International Marketing Development Flashcards
Identify the key drivers of international marketing development
Excess stock, limited growth in domestic market m, comparative advantage and other markets becoming more stable, liberal and accessible
What environmental factors influence international marketing
Social, cultural and consumption attitudes as well as technological, economical, legal and environmental factors
What criteria is used when choosing a market
Market accessibility, size, geographic and psychological proximity ad well as quality and competition already on the market, cost of entry and potential profits
How may you enter an international market
Indirect exporting, licensing, franchising, contracting, direct exporting, joint ventures and direct investment
Explain dumping in international marketing
When you have excess supply domestically you can sell it elseware
Explain an
International product life cycle
When the life cycle of different products take place in different counties. For example through resale manufacturing etc
What are transnational market segments
When similar people exist in different countries
How can transnationalism be good för organizational sustainability
Because different markets are in different stages of product adoption and crises are not the same everywhere
How does companies adapt to new environment
Encourage empathy, provide cultural training and recruit from the local population
How may attitudes around time differ among cultures
punctuality, deadlines, discussion length and time to know each other.
Name some cultural differences relevant to businesses
Attitudes to time, business card and gift formalities, dress code, entertainment and body language
What issues might arise regarding language in international markeging
Failure to adapt to target audience mike relaxed to businesses people and formal to teens, avoid cringe. English is generally a safe bet but in some regions it is best to adopt the local language and dialect
What six scales characterizes a society
Collectivism v individualism, power distance, risk aversion, competitiveness v inclusion
( masculine v feminine in book),
long v short term orientation and indulgence v restraint
What is power distance
Acceptance of power inequality and respect for authority
What signifies ling term orientation
Placing importance on tradition and history
What technological factors affect international Marketing
Infrastructure affects what offerings are available to different markets and how to advertise, for example prople without gas cannot buy gas stoves and you cannot succeed with tv adds in a place with only radio
Name some economic factors if interest to international marketers
Size of market and the wealth of those inside as well as exchange rates and the penetration of your product
How might politics discourage trade
Through limiting imports aka quotas, taxing imports aka duties and non tariff barriers such as special laws to comply with. They may also subsidize domestic competitors
What questions regarding market should you ask before entry
Is there growth, can people and how many may afford the product, what distribution channels exist
What should you ask yourself about your proposition before entering a market
Is it demanded (opportunity) and does it require adaptation to fit some special needs
What should you ask yourself about competition before entering a market
Are they domestic or international and what is their presence. How aggressive are they, are they powerful, are there barriers to entry fir you and others. How will they respond if you enter.
What questions should you ask regarding market entry before entering
What will it cost, what method is the best, how might partners support you and how similar is the culture, attitudes and values
What type if market entry may require ling term agreements
Direct investment
Rank market entry methods on risk and reward. Start from high risk high reward
Direct investment, joint venture, direct exporting, (licensing, franchising or contracting) and lastly indirect exporting
What is indirect exporting
Ti sell to an intermediary with experience in the foreign market
What is contracting
To contract a foreign firm yo manufacture or assemble a product in a foreign market
What is direct exporting
When a firm finds foreign customers to sell to
What factors contribute to a successful joint venture
Appropriate balance of power, strong communication channels, conflict resolution mechanisms, clear contracts aka clarity of inputs and benefits, jointly defined goals and parameters, compatible strategies and visions and complimentary skills
What are the four stages of internationalization according to the Uppsala process
Severing connections domestically, penetration through exports, specialize foreign offers and lastly invest directly into foreign facilities
What is the implications of the Uppsala process
That internationalization is effort full and takes time
What are borne global firms
Firms that plan on entering firing markets at inception
What is the main criteria for choosing a new market for traditional firms
Psychic distance, they choose a safe bet one at a time
Explain the ethnocentric approach to internatlizayion
Focus in home market first and foremost
Explain the polycentric approach to international marketing
Treat each market as its own home market and let each section adapt strongly to its surroundings
Which is the regional approach to international marketing
When you group countries together and have one department handle a separate region.
Explain tue geocentric approach to international marketing
Treat all countries the same and instead target global segments such as high income earners
Which two international marketing approaches are localized and wich are standardized
Ethnocentric and polycentric are localized as they adapt to each country while regional and geocentric are standardized
What characterizes national organizations
Limited to one nation
What characterizes international organizations
Having a main market and starting to send the same marketing mix elsewhere too. They use the ethnocentric approach
What characterizes multinational organizations
A portfolio of businesses adapted to their own countries. They use the polycentric aproach
What are global organization
Organizations that use a standard marketing mix to a global audience. Uses the geocentric aproach
What are transnational organizations
A complex federation of different local entities that form different global marketing mixes
What us a multi domestic competative strategy
Polycentric aproach, have decentralized departments make most decisions and is their own profit center
Explain the global competitive strategy
Consolidate local firms and standardize for efficiency, comparative leverage and substantial cost reduction, geocentric. Coordination and communication might be more prone to error
What is selective contestebility
To choose the markets in which you can compete, essential for a global competitive strategy as they don’t adapt
Explain global capability in relation to a global competitive strategy
The organizations ability ti leverage all its international parts in the competition
Define i international development as a market growth strategy
Make it to more markets to sell your existing products to more people. This is called market development strategy
What qualities are required of an international marketing manager
Have knowledge to the extent that their actions correspond with company goals and policy, be a skilled marketer and have high cultural intelligence
