• direct selling- sales people
• sales promotion- media and non-media marketing
• direct marketing- communicate directly with consumers
• advertising- paid promotional communication

Question 18

when looking at different communication channels, need to be mindful of:

Answer 18

cultural barriers
source and country of origin effects
noise levels

Question 19

cultural barriers

Answer 19

difficult to communicate messages cross culture
- local input and cross cultural literacy (need to develop these so we can make certain we communicate effective and are respectful)

Question 20

source and country of origin effects

Answer 20

• source effects- status and image of message sender (football player taking about insurance aka likeable and image reflects positively)
• country of origin effects- place of manufacturing influences product evaluation (french wine vs. polish wine)

Question 21

noise levels

Answer 21

• competitive messages
• mindful of what competition is doing in international markets so we can plan the quantity of ads necessary to overcome competitive messages

Question 22

two communication strategies

Answer 22

• push strategy
• pull strategy

Question 23

push strategy

Answer 23

• emphasizes personal selling (business-to-business relationships)
• industrial products or complex products
• short distribution channels
• few print or electronic media
• “pushing” our product on to the consumer

Question 24

pull strategy

Answer 24

• emphasizes mass media advertising (an ad pulling you into the store to purchase)
• long distribution channels
• sufficient print or electronic media to carry the message

Question 25

price discrimination (why and how firms pricing strategies might vary among countries)

Answer 25

- firms charge consumers in different countries diff prices - do this in order to keep national markets separate - countries have different price elasticity of demand - elastic vs. inelastic example: purchasing pharmaceuticals in canada cuz cheaper than in US

Question 26

elastic

Answer 26

small price change equal large demand change example: kit kat bar

Question 27

inelastic

Answer 27

large change in price produces only small demand change example: price of gas, salt (still have to get gas so prices go up and we have to continue buying gas)

Question 28

strategic pricing

Answer 28

- predatory: aggressive pricing to drive competitors out - multipoint pricing: strategy in one market may have an impact on a rivals pricing in another market- aggressive pricing in one market - experience curve pricing: price low worldwide to build global sales volume rapidly- take losses initially (amazon having no profit at beginning and now wildly profitable)

Question 29

pricing regulations- that affect pricing decisions

Answer 29

antidumping regulations: dumping products for a price below the cost to produce- regulation sets the price floor for exports

Question 30

sample question

Answer 30

T/F: firms based in less-developed nations tend to build a lot of extra performance attributes into their products ANSWER: False bc we have to be mindful in less developed nations of costs and economic conditions... generally developed nations want diff performance attributes more than less developed nations

Question 31

The "german engineered" label haas leveraged by Mercedes in the global market. this is an example of a ----- effect

Answer 31

A.) linguistic B.) promotional C.) cultural D.) country of origin ANSWER: D.) country of origin