global marketing

Question 1

What is a global brand?

Answer 1

pdts manufactured, packaged, positioned same way in all countries sold

Question 2

What are the challenges of a global brand?

Answer 2

unstable govt
foreign exchange problems
foreign entry req.
tariffs
corruption

Question 3

Why do companies want to go global?

Answer 3

higher profit opp. → domestic mkt, shrinking need customer for EOS

reduce dependence (risk) on any one market

company’ customers are expanding abroad

preempt threat from foreign firms

• global foreign firms may offer better products or at lower prices
• counterattack in their home markets to tie up resources

Question 4

How do firms decide which market to enter? in global marketing

Answer 4

Determine firm’s intl objectives: proportion of foreign to total sales goal

Few or Many Countries to Enter?

• Market entry & market control cost
• Product & communication adaptation costs
• Size and growth of population, income
• Possibility of dominant foreign firms establishing high barriers to entry

Type of Country: depends on product, geographical factors, income/population, political climate

Question 5

What are the different ways that a firm can enter a new market?

Answer 5

1. Indirect exporting: through independent middleman
2. Direct exporting: set up sales branch for sales and distribution, display centers, customer svc centers
3. Licensing: right to use process, trademark, patent, trade secrets
   - +ve: entry with little risk -
   - ve: less control, grooming potential competitor
4. Joint Ventures
   o Contract manufacture: hire foreign firm to produce
   
   • +ve: start fast with little risk, opp to buyout later
   • -ve: less control over process
     o Management Contract: supply management know-how
     o Joint Ownership: firm with foreign investors share ownership and control
      -ve: different objectives → conflict
5. Direct Investment
   o own foreign-based assembly or manufactured facilities
   o cheap labor or materials, govt incentives, freight savings
   
   • -ve: whole new process

Question 6

Should companies standardise or adapt in a different country?

Answer 6

Gillette: over 800 products in 200 countries with different brand names & formulations
- Diluted brand power, raised costs

Barbie: Barbie dolls adaptation in Japan to increase sales tremendously

Question 7

What is global naming?

Answer 7

keep pronunciation, spelling or meaning?

Question 8

What are the 4 main questions in global marketing?

Answer 8

1. whether to go abroad
2. which markets to enter
3. how to enter mkt
4. deciding on mktg program

Question 9

What are the international product promotion strategies?

Answer 9

1. product invention
2. product adaptation
3. communication adaptation
4. dual adaptation
5. straight extension