Chapter 6: Marketing Part 1

Question 1

Marketing

definition

Answer 1

• A process where companies create values for customers and build customer relationship to capture value from customers in return

Question 2

Difference in Market:

Trade and Marketing Regulations

Answer 2

• Different countries have different laws and regulations
• Customs, trade barriers, product safety and advertising
• Should understand the trade agreements

Question 3

Difference in Market:

Infrastructure

Answer 3

• Research on communications networks, ports, rails and roads
• Marketing strategy may rely on online shopping portal and next day deliveries

Question 4

Difference in Market:

Language Barriers

Answer 4

• When business people communicate with governments, suppliers, partners and customers, difficulties may occur
• Decisions will take longer to be made as time is needed to translate documents and communications to and fro
• Badly translated documents can impact business’ success

Question 5

Difference in Market:

Time difference

Answer 5

• Affect business efficiencies
• Work day may coincide with night time in other countries
• Emails are used but there may be late responds
• Decisions, plans and deliveries will all be delayed

Question 6

Global Brand

Answer 6

• Brands that are available and well known in most markets in the world
• Have the same name, similar image and positioning around the world

Question 7

Benefits of Global Brand:

Consistency

Answer 7

• Enables businesses to communicate consistent message
• Stronger brand awareness and positioning as it supports the same message
• Consumers will then receive the same message

Question 8

Benefits of Global Brand:

Low Risk

Answer 8

• Use marketing strategies that have worked in domestic markets before such as promotions
• If it had worked in domestic market, it is more likely to work in others too

Question 9

Benefits of Global Brand:

Low Cost

Answer 9

• Make use of large scale process efficiency by using the same advertising and packaging
• Have a centralised team of people to design/develop advertising for all markets

Question 10

Benefits of Global Brand:

Easier to Manage

Answer 10

• Standardised approach to global branding will be less complex and challenging than working with multiple agencies, teams and strategies.
• Easily managed and marketing approach won’t be difficult

Question 11

Benefits of Global Brand:

Differentiated

Answer 11

• Consistent global brand will stand out from competitors rather than blending in with domestic businesses
• Everywhere customers go, they will see the same colour, logo and name

Question 12

Feasibility of Expanding into Foreign Market:

Level of Consumer Demand

Answer 12

• Size of consumer demand should be estimated
• Estimate the total demand for same and similar product, and the market share they can capture
• Should also forecast the total demand overtime due to economic characteristics such as IR, inflation, UE, EG, and ER.

Question 13

Feasibility of Expanding into Foreign Market:

Consumption Pattern

Answer 13

• Consumer’s willingness to try new product
• Due to the growth in income especially in developing economies
• Discretionary income increases, purchasing power increases

Question 14

Feasibility of Expanding into Foreign Market:

Competitor Activity

Answer 14

• To gain understanding of target market for more effective marketing strategies

Should enter when:

• There are few competitors
• Customers are not satisfied with g/s provided
• Customers not receiving enough value for money
• Competitor missing a market or a niche market

Should not enter when:

• There is a market dominance
• The market has well established brands that reflect on the culture
• Competitors have well established relationship with suppliers and retailers