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International Business > Chapter 8 > Flashcards

Chapter 8 Flashcards

1
Q

Marketing

A

is the sum total of all activities involved in getting goods and services from the original producer to the ultimate consumer.

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2
Q

four Ps of marketing

A

Product
Place
Price
Promotion

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3
Q

two Cs of marketing:

A

Consumers

Competition

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4
Q

Business-to-consumer (B2C)

A

strategies sell directly from the producer to the consumer.

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5
Q

Business-to-business (B2B)

A

strategies sell from businesses to other businesses.

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6
Q

Producer

A

A company that creates and supplies a good or service.

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7
Q

Importer

A

A company that helps with entry into new countries and provides information about border crossings, cultural differences, and legal requirements. It may or may not take ownership of the goods. Also referred to as a broker, agent, or industrial sales representative.

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8
Q

Wholesaler

A

A company that purchases products in bulk from a variety of sources, warehouses the goods, and then resells them to retailers or other businesses.

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9
Q

Retailer

A

A company, large or small, that sells directly to the consumer. Examples include department stores, big-box stores, boutiques, convenience stores, supermarkets, and open-air markets.

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10
Q

trade show

A

a collection of manufacturers and distributors who rent space, set up display booths, and sell their products to registered buyers who seek products in a specific industry.

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11
Q

e-business

A

it has fostered have revolutionized international marketing.

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12
Q

Markup

A

occurs when a business adds an additional percentage to the cost to determine the price.

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13
Q

Penetration pricing

A

entering a market at a lower price than the competition. In an international market, this would influence buyers to try your product. In the long run, once customers have tried and liked the product, the company may increase the price.

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14
Q

Price skimming

A

entering a market at a high price during the introductory phase. Early adopters can help mitigate the high cost of entering a new country. Skimming provides the image that the product is innovative and exclusive. Once the early adopters have tried the product, the company then lowers the price.

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15
Q

Premium pricing

A

setting the price higher than the competition’s price to evoke an illusion of luxury and high quality. This is different than skimming because the high price is sustained.

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16
Q

Discount pricing

A

this strategy is often used in a B2B situation where the producer wants to sell high volumes to a wholesaler or retailer. It rewards repeat customers and builds loyalty.

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17
Q

Psychological pricing

A

setting a price at $199 rather than $200 will sell more product. This strategy provides an illusion of less money because consumers tend to concentrate on the first number rather than the whole number. Customers are making an emotional decision over a logical one.

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18
Q

clickstream data

A

wherever consumers live, internet advertising can target them based on their preferences, indicated by the websites and ads they explore and the products they purchase.

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19
Q

target market

A

Just like domestic marketers, international marketers must determine the composition of the consumer market

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20
Q

Ethnocentrism

A

is a belief that your own culture, values, beliefs, and customs represent the right way of doing things, and that value systems of other countries are not important.

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21
Q

Demographics

A

are studied by dividing a large market into age, gender, education, marital status, lifestyle, and household formation.

22
Q

Thorndike’s Law of Effect

A

which proposes that people purchase products to gain satisfaction or to avoid punishment.

23
Q

Maslow’s Hierarchy of Needs

A

This theory states that humans experience five levels of needs—physiological, safety, belonging, esteem, and self-actualization

24
Q

Disposable income

A

is the amount of income a person has after their taxes are paid

25
Q

Discretionary income

A

is the amount left after the necessities of life have been paid.

26
Q

competitive advantage

A

refers to the ability of one company to produce a product more cheaply than another company, or when it has an edge over companies that make similar products.

27
Q

economies of scale

A

suggests that the more products you can make in one factory, using the same labour and other overhead costs, the cheaper each unit will be to make.

28
Q

Market research

A

finds and collects information needed to successfully sell a product or service and make marketing decisions.

29
Q

primary research

A

which means the company collects the data itself or hires a market research firm to do so.

30
Q

secondary research

A

in other words, data that has been collected by other sources and can be looked up.

31
Q

acquisition strategy

A

This strategy occurs when a company purchases another company in a foreign country.

32
Q

centralized marketing strategy,

A

This strategy uses the domestic marketing mix throughout the globe.

33
Q

decentralized marketing strategy.

A

This strategy tailors the marketing elements specifically to the country.

34
Q

Importance of Marketing Mix

A

If an organization is to be successful with a new product, they must consider a variety of variables
Truly successful companies/products ensure that they cover all the areas that are important, just doing one well will not be good enough
Having a great priced product but always out of stock
Covering all the areas is known as the marketing mix

35
Q

Marketing Mix Example

A

The marketing failure example we will look at using the marketing mix is McDonald’s McPizza
Although it lasted several years, it was not profitable for McDonalds and was eventually dropped from the menu
Many people wonder why, as they enjoyed these mini-pizzas. We will discover why!

36
Q

Terry O.Relily, Under teh influence

Why do companies change brand names in different countries.

A

-soldiers
- language
- human lays, potato chips truck of his car, he lay simplified to lays. Expand reach across the nation. First snack food advertised on tv. dominant. Pepsi expand. name widely known. Walkers in the UK purchased walkers chips. Too much equity in the name, Egypt chips, smiths chip Australia
Mr clean
-negative connotation, oil play

37
Q

Terry Oreilly Viral Videos

A

viral video

vs ad BMW mini movies

38
Q

Competition

A

Rivalry is when sellers try to get what other sellers are seeking at the same time.

39
Q

Pros of competition

A
  • makes companies
  • give greater variety to consumers
  • lower price
40
Q

Competitive advantage

A

conditions that allow a company or country to produce goods at a lower price or in a more desired fashion

41
Q

Types of competitive advantage

A

lowering production costs through
economies of scale (high volume and low cost per item)
process innovation
product/service differentiation
choosing something important other than cost to capitalize on, such as reliability, style, environmentally friendly, etc
People
create a culture where employees are passionate about their work - equals better performance, better products, better customer satisfaction

42
Q

Absolute advantage

A

the ability of a country to produce a good more efficiently than other countries. In other words, a country that has an absolute advantage can produce a good with lower cost
ex. China has an absolute advantage when it comes to manufacturing clothing as it can produce it significantly cheaper than any other country

43
Q

Comparative advantage

A

the ability of a party to produce a particular good or service at a lower cost and opportunity cost over another.
opportunity cost is defined as the benefit that is given up when one alternative is chosen for another. Determines what country will specialize in.

44
Q

Brand Loyalty

A

The emergence and growth of national retailers, private labeling, competitive pricing, and eCommerce-driven convenience shopping have chipped away at brand loyalty over time

45
Q

Traditional Marketing

A

This typically involves the company/marketer seeking out the consumer. It yells at the consumer to “stop here” and look at me. If sometimes prevents you from doing what you want to do, until you watch the ad.
This can be frustrating and can create a negative image of that product/service
You may not have asked to see the marketing, but you are going to see it anyway. Traditional marketing forces consumers to watch view the ad.

46
Q

Traditional Marketing

A

This typically involves the company/marketer seeking out the consumer. It yells at the consumer to “stop here” and look at me. If sometimes prevents you from doing what you want to do, until you watch the ad.
This can be frustrating and can create a negative image of that product/service
You may not have asked to see the marketing, but you are going to see it anyway. Traditional marketing forces consumers to watch and view the ad.

47
Q

Content marketing

A

A type of marketing that involves the creation and sharing of online material (such as videos, blogs, and social media posts) that does not explicitly promote a brand but is intended to stimulate interest in its products or services.
It’s all about creating a story to generate an emotional response to the product or service
It is “non-interruptive”, meaning it does not force you to watch an ad like a commercial break.
Oftentimes, the consumers will voluntarily seek out the content that the company produces. The content is valuable and can be seen as a form of entertainment to the consumer. The content adds value to the consumer’s life.

48
Q

Product

A 
Package Weight 
Package Colors 
Legal Requirements
Language Requirements 
Labeling Requirements 
Ingredients 
Style
49
Q

Place

A

B2C- Directly from producer to consumer
B2B- Business to other business
Specialty Distribution Channels (Vending machine, trade show, e-business)

50
Q

Price

A 
Shipping costs
Tarifs 
Exchange rates 
Insurance 
Packaging modifications
51
Q

Promotion

A 
Advertisement 
Premiums 
Coupons
Point of Purchase 
Contests
Personal Selling 
Social Media
52
Q

Why do companies change brand names in different countries?

A

Language / Culture
Lays/Walkers
Equity in companies names who have acquisitions so they keep them
Brand name is a selling point, changes it to sound better in different languages
Culture nicknames it so the company goes align with it (KD Canada)
Already taken brand names so they change in different places (Rocket/ Smarties)

International Business (7 decks)

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