Unit 3 Flashcards

Question

6 ways to enter foreign markets (BEST LA) 𝗕𝗥𝗔𝗡𝗖𝗛 𝗣𝗟𝗔𝗡𝗧,𝗘-𝗖𝗢𝗠𝗠𝗘𝗥𝗖𝗘,𝗦𝗔𝗟𝗘𝗦 𝗔𝗚𝗘𝗡𝗧/𝗔𝗚𝗘𝗡𝗖𝗬 , 𝗧𝗥𝗔𝗗𝗘 𝗦𝗛𝗢𝗪,𝗟𝗜𝗖𝗘𝗡𝗦𝗜𝗡𝗚 𝗔𝗚𝗥𝗘𝗘𝗠𝗘𝗡𝗧, 𝗔𝗖𝗤𝗨𝗜𝗦𝗜𝗧𝗜𝗢𝗡𝗦

Answer 1

𝗕𝗥𝗔𝗡𝗖𝗛 𝗣𝗟𝗔𝗡𝗧🏭 Building and staffing a branch plant is the most expensive market entry strategy, but could be the most effective. The three major advantages to owning a branch plant in a foreign country are: Shipping costs are lower Import regulations and tariffs are not an issue Product modifications are easier 𝗘-𝗖𝗢𝗠𝗠𝗘𝗥𝗖𝗘💻💸 The use of the Internet to sell products and services to customers in a much larger areas than could be reached through a traditional retail location. Anywhere in the world can be an international business. Quality of the website is important. Cost of shipping to consumers and payment options. 𝗦𝗔𝗟𝗘𝗦 𝗔𝗚𝗘𝗡𝗧/𝗔𝗚𝗘𝗡𝗖𝗬 🤵 An individual hired and paid a commission by a company to market its product to potential buyers and distributors, often in a foreign country. E.g. men’s clothing rep; show rep; giftware rep; jewellery rep; Can provide: Info on local business practices Help navigate through a country’s complex trade laws Offer a database of good sales leads Appropriate marketing and distribution strategies for the product in that country. 𝗧𝗥𝗔𝗗𝗘 𝗦𝗛𝗢𝗪🏟 A collection of manufacturers and distributors of similar products who: rent space set up display booths sell to registered buyers seeking products for their retail businesses. Can save them hundreds of hours and thousands of dollars in buying trips. 𝗟𝗜𝗖𝗘𝗡𝗦𝗜𝗡𝗚 𝗔𝗚𝗥𝗘𝗘𝗠𝗘𝗡𝗧📜 Is a contract giving someone the right to use a patent or trademark. Manufacturers pay the owner of the trademark a fee, usually a royalty, which is a percentage of the sale of the licensed product. Three types of licensing agreements: Manufacturing agreements the rights to manufacture a product Distribution agreements the rights to sell a product (exclusive distribution deal) Franchising agreements grants the ownership of a manufacturing or distribution company to a local franchisee 𝗔𝗖𝗤𝗨𝗜𝗦𝗜𝗧𝗜𝗢𝗡𝗦💸🤝 Buy the company it competes with in a foreign market. Then can close it or use its marketing connections to expand your own market. Can be the most effective way for a company to deal with competition in a foreign or domestic market.

Answer 2

1. Penetration Pricing (walmart,dollarama) Where the organization sets a 𝗹𝗼𝘄 𝗽𝗿𝗶𝗰𝗲 to increase sales and market share. In an international market, this would influence buyers to try your product --------------------------------------------------------------- 2. Price Skimming ༺♥༻Entering a market at a high price during the introductory phase ༺♥༻Early adopters can help migrate the high cost of entering the new country ༺♥༻Skimming provides the image that the product is innovative and exclusive ༺♥༻Once the early adopters have tried the product, the company then lowers the price Example: Game consoles (PlayStation, Xbox)

Answer 3

❀Competition Pricing❀ Setting a price in comparison with competitors. A firm has three options, price lower, price the same, or price higher. ❀Product Line Pricing❀ Pricing different products within the same product range at different price points. An example would be Ford offering different F 150’s with different features at different prices. The greater the features and benefits obtained the greater the consumer will pay. ❀Premium Pricing❀ The price is set high to reflect the exclusiveness of the product. Evokes an illusion of luxury and high quality High price is sustained Example: Rolls Royce A Rolex watch ❀Psychological Pricing❀ The seller will consider the psychology and the positioning of price within the market place. The seller will therefore charge $199 instead of $200. Provides an illusion of less money because consumers tend to concentrate on the first number rather than the whole number This is important for international pricing because numbers have different meanings in different cultures read the slides if u want. cool facts at the end: https://docs.google.com/presentation/d/1UnP4Q8fUhmOmMIHJLsu0ftwspeq7aCwTVEDTvhNEmYU/edit#slide=id.g1ca832370ff_2_5

Answer 4

Is needed to convince the customer to buy the product. It lets consumers know the product/service: 1.is available 2.it's features 3.how it can be useful 4.it's advantages and disadvantages 5.how it compares to the competition Businesses must identify the best way to reach their target market, taking into consideration the cost of different methods. E.g. An ad on social media may be reach more people than an ad in a newspaper.

Answer 5

1.Coupons 2.Contests 3.Advertising 4.Premiums (free goods offered with purchase) 5.Personal Selling (direct contact/talking with a salesperson) 6.Social media

Answer 6

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

Answer 7

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 Social influence variables (family background, reference groups, roles and status)

Answer 8

(𝗖𝗨𝗟𝗧𝗨𝗥𝗔𝗟,𝗣𝗘𝗥𝗦𝗢𝗡𝗔𝗟, 𝗣𝗦𝗬𝗖𝗢𝗟𝗢𝗚𝗜𝗖𝗔𝗟, 𝗦𝗢𝗖𝗜𝗔𝗟) CULTURAL Culture (Canadian, American) Generation (x, Y, Boomer) Religion Social Class (upper, middle, lower) Ethnicity PERSONAL Income Age Family role (parent, child, sibling) Education Gender Life cycle stage (single, married) Occupation Economic Situation (rich, poor) Lifestyle (outdoors, high flyer) Personality (outgoing, shy) PSYCOLOGICAL Motivation (why you want to buy something) Perception ( Beliefs (about product, brand, company) Attitudes Values (value environment) SOCIAL Family Peer group Friends Organized groups (girl guides, sports teams)

Answer 9

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. WAYS TO AVOID ETHNOCENTRIC THINKING 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.

Answer 10

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.

Answer 11

( 𝗣𝗥𝗢𝗗𝗨𝗖𝗧 𝗗𝗜𝗙𝗙𝗘𝗥𝗘𝗡𝗧𝗜𝗔𝗧𝗜𝗢𝗡, 𝗕𝗥𝗔𝗡𝗗 𝗘𝗤𝗨𝗜𝗧𝗬, 𝗟𝗢𝗪𝗘𝗥 𝗣𝗥𝗢𝗗𝗨𝗖𝗧𝗜𝗢𝗡 𝗖𝗢𝗦𝗧𝗦, 𝗟𝗢𝗪𝗘𝗥 𝗗𝗜𝗦𝗧𝗥𝗜𝗕𝗨𝗧𝗜𝗢𝗡 𝗖𝗢𝗦𝗧𝗦) In marketing it refers to the ability of one company to produce a product more cheaply than another company. Typical competitive advantages are: 𝟭. 𝗟𝗢𝗪𝗘𝗥 𝗣𝗥𝗢𝗗𝗨𝗖𝗧𝗜𝗢𝗡 𝗖𝗢𝗦𝗧𝗦 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. 𝟮. 𝗟𝗢𝗪𝗘𝗥 𝗗𝗜𝗦𝗧𝗥𝗜𝗕𝗨𝗧𝗜𝗢𝗡 𝗖𝗢𝗦𝗧𝗦 Companies with factories in their target market have lower costs. 𝟯. 𝗣𝗥𝗢𝗗𝗨𝗖𝗧 𝗗𝗜𝗙𝗙𝗘𝗥𝗘𝗡𝗧𝗜𝗔𝗧𝗜𝗢𝗡 Difference in flavour, quality, packaging, scent, etc. 𝟰. 𝗕𝗥𝗔𝗡𝗗 𝗘𝗤𝗨𝗜𝗧𝗬 The number of consumers that can identify the brand.