Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Mkt > Session 21 > Flashcards

Session 21 Flashcards

1
Q

Why go global (3 reasons)?

A
  1. Canada is a relatively small market (~39 million)
    * Small market size and potential
    * The world population is ~8 billion
  2. Rising globalization, technological trends
    make the world more open to companies
  3. Reacting to global competition and costs
    Firms can lower costs due to economies of scale
    Firms can often compete better in their home
    markets if they reduce costs in host markets
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What makes a desirable international market? (5)

A
  1. STP: Focus on regions where your best audiences are found
  2. 3C’s: Research competitors in each locale
  3. Distribution channels: Develop region-based strategies and
    partnerships
  4. Branding/Promotions: Localize your branding and campaigns
  5. Overall: Be aware of cultural and language differences
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are political/regulatory forces to evaluate when entering an int’l market? (6)

A
  1. Political stability
  2. Industry priorities
  3. Government regulations
  4. Trade sanctions, boycotts
  5. Trade agreements
  6. Tariffs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are economic forces to evaluate when entering an int’l market? (4)

A
  1. Economic Development & Infrastructure
  2. Consumer Income & Purchasing Power
  3. Income distribution; Projected growth
  4. Exchange Rate
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Sociocultural: see slide 21

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are 2 types of trusts?

A
  1. Cognitive trust (task based)
  2. Affective trust (relationship based)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What aspect of technological forces is evaluated when expanding internationally? (1.5)

A

Existing technological infractructure:
1. Transportation
2. Distribution channels
3. Communications
4. Commerce
5. Production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What demographic forces are evaluated when expanding internationally? (6)

A
  1. Size of population
  2. Rate of population growth
  3. Degree of urbanization
  4. Population density
  5. Language
  6. Age structure/composition of the population
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

2 ways to enter a market?

A
  1. Standardize
  2. Customize
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is standardization? (2)

A
  1. Treat entire world as a single country
  2. Consistent strategy across countries (product, campaigns, prices, distribution channels)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are pros of standardization? (3)

A
  1. Economies of scale
  2. Lower R&D expense
  3. Lower advertising expense
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is customization strategy?

A

Adjusting marketing strategy according to the market
* Adapt to cultural, regional, and national differences

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Pros of customization strategy?

A

Closer to local customers wants/needs (but more complex, resource-intensive)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Ways to enter a market (4)

A
  1. Exporting
  2. Licensing
  3. Joint venture
  4. (foreign) direct investment
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is exporting?

A

Producing goods in one country and selling them in another country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are 2 ways to export?

A
  1. Direct exporting: through own distribution
  2. Indirect exporting: through intermediaries
17
Q

What are advantages of exporting? (2)

A
  1. Make least number of changes in the marketing strategies]
  2. (indirect exporting) low risk
18
Q

What are disadvantages of exporting?

A

Less local employment in host country

19
Q

What is licensing?

A

Offering the right to use a trademark, patent, or other similarly valued items of intellectual property in return for a fee
* Types: contract manufacturing, contract assembly,
franchising

20
Q

What are advantages of licensing? (3)

A
  1. Low rusk and capital free
  2. Licensee gains exclusivity and competitive advantage
  3. Creates local employment
21
Q

What are disadvantages of licensing? (2)

A
  1. Licensor forgoes control and obtains less profit
  2. Licensee may gain bargaining power over time
22
Q

What is a joint venture?

A

Agreements between two or more firms to invest together to create a local business, sharing ownership, control, and profits of the new company.

23
Q

What are advantages of joint venture? (2)

A
  1. Greater control
  2. Leverage local partner’s resources
24
Q

What are disadvantages of joint venture? (3)

A
  1. Requires financial, physical, and managerial resources to enter
  2. Endure higher risk
    3, Disagreement on strategic decisions
25
Q

What is foreign direct investment?

A

A firm invests in and owns a foreign subsidiary or division, either establishing business operations or acquiring business assets in the foreign country

26
Q

What are advantages of foreign direct investment? (4)

A
  1. Most control
  2. Cost savings
  3. Better understanding of local market conditions
  4. Less affected fluctuations in exchange rates
27
Q

What are disadvantages of foreign direct investment? (3)

A
  1. Higher risk
  2. Highest financial commitment
  3. Most sensitive to local environment factors (e.g., strikes, unions, education)

Mkt (14 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions