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Marketing > Session 21 - Global Marketing > Flashcards

Session 21 - Global Marketing Flashcards

1
Q

What is Global Marketing?

A

The process of using the 4Ps to meet the needs of individuals and businesses in markets across countries and cultures.

It is sensititve to cultural, economic, legal and linguistic differences

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2
Q

What are the major decisions in global marketing?

A
  1. Deciding whether to go international
  2. Deciding which markets to enter
  3. Deciding How to enter the market
  4. Deciding the global marketing program
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3
Q

When deciding whether to get international: why bother expanding internationally?

A
  1. Strategic reasons
    - Foreign markets with profit opportunities/stagnant or shrinking domestic markets
  2. Reacting to global competition and costs
    -Lower costs due to economies of scale and compete better in home market if overall costs are lower
  3. Regulatory reasons: lower tax on export earnings
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4
Q

What are the steps to be taken when deciding which markets to enter?

A
  • Set marketing objectives and policies and evaluate company’s own capabilities
  • volume of foreign sales
  • how many countries

Then rank markets by indicators of market potential

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5
Q

What is an environmental scan when ranking markets by market potential?

A
  1. Demographics/geographic/socio-cultural
  2. Economic/Competitive
  3. Technological
  4. Political-regulatory
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6
Q

What is demographics and geographic environment

A

Demographic:
- Size of population
- growth of pop
- degree of urbanization
- pop density
- Age structure and composition of population

Geographic:
- Physical size
- climate

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7
Q

What is socio-cultural environment?

A

Every country has unique culture defined by: values, customs, language, cultural symbols, norms, taboos

Business behavior: personal distance, direct vs diplomatic, meeting and greeting

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8
Q

What is economic/competitive environment when deciding which markets to enter

A

Economic:
- Stage of economic development
- Economic infrastructure
- Consumer Income and Purchasing power
- GNP per capita/ growth of GNP
-Income distribution

Competitive:
- Industrial structure
- Major players

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9
Q

What is technological environment when deciding which market to enter?

A
  • level of technological skills
  • existing production technology
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10
Q

What is political-regulatory environment when deciidng which markets to enter?

A
  • Government bureaucracy
  • Political stability
  • Trade regulations
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11
Q

Why is international trade barriers a factor that can affect international marketing?

A

Because trade barriers could damage business between countires (tarrifs, embargo, etc)

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12
Q

What is a tarrif?

A

Taxes levied against foreign goods

Revenue tariffs: Raise funds for the government

Protective tariffs: raises price of a product to match or even exceed that of a domestic product

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13
Q

What is a Quota?

A

Limits the amount of product that can be imported into country.

e.g. EU has quotas on japan and china manufactured products which increases car prices by 25% in EU

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14
Q

What is an embargo

A

A total block on trade between one country and another

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15
Q

How does protectionism affect world trade?

A

Tarrifs increase prices and quotas limit supply, therefore world trade decreases

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16
Q

What is world trade organization?

A

Organization that seeks to enhance free trade. Objectives:

  • Reducing tariffs, quotas and embargoes
  • Encouraging copyright and patent protection
  • Reducing dumping or the practice or selling a product at below-market prices in a foreign country
17
Q

What market entry strategies having the higher degree of control and profit potential?

A

In order of lowest to highest profit AND control:
1. Exporting
2. Licensing
3. Joint Venture
4. Direct investment

18
Q

What is exporting when entering a new market?

A

Producing goods in one country and marketing them in another country

19
Q

What is licensing when entering another global market

A

Agreement between a firm in one country and a firm in another country and a firm in another country. For international marketing, it is the agreement to use the product, processes and brand name

(FORM OF LICENSING)

20
Q

What is a joint venture?

A

When two firms invest together to create a local business. The firms share ownership, control and financial rewards

21
Q

What are the roles of the two parties in a joint venture?

A

International marketer: branding, manufacturing/service processes, training

Local firm: Understanding of local regulations, local consumer behavior, quick distribution

22
Q

What are the advantages/disadvantages of Joint ventures?

A

Advantage: Share ownership, great profitability, more control benefit from other companies, reduce entry-risk and prevent governmental problems

Disadvantages: More risk, more direct investment, disagreement between two firms, limited time period

23
Q

What is direct investment?

A

When a firm manufacturers their products in another country or whne a firm owns a foreign company.

24
Q

What are the advantages/disadvantages of direct investment?

A

Advantages:
- High control, lower costs (cheaper labor, raw mats, foreign gov incentives), most potential benefits, improve brand image. Adapt well

Disadvantages:
- Higher risk, higher investment, no transfer of knowledge

25
Q

What practices and problems take place when deicing on global marketing program STP process?

A

Common practice: Treat on country as one homogeneous segment

Problem: needs of potential consumers within a country vary substantially

26
Q

Review Slides 45-46

A

4ps in entry

27
Q

What is Straight extension?

A

SE is a strategy where the firm markets the same products using the same promotion or comunication approach in the new market as in the old market

28
Q

What is product adaptation strategy?

A

PA strategy where the firm markets a customized new product to fit the needs of the new market using the same promotion or communication approach in the new market as in the old market

29
Q

What is promotion adaptation strategy?

A

PRA is a strategy where the firm markets the same product to the new market using a different promotion or communication approach versus the approach used in the old market

30
Q

What is dual Adaptation strategy?

A

DA is a strategy where the firm markets a new customized product to the new market using a different promotion approach versus the approach used in the old market

Marketing (14 decks)

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