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International Marketing > Exam 2 > Flashcards

Exam 2 Flashcards

1
Q

International segmentation

A

The process of identifying countries and/or consumers that are similar with regard to key traits, such as product-related needs and wants, and who would respond to the marketing mix in a similar way.

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2
Q

Market size/potential measures

A

GDP
Population
Imports
Energy consumption

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3
Q

Market segment

A

A group of customers that share similar characteristics and respond to marketing offerings in a similar fashion

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4
Q

Benefit Segmentation

A

Involves understanding the motivation behind consumer purchases, in order to be able to send the appropriate message to the relevant market segments.

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5
Q

Differentiated Market

A

Companies identify or create market segments that want different benefits from a product and target them with different brands using the appropriate marketing strategies.

Example: Procter & Gamble’s brands – Dreft, Tide, Ariel are targeted at different segments who want different types of performance from their laundry detergent.

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6
Q

Concentrated Market

A

Select only one market segment and target it with a single brand.
Example: Mont Blanc pens aimed at consumers who want a high-performing pen with status cachet.
Note: Niching (targeting a niche market) is an example of a concentrated strategy

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7
Q

Undifferentiated Market

A

Product is aimed at the market using a single strategy regardless of number of countries targeted, and regardless of the locations where it is marketed and the number of market segments.

Example: powder milk, beans

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8
Q

Positioning

A

Locating a brand in consumers’ minds over and against competitors in terms of attributes and benefits that the brand does and does not offer.

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9
Q

Steps involved in positioning a brand

A

Identify and analyze customers
Identify competitors
Determine how they are perceived by consumers
Determine brands’ positioning in consumer’s minds
Select positioning
Monitor position

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10
Q

Attribute/benefit positioning

A

Uses product attributes and benefits to position it in consumers’ mind relative to competitors’ products (P&G’s Cheer detergent—protects against fading and fabric wear).

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11
Q

Price/Quality positioning

A

Products are positioned as either offering the best value for the money (especially useful when marketing in developing countries) or as being the best product that money can buy, stressing its high price and quality (Toyota, Hyundia, Wal-Mart).

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12
Q

Use or Applications positioning

A

Positioning a product as having a precise application, thus differentiating it in the consumers’ minds from similar products with a more general use (Dove moisturizing soap).

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13
Q

Product user positioning

A

Focuses on the product user, rather than on the product, thus associating the product with a certain segment of the market (Mont Blanc for cosmopolitans).

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14
Q

Product class positioning

A

Differentiating the company as a leader in a particular product category (Apple’s iphone).

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15
Q

Competitor positioning

A

Comparing the firm’s brand with that of competitors (Coke and Pepsi)

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16
Q

Global consumer culture positioning

A

Identifies the brand as a symbol of a particular global culture or segment
High-touch and high-tech products

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17
Q

foreign consumer culture positioning

A

Associates the brand’s users, use occasions, or product origins with a foreign country or culture

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18
Q

Local Consumer culture positioning

A

Identifies with local cultural meanings
Consumed by local people
Locally produced for local people
Used frequently for food, personal, and household nondurables

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19
Q

Product standardization

A

Same product across all country markets

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20
Q

Product Customization

A

Tailored products to meet specific needs and wants of each country

21
Q

Standardization

A

Advantages of standardization
Economies of scale
Marketing knowledge can be shared across countries
Create uniform and consistent images worldwide

Disadvantages of standardization
Missing market opportunities in niches with potential
May not encourage customer loyalty

22
Q

Global Localization

A

Global branding with localized marketing adaptation to differences in local culture, production capabilities, governmental restrictions, etc.

Types
Modular Adaptation:
Offer parts (modules) that can be assembled worldwide in different configurations, depending on market needs.
Core Product Strategy:
Involves using a standardized strategy for the core product worldwide, but varying certain aspects of the offering (product ingredients, advertising, for example) from market to market.

23
Q

Mandatory Adaption

A

Involves adapting products to local requirements so that they can legally and physically operate in the respective countries.

24
Q

Non-Mandatory Adaption

A

Adapting a product to better meet the needs of the local market, or developing new brands for individual local markets, even though such adaptation is not required

25
Q

Brand

A

Brand is a name, sign, symbol, word, or some combination of these to distinguish a company’s product

26
Q

Brand Image

A

the sum of impressions about a brand

27
Q

Brand Equity

A

the added value that accrues to a product as a result of investments in the marketing of the brand

28
Q

Extend strategy

A

offering product virtually unchanged in markets outside of home country

29
Q

Adapt strategy

A

changing elements of design, function, and packaging according to needs of different country markets

30
Q

Create strategy

A

developing new products for the world market
Important for reaching mass markets in less industrialized nations and certain segments in industrialized countries
Hand-cranked radios for areas with no electricity
Total toothpaste by Colgate uses global benefit segmentation

31
Q

design counterfeit

A

Copying designs or scents, which is very common and risk free since companies cannot be prosecuted.

32
Q

Brand-name counterfeit

A

Selling counterfeit products as original products bearing the respective brand name

33
Q

ISO 9000

A

quality in product features that are required by the customer

34
Q

ISO 14000

A

Environmental management system standards that help business reduce its environmental impact, facilitate sustainable development, and foster international trade

35
Q

Pricing strategy

A

Setting price that enhances perceived value and elicits favorable consumer response and provides favorable rate of returns on investments

36
Q

Penetration Pricing

A

Charging a low price in order to penetrate market quickly
Discourage competitors from entering the market by lowering margin
Increase volume to lower cost and increase profit

37
Q

Market Skimming

A 
Charging a high price
Linking price with quality
Promoting exclusiveness
Promoting augmented value
Example: luxury goods
LVMH, Mercedes-Benz, Mont Blanc
38
Q

Japan Vs. China

A

Japan
Middle price products not appealing
Local designers’ building local and global reputation
Traditional Consumers - prefer high quality products
Teen Consumers - prefer low price and european products

China
Luxury market growing
Domestic luxury products emerging
Demand for pirated goods increasing
Tradition consumers - Price sensitive and money savers
Youth consumers - prefer western and luxury brands

39
Q

Ethnocentric/Extensive Pricing

A

Per-unit price of an item is the same no matter where in the world the buyer is located
Appropriate for industrial goods
Appropriate for well established brands
Importer must absorb freight and import duties

40
Q

Polycentric/Localized Pricing

A

Permits affiliate managers or independent distributors to establish price that they feel is most desirable in their circumstances
Drawback—sensitive to local market conditions but can lead to gray marketing

41
Q

Geocentric/Strategic Pricing

A 
Intermediate course of action
Feedback from local managers to set the price for each market
Recognizes that several factors are relevant to pricing decision
Local costs
Income levels
Competition
Local marketing strategy
Prices set within a range
42
Q

Price Escalation

A

when products are exported from one country to another

The longer the channel the greater the increase in price

43
Q

Gray Marketing

A

buying in low-price countries, selling in high-price countries

44
Q

Dumping

A

Sale of an imported product at a price lower than that normally charged in a domestic market or country of origin
Sporadic: to reduce surplus inventory
Predatory: to drive out competitors, to gain market control
Persistent: high prices in protected markets, low in competitive markets

45
Q

Transfer Pricing

A

Pricing of goods, services, and intangible property bought and sold by operating units or divisions of a company doing business with an affiliate in another jurisdiction

46
Q

International Retail Framework

A

Organic–Company uses its own resources to open a store on a greenfield site or acquire one or more existing retail facilities
Franchising–When barriers to entry are low yet the market is culturally distant in terms of consumer behavior or retailing structures
Chain Acquisition–A market entry strategy that entails purchasing a company with multiple existing outlets in a foreign country
JV, Licensing–When culturally distant, difficult-to-enter markets are targeted

47
Q

Globally integrated marketing

A

Leveraging different mediums to interact with consistency and efficiency with target markets across national borders.

48
Q

4 M’s

A

Messenger, Message, Medium, Market

International Marketing (2 decks)

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