Global Marketing

Question 1

What are the 4 major decisions in international marketing?

Answer 1

1. Decide whether to go abroad
2. Deciding which market to enter
   – Analyzing attractiveness of each market
3. Deciding how to enter
   – Mode of entry
4. Designing the marketing program
   – Product, Price, Place, and Promotion

Question 2

What are the pros and cons of going abroad?

Answer 2

Pros: – Better profit opportunities
– Larger customer base
– Reduce dependency of any one market

Cons: Lack of knowledge/ experience
– Cultural difference
– Different regulations/ unexpected cost

Question 3

What are the indicators of market potential?(5 items)

Answer 3

• Demographic characteristics
  – Population size, growth, age composition
• Geographic characteristics
  – Climate, Country size, Population density, Transportation
• Economic factors
  – GDP & growth, Income distribution, Industrial
  infrastructure, Competition
• Sociocultural factors
  – Lifestyle, beliefs, & value, Business norms, Languages
• Political and Legal factors
  – Political stability, Government bureaucracy, Laws & regulations

Question 4

What are the different ways of entering a global market?

Answer 4

Exporting, licensing, Joint ownership, direct investment

Question 5

What is standardization in designing international marketing program?

Answer 5

• Using the same marketing mix in all the international market
  – Building global brand, Brand power, Reduced cost

Question 6

What is adaptation with designing international marketing program?

Answer 6

– Adjusting the marketing mix elements to each international
target market
– Tailored marketing program, Costly

Question 7

What is product standardization, adaption, and invention?

Answer 7

• Product Standardization
  – Marketing products in the foreign markets
  without any change
• Product Adaptation
  – Altering the product to meet local
  conditions or preference
• Product Invention
  – Creating new products for a specific
  country
  – EX: Campbell soup in Hong Kong

Question 8

What are the price factors to be considered when entering a global market?

Answer 8

• Factors to be considered
  – Cost: Shipping & insurance; Physical distribution;
  Tariffs and taxes
  – Economic conditions
  – Laws and regulation
  – Competition, Distribution system
  – Consumer preference
• Set a uniform price everywhere
• Set a market-based price in each country
• Set a cost-based price in each country

Question 9

What are standardized global communication with promotion?

Answer 9

Advertising themes are standardized from country to country with slight modifications

Question 10

What are communication adaptations?

Answer 10

– Advertising messages are fully adapted to local markets