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MGCR 352 > Global Marketing (Lecture #21) > Flashcards

Global Marketing (Lecture #21) Flashcards

1
Q

What are the four major trends that have had significant impact on global marketing?

A
  1. decline of Economic Protectionism.
  2. The Rise of Economic Integration
  3. A New Reality: Global Competition among Global Companies for Global Customers.
  4. Emergence of Networked Global Marketplace
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2
Q

describe decline of economic protectionism

A

creation of world trade organization (WTO) helped regulate trade

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3
Q

def. protectionism

A

shielding one or more industries from foreign competition through the use of tariffs and quotas.

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4
Q

def. tariff

A

: An entry tax on goods and services entering the country serve to raise prices of imported goods and services

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5
Q

def. quota

A

A quantitative restriction placed on the amount of products allowed to enter a country

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6
Q

describe the rise of economic integration

A

Economic integration has increased as countries have attempted to promote free trade and enhance their individual countries
-ex. EU, NAFTA, ASEANd

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7
Q

describe : Global Competition among Global Companies for Global Customers

A

global competition occurs when firms produce, and market their products and services worldwide

-different international entry modes, different strategies

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8
Q

def. strategic alliances

A

Refers to agreements amongst two or more firms cooperating for the purpose of achieving common goals such as competitive advantage or higher customer value creation

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9
Q

what does marketing competition take the form of with global companies?

A
  • Global Marketing Strategy

- Multi-domestic Strategy

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10
Q

def. global marketing strategy

A

refers to the practice of standardizing, or adapting, activities when there are cultural similarities and adapting when they are dissimilar.

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11
Q

def. multi-domestic strategy

A

refers to firm’s marketing strategy adapted for each country-market (i.e., many different program variation, brand names, and advertising programs in countries, in which a firm does business in their markets)

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12
Q

What are the components of international cost structure

A
  • logistics cost (come from supply chain and firm)
  • exit costs (come from international channels)
  • international distribution regulations and costs (international channels)
  • entry requirements and cost of compliance (international channels)
  • competitive and local marketing costs (from host country)
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13
Q

describe the distribution channel in global marketing

A
  1. seller
  2. seller’s international marketing headquarters
  3. channels between nations
  4. channels within foreign nations
  5. final consumer
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14
Q

What are the four broad international entry options?

A
  1. exporting
  2. licensing
  3. joint venture
  4. direct investment
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15
Q

def. exporting

A

when a company produces products in one country and is selling and marketing them in another country

(low risk, low commitment, short time, low to no capital required, low info)

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16
Q

def. indirect exporting

A

ideal for small firms with no overseas contacts but wants to market abroad

very quick, low profit, low info

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17
Q

def. licensing

A

is a contractual agreement, by which a firm allows another firm to use its brand name, patent, trade secret, or other properties for a royalty fee

(low control, medium risk, no to low capital)
E.g., Tim Hortons, Starbucks, McDonalds.

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18
Q

def. joint venture

A

an arrangement through which a foreign company and a local firm invest jointly together to create a local business, sharing ownership, control, and profits of the new company

Sharing % of capital and control, profits and risks

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19
Q

def, direct investment

A

when a domestic firm invests and owns a foreign subsidiary or division in another country

full $, risk, profits

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20
Q

What four categories do advantages and disadvantages of entry modes fall into?

A

1) Resource requirements (or Commitments),
2) Risks levels,
3) Controls
4) Returns (profits)

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21
Q

adv/disadv of exporting

A

the most flexible and least risky

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22
Q

adv/disadv Licensing and Franchising’s

A

risk exposures, controls and resource requirements are moderate

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23
Q

adv/disadv Joint ventures (JVs),

A

resource requirements, risks and controls (and profits) are shared – minority and Majority positions (less, equal or more than 50%).

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24
Q

adv/disadv Foreign Direct Investments (FDI)

A

will require the highest resources, provides full control and highest risks, controls and profits.

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25
Q

adv/disadv Collaborative Arrangements

A

may or may not involve investments

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26
Q

In order of least profit potential to highest profit potential, list the global market-entry strategies

A
  1. exporting
  2. licensing
  3. joint venture
  4. direct investment
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27
Q

in order of least amount of firm’s financial commitment, risk, and marketing control, list the gobnal market-entry strategies

A
  1. exporting
  2. licensing
  3. joint venture
  4. direct investment
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28
Q

def. global brand

A

when the same brand marketed – the same name – in multiple country-markets with similar and centrally coordinated marketing program

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29
Q

def. global consumers

A

refer to groups of consumers living in different markets with similar needs and wants and seeking similar benefits

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30
Q

describe emergence of networked global marketplace

A

Internet technologies are tools for exchanging goods, services and information on a global scale. More than two billion users are using the Internet and more than 10% of world trade is involved.

31
Q

the increasingly global marketing serve customers that are _________, __________, and _________

A

serve customers that are everywhere, need to be served any time, and at lower costs

32
Q

what do global companies strategies for matching their products and promotion efforts to global markets focus on?

A

whether a company EXTENDS or ADAPTS its product and promotion message for consumers in different countries

33
Q

describe product extension

A

virtually the same products in other countries

– e.g., Razors, Motorcycles, Cell phones).

34
Q

describe product adaptation

A

changing the product in some ways to make them more appropriate to other country-markets
– e.g., food flavours, cosmetics for skin cares, etc

35
Q

describe product invention

A

designing products to satisfy the unmet, yet common customer needs, or needs of special groups (niches)

36
Q

describe the 5 product strategies in product emphasis and promotion emphasis

A
  1. Product extension strategy (same product, same promotion)
  2. Communication adaptation strategy (same product, adapt promotion)
  3. product adaptation strategy (adapt product, same promotion)
  4. dual adaptation strategy (adapt product, adapt promotion)
  5. product invention strategy (create new product, either promotional strategy)
37
Q

describe the communication process/cycle in international marketing

A
  1. source (home country)
  2. encode (home country)
  3. Channel of message communication/noise (between countries)
  4. decode (host country)
  5. receiver (host country)
  6. response (feedback loop)
  7. feedback (feedback loop)
38
Q

who is the sender?

A

firm with an offering (product or service)

39
Q

what is the message?

A

firm’s message translated into ‘market’ language

40
Q

what is the channel or medium

A
  • mass communication media

- personal selling (word of mouth)

41
Q

what is the receiver (audience)

A

potential customer

42
Q

what is feedback

A

sales, positive brand recall, etc

43
Q

what is noise

A
  • competitor communications

- distractions, etc.

44
Q

what factors influence the communication situation

A
  • language differences
  • economic differences
  • sociocultural differences
  • legal/regulatory differences
  • competitive differences
45
Q

describe distribution strategy in the international market

A

Distribution includes the availability and quality of retailers and wholesalers as well as transportation, communication, and warehousing, is often determined by a country’s stage of economic development. Distribution is often a serious problem in developing countries.

46
Q

describe pricing strategy in the international market

A

is a complex process in global marketing. Pricing too low or too high in global marketing can have dire consequences.

47
Q

def. dumping

A

when a firm sells a product in a foreign country below its domestic price or below it actual cost

**illegal mostly

48
Q

def. grey market

A

also called parallel importing, is when price disparities lead to unauthorized channels of distribution imports

49
Q

how can you create understanding between countries?

A

-creating a common field of experience

50
Q

What framework can be used to think of the competitive advantage of a nation?

A

Porter’s National Diamond

51
Q

What are the four key conditions that affect a nation’s competitive advantage (four parts of the national diamond)?

A
  1. Demand Conditions
  2. Factor conditions
  3. related supporting industries
  4. Company strategy, structure, and rivalry
52
Q

describe demand conditions

A

refers to the characteristics of a nation’s markets in terms of size and sophistication of the local customers for a product and services, which in turn force the industry to become more competitive

53
Q

describe factor conditions

A

refers to a nation’s ability to turn its natural resources into a competitive advantage

54
Q

describe related supporting industries

A

industries refers to the cluster of suppliers assisting an industry to achieve world class status

55
Q

describe company strategy, structure, and rivalry

A

refers to company governance and industry competitiveness enhance firms’ and industries’ competitiveness

56
Q

What are the 6 major decisions/tasks in international marketing?

A
  1. Examining the global marketing environment
  2. deciding whether to go international
  3. deciding which markets to enter
  4. deciding how to enter the market
  5. deciding on the global marketing program
  6. deciding on the global marketing organization
57
Q

describe how the cultural environment might be different in different countries (general)

A

Countries have different:

  • Folkways
  • Norms
  • Taboos
58
Q

describe potential cultural differences in terms of business behaviour

A
  • Personal distance
  • Direct vs. diplomatic
  • Lack of promotion
  • Meeting and greetings
59
Q

def. cultural diversity

A

Marketers must be sensitive to the cultural underpinnings of different societies. A necessary first step in this process is cross-cultural analysis

60
Q

def. cross-cultural analysis

A

involves the study of similarities and differences among consumers in two or more nations or societies

61
Q

what does a thorough cross-cultural analysis involve an understanding of?

A
  • values
  • customs
  • cultural symbols
  • language (verbal and non-verbal)
62
Q

def. values

A

personally and socially preferable modes of conduct or state of existence that persist

63
Q

def, customs

A

norms and expectations about the way people do things in a specific country

64
Q

cultural symbols

A

things that represent ideas and concepts

65
Q

def. back translation

A

translating back to detect errors.

66
Q

cultural ethnocentricity

A

viewing own cultural values favourably

67
Q

consumer ethnocentrism

A

to think buying foreign goods is inappropriate

68
Q

What four things should a scan of the global environment include?

A

1) a comparative analysis of the economic development in different countries,
2) an assessment of the economic infrastructure in those countries,
3) A measurement of consumer income in different countries, and
4) Recognizing the impact of a country’s currency exchange rates

69
Q

list different stages of economic development

A

Developed, Developing – Industrialized and industrializing;

Private Enterprise and infra-structure development

70
Q

def. economic infrastructure

A

: Economic, Financial, transportation, Communication, health and welfare infra-structure

71
Q

deef. consumer income and purchasing power

A

Per Capita income as indicator

72
Q

def. microfinance

A

small loan, collateral free loan

73
Q

def. political-regulatory climate

A

Political Stability; Trade Regulations and Restrictions

MGCR 352 (15 decks)

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