International Marketing Final Flashcards
What is a good, service, or idea with tangible and intangible attributes that collectively create value for a buyer/user?
Product
What are the 3 product classifications?
User, Life span, how it can be purchased
What two products fall under User classification?
Consumer and industrial
What three products fall under Product’s life span classification?
Durable, nondurable, disposable
How do consumers decide to purchase a product?
Convenience (impulse or habit), Preference (routine), Shopping (limited), Specialty (extensive)
What are the 4 product related elements?
Packaging, Labeling, Aesthetics, Warranties
What does the packaging do?
contains and protects products, faciliates recycling and reducing environment, and serves as communication function
What is the purpose of the label on a product?
Provide product information, attact attention, support product’s position, help persuade consumers to buy, show reguations
What are aeshetics when it comes to products?
Elements that are deemed appropriate, attractive, and appealing in one’s home country may be perceived differently elsewhere
What do product warranties do?
Guarantees a product’s performance and provide a remedy in case of a product failure
What is a complex bundle of images and experiences in the customer’s mind that creates a promise of value and identification called?
A brand
What are some visual representations of a brand?
Word Marks and symbols
What is the added value that accrues to a product as a result of investments in the marketing of the brand?
Brand Equity
What are some benefits of brand equity?
premium price, brand preference,and loyalty
What is a product and brand that is used in a single national market and addresses the needs of a particular market?
Local
What is a product and brand used in several national markets in a particular region?
International (Euro brands)
What is the country of origin as a brand element effect?
Perceptions and attitudes toward particular countries often extend to products and brands known to originate in those countries (MADE IN USA)
What are some implications of the country of origin effect?
Exploit, disguise, and change buyer attitudes
What are the 5 strategies for alternatives in global marketing?
Dual extension (same product and message), Product extension Communication adaptation (motorcycle for fun or transport), product adapt communicate extention (soap), dual adaptation (sensitive), innovation
What do you have to take into consideration when developing a global brand or product?
Economies of scale, difficulty, and feasibility
What 2 errors are there that management makes in choosinga strategy?
NIH (ignore local people) AND SRC (whatever is successful in own culture is successful everywhere)
What 3 factors do you need to consider in choosing a marketing strategy?
The product, the market, and adaptation and manufacturing costs that will incur
What are the 3 types of innovations?
Continuous innovations (new flavor drink), dynamically continuous (desktop to a laptops), discontinuous innovations (new category - microwave)
What is a platform design?
It is a new product that adapts to each specific market
When do you test new products?
When there is a potential for a surprising and unexpected incompatibility when the product interacts with human, emchanical, or chemical elements
What is the one thing that you get from the consumer?
Pricing decisions
What is one thing you should never do when it comes to cost?
Go below the cost of product
When it comes to pricing competition, what should you not do?
Go above the price ceiling for comparable products
What does perceived value depend on?
The product itself, the channels of distribution, marketing communications, and the price
What are the 3 basic pricing concepts?
Cost, competition, demand
What are the 4 environmental influences on global pricing?
Currency flucuations, inflationary environment, government controls subsidies and regulations, and competition behavior
When the home country currency is___, the exporting firm is in a ___ condition?
Weakened; favorable
What is a persistent upward change in price levels?
Inflationary environement
What are some government policies and regulations that influence global pricing?
Dumping legislation, resale price maintenance legislation, price ceilings, general reviews of price levels
What are the 5 global pricing objectives and strategies?
Market skimming, penetration pricing, captive pricing, target costing, cost-plus pricing
What is market skimming?
When you have a new product, you set a high introductory price and lower it over time (want return on investment)
What is the purpose of penetration pricing?
To gain market shares and sales
What is captive pricing?
Making everything needed for a product (Razor campanies make blades and razors)
What does the terms of the sale do?
Specify the exact point at which the ownership of merchansdise is transferred from the seller to the buyer and which party pays which costs
What are the different inco terms?
Ex-works, Free Carrier, Free alongside ship, Free on Board, Cost Insurance Freight, Cost and freight, Delivered duty paid
What are the 3 globabl pricing policies?
Extension or ethnocentric, adaptation or polycentric, geocentric
What does extension or ethnocentric pricing call for?
Same per-unit price worldwide
What does adaptation or polycentric pricing call for?
Price is set by subsidiaries and local distributors
What does geocentric pricing call for?
Realization of unique local market factors and price coordination from the headquarter (combine the other 2)
What are 5 global pricing issues?
Gray market goods, dumping, price fixing, transfer pricing, countertrade
What is the difference between horizontal and vertical price fixing?
Horizontal is when same supply chain level (manufacturers) fix prices
What pricing policy issue is used to avoid taxes?
Tranfer pricing
What are the 5 different ways to countertrade?
Barter,counterpurchase, offset, compensation trading, switch trading
What is countertrading?
When payment is made in some form other than money
What are distribution channels comprised of and what function do they perform?
Comprised of coordinated groups of individuals or firms that perform functions adding utility to a product
What are the major categories of channel utilities?
Place, time, form, information
What is the difference between direct and indirect involvement in channel design?
Direct is a company sales force where as indirect are independent agents and distributors
What are some factors that influence channel design?
Customer, product, and middleman characteristics
What is global retailing?
Retailing activities that cross national boundaries
Why do companies retail globally?
High saturation in home country, recession, regulations on store development, high operating costs, high growth in other markets
What are the 4 global retailing market expansion strategies?
Organic, Franchise, chain acquisition, joint venture
What does supply chain include?
All The firms that perform support activities by generating raw materials, converting them into components or finished products, and making them available
What is the supply chian?
Raw materials->Factories->Retail Distribution->Consumers
What is logistics?
The management process that integrates the activities of all companies to ensure an efficient flow of goods through the supply chain to customers
What are the 4 distribution activiites?
Order processing, warehousing, inventory management, transportation
What the definiition of Integrated Marketing Communications?
Refers to all forms of communication used by organizations to influence buying attitudes and behaviors of customers
What are the 5 components of IMC?
Advertising, public relations, sales promotions, direct marketing, personal selling
Why do businesses want to do global advertising?
Consistent brand identity, economies of scales, improved access to distribution channels
What are the advertising agencies and criteria for selecting the agencies?
Company organization, national responsiveness (hire agencies who have good understanding of local taste),area coverage (cover all relevant markets), buyer perception (what brand awareness to project)
What are the 3 global media decision questions to ask?
Media Availability, pattern of media consumption, legal constraints
What is the purpose of public relations?
To foster goodwill, understanding, and acceptance among a company’s various constituents and publics
What are programs designed to build interest in or encourage purchase of a product during a specified time period?
Sales Promotion
What are some consumer sales promotions?
Price-based (coupons, rebates, refunds, loyalty program) and Non-price(Contests and sweepstakes, samplings)
What are some trade sales promotions?
Price based (allowances, discounts, co-op ad) and Non-price (Trade shows, promotional products, POS displays)
What is the difference etween consumer and trade sales promotions?
Consumer designed to make consumers aware of a new product and trade sales are designed to increase product availability
What are the 4 factors contributing to more headquarters involvement in the sales promotion effort?
Cost, global branding, compexity, transational trade
The extent to which the promotion must be localized depends on:
level of economic development, market maturity, local perceptions of promotional tool, local regulations, trade structure in retailing industry
What is personal selling?
Person-to-person communication between a company representative and a prospective buyer with a short term goal of making a sale and a long term goal of a relationship
What are some personal selling hurdles?
Political risks, regulatory hurdles, currency flucuations, market unknowns
What are some forms of direct marketing?
Catalogs, direct mail, infomercials, teleshopping, intereactive TV
