International Perspectives in Marketing

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• What are the 4 concepts of the global marketing task? global marketing, international marketing, foreign marketing, multidomestic marketing
• What characterise global markets? markets that exists across borders, same behaviour and needs, customers are the same
• What characterise global products? are the same everywhere, standardized
• What characterise a global brand? the perception of the brand is the same everywhere
• What characterise a leading market? strong demanding customers, newest technology, companies learn from that market
• What are the 5 globalization drivers? market drivers, cost drivers, government drivers, technological drivers, competitive drivers
• What are the 5 global marketing objectives? exploiting market potential and growth, gaining scale and scope returns, learning from leading markets, pressuring competitors, diversifying
• What are the 3 roles of a global marketing managers? the foreign entry role, the local marketing role, the global management role
• Firm specific advantage definition? the firm is the only one that has that advantage, ownership-specific advantage
• Country specific advantage definition? the good reputation that a "made-in" has, country-of-origin effect
• What is best, firm or country specific advantages? Why? firm specific since several companies can operate in the same country
• What is the basic question of choice of entry mode for a company? it is how the company can get a reasonable payoff or return on its firm-specific advantages
• Definition of culture? the underlying value framework that guides an individuals behaviour
• What is meant by culture vs country? that a country can have several cultures and that a culture can spread over several countries
• What is a high context culture? you can learn the language but it is not enough to learn the culture
• What is a low context culture? you learn the language and understand them almost perfectly, they mean what they say
• What are the four parts of Hofstede's cultural dimensions? x vs x individualism vs collectivism, high vs low power distance, masculine vs feminine, risk tolerant vs risk averse
• What is the first thing to look at when entering a new market/country? political risk
• What are the four political risk factors? general instability, expropriation (nationalism), operations, finances
• What are the environmental research factors? physical environment, socio-cultural, economic, regulatory
• How does the first cut of country screening look like? political risk, environment, set of countries for further screening
• What are the five steps in the entry evaluation procedure? country identification, preliminary screening, in-depth screening, final selection (personal visit), entry mode analysis
• What are the 4 in-depth screening criteria? market size, market growth, competitive intensity, trade barriers
• What are the 2 ways to research your competitors? strengths & weaknesses and domestic vs foreign
• What is the characteristic of foreign competitors? they tend to be stronger due to more resources
• what is the characteristics of domestic competitors? they tend to be more dangerous due to nowhere else to go
• What is competitive signaling? show the competitors that you have resources by for example buying expensive adds
• What is sales forecasting? what is likely to be obtained given the probable situation and contemplated strategies
• What is the sales equation? sales=industry sales x market share
• What does the industry sale forecasting technique depend on? the stage of the product life cycle the company is in
• Early stage forecasting? lack of date, more subjective
• later stage forecasting? quantitative forecast, more feasible
• What are the 3 early stage forecasting methods? the build up method, forecasting by analogy, judgemental forecasting
• what are the 4 types of judgemental forecasting? the jury technique, expert pooling, panel consensus, delphi method
• What are the two later stage forecasting methods? time series extrapolation, regression-based forecast
• What are the 4 basic modes of entry? exporting, licencing , strategic alliances, wholly owned subsidiaries
• What are the 4 entry barriers? tariff barriers, non-tariff barriers, artificial entry barriers, natural entry barriers
• When will firms be likely the enter via exporting? when exporting barriers are low
• when are firms likely to enter by alternative modes of entry? when export barriers are high?
• What are the two forms of exporting? indirect and direct exporting
• what is indirect exporting? you do your exporting via a third part
• what is direct exporting? when you are able to direct influence the marketing effort
• What is dumping? selling goods in some markets below costs
• What are the two export expansion strategies? and what do they = waterfall strategy= gradual, sprinkler strategy= enteral several market at the same time
• What is the definition of licensing? offering a firm's know how or other intangible assets to a foreign company for a fee, royalty or payment
• What is the advantages of licensing? market research is reduced
• What is the disadvantage of licensing? you can loose control over the core competitive advantage
• What is the definition of franchising? a form of licensing where you pay royalty on revenues to the controlling comapany
• What is the advantage of franchising? global recognition
• What is the disadvantage of franchising? requires several controls
• What is the definition of a strategic alliance? typically a collaborative arrangement between first across borders
• What transfers from foreign partner to an existing local firm does a joint venture involve? the transfer of capital, manpower, technology
• What are the advantages of a wholly owned manufacturing subsidiary? More control, lower manufacturing costs, more consistent quality
• What is the disadvantages of wholly own subsidiaries? higher risk exposure, country of origin may be lost
• What is the definition of FDI? a company enters a market by acquiring an existing local company
• What is the advantage of FDI? direct access to the market
• what is the disadvantage of FDI? need to re-educate sales force and distribution channels
• What are the three market environments? emerging, new growth, mature
• How do you measure economic development in the markets and which market has the highest? GDP/capita, new growth has the highest
• Why is market segmentation important in mature markets? there are a lot of different preferences
• What are two important factor of mature market product positioning? quality and reliability
• Product (mature market) brand name, quality
• pricing (mature) high-end or low-end
• promotion (mature) break habits of loyal customers
• distribution (mature) well developed
• What are the two kinds of new growth markets? rich in? rich in natural raw material, rich in low cost labour
• Market segmentation (new growth) core middle class, demand variety
• product positioning (new growth) well know brands
• product (new growth) strong brand name, "foreign brand"
• price (new growth) status products, high price
• distribution (new growth) long term expansion
• promotion (new growth) future potential benefits, strong brand image
• What are the two kinds of emerging markets? newly democratized countires, developing markets
• segmentation (emerging) low income level
• product positioning (emerging) basic customer needs
• product (emerging) standardized
• pricing (emerging) balance between affordability and upper end positioning
• distribution (emerging) weak logistic systems
• promotion (emerging) limited, more visual
• What should you do if you do not want to adapt to every local market? standardize
• Ignoring local variations in customer preferences can lead to? mis-positioned products, inappropriate promotional appeals
• What is the key of global marketing? to strike the optimal balance between local adoption and global efficiency
• What is segmentation? the splitting up of the entire market into segments of homogenous subgroups
• what is targeting? the selection of which subgroups a company should market to
• what is positioning? how companies should present the product to the target market
• What are the two stages of global segementation? macro and micro
• what is macro segmentation? subgroups of more similar countries into clusters
• what is micro segmentation? the identification of local segments which are similar across the clusters?
• What are the macro segmentation criteria? economic, demographic, cultural, benefit, lifestyle
• What are the 3 reasons why customers still buys mis-positioned products? brand image, lower price, country-of-origin
• What is the localization? the changes required for a product to function in a new country, minimum adaption
• What is adaption? when products are changed to match customers tastes and preferences
• What are the 3 advantages of global brands? demand spill-over, global customer, scale economies
• what is the disadvantage of global brands? negative spill-over
• What is a counterfeit product? a fake product design to mislead the consumer to think it is the real thing
• What are the negative effects of counterfeits? decrease sales, decrease value
• What is transfer pricing? the price paid for products shipped between units of the same company
• what is armed length price? the transfer price should reflect the real market
• why do shift resources with transfer price? to offset inflation
• What is gray trade? sales of a genuine branded product trough unauthorizes channels
• What are 4 pricing actions against grey trade? economic controls, centralization, formalization, informal coordination
• What are the 3 global pricing policies? polycentric, ethnocentric, geocentric
• What is the 80/20 rule? 80% of transactions are handled by 20% of the firms
• Who are the gate keepers (in regards to efficiency and integration in the local market)) the vertically and horizontally integrated firms
• Which retailers have to most power? the large retailers
• What are 4 channels against grey trade? supply interference, demand interference, dealer interference, strategic attack
• What are the drivers of globalization (Supply side)? global ad agencies, global media
• What are the drivers of globalization (demand side)? global customers, preference convergence, global competitors
• What are the 3 global ad categories? identical ads, prototype advertising, pattern standardization
• What are the 3 ways to set advertising budgets? percentage-of-sales, competitive parity, objective task method

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