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SEM141 > International Marketing Tyrone Week 8-11 > Flashcards

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
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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
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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
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4
Q

How does multiple-product pricing work, in Price dynamics?

A
  • An economy version
  • Standard version
  • A top of the line version
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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.
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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.

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7
Q

What is Market pricing?

A

Determined based on competitive prices; production and marketing is adjusted to the price

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8
Q

Explain penetration pricing?

A

Offering low pricing to generate volume sales which hopefully will compensate for low margins

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9
Q

What is product line pricing?

A

Sell one element of the line cheaply to stimulate sales

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10
Q

what is relationship pricing?

A

Flexibility to modify pricing to develop long term relationship

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11
Q

What is dynamic pricing?

A

Fluctuating subject to demand

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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
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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
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14
Q

What are the pricing policies factors in setting export prices?

A
  • Profit maximisation
  • market share
  • survival
  • return on investment
  • competitive policies
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15
Q

What is dual pricing?

A

Differentiates between domestic and export prices

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16
Q

What is standard worldwide pricing?

A

Based on average unit costs of fixed, variable, and export-related costs

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17
Q

What is market differentiated pricing?

A

Calls for pricing exports according to the dynamic conditions of the marketplace

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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

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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
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20
Q

What are Incoterms?

A

internationally accepted standard definitions for terms of sale set by the International Chamber of Commerce (ICC) since 1936

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21
Q

What does “Exporter’s credit policy” determine?

A

-Degree of risk the firm is whiling to assume and the preferred selling terms

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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
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23
Q

Explain commercial risk

A

Refers to the insolvency of, or protracted payment default by, an overseas buyer

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24
Q

What is political risk?

A

Completely beyond the control of either the buyer or the seller

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25
Q

What is me anted by the term “Pass-through”?

A

Customers have to have a high level of preference for the exporter’s product

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26
Q

What is meant by the term “Absorption”?

A

Increase in the price is absorbed into the margin of the product

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27
Q

Explain the term “dumping”

A

Selling goods overseas at a price lower than in the exporter’s home market or below the cost of production, or both.

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28
Q

What does it mean to Barter?

A

Goods are exchanged directly for other goods of approximately equal value

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29
Q

What is a counter purchase?

A

The participating parties sign two separate contracts that specify the goods and services to be exchanged

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30
Q

What is a buyback?

A

One party agrees to supply technology that enables the other party to produce goods with which the price of the technology is repaid

31
Q

What is are Clearing arrangements?

A

Clearing accounts are established in which firms can deposit and withdraw the results of their countertrade activities

32
Q

What is switch-trading?

A

Credits in the account can be sold or transferred to a third party

33
Q

What are offsets?

A

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
Q

What is caused-related marketing?

A

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
Q

What is corporate image advertising?

A

Companies engage in this form in support of their more traditional, tactical, product-specific and local advertising efforts

36
Q

What are global media?

A

Vehicles have target audiences on at least three continents and the media buying takes place through a centralized office.

37
Q

What is database marketing?

A

Allows the creation of an individual relationship with each customer or prospect

38
Q

What are social networking service?

A

An online service, platform, or site that focuses on building and reflecting social networks that share interests or activities

39
Q

What is consumer generated media (CGM)?

A

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
Q

What are the most used measures in planning promotional campaigns?

A
  • Sales
  • Awareness
  • Recall
  • Executive judgment
  • Intention to buy
  • Profitability
  • Coupon return
41
Q

What is personal selling?

A
  • 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
Q

What are indirect exports?

A
  • Export process is externalized

- the intermediary will take care of the international sales effort

43
Q

What are direct exports? Guidelines for the marketer-intermediary interaction

A
  • Know the sales scene
  • Research the customer
  • Work with the culture
  • Learn from local representatives
44
Q

Explain integrated solutions?

A

Involves either a sales office in the target market or a direct contact with the buyer from home base

45
Q

What are the promotional benefits of internet?

A
  • 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
Q

What are some reasons to participate in trade fairs?

A
  • 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
Q

Reasons for non participation in trade fairs?

A
  • High cost
  • Difficulty in choosing the appropriate trade fairs for participation
  • Coordination
48
Q

What is public relations?

A
  • Image - the way a multinational corporation relates to and perceived by its key constituents
  • communication can be both internal and external
49
Q

What are internal public relations?

A
  • Internal communication is important to create an appropriate corporate culture
50
Q

What are some sponsorship marketing techniques?

A
  • 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
Q

Explain ambush marketing

A
  • Use of an event without the permission of the event owner
52
Q

What does the term Channel Design mean?

A

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
Q

What are some external factors in channel structure?

A
  • Customer Characteristics
  • Culture
  • Competition
54
Q

What are some internal factors in channel structure?

A
  • Company objectives
  • Character
  • Capital
  • Cost
  • Coverage
  • Control
  • Continuity
  • Communication
55
Q

What are customer characteristics in terms of channel design?

A
  • 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
Q

What is culture in terms of channel design?

A
  • 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
Q

What is competition in terms of channel design?

A
  • Channels used by competitors may be the only product distribution system that is accepted by both the trade and consumers
58
Q

What are company objectives in terms of channel design?

A
  • Management considerations influence channel designs

- The distribution channel must comply with the overall company objectives for market share and profitability.

59
Q

How do you select screening intermediaries?

A
  • 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
Q

What is the distributor agreement?

A

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
Q

What are gray markets?

A

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
Q

What are some arguments for gray markets?

A
  • The right to “Free trade”
  • Consumers benefit lower prices
  • discount distributors find a profitable market niche
63
Q

What are some arguments against gray markets?

A
  • 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
Q

What is a solution to the gray market problem?

A
  • 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
Q

Explain social contagion

A

extent to which consumers are influenced by others

66
Q

What is a blog?

A

Website on which individuals make regular entries of commentary or descriptions of events

67
Q

What is a Wiki?

A

Website developed and maintained by a community of users who add informative content on variety of topics

68
Q

What is a forum?

A

Site where people hold conversations in the form of posted messages.

69
Q

What are some of the challenges in social media?

A
  • Send the wrong message
  • Resource intensive
  • Results are difficult to measure
  • Lack of access
70
Q

Explain the social media strategy for customizing the message to the audience

A
  • marketers need to identify the target market and customize communications accordingly
  • each target market requires a different approach in problem-solving
71
Q

Explain the social media strategy for targeting specific markets

A

Implementation is a matter of finding each audience and devising social media that cater specifically.

72
Q

Explain the social media strategy for understanding your markets

A
  • marketers can promote their products to their targeted audience at the appropriate sites
73
Q

Explain the social media strategy for monitoring your firms online reputation.

A
  • Marketers need to invest efforts everyday to monitor news about the firm
  • Continuous scanning helps deal proactively with bad publicity
74
Q

Explain the social media strategy for managing information about your companies brands

A
  • 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

SEM141 (9 decks)

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