Chapter 9 - International Marketing

Question 1

Idea of Levitt

Answer 1

Argues that advances in technology, communication, and travel have revolutionised commerce around the globe

Argues that the majority of the world’s consumers want the same thing - high quality, reliable products, and low prices

Question 2

Levitt’s foundations for global standardisation

Answer 2

Cultures and national societal tastes are not fixed

Converging tastes now allow companies to offer globally standardised products

Question 3

Quelch and Klein

Answer 3

Support Levitt’s theory

Internet helped in achieving the shipment of standardised products around the world

Internet should be used as a tool to reduce bounded rationality problems faced by the MNE and its potential customers in host countries

Question 4

Verbeke’s opinion on Levitt’s theory

Answer 4

Predicts the growth of intermediaries acting as international projectors

Question 5

Government imposed restrictions may limit international internet based sales, so an internet based MNE should have following

Answer 5

24h order taking for customer service response capability

Regulatory and customers handling expertise to ship internationally

In depth understanding of foreign marketing environments to assess the relative advantages of its own products and services: senior management should not make the mistake of assuming a cultural distance between home and host country environments

Question 6

GAM

Answer 6

Dedicating specialised resources, typically involving a non location bound routine to serve internationally operating customers in an integrated fashion

Question 7

Positives of GAM

Answer 7

GAM can be interpreted as a logical reaction to the internationalisation of large customers are eager to gain a tighter grip on their supply chain

Question 8

According to Arnold, what are two major pitfalls to the effective implementation of GAM?

Answer 8

If the customer GA is more internationally coordinated than the supplier, then the main effect of global account management may be price squeezes

With little benefit accruing to the supplier except for perhaps more certainty about future sales volumes

Important internal problems of bounded rationality and reliability occur if the supplier pays insufficient attention to implementation details