Module 3 Flashcards
Outsourcing
Common factor in international marketing and is the acquisition of services or goods from a foreign follower that is outside of the organization’s domestic counter
Offshoring
Taking some or all of an orgs processes or services into a foreign country. I.e customer service over seas
Benefits of outsourcing
- Maximize the efficiency of internal resources by focusing on investments and engaging in core competencies
- building barrier to current or future competitors who seek to enter the orgs areas of interest
- investments of external firms and their innovations, skills, and specializations
- reduce risk in rapidly changing markets with high technology
Fundamental elements for a successful outsourcing strategy has:
Objectives and their positions in the overall strategy
Activities to entrust to outsourcing
Suppliers
Contract negotiations
The transfer of activities and functions from the outsourcer to the supplier
The relationship with the supplier
The following actions are necessary for outsourcing/outshoring
Define the long term strategy
Consider the impact it will have in the attainment of the mission ABC’s the orgs strategies (costs, quality, flexibility)
Consider the changes in the environment that require a change in strategy
What is the term that global marketing companies use to divide their markets
Segments
Understanding a country’s GDP provides insight into economic stability and the overall Health of its economy.
Truth
Global homogenization
Companies have chosen to market globally as if the world is one market. And can occur culturally and by identity
Emerging markets differ from developed markets in what ways?
Per capita income-affects the buying power of the consumer
Infrastructure
Demographics
Speed of change
Bureaucracy-orgs need to rely on local partners or public affairs offices because there may be a lack of transparency
Corruption
Multinational regional market zones
Group of countries that create relationships to build mutual economic benefits through trade agreements
(USMCA)The United States Mexico Canada agreement is a trade agreement launched in 2020 between the three North American countries to modernize the North American free trade agreement to fit the demands of the 21st-century
Truth
US MCA is designed to support equal trade leading to freer markets fair trade and more economic growth among these three countries some of the key expansions to NASTA included in US MCA our intellectual property, de minimus shipment values, Financial services currency and exchange rate, labor agreements and enforceability, and environment
True
Global Market selection
Once the analysis is complete marketers assess the risk and reward on entering each market, identify selection criteria that are important to the organization and then evaluate the market opportunities
Global market strategies
After selecting global markets, they develop global market strategies for each to begin the marketing process each global market as different as each possesses different values and culture foundations that affect their purchasing decisions
Global market entry strategies
Exportation, distribution, or Internet sales. This begins to build their organizations market share or helps them find opportunities to expand through local contractual agreements, such as licensing or franchising
