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International Marketing > Term Test > Flashcards

Term Test Flashcards

1
Q

what are the two main barriers to globalization?

A
  1. SRC
  2. Ethnocentrism
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2
Q

What is SRC?

A

it means self reference criterion: one’s own cultural values, experiences, and knowledge as a basis for decisions

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3
Q

What does ethnocentrism mean?

A

ones own culture or company knows best how to do things

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4
Q

why do src and ethnocentrism affect globalization?

A

they impede the ability to assess a foreign market in its true light

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5
Q

What obstacles does SRC product?

A
  • meanings, values, symbols and behaviour that are relevant to our own culture are different from those of foreign cultures
  • relying on Src could produced inadequately adapted marketing
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6
Q

How do we avoid obstacles of globalization?

A
  • define the goal in foreign-country cultural traits, habits, or norms
  • isolate the src influence on the goal
  • redefine the goal without the src influence
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7
Q

what is key to developing a global mindset?

A
  • being tolerant of other cultures
  • understanding such differences and accepting and working with others?
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8
Q

What kind of knowledge is good for globalization?

A
  • cultures
  • history
  • market potential
  • economic, social, and political trends
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9
Q

what is a pack shot?

A

it is a still or moving image of a product
- includes its packaging and labeling, used to portray the products reputation in advertising on TV or other media

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10
Q

what are the 5 stages of internationalization?

A
  1. no international marketing
  2. infrequent marketing
  3. frequent marketing
  4. international marketing
  5. global marketing
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11
Q

what is the EPRG strategy?

A

E: ethnocentric
P: polycentric
R: regional
G: global

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12
Q

what is the “no international marketing” stage

A
  • not interested in going abroad
  • doing so can be very risky
  • can be the case if you are already making money in your own market
  • cost of expansion into other markets is costly
  • # 1 reason, your home market is not saturated
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13
Q

what is the infrequent marketing stage?

A
  • start to receive orders or demand from abroad
  • even though sales can have “low seasons” production can not decrease
  • when there is less local demand, that is when you would export
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14
Q

what is the frequent marketing stage

A
  • demand abroad has increased since you have begun infrequent marketing
  • you begin to sell abroad on a regular basis
  • focus is still local
  • covers 1 to 2 foreign countries
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15
Q

what is the international marketing stage?

A
  • starting to expand to >5 countries
  • have to make product changes for different markets
  • export or manufacture abroad
  • license, franchise
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16
Q

what is the global marketing stage?

A
  • treat markets in all countries the same
  • no changes to products “universal appeal”
  • iphone, coca-cola
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17
Q

what kind of product needs to change in many markets?

A

food offerings (mcdonalds)

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18
Q

what product needs seldom change, if not any

A

electronics (iPhone)

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19
Q

what stages would use an ethnocentric strategy ?

A

none or infrequent

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20
Q

what stages would use a polycentric strategy?

A

infrequent or frequent
- means more than one, many markets

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21
Q

what stages would use a regional strategy?

A

international
- can be thought of as a continent, region of countries

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22
Q

what stages would use a global strategy

A

global stage, global brands
- apple, samsung, coca-cola, nike, bmw

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23
Q

what are the parts of the international product life cycle?

A
  • export
  • foreign production
  • foreign competition
  • import
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24
Q

what is a one-way export?

A
  • exporting a product
  • not importing anything in return
  • not simultaneous
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25
Q

what is a two-way export?

A
  • simultaneous
  • exporting something
  • importing something back
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26
Q

why would we import and export at the same time?

A
  • for natural production as an example
  • growing produce, when it is out of season we will need to import it
  • when it is in seasons, we can export it
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27
Q

product-differentiation as a two-way export

A
  • a good example is US car manufacturers.
  • Jeep, Dodge, etc.
  • However, they choose to import cars as well
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28
Q

What is a parallel import?

A
  • distributors in one country sell in another country
  • due to overstocking
  • luxury product retailers do this
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29
Q

international product strategy examples

A
  • language, packaging
  • for sale in specific countries only
  • product may not be suitable for another country
  • warranty/repair is not transferable between countries
  • close relationship with distributors
  • retail price
  • wholesale price
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30
Q

what is the retail coefficient?

A

the factor the production price, or acquisiton price, is multiplied by to create the retail price.
ex. $1 for pen production, retail coefficient is 2.8, retail cost in $2.80

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31
Q

how is the percentage of profit calculated?

A

selling price minus cost of acquisiton/selling price
ex. (2.80 - 1)/2.8

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32
Q

what are examples of promotions?

A
  • 10% off
  • BOGO
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33
Q

what is the contribution margin?

A

the amount of money made after cogs
- sell a product for 10, cogs is 3, so contribution margin is 7

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34
Q

what is a good idea for a logo?

A
  • a universally understood term
  • a stop sign, when we see a red octagon, without the word stop we think of stop sign
  • female symbol, upside down cross with a circle on top
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35
Q

what does the “brand” serve the function of?

A
  • years of advertising
  • good will
  • quality evalutation
  • product experience
  • other attributes the market associates with the product
  • increase in travel by consumers
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36
Q

what do you need to attach a meaning, personality or brand?

A

you need to have a LOGO!

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37
Q

what is Saussure’s Theory

A

there is a signifier
- logo, Mcdonalds M
and there is the signified
- the message, the personality you can attach
- the meaning attached to it and the meaning underneath

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38
Q

in order to have a signified message there is 3 components of a brand you need

A
  1. symbol
    - logo, we need to know if arbitraty
  2. icon
    - gives us a feeling, positive or negative
  3. index
    - lamborghini logo is a bull, what does that index?
    - fast strong
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39
Q

what is a traditional store?

A
  • over the counter
  • think protected drugs you need to ask for
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40
Q

what is a modern store?

A
  • can be online
  • can be self serving
  • think grocery stores (except for deli) etc
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41
Q

what are branded stores?

A
  • stores like safeway or walmart
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42
Q

what is the biggest difference between traditional stores and modern stores?

A
  • modern stores and branded stores have an overlap!
43
Q

what are the 5 c’s of distribution?

A
  1. Character
    - the physical properties of product (shape, size)
  2. cost
    - cost of distribution
  3. coverage
    - what percentage of the country do you want your product to be available in
  4. continuity
    - seriuos issue if family-owned. coca cola lured pepsi distributor in brazil, may not carry the line with less margin
  5. control
    - is it family owned? megastore?
44
Q

what is the CALVO doctrine?

A
  • if there is a dispute between the manufacturer and distributor then the dispute will be settled in the country of the distributor
45
Q

how do we recruit and motivate distributors?

A
  • locate them
    go to the country and see, tradeshow, governments, third party recommendations
  • select them
    go and see, trustworty, references, size of firm
  • motivate them
    financial, psychological rewards (trips)
  • control them
    measurable performance indicators, sales volume, market share
  • termination
    easy in US, not in international markets
46
Q

what are two other kind of stores?

A

-concession stores
- stores in stores (p.o. at shoppers)

47
Q

what is a “counter” store?

A

a store that will do everything for you

48
Q

what is a “corner” store

A

2 wall,
obviously to have a corner you need at least 2 walls

49
Q

what is a “store in a store”

A

canada post inside shoppers, can also be called a concession store

50
Q

what are common terms for fake products?

A
  • counterfeit
  • pirated
  • imitation
  • replica
51
Q

what are the 5 stages decision making in international marketing?

A
  1. decision to go abroad
  2. select TME (shift-share, trade off)
  3. method of entry
    - equity (IJV or FDI)
    -non-equity (export or franchising)
  4. overall strategy
    - fall (pour all resources into one or selected markets)
    - sprinkler (entering in many countries, in order to gain small footholds)
    - sequence (able to integrate and optimize international operations between countries vs within a trading block
  5. marketing strategy
52
Q

what are the 7 P’s of the marketing strategy?

A
  1. product
  2. promotion
  3. place
  4. price
  5. people
  6. process
  7. physical evidence
53
Q

what are the components of domestic market extension orientation (no international marketing, infrequent)?

A
  • extension of domestic products into foreign markets
  • international markets are secondary
  • prime focus, market excess domestic products abroad
  • firms orientation is domestic
54
Q

what are the components of a multi-domestic market orientation (infrequent, frequent)

A
  • realizes the difference b/w/ domestic and foreign markets
  • different countries need different products
  • seperate marketing strategies for each country
  • subsidiaries operate independent of one another
  • products are adapted, advertising is localized
  • might not standardize products
55
Q

what are the components of a regional/global orientation (stages regional and global)?

A
  • truly global, single market
  • emphasis on standardization, of both product and process
  • strive for efficiencies of scale by standardizing market mix across national borders
  • pursue a global strategy for major brands or multi-domestic strategy for other brands
56
Q

what are the product components for adaptation?

A
  • core component (intrinsic)
  • Augmented product component (features)
  • support services component (increase life)
57
Q

what are examples of a core component?

A
  • LHS driving in different countries
  • different electrical outlers because of voltage
  • metric or imperial system
58
Q

what are examples of augmented product components

A
  • packages
    fight the elements (high humidity), reuse containers, language on packing, font size, country of origin requirements, color compatible with culture, retail price mus tbe shown
59
Q

what are examples of support services components

A
  • repair and maintenance
  • instruction manuals
  • installation instructions
60
Q

what are consumer goods/services?

A
  • offered from large and small firms
  • durable goods (cars, fridge, computer)
  • non-durables (foods, drugs, toys_
61
Q

what are industrial goods or services?

A
  • offered by large firms
  • few buyers
  • driven demand swing market
  • high volatility
62
Q

how can we reduce volatility of a product?

A
  • broad product line
  • spread risks across several markets
  • predicting demand, however this is difficult
63
Q

what are factors driving international demand?

A
  • tech
    demand lateset tech to exapnd industrial base (build/upgrade infrastructure), ATMs, tel. Firms)
  • industrial products
    raise the GDP, help industrialization
  • product quality
    value (quality or cost), better quality for good price, roaming feature on phones
  • definition of quality
    market perceived quality (tourist, emotion), performance quality, price-quality relationship, specification
  • universal standards
    FPS/MKS metric system, different size in shoes or clothing, standard industrial classification (SIC) 4 digit
64
Q

what is green marketing?

A
  • a factor driving international demand
  • demand for environmentally safe products
  • follows guidelines for eco labeling (bio-degradable and non polluting
65
Q

what are some characteristics of services?

A
  • intangibility
  • inseparability
  • heterogeneity
  • perishability
66
Q

what are some service quality dimensions?

A
  • reliability
  • responsiveness
  • assurance
  • empathy
  • tangibles
67
Q

where are the sources of value for services?

A

from process

68
Q

what is protectionism?

A

a barrier to internationalization, requires a professional pass certification exam in local language, recognition of foreign credential, restricted movement of people, and intellectual property (think of knock offs in china and india, loose laws there)

69
Q

besides protectionism, what are other barriers to internationalization?

A
  • data transfer across borders (individual data, insurance)
  • cultural barriers (smile in service, talking with class, tip amount, superstitions)
    -ex. vacation packages in japan are shorter than us
  • no tips in china, japan or turkey
70
Q

what are some opportunities for international services overseas?

A
  • insurance
    -atm
  • cable tv
  • sports events
  • higher education demand in india
  • call centerse
  • fashion, luxury, beauty related products
  • service after sales
71
Q

what are the two kinds of service failures?

A
  • core service failure
    service mistakes, billing error, service catastrophe
  • service encounter failure
    uncaring, impolite, unresponsive, unknowledgable (think of poor service at Sdm)
72
Q

what would make someone switch a service?

A

poor response to service failure
- competiton
- ethical issues (unsafe, conflict of interest)
- inconvienience ( location, hours of operation, wait time)

73
Q

what are some customer service failure responses?

A
  • complain to store or manufacturer
  • stop buying brand or from the store
  • warn friends, word of mouth
  • complain to private or government agencies
  • intiate legal action
74
Q

what does a brand explain?

A
  • explains a product and what it stands for
75
Q

4 branding strategies

A
  1. private brands
  2. multiple national brands
  3. global brands
  4. luxury brands
76
Q

what is a private brand?

A
  • typically not exported
  • are a threat to foreign brands
    higher margin, higher quality, lower price, receive preferential shelf space, strong in store promotion, appeal to consumers
  • to maintain market share, they do competitive pricing and provide real value to customers
77
Q

what are components of multiple national brands

A
  • global branding is difficult
    obscene, inappropriate
    unappealing patriotic consumers
    local brand has more market share
  • needs adjustment for diversity, type of products, market needs
  • country image effect
    english tea, french perfume, italian leather
  • country of origin effect
  • made in canada
78
Q

what are the components of global brands

A
  • same positioning worldwide
  • focus strategy to target specific consumers (market is large, eoncomies of scale in mareketing , producing and distributing, standardization, transportation, storage, etc)
    -centralize the concept
  • dencentralize the execution (market information from lcoal team)
79
Q

branded house example

A
  • all sub brands use the same master
    google
  • google books
  • google groups
  • google images
  • google maps
80
Q

what is a house of brands

A
  • consist of various brands, each sub-brand operates independently and obtain seperate market share and profits
  • P&G
  • tide
  • folgers
  • pampers
81
Q

what is a Hybrid brand house?

A
  • some companies combine the two types, such as coca cola and Ge. this type enjoys the advantages of both
  • Coca Cola
  • Minute Maid
  • Sprite
  • Fruitopia
82
Q

what are the components of luxury brands

A
  • highly differeneitated products and services
  • brands acts as communication tool
    (message, aspirational, true luxury brands)
  • ex. armani, burberry, gucci
83
Q

Marketing strategy (personality)

A
  • some traits are more desirable than others
  • personality should match most closely with the product
84
Q

how to measure a brand personality?

A
  • 42 item construct !!!
85
Q

Dimensions of brand personality

A
  • sincerity
  • excitement
  • competence
  • sophistication
  • ruggedness
86
Q

components of international distribution

A
  1. distribution structure
    (traditional, modern, concession)
  2. factors affecting choice of channel (character, coverage, continuity)
  3. locating and managing channel members (locating, selecting, motivating, etc.)
87
Q

Traditional appraoch to international distribution

A
  • import otiented structure (prevent in emerging markets)
  • high price, small number of affluent customers
  • sellers market, demand exceeds supply
  • absense of cars and telephones
  • local monopoly of smalll stores
  • buy daily vs, b-weekly in canada
88
Q

modern or online appraoch to distribution

A
  • hypermarkets, shopping malls, catalogues, internat
  • discount, self-service, etc.
89
Q

different pricing methods

A
  • penetration
  • parity
  • skimming
  • prestige
  • cost plus
  • cost minus
    ec.
90
Q

what are the 5 factors affecting international pricing?

A
  1. parallel imports
  2. inflation
  3. exchange rate
  4. price escalation
  5. government influence
91
Q

inflation components

A
  • eliminates consumers purchasing power
  • must be careful with price quotations and supply contracts
  • increase brand value
  • retain and win trust of consumers
92
Q

exchange rate components

A

weak currency –> export and vice-vera
- govt may intervene if too many fluctuations
- review entire operation system
- adjust cost structure
- increase the brand value
- check mode of operation in foreign markets

93
Q

price escalation components

A
  • selling overseas naturally = increase in price, operating, transportation, insurance costs)
  • import duties as well
    what to do?
  • move to low cost manufacturing countries
  • lower distribution costs(internet)
    -lower features
    lower qualtity
  • change classification fo product to save on duty
  • adjust dimensions (shoes less thick)
94
Q

government influences components

A
  • keep retail margins below exorbitant level
  • correlation between car-owners and superstores visits
  • MSRP (manufacturers suggested retail price)
  • adjust interest rate
    monitor market to prevent abuses (canada competition bureau)
95
Q

5 strategic decisions in international expansion

A
  1. expand or not
  2. international market evaluation (IME)
  3. Mode of entry (MOE)
  4. overall strategy
  5. marketing mix
96
Q

factors of the expand or not decisions

A
  • market saturation
  • slow population growth
  • obsolescence, short lifecycle (phones)
  • new market can have untapped demand, production can be easier
  • unfavourable or favourable trading blocks (diplomatic relations)
97
Q

factors of evaluating international markets

A
  • emerging markets pose a special problem, inadequate marketing infrastructure, income levels
  • segmentation variables (culture determines customer behaviour, interests, opinions)
  • what countries? market size? growth? competitors?
98
Q

components of mode of entry

A
  • market characteristics (potential sales, strategic importance, cultural differences)
  • company capability
    (company characteristics, the market knowledge)
    ex. exporting, contractual agreements, international alliances, foreign direct investment
99
Q

what are some examples exporting?

A
  • indirect via domestic distributors
  • direct to consumer
100
Q

what are some examples of contractual agreements?

A
  • contract manufacturing
  • licensing
  • franchising
101
Q

what are some examples of international alliances?

A
  • strategic international alliances
  • consortia
  • international join ventures
102
Q

what are some examples of foreign direct investment?

A
  • sales office
  • mergers and acquisitions
  • greenfield
103
Q

what is the decision behind overall strategy?

A
  • waterfall (pour all resources that are available into one or a selected few markets)
  • sprinkler (a firm spreads its resources in order to gain even small footholds across as many markets as possible
  • sequencing
    (able to integrate and optimize international operations between countries vs within a trading block)
104
Q

what are the components of a marketing mix?

A
  • 7 p’s!
  • coffee example
    per capita consumption
    bean, ground, powder?
  • dark raost, blonde?
  • lunch, breakfast?
  • ## drink black, milk, cream?

International Marketing (1 decks)

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