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International Marketing > Exam 2 > Flashcards

Exam 2 Flashcards

1
Q

What are the steps of the product life cycle?

A 
Research and development
Introduction
Growth
Maturity
Decline
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2
Q

What can a company do during the introductory phase?

A

Influence consumer’s cognitive system and the purchase decision du to limited availability of information related product benefits.

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3
Q

What is characteristics of the maturity phase?

A

Demand slowdown that settles on steady growth rate

Marketing: shift from information to persuasionp

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4
Q

How is the PLC different from country to country?

A 
Differences in:
Shape of the curve
Product phase in the life cycle
The starting point
The take off point
Acceptance rate
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5
Q

How does word-of-mouth affect the PLC?

A

The increase of the adoption rate after the take-off point is mainly due to the interpersonal communication development i.e. word-of-mouth among the members of the foreign target segment, which can vary from country to country

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6
Q

What is significant about the PLC in regards to different countries?

A

The product can be in decline in the domestic market, in the maturity stage in country X and in the introduction stage in country Y

Companies need to manage the PLC across different countries to guarantee a constant level of profits

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7
Q

What is standardization?

A

Existence of global or regional markets

Development of similar marketing activities across national boundaries

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8
Q

What is adaptation?

A

Opting for a differentiated strategy that allows for adopting to the specific characteristics of foreign markets and to competition

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9
Q

Advantages and disadvantages of standardization?

A 
Advantages:
Environment: homogenous
Costs: cost reduction
Image: global image
Planning and control: easier
Innovation: diffusion of innovation
Consumers: homogenous
Legal issues: no differences
Distribution: low costs
Competition: global
Customers: global

Disadvantages:
Customer satisfaction low because of lack to meet local needs

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10
Q

Advantages and disadvantages of adaptation?

A 
Advantages:
Consumer satisfaction high
Environment: non-homogenous
Image: local image
Motivation: motivation of local managers
Consumers: benefits for local consumers
Competition: local
Customers: local

Disadvantages:
Higher costs of manufacturing
Legal issues: many differences
Distribution: high costs, but can be reduced

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11
Q

What is the optimal level of standardization and adaptation?

A

When the combined costs of manufacturing and lost sales are at a minimum

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12
Q

Product use in a foreign market means to consider?

A

Use function
Use situation
Use conditions
Product utilization level

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13
Q

What’s the use situation of a product?

A

Considering all factors that define a “time” and a “place” that have a systematic effect on the consumer’s behavior

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14
Q

A different use situation can modify?

A

The importance consumers give to the product’s characteristics
The number and the type of brands taken into consideration in the purchase process
The acceptable price threshold
The time dedicated to information search
The information resources used

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15
Q

What are the 4 elements to packaging analysis?

A

Labeling
Packaging style and design
Packaging dimensions
Functional characteristics

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16
Q

What are the most important branding decisions in an international context?

A 
Brand strategy (global v. local)
Brand positioning
Brand selection (name, logo)
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17
Q

What can be critical for the success of global brands?

A 
Recognition
Consistency
Emotion
Uniqueness
Adaptability
Management
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18
Q

What’s consistency?

A

A brand is able to deliver a consistent customer experience worldwide, e.g. McDonalds

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19
Q

What’s the emotional dimension?

A

Human values and aspirations
Common appeal despite cultural differences
e.g. Nike

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20
Q

What’s uniqueness?

A

Product features and communication (e.g. Apple, concept of innovation)

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21
Q

What’s adaptability?

A

A global brand demonstrates that it is able to respect local factors while fulfilling a global mission e.g. HSBC

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22
Q

Why are the brand name and logo significant?

A

They are part of the communication strategy

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23
Q

What do brands have to think about internationally when deciding on a name / logo?

A

Can we use the same brand name in all our potential markets?

Can we standardize our logo on an international level?

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24
Q

When would it be necessary to change the brand name in a foreign country?

A

When the brand name has a different meaning

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25
Q

What is the significance of the country-of-origin / made-in effect?

A

Attitudes are linked more specifically to the general perception on the quality of the products manufactured in that country

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26
Q

What’s the ethnocentrism phenomenon?

A

The believe that locally made products are more valuable then imported products.

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27
Q

How can the product nationality perception be influenced?

A

National product image vs. imported / international products
Generic products perceived country of origin
The manufacturing company’s national image
The image diffused by the brand name
The label’s “made in” image

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28
Q

What are the ideal tools to win over consumers about a foreign product and to strengthen brand image?

A

Products are guaranteed by independent manufacturers
Products have been examined by external labs
Warranties are offered
Partner with a prestigious distributor

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29
Q

Setting global prices …

A

Price must be in line with purchasing power

Pricing strategies need to be coordinated across countries and geographic areas to avoid ruining the image / brand

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30
Q

What factors influence international pricing decision?

A

Competitive factors
Consumer factors
Product factors and distribution channels
Country factors

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31
Q

What is monetary price?

A

The idea that a consumer has regarding a product’s price (e.g. expensive / cheap)

32
Q

What is non-monetary price?

A

Represents the sacrifice that a consumer must face when purchasing a product (e.g. time, effort, risk)

33
Q

What are choice strategies consumers may use under uncertainty?

A

Best value
Price-seeking
Price-averse

34
Q

What is a price-seeking strategy?

A

Choosing quality over price

35
Q

What is a price-averse strategy?

A

Choosing the cheapest product

36
Q

What’s a skimming strategy?

A

A company can charge some consumer segments higher prices for a product

37
Q

What are the risks of a skimming strategy?

A

High prices should be justified by distinctive product features
Possibility of favoring parallel imports (gray market)

38
Q

What’s a penetration strategy?

A

Sets a low price for the new product in order to enter a foreign market

39
Q

What does penetration pricing allow?

A

Quickly penetrate the market
Obtain significant market share
Gain economies of scale

40
Q

How must penetration pricing be evaluated?

A

As a strategy to gain market share

Effects on the company’s overall business strategy

41
Q

What are the internal factors that influence distribution decisions?

A

Product complexity
Size and development of the company’s marketing and sales function
Distribution strategy influenced by objectives of market penetration, competitive structure and financial strength
International marketing strategy influenced by entry strategy and desired control

42
Q

What are the external factors that influence distribution decisions?

A 
Characteristics of the distribution system
Local regulations
Stage of the product life cycle
Consumer shopping habits and market size
Competitive climate
43
Q

What’s an intensive distribution strategy?

A

Occurs when producers use as many outlets as possible

44
Q

When is an intensive distribution strategy most common?

A

Fast-moving goods manufactured by large multi-nationals that aim to penetrate all segments of the population

45
Q

What’s a selective distribution strategy?

A

Fewer but selective intermediaries (e.g. Armani)

46
Q

What’s an exclusive distribution strategy?

A

Limited number of retailers get the right to sell the product in specific territories (e.g. Zara)

47
Q

An intensive strategy requires?

A

High penetration objectives necessarily require an intensive strategy that requires strong financial investment

48
Q

What are direct distribution channels?

A

Absence of intermediaries

Manufacturer sells directly to customers

49
Q

What are indirect distribution channels?

A

One or more intermediaries (i.e. agent, wholesaler, retailer) are involved in the transaction

50
Q

What’s the length of a distribution channel?

A

Determined by the number of levels and types of intermediaries

51
Q

What’s the width of a distribution channel?

A

Can be evaluated for each type of intermediary / channel member
Defined by the number of intermediaries of the same typology operating in the channel

52
Q

What’s an agent?

A

Operates in the name of the company but does not take title to the goods

53
Q

What’s a wholesaler?

A

Takes title to the goods and sells them to customers buying for reselling or business use

54
Q

What’s a retailer?

A

Manage the final link between the provider and consumer

55
Q

What are the tasks of agents?

A

Sell supplier-owned products primarily to retailers and wholesalers
Don’t take title to the goods
Don’t act in the name of the company they represent
Offer limited service
Work for a commission or fee
Generally used for textiles, clothing, footwear

56
Q

What are the tasks of wholesalers?

A

Sell goods supplied by other firms to retailers or directly to industrial, commercial and other end users
Take title to the goods
Also sort, assemble, warehouse goods
Provide services such as packaging, labeling, negotiating and selling

57
Q

What are the tasks of retailers?

A 
Ordering
Storing
Creating assortments
Presenting goods
Packaging
Financing
After-sales services
58
Q

Promotional activities can be divided into 4 main categories?

A

Advertising
Sales promotion
Public relations
Personal selling

59
Q

What’s an integrated marketing communications strategy?

A

Various elements of a company’s communication strategy must be carefully coordinated
Impact as a whole on the market needs to be considered

60
Q

What is standardized advertising?

A

Nothing changes in a given advertisement except the language translation

61
Q

What are the advantages of standardized advertising?

A 
Savings
Consistency
Control
Stronger brand recognition
Leverage products across multiple markets
62
Q

Products suitable for standardized advertising?

A 
Industrial brands (e.g. Intel)
Prestige brands
Master brands
Luxury
High-tech
Fashion
Automotive
63
Q

Why are prestige and master brands better suited for standardized advertising?

A

Appeal to their customers’ ambitions and desire for exclusivity (more universal feelings)

64
Q

What is adapted / localized advertising?

A

Communications reflect each market’s cultural and social conditions

65
Q

What is the goal of adapted advertising?

A

Increase recognition

Acceptance of the brand and product

66
Q

What is the theory behind adapted advertising?

A

Presenting a brand in the context of local cultural values and tastes will allow more people to identify with the brand

67
Q

Advertising style in China?

A 
Educational
Quality
Tradition
Status 
Respect
68
Q

Advertising style in France?

A

Humor
Sensuality
Symbolism

69
Q

Advertising style in Germany?

A 
Logic
Tradition
Value
Authority
Testimonials
70
Q

Advertising style in Italy?

A

Emotional
Lifestyle
Celebrities
Theatrical

71
Q

Advertising style in Japan?

A 
Indirect appeals
Soft-sell
Entertaining
Mood 
Symbolism
72
Q

Advertising style in Spain?

A

Indirect appeals
Idealistic
Pleasant

73
Q

Advertising style in The Netherlands?

A

Entertaining
Realistic
Modesty

74
Q

Advertising style in the United Kingdom?

A

Presentational
Humor
Subtle
Testimonials

75
Q

Advertising style in the United States?

A

Lecture
Direct appeals
Hard-sell
argumentative

76
Q

What was the name of the speaker who presented the Puzzle of Motivation?

A

Dan Pink

77
Q

What was the name of the speaker who presented How schools kill creativity?

A

Sir Ken Robinson

International Marketing (2 decks)

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