Exam Flashcards
What are the main differences between the sale of a good and the sale of a service internationally?
- Services are often intangible, customized and personal.
- Growth far exceeding goods sales
- Export licenses
- Govt intervention on permitted services (national security ect)
The 4 types of international services are?
- Cross border - telecommunications / postal
- Consumption abroad - tourists, students, or patients
- Commercial presence - services such as banks and hotels.
- Movement of national persons - Doctors, scientists ect
How do sales of services stack up in total GDP for most developed economies?
70-80% Domestic GDP
20-30% Export GDP
Problems with measuring services include?
Services are both physically and statistically invisible
Barriers to international trade of services include?
- National security
- Economic securities
- National regulations
- Trading tax
- additional costs
What are GATS?
General Agreement of Tradible Services
What is BPO?
Business Process Outsoursing
What are the 3 extra P’s of services marketing?
- People
- Physical evidence
- Processes
What are the 4 natures of a service?
- People
- Possessions
- Mental stimuli
- Information Processing
What are 4 examples of proactive motivations?
- Profit
- Tax advantage
- Economies of scale
- Unique products
What are 4 examples of Reactive motivations?
- Competitor activity
- Saturated domestic markets
- Over production (downturns especially)
- Proximity to target consumer
What are primary change agents to internationalise a business?
New management
Demand
Reduced export costs
Governing policies
What are the 4 primary forms of market entry?
- Licensing
- Franchising
- Full ownership
- joint venture
What are the three main categories of “FDI Seekers’?
Market seekers - profit
Efficiency seekers - economies of scale
Resource seekers - proximity to materials
What are the 4 features of any product?
- Core product - Benefit / service
- Tangible product - packaging, quality, brand.
- Intangible product - positioning, country of origin
- Augmented product - features that set the product apart
What are the 4 main options when either standardising or adapting a product?
- Market product as is.
- Adapt a product to suit a market
- Create a new product for a market
- Make a globally marketable product
What are some key benefits of standardisation?
- Economies of scale
- Reduction in R&D and Marketing costs
- Global competition
What are some key benefits of product adaption?
- Differing usage conditions
- Govt influences
- Local competition
- Marketing concept
What is Homoginisation?
The common belief that many cultures are becoming more similar, and that in future, perhaps standardisation will always be more effective than product adaption
What are Non-Tarrif barriers?
-Local requirements that make exporting costly.
Such as: product standards and testing
What is ISO 9000?
-A standard which shows business processes are complient
What is ISO 14000?
- A standard which shows a businesses compliance of pollution and recycling.
Backward innovation is?
When a product is stripped down to its bare essentials to be made affordable for emerging economies.
What are product constituents?
The ingredients in a product
- must not break any laws
What are the 4 T’s of brand adaption (logo adaption)?
- Translatibility
- Transliteration - what it means
- Transparency - making a brand meaningless
- Transculture - a product which sounds where its from i.e. vodka
What is price skimming?
When prices are initially set high and drop over time
What is Market pricing?
Pricing based on competitor pricing
What is penetration pricing?
Pricing low, usually to gain market share - sometimes at a loss.
What are the 4 stages to setting an export price?
- Assessment of pricing environments
- External; market / industry factors
- Internal; marketing mix (product, distribution, promotion), company characteristics(countries exported to), management attitudes (price position, importance of exports) - Pricing policy selection
- objectives
- competitive posture
- decision control
- flexibility - Price strategy determination
- Standardisation
- Differentiation; cost+ and marginal - Setting of price
What is dual pricing?
When domestic and export prices are differentiated
-i.e standardisation + marginal
What are 3 examples of export associated costs to a business?
- product modification costs
- operational costs
- foreign market costs
What is PPP?
Purchasing Power Parities
- How much of currency A are needed to buy a good or service in currency B.
What is PQLI?
The Physical Quality of Life Index
- life expectancy
- Infant mortalities
- Adult literacy
Social media marketing has many comparative advantages over traditional marketing techniques. List three disadvantages of traditional marketing techniques.
- expensive
- inefficient
- ‘1 way’
What is CGM?
Consumer Generated Marketing
What are the three main reasons for marketing through social media?
- Sales
- Market research
- Generation of buzz
What is Crowd-sourcing?
Generating new product ideas and innovations by mining a targeted group of consumers.
What are the three primary factors when deciding whether or not product adaption is the right decision or not?
- Regional, local or country characteristics
- Product Characteristics
- Company considerations
What are 5 examples of regional, local, and country characteristics?
- Government regulations
- Non-tarrif barriers
- Climate and or geography
- Competitor offerings
- Economic state of region / consumers
What are 5 examples of product characteristics?
- Product constituents
- Brand
- Packaging
- Quality
- Country of origin
Also augmentation, functions and features, usage, positioning
What are 3 company considerations?
- Profitability
- market potential
- cost of adapting
What does the phrase ‘think global but act local’ mean?
The practice of conducting business according to both local and global considerations
