Marketing Exqm Prep Flashcards
Discuss the 3 Cultural Change Strategies a Foreign Marketer Can Pursue.
Culturally Congruent Strategy: Aligns with local customs to ensure easy acceptance (e.g., McDonald’s offering rice meals in Asia).
Planned Change Strategy: Introduces new products while gradually shifting consumer behavior (e.g., promoting electric cars in gas-reliant markets).
Cultural Borrowing Strategy: Adapts ideas from other cultures for local markets (e.g., yoga’s Western adaptations).
Discuss the 5 Phases of International Marketing Involvement.
No Direct Foreign Marketing: No active foreign sales, but products may reach global markets by chance.
Infrequent Foreign Marketing: Occasional exports due to surplus or seasonal demand.
Regular Foreign Marketing: Consistent international sales with dedicated distribution.
International Marketing: Establishes international divisions with tailored strategies.
Global Marketing: Operates worldwide with a standardized but adaptable approach.
Differences Between Current Account, Balance of Trade, and Balance of Payments:
Current Account: Measures trade in goods, services, and financial transfers (e.g., remittances, tourism).
Balance of Trade (BOT): The difference between a country’s exports and imports of goods.
Balance of Payments (BOP): A record of all economic transactions, including trade, investments, and financial flows.
How a Political Party Change Affects Investors:
Regulatory Changes: New rules can help or hurt businesses.
Tax Policies: Higher/lower taxes impact profits.
Trade Policies: Protectionist/free trade policies affect exports and imports.
Investment Climate: May encourage or discourage foreign investments.
Examples:
Brexit caused uncertainty in markets.
U.S. elections impact corporate taxes and trade agreements.
India’s 1991 reforms boosted FDI.
Common Causes of Government Instability:
Corruption: Weak governance leads to mistrust (e.g., Venezuela).
Political Conflicts: Frequent leadership changes create uncertainty (e.g., Thailand).
Economic Crises: High unemployment leads to protests (e.g., Greece in 2008).
Civil Wars: Internal conflicts disrupt economies (e.g., Syria).
Foreign Intervention: Sanctions and external pressures affect stability (e.g., Iran).
