module 3 Flashcards
What are the four distinct stages in the global experience learning curve?
No foreign marketing, foreign marketing, international marketing, and global marketing
What are the types of information required in global market research?
economic culture societal trends business environment political and legal
What are regional market zones?
Group of countries that create formal relationships for mutual economic benefit through lower tariffs and reduced trade barriers.
What are the top four regional market zones
MERCOSUR, ASEAN, EU, NAFTA
Regional market zones generally form as a result of four forces. What are the four forces?
economic
geographic proximity
political
cultural similarities
Identify different global market entry strategies?
Exporting (this includes the internet, exporter and distributor, direct sales force,)
Contractual agreements (licensing, franchising)
Strategic alliances
Direct foreign investment
Why is organizational structure important for companies in global markets?
Determines how a business configures its operating units and how they interact to meet business needs globally.
How is product adaptation different from product invention?
You are altering an existing product while product invention is creating a new product.
What are four specific product issues facing international consumer marketers?
Quality, fitting the product to the culture, brand strategy, and country of origin
what are the 6Cs of channel strategy
cost capital control coverage character continuity
What are the four basic approaches that companies may follow in global market advertising?
- marketing themes
- marketing with local content
- basket of global advertising themes
- local market ad generation
What are the three different pricing strategies in global markets?
One world price-assigns one price for its products in every global market
Local market conditions price-price based on local market conditions with minimal considerations
Cost-based price-considers cost plus markup to arrive at a final price
Price Escalation
Costs of doing business globally are higher than in their home market.
Due to product exports, tariffs, export fees, taxes, middlemen and transportation costs
dumping
charging less than actual costs or less than the product price in the company’s home markets. it is unfair competition and can lead to companies closing down
gray markets
unauthorized diversion of branded products into global markets. this is a problem because they deprive profits, and customers.
