The Two Cs of International Marketing

Question 1

THE TWO CS OF INTERNATIONAL MARKETING

Answer 1

After a company has decided on its product, price, place, and promotion, it must ensure that there is enough demand for its product.

Question 2

Demand

Answer 2

Involves two factors (often referred to as the two Cs of international marketing):
- Consumers
- Competition

Question 3

CONSUMERS

Answer 3

CONSUMER BEHAVIOUR:
Is the study of the process by which
customers come to purchase and
consume a product or service.

Question 4

TARGET MARKET & DEMOGRAPHICS

Answer 4

• Target market is the segment of the consumer market to which a particular good is targeted.
• Target markets are typically defined by demographic information, which is statistical data about various aspects of the population such as:
• Age
• Stage in family life cycle
• Occupation
• Economic circumstances
• Lifestyle

Question 5

4 FACTORS THAT INFLUENCE CONSUMER BEHAVIOUR

Answer 5

CULTURAL, PERSONAL, SOCIAL, PSYCHOLOGICAL

Question 6

CONSUMERS AND ETNHOCENTRISM

Answer 6

• Canadian businesses wanting to sell abroad must avoid ethnocentrism.
• Ethnocentrism is the belief that your own culture, values, beliefs, and customs represent the right way of doing things, and that other value systems are not important.

Question 7

WAYS TO AVOID ETHNOCENTRIC THINKING

Answer 7

• Visit the country you want to include in your marketing plan.
• Read country profiles, especially information provided by the Department of Foreign Affairs and International Trade.
• Offer your product on the Internet in the language of the target nation to determine if there is demand for it.

Question 8

COMPETITION

Answer 8

DIRECT
Businesses that provide products or services that are almost identical to those offered by the company.

INDIRECT
Consumers in every country have a certain amount of discretionary income, and regular spending habits.
Any product that vies for consumers’ spending money is competition.

Question 9

COMPETITIVE ADVANTAGE

Answer 9

In marketing it refers to the ability of one company to produce a product more cheaply than another company.

Question 10

LOWER PRODUCTION COSTS

Answer 10

According to the theory of economies of scale, the more products you can make in one factory, using the same labour and sharing overhead costs, the cheaper each individual unit is to make.

Question 11

PRODUCT DIFFERENTIATION

Answer 11

Difference in flavour, quality, packaging, scent, etc.

Question 12

BRAND EQUITY

Answer 12

The number of consumers that can identify the brand.