Unit 2: International Marketing

Question 1

How does marketing strategy differ from marketing plan?

Answer 1

Marketing strategy is what is needed to achieve a company’s goal while marketing plan are the steps needed to be taken to achieve the company’s goal.

Question 2

What is customer retention?

Answer 2

The ability of a company to retain or keep its customers for a certain amount of time.

Question 3

What is product portfolio?

Answer 3

Product portfolio is the collection of all the products a company offers.

Question 4

What is SWOT?

Answer 4

It is a type of analysis made to prepare a company entering a new market. It focusses on strengths, weaknesses, opportunities, and threats.

Question 5

What is STEP?

Answer 5

It is an analysis made to prepare a company entering a new market. It identifies if adaptations should be made by focussing on sociological, technological, economic, and political factors.

Question 6

What is brand positioning?

Answer 6

It is how a product is placed in the marketplace in terms of the 4 P’s, especially which market segment

Question 7

What are some of the problems companies may face when they try to internationalize a brand?

Answer 7

There may be language barriers making some slogans just untranslatable.

Question 8

What are some of the advantages/drawbacks of standardized global advertising?

Answer 8

Advantages: save costs, quality assurance (same in Bangkok and in Tokyo, and so on), larger target market
Drawbacks: inappropriate for some cultures, not localized, doesn’t understand the needs of customers

Question 9

Why do some brands/products fail in other countries? Give an example.

Answer 9

Some brands/products fail in other countries because they may fail to understand a different culture, lack research, be unaware of competition, and poor preparation. Example = Tesco in Japan.

Question 10

What’s the difference between a retailer and a wholesaler?

Answer 10

Retailers sell directly to consumers in small amounts but wholesaler sell to retailers first in large amounts.

Question 11

How is brand stretching different to brand extension?

Answer 11

Brand stretching is when a product is launched into a new, unrelated market, but brand extension is when a product is launched into the same broad market.

Question 12

Name 2 risks that exist with brand stretching and brand extension.

Answer 12

It can make customers feel alienated or confused. Companies may face more competition from a more entrenched rival.

Question 13

What are 5 main ways to enter an overseas market? and elaborate on them.

Answer 13

1) Indirect export -> exports go through an intermediary or middleman such as an export agent
2) Direct export -> company handles their own exports
3) Licensing -> company sell the rights to use a manufacturing process, trademark or patent for a fee or royalty; or they may also enter franchise agreements
4) Joint ventures -> two companies work together to develop a particular market
5) Foreign Direct Investment (FDI) -> company sets up its own operations and production process in a new country or acquires an existing company and expands its operations

Question 14

What is royalty in international marketing?

Answer 14

A royalty is the fee other companies pay for using your product or service; mostly in the music industry

Question 15

What is a patent?

Answer 15

Patent is a type of legal protection which serves to prevent other companies from simply producing the exact same product

Question 16

What is IP?

Answer 16

IP stands for intellectual property which is a type of property that includes intangible creations of the human intellect

Question 17

What are the three steps in the internationalization process?

Answer 17

National (no export activities except through independent agents) -> International (opening of overseas sales offices or authorizing distributorships abroad) -> Multinational (establishment of production and/or other operations abroad)

Question 18

What is meant by “think global, act local?”

Answer 18

When marketing your product, you should consider the whole world or “global” as your market, but you should still adjust your product to cater to the local market

Question 19

How is glocalization done?

Answer 19

Glocalization is done by doing marketing with consideration to both the local and the global market

Question 20

How does direct export differ from FDI?

Answer 20

Direct export differs from FDI in that in direct exports, companies handle their own exports without setting up operations or production in other countries, for example, only setting up an overseas sales office

Question 21

Explain franchising.

Answer 21

Franchising is when the owner company (franchisor) allows other companies (franchisee) to use their business model and brand but retains control of the brand and licenses. In addition, the owner company also controls how the business is run.

Question 22

What is bigger, Franchising or Licensing? and explain the difference between them

Answer 22

Franchising is bigger and includes licensing. They differ from each other in that in franchising, the owner company has control over how other companies are run.

Question 23

Explain licensing.

Answer 23

Licensing is when a company (licensor) permits other companies (licensee) the usage of its brand, design, or IP for commercial purposes. They are usually non-exclusive.

Question 24

What is the main advantage of adapting a product to different overseas markets? What is the main disadvantage?

Answer 24

The advantage is that the company will be able to reach and attract new and different customers, but the disadvantage is that it costs a lot.