International Marketing Tyrone Week 8-11 Flashcards
1
Q
Explain price dynamics
A
- Generates revenue
- Competitive tool in dealing with rivals and substitutes
- Positions the product in the market
- Pricing decisions cannot be made in isolation from the other functions of the firm
2
Q
Why is pricing getting scary?
A
- customers know more about the product, than the marketer knows about the customer
- Price comparison is easy
- Auto refunds
3
Q
When do price changes occur?
A
- A new product has been released
- A change occurs in the overall market conditions
- there is a change in the internal situation
4
Q
How does multiple-product pricing work, in Price dynamics?
A
- An economy version
- Standard version
- A top of the line version
5
Q
Explain what a pricing review is
A
- Did you consider you received a fair deal?
- Were you ripped off?
- Or can you justify the price due to the attained value.
6
Q
What is skimming?
A
Achieve the highest possible contribution in a short initial tome period and the gradually lower the price as more segments are targeted and more products are available.
7
Q
What is Market pricing?
A
Determined based on competitive prices; production and marketing is adjusted to the price
8
Q
Explain penetration pricing?
A
Offering low pricing to generate volume sales which hopefully will compensate for low margins
9
Q
What is product line pricing?
A
Sell one element of the line cheaply to stimulate sales
10
Q
what is relationship pricing?
A
Flexibility to modify pricing to develop long term relationship
11
Q
What is dynamic pricing?
A
Fluctuating subject to demand
12
Q
what are the factors to be considered while establishing the basic premise for pricing?
A
- importance of price in customer decision making
- Strength of perceived price-quality relationships
- Potential reactions to marketing-mix manipulation by marketers
13
Q
What are the customer purchase factors when setting export prices?
A
- Ability to pay
- Price-quality relationship
- Reaction to marketing mix
- Market support
14
Q
What are the pricing policies factors in setting export prices?
A
- Profit maximisation
- market share
- survival
- return on investment
- competitive policies
15
Q
What is dual pricing?
A
Differentiates between domestic and export prices
16
Q
What is standard worldwide pricing?
A
Based on average unit costs of fixed, variable, and export-related costs
17
Q
What is market differentiated pricing?
A
Calls for pricing exports according to the dynamic conditions of the marketplace
18
Q
What is price escalation?
A
- A combined effect of clear-cut and hidden costs
- results in an increase in export prices over above the domestic prices
19
Q
What are some creative strategies employed to combat price escalation?
A
- Recognize the channel of distribution
- Product adaptation
- Use new or more economical tariff or tax classifications
- Assemble or produce overseas
20
Q
What are Incoterms?
A
internationally accepted standard definitions for terms of sale set by the International Chamber of Commerce (ICC) since 1936
21
Q
What does “Exporter’s credit policy” determine?
A
-Degree of risk the firm is whiling to assume and the preferred selling terms
22
Q
Explain the factors for negotiating terms of payment.
A
- Amount of payment and need for protection
- terms offered by competitors
- Practices in the industry
- Capacity for financing international transactions
- Relative strength of the parties involved
23
Q
Explain commercial risk
A
Refers to the insolvency of, or protracted payment default by, an overseas buyer
24
Q
What is political risk?
A
Completely beyond the control of either the buyer or the seller
25
What is me anted by the term "Pass-through"?
Customers have to have a high level of preference for the exporter's product
26
What is meant by the term "Absorption"?
Increase in the price is absorbed into the margin of the product
27
Explain the term "dumping"
Selling goods overseas at a price lower than in the exporter's home market or below the cost of production, or both.
28
What does it mean to Barter?
Goods are exchanged directly for other goods of approximately equal value
29
What is a counter purchase?
The participating parties sign two separate contracts that specify the goods and services to be exchanged
30
What is a buyback?
One party agrees to supply technology that enables the other party to produce goods with which the price of the technology is repaid
31
What is are Clearing arrangements?
Clearing accounts are established in which firms can deposit and withdraw the results of their countertrade activities
32
What is switch-trading?
Credits in the account can be sold or transferred to a third party
33
What are offsets?
Industrial compensation mandated by governments when purchasing defense-related goods and services in order to counterbalance the effect of this purchase on the balance of payments.
34
What is caused-related marketing?
One of the approaches in which the company, or one of its brands, is linked with a cause such as environmental protection or children's health.
35
What is corporate image advertising?
Companies engage in this form in support of their more traditional, tactical, product-specific and local advertising efforts
36
What are global media?
Vehicles have target audiences on at least three continents and the media buying takes place through a centralized office.
37
What is database marketing?
Allows the creation of an individual relationship with each customer or prospect
38
What are social networking service?
An online service, platform, or site that focuses on building and reflecting social networks that share interests or activities
39
What is consumer generated media (CGM)?
Consumers find initiate topics of interest on the web
- engage in online discussions that strongly affect their and others' views
- Online bulletin boards, blog, podcast, website for consumers to post complaints and compliment.
40
What are the most used measures in planning promotional campaigns?
- Sales
- Awareness
- Recall
- Executive judgment
- Intention to buy
- Profitability
- Coupon return
41
What is personal selling?
- Defined as a two way flow of communication between a potential byre and a salesperson
- designed to accomplish three tasks
- identify the buyer's needs
- match these needs to one or more of the firms products
- Based on this match, convince the buyer to purchase the product
42
What are indirect exports?
- Export process is externalized
| - the intermediary will take care of the international sales effort
43
What are direct exports? Guidelines for the marketer-intermediary interaction
- Know the sales scene
- Research the customer
- Work with the culture
- Learn from local representatives
44
Explain integrated solutions?
Involves either a sales office in the target market or a direct contact with the buyer from home base
45
What are the promotional benefits of internet?
- Allows an increase in presence in the marketplace
- 24hr access to customers and prospects
- Better customer service
- Ability of the marketers to gather information
- Provides an opportunity to close sales
46
What are some reasons to participate in trade fairs?
- Opportunity to introduce, promote and demonstrate new products
- goodwill and contact cultivation
- Opportunity to find an intermediary
- Meet government officials and decision makers
- opportunity for market research and collecting competitive intelligence
- Reach sizable sales prospects in a brief time period at a reasonable cost per contact.
47
Reasons for non participation in trade fairs?
- High cost
- Difficulty in choosing the appropriate trade fairs for participation
- Coordination
48
What is public relations?
- Image - the way a multinational corporation relates to and perceived by its key constituents
- communication can be both internal and external
49
What are internal public relations?
- Internal communication is important to create an appropriate corporate culture
50
What are some sponsorship marketing techniques?
- involves the marketer's investment in events or causes
- Sponsorship of events is driven by the desire to be associated with a worldwide event that has (Positive image, global reach, prevent strategic positioning of excellence)
51
Explain ambush marketing
- Use of an event without the permission of the event owner
52
What does the term Channel Design mean?
Refers to th length and width of the channel employed.
- Is determined by facts that are integral to the development of new marketing channels as well as edification and management of the existing ones.
53
What are some external factors in channel structure?
- Customer Characteristics
- Culture
- Competition
54
What are some internal factors in channel structure?
- Company objectives
- Character
- Capital
- Cost
- Coverage
- Control
- Continuity
- Communication
55
What are customer characteristics in terms of channel design?
- The demographic and psychographic characteristics of targeted customers from the basis for channel design decisions.
- Focusing on customer needs by understanding why, when, and how they are buying commodities helps to generate a competitive advantage in the product.
56
What is culture in terms of channel design?
- While planning the distribution system, the firm needs to analyze
(existing channel structures or the distribution culture)
(functions performed by the various types of intermediaries)
- Foreign legislation affecting distributors and agents is an essential part of the distribution culture of a market.
57
What is competition in terms of channel design?
- Channels used by competitors may be the only product distribution system that is accepted by both the trade and consumers
58
What are company objectives in terms of channel design?
- Management considerations influence channel designs
| - The distribution channel must comply with the overall company objectives for market share and profitability.
59
How do you select screening intermediaries?
- Potential candidates must be compared and contrasted against an exporter's list of determined criteria
- before signing marketers should have check off their own criteria
60
What is the distributor agreement?
After a suitable intermediary is found the international marketer draws up a for gin sales agreement
- Some important terms to be included in the agreement
61
What are gray markets?
Refers to authentic and legitimately manufactured trademark items that are produced and purchased abroad but imported or diverted to the mark by bypassing designated channels
62
What are some arguments for gray markets?
- The right to "Free trade"
- Consumers benefit lower prices
- discount distributors find a profitable market niche
63
What are some arguments against gray markets?
- Hurts the litigate owners of trademark
- Reduces incentive amoung trademark owners to undertake product development
- Take unfair advantage of the trademark owners marketing and promotional activities
- Parallel imports can deceive consumers
64
What is a solution to the gray market problem?
- A contractual relationship that ties businesses together.
- A one-price policy
- Producing different versions of product for different markets
- conducting educational and promotional campaigns
65
Explain social contagion
extent to which consumers are influenced by others
66
What is a blog?
Website on which individuals make regular entries of commentary or descriptions of events
67
What is a Wiki?
Website developed and maintained by a community of users who add informative content on variety of topics
68
What is a forum?
Site where people hold conversations in the form of posted messages.
69
What are some of the challenges in social media?
- Send the wrong message
- Resource intensive
- Results are difficult to measure
- Lack of access
70
Explain the social media strategy for customizing the message to the audience
- marketers need to identify the target market and customize communications accordingly
- each target market requires a different approach in problem-solving
71
Explain the social media strategy for targeting specific markets
Implementation is a matter of finding each audience and devising social media that cater specifically.
72
Explain the social media strategy for understanding your markets
- marketers can promote their products to their targeted audience at the appropriate sites
73
Explain the social media strategy for monitoring your firms online reputation.
- Marketers need to invest efforts everyday to monitor news about the firm
- Continuous scanning helps deal proactively with bad publicity
74
Explain the social media strategy for managing information about your companies brands
- Corporate websites contain explanations regarding emergent trends and events that interest buyers
- social media helps firms boost speed and agility to adapt quickly to rapidly evolving events and customer needs
