Chapter 21: Tapping Into Global Markets

Question 1

Deciding whether to go.
Deciding which markets to enter.
Deciding how to enter.
Deciding on the marketing program.
Deciding on the marketing organization.

Answer 1

Major Decisions in International Marketing

Question 2

Better profit opportunities.
Larger customer base to achieve economies of scale.
Less dependence on any one market.
Desire to counterattack global competitors in their home markets.
Customers require international service.

Answer 2

Reasons for Pursuing Global Markets

Question 3

Lack of knowledge of foreign culture.
Lack of understanding of foreign needs.
Lack of understanding of foreign regulations.
Lack of managers with international expertise.
Changes in the country environment.

Answer 3

Risks to Going Abroad

Question 4

Stage 1: No regular export activities.
Stage 2: Export via independent agents.
Stage 3: Establish sales subsidiaries.
Stage 4: Establish production facilities abroad.

Answer 4

Stages of Internationalization

Question 5

Entry into global market strategies.

Answer 5

Waterfall Approach
Sprinkler Approach
Born Global

Question 6

Gradually entering countries in sequence.

Answer 6

Waterfall Approach

Question 7

Entering may countries simultaneously.

Answer 7

Sprinkler Approach

Question 8

Modes of entry into foreign markets.

Answer 8

Indirect Exporting
Direct Exporting
Licensing
Joint Ventures
Direct investment

Question 9

Economies of scale.
Lower marketing costs.
Power and scope.
Consistency in brand image.
Ability to leverage.
Uniformity of marketing practices.

Answer 9

Advantages of Global Marketing

Question 10

Differences in consumer needs, wants, usage patterns.
Differences in consumer response to marketing mix.
Differences in brand development process.
Differences in environment.

Answer 10

Disadvantages of Global Marketing

Question 11

Cultural dimensions that differentiate countries.

Answer 11

Individualism vs. Collectivism
Masculine vs. Feminine
High vs. Low Power Distance
Weak vs. Strong Uncertainty Avoidance

Question 12

The self-worth of an individual is rooted more in the social system than in individual achievement.
Japan: Low
US: High

Answer 12

Collectivist Societies

Question 13

Cultures tend to be less egalitarian.
Russia: High
Nordic: Low

Answer 13

High Power Distance

Question 14

Measures how much the culture is dominated by assertive males versus nurturing females.
Japan: Highly masculine
Nordic Countries: low

Answer 14

Masculine vs. Feminine

Question 15

Indicates how risk-aversive people are.
Greece: High
Jamaica: Low

Answer 15

Weak vs. Strong Uncertainty Avoidance

Question 16

Product Features
Labeling
Colors
Materials
Sales Promotion
Advertising Media
Brand Name
Packaging
Advertising Execution
Prices
Advertising Themes

Answer 16

Adapted Aspects for International Marketing

Question 17

Understand similarities and differences in the global branding landscape.
Do not take shortcuts in brand building.
Establish a marketing infrastructure.
Embrace integrated marketing communications.
Establish brand partnerships.
Balance standardization and customization.
Balance global and local control.
Establish operable guidelines.
Implement a global brand-equity measurement system.
Leverage brand elements.

Answer 17

Commandments of Global Branding

Question 18

Communication and adaption strategies.

Answer 18

Straight Extension
Product Adaption
Communication Adaption
Dual Adaption
Product Invention

Question 19

Introduces the product in the foreign market without any changes.

Answer 19

Straight Extension

Question 20

Alters the product to meet local conditions or preferences.

Answer 20

Product Adaption

Question 21

Produce a regional version of the product.
Produce a country version.
Produce a city version.
Produce different retailer versions.

Answer 21

Levels of Production Adaption

Question 22

Company’s choices for setting prices in different countries.

Answer 22

Uniform Price Everywhere
Market-Based Price in Each Country
Cost-Based Price in Each Country

Question 23

Consists of branded products diverted from normal or authorized distributions channels in the country of product origin or cross international borders; dealers in lower priced counties sell products in higher priced countries.

Answer 23

Gray Market

Question 24

How companies manage their international marketing activities.

Answer 24

Export Departments
International Divisions
Global Organization

Question 25

Firm that operates in more than one country and captures R&D, production, logistical, and financial advantages in its costs and reputation that are not available to purely domestic competitors.

Answer 25

Global Firm