Chapter 2 oldies

Question 1

What are the 4 possible consumer behaviors according to GCO concept? (Global Consumption Orientation)

Answer 1

-Assimilation (adoption of global
products to replace local
products)
-Hybridization (modified products
for local consumer)
-Marginalization (indifference to
gp to lp)
-Separation (rejection of gp in
favor of lp)

Question 2

What are advantages of standardized ad campaigns?

Answer 2

-efficient planning
-simplified coordination
-lower development
costs
-uniform appearance of global
brand

Question 3

What are the 7Cs that must be observed when implementing websites?

Answer 3

-context (layout & design)
-content (text, images, videos)
-community (possibilities for users
to contact each other
-customization (ability to meed
needs of different users)
-communication (between user &
provider)
-connection (extent of networking with other websites)
-commerce(commercial
transaction possibilities via
website)

Question 4

What are problems in international marketing communication?

Answer 4

-problems of intercultural
communication
-regulatory differences
-advertising limitations

(may vary from market, national jurisdiction, social-culturally)

Question 5

Why is adapted pricing policy advantageous?

Answer 5

-will likely to respond to local
economic conditions
-better exploit market potential

Question 6

What are advantages of standardization on pricing policy?

Answer 6

-uncertainty & annoyance of
customers are avoided
-re-imports from one country to another are prevented

Question 7

What is milieu?

Answer 7

-subsets of society that can be
distinguished on basis of certain
characteristics that may overlap
-milieus of different society=
different characteristics
-same milieu+different
country=similar purchasing
behavior

Question 8

What are the 7 Ps model of marketing?

Answer 8

product, price, placement, promotion
personnel, process, policy of equipment

Question 9

Requirements of successful international brand name?

Answer 9

-reflect utility aspects &
advantages of product
-unique with hight recognition
value
-easily translatable & not cause
negative associations in foreign
languages
-registered as trademark, not too
general

Question 10

What are the 3 types of consumption alternatives using GCO concept? (Global Consumption Orientation)

Answer 10

-Global products are in demand in variety of national markets
-localized products have been tailored to meet demand
-hybrid form of global & localized products

Question 11

What is supply chain management?

Answer 11

-efficient & smooth design of global supply chains from raw material suppliers to the processing industry & to end customer

Question 12

What is the cultural dimension of indulgence vs restraint?

Answer 12

-describes extent of tolerance in acting out hedonistic desires
-has direct effect on decision to buy or refrain from consumption

Question 13

What is dimension of short- /long- term orientation?

Answer 13

-examines thinking in different
horizons
-long-term oriented cultures (asia)
value placed long-term personal
relationships
-short-term oriented society (us)
aim for success achieved in short
time

Question 14

What are the meso level contextual factors?

Answer 14

-regional
-economic (economic agglomeration)
-cultural (cultural tradition)

Question 15

What are the micro level contextual factors?

Answer 15

-local population density
-local infrastructure
-locally available training facilities
& social institutions
-rural vs urban imprint

Question 16

What are macro level contextual factors?

Answer 16

include general economic conditions or socio-cultural parameters
-gross national income per capita
-disposable household income
-values & social norms
-role of women
-degree of urbanization
-average level of education in country
-demographic factors: age structure, average household size, average children per household

Question 17

What is same milieu + different country = same purchasing behavior

Answer 17

-Fragmentation of national
markets with simultaneous
international homogenization of behavior

Question 18

Considerations when deciding brand owner

Answer 18

-manufacturer’s brand or private
label
-licensing models
-co-branding

Question 19

5 different brand identities

Answer 19

-actual
-ideal
-communicated
-desired
-perceived
(can all be different / can contradict at times)

Question 20

What are 3 pricing strategies?

Answer 20

-value based pricing: testing price
threshold
-cost-oriented pricing: break-even
analysis (ROI calculation)
-competitive pricing: price
comparison with competition

Question 21

Contribution margin

Answer 21

-Amount of revenue to provide profit after selling a product; accounting for it’s associated costs

Question 22

Example of communication mix

Answer 22

-digital communication
-digital marketing
-advertising
-public relations
-personal communication

Question 23

How should communication measures be?

Answer 23

-effective
-efficient
-subject to cost control

Question 24

Criteria for high value of brand

Answer 24

-high level of awareness
(company/brand)
-high degree brand loyalty
-positive associations that lead to
positive brand image
-patents, trademarks, private labels

Question 25

Why is it impossible to relieve globally prices?

Answer 25

-different tax & tariff cost factors
-varying number of intermediate trade stages

Question 26

What are value-based pricing?

Answer 26

the price based on customer perception of value than cost; pricing begins with analysis

Question 27

What are the 4 Ps model of marketing?

Answer 27

-Product
-Price
-Placement
-Promotion

Question 28

Considerations for brand development

Answer 28

-multi-/single-brand strategy
-introduction of brand, refreshment or discontinuance (depending of product life cycle)

Question 29

What causes temporary deviations from purchasing routine?

Answer 29

Recurring festivals (e.g. X-mas)

Question 30

Benefit of digital communicated & e-marketing?

Answer 30

-reacts faster to changing
conditions
-corresponds to the media usage
behavior of today’s consumers
-produces expensive
communication results that are
easier to measure

Question 31

What are the 3 levels of consumer behavior?

Answer 31

-macro
-meso
-micro

Question 32

What are criteria for brand positioning

Answer 32

-company’s product policy (stage of product lifecycle + position internal product portfolio)
-competitive environment & positioning of competing brand

Question 33

Fundamental decisions in international branding

Answer 33

-brand positioning
-name
-owner
-development

Question 34

How are communications goals translated into communication messages?

Answer 34

-attract attention
-represent product benefit
-provide rational & emotional incentives to buy
-have high credibility

Question 35

How is distribution of social power in countries?

Answer 35

countries with high power
distance (without democratic system countries):
-social leadership elite makes decisions alone & enforces top-down

countries with little power distance:
-expectation of higher participation in decision-making by society

Question 36

What is the hierarchy of need model by Moslow?

Answer 36

(by order)
-self-actualization needs
-esteem needs
-social needs
-safety needs
-physiological needs