unit 10- global

Question 1

what are the four forces that affect global marketing?

Answer 1

• company influence :
  = if McDonald’s decides to introduce a new menu item tailored to local tastes in each country it operates in
• industry influence :
  = in the smartphone industry, the trend towards offering budget-friendly models in emerging markets reflects an industry influence on global marketing strategies.
• market influence
  = luxury car companies like BMW and Mercedes-Benz adapt their marketing strategies to emphasize status and prestige in markets like the United States and Europe, where these qualities are highly valued by consumers.
• regional influences
  = economic downturns in certain regions may lead companies to adjust their pricing strategies or product offerings to remain competitive in those markets.

Question 2

on a modes of global market entry graph, what is on the top and bottom x-axis and y-axis?

Answer 2

x- axis: commimennt of reources and risk (increases left to right)
- y-axis: control (bottom to top)

Question 3

on a modes of global market entry graph, what is the high end and what is at the low end?

Answer 3

• high end: Froeign direct investments, subsidy, commercial joint venture, production joint venture
• low end: licensing and indirect export

Question 4

what is foreign direct investment?

Answer 4

building your own manufacturing

Question 5

what is a subsidiary?

Answer 5

company owned by another parent company

Question 6

what is a joint venture?

Answer 6

partnerships between two or more parties

Question 7

what is licensing? export?

Answer 7

• indirect exporting:company uses a local third party to handle logistics of exporting overseas
• direct exporting : gives company greater control since intermediaries are in foreign county and higher return
• licensing: patents etc

Question 8

how do we have to conduct market research in global marketing?

Answer 8

we have to do market research for international and regional the same way

Question 9

what are the three positions for marketing strategies?

Answer 9

• global consumer culture: identifies a brand with a specific global culture
• local consumer culture: brand associated wiyh local cultural norms bc its been manufactured locally
• foreign consumer culture- associate product or brand with specific global culture

Question 10

adaption strategies? types and what they are?

Answer 10

• straight extension: does not change product and don’t change communications
• communication adaptation: no PDT change and adapt communications
• product adaptation: adapt prdt/ no comm change
• dual adaptation: adapt product/commun
• product invention: develop new d

Question 11

what are the three pricing strategies?

Answer 11

• extension or ethnocentric (one price fits all)
• geocentric (both)
• adaption or polycentric (completely decentralized)

Question 12

gray market

Answer 12

• is created when unauthorized sellers purchase products at a lower price in one country and illegally resell them at a higher price in another
• when companies employ a polycentric or country-speific pricing strategy

Question 13

what is enterprise marketing?

Answer 13

• risk/ chasm/innovation cycle/ disruptive innovation

Question 14

what re first movers?

Answer 14

• first market enters
• not always the best thing to be first

Question 15

what are the advantages of being a first mover? disadvantages?

Answer 15

• Advantages:
  sets standards and customer expectations
  preempt scare resources
  reputation
  switching costs
• disadvantage
  free rider effect
  assume technology and market risk for industry
  inertia from installed base (investors and managers)

Question 16

what is disruption and what can it do?

Answer 16

• opens up the low end for markets because it is dramatically cheaper than existing solutions
• no proprietary tech
• performs differentially (worse)
• diffuses quickly

Question 17

why dont large incumbents understand disruption?

Answer 17

• they are depdnent on current customers (installed base)
• cannot analyze a market that does not exist
• focused on large market
• success starts a race to build and improveexisting prodt
• derivatives strategic thinking which leads to convergence

Question 18

what are the four coperate immune systems?

Answer 18

• financial = margin pressure/ size of opppt/capex
• operational : PDT qualoty/supplier/ customer service
• other: brand dilution/ PDT development/ no toleration for failure
• the winners curse (active inertia)

Question 19

what is the business model innovation?

Answer 19

• low end disruption
• new tech needing a model \
• solves a unmet customer need
• rxn to low end distribution `