International Mkting

Question 1

International Marketing definition

Answer 1

marketing activities of company that serves different markets in various countries

aims at setting the stage within the company for an effective implementation of market-related activities and CRM across countries

Question 2

growing importance of IM

Answer 2

globalization / worldwide growth in int. business operations

continued increase of int. exports

ever-increasing economic interdependencies between major economic regions of the world

Question 3

multiple challenges in IM for companies

Answer 3

operating in multi-country context implies:

differences in environments - social/cultural, economic, competitive, technological, regulatory/polit/legal

differences in c. behavior, market segments

differences in marketing infrastrucutres: media, distribution, logistics

in response:
need to adjust to these differences
coordinate operations across national borders

Question 4

“real challenge”

Answer 4

degree of adjustment and coordination to different markets

need for global ratonalization (economies of scale, scope)

need for local responsiveness (adaption to local markets, culture, governements)

Question 5

think globally - act locally

Answer 5

glocal
globalization (standardization) - speed, low cost production, low complexity

localization (differentiation) - culturally close to customer, flexible response, regional/local market penetration

Question 6

history of internationalization

Answer 6

1950-1970 multinational phase
1970s global phase
2000s anti-globalization phase

Question 7

five major drivers of globalization

Answer 7

market
competitive
cost
technology
government

Question 8

increasing importance of emerging markets

Answer 8

gdp growth slows down

first world / mature markets become saturated

Question 9

local marketing environments

Answer 9

emerging markets
- unsophisticated customer weak purchasing power, great lack of infrastructure

new growth markets in newly industrializing economies
- more demanding customers, rapidly developing infrastructure

mature markets
- slow growth (except technology), intense competition for customer satisfaction

Question 10

characteristics of emerging markets

Answer 10

market structure
-affordability and accessibility z premium p&s

competitive environment
-need for market creation,developement, strong brands & longer product-lifecycles

socio/political environment
-necessity to reevaluate competitive advantage and to integrate ventures into local context

resource supply
-effective management and innovation of affordable, versatile and often disruptive p/s

infrastructure
-adaption of marketing mix and usage of available and creative marketing tools

Question 11

four tier structure of emerging markets

Answer 11

global - willing to pay global prices
glocal - demand customized products
local
bottom - 4bn affordable category

Question 12

PESTLE Analysis

Answer 12

politicaal economic,…

Question 13

how to assess market growth

Answer 13

measure of growth that measures annual growth rate in % for specific period of time
result is a steady hypothetical growth rate

Question 14

country entry evaluation procedure

Answer 14

stage 1 country identification
stage 2 preliminary screening
stage 3 in-depth screening —– pestle
stage 4 final selection

Question 15

CAGR advantages disadvantages

Answer 15

+
easy to calculate and understand
low information and time requirement
valuable initial indicator for assessing a country´s performance in a specific market

-
relative measure, absolute volume not considered
measurement method: only two points used
volatility and possible stagnation is ignored
based on historical data - valid for future?

Question 16

market expansion strategy (matrix)

Answer 16

countries x segments

concentration
diversification

1. narrow focus, 2. country focus, 3. country diversification, 4. global diversification

Question 17

timing selection

Answer 17

waterfall strategy

sprinkler strategy

Question 18

waterfall strategy

Answer 18

principle of concentration
int markets entered gradually
excessive market research
customization of marketing activities

Question 19

sprinkler stratgey

Answer 19

principle of diversification
activity in as many markets as possible (in short time)
high standardization of marketing activities
failure and withdrawal from some markets accepted

Question 20

waterfall +-

Answer 20

\+
time for building up fin and personnel resources
time to learn from beginner problems
distribution of risk (over time)
pot. expansion of product lifecylcle

-
competitors can leapfrog

Question 21

sprinkler +-

Answer 21

+
first mover advantage / market entry barriers vs followe
distribution of risk (regionally)
capacity utilization, volume for products
making full use of comp edge

-
need for many financial and personnel resources
(in short time period)
major losses in case of strategy failure

Question 22

entry decision recommendations

Answer 22

company-internal factors
limited resources, risk-averse, low int. experience

company-external factors
high entry barriers and costs, heterogeneity

competitive factors
high degree of globalization in industry
short product lifecylces
high profitability of pioneer strategy

internal/external -x waterfall
comp. factors -x sprinkler

Question 23

standardization

Answer 23

uniform global/regional product strategy
capitalizes on commonalities in customer needs
cost saving passed on via low prices

-x product driven orientation: lower cost mass product

Question 24

customization

Answer 24

country tailored product strategy
focus on cross-border differences of target customers
appropiate changes are made to match local market conditions

-x market driven orientation increase customer satisfaction by adapting products to local needs

Question 25

mixed approach

Answer 25

modular - parts used worldwide

common platform - attachments to match local requirements

Question 26

standardization +-

Answer 26

+
cost reduction
cater global segments
important in very competitive categories

-
off-target/failure to meet local customer needs
lose foreigness and COE
vulnerability to trade barriers

avoid over-standardization
over-customization

Question 27

factors speaking for standardization

Answer 27

customer similarity
interdependence of market
cost synergies

Question 28

appropriateness and brand fit?

Answer 28

make sense?, positive country association effect?

Question 29

change-over strategies

Answer 29

fade-in /fade-out - combine new global brand with existing

transparent forewarning - inform customer intensely

summary axing - over night replacement

Question 30

COE

Answer 30

country associated / HQ

country image has halo effect on evaluation of product

not stable over time, customers might be informed about country,
influence of demographics
product category

Question 31

marketing mix 3 cs

Answer 31

extension

channels, government policies

Question 32

company
competitor
customer

Answer 32

costs set floor to pricing
collusion, opportunistic, predatory pricing
price sensitivity sets ceiling to pricing

Question 33

distribution channels

government policies

Answer 33

variation of type and length of channel
arbitrage opportunities -x gray imports

government policies
direct impact on pricing ( sales tax, tariffs)
indirect impact on pricing (int. rates, currency, inflation)

variations in distribution and government policies lead to price differentials between countries

Question 34

benefits and dangers of int. price differentiation

Answer 34

…..

Question 35

reasons for standardizing and differentiating price

Answer 35

…..

Question 36

Three well known cultural typologies

Answer 36

Hofstede
Trompenaars
Hall

Question 37

factors for standardization differentiation in global communication?

Answer 37

….