Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
MKT 415 Final
Flash cards on Ch. 11-19
| Question | Answer |
|---|---|
| The Greater China | KNOW: PRC & Taiwan Refers to both the People’s Republic of China (PRC) and Taiwan (Republic of China - ROC) which were in 1949, and each government claimed the other as its territory |
| The ___ was one of the founding members of the United Nations in 1945, but the ___ was recognized into the UN in 1971 | ROC PRC |
| Aside from the United States and Japan, there is no more important single national market than _____ | the PRC |
| Two major events that occurred in 2000 had a profound effect on China’s economy: | 1)Admission to the World Trade Organization (WTO) 2)US granting normal trade relations (NTR) to China on a permanent basis (PNTR) |
| Two steps China must take if its road to economic growth must be smooth: | 1) Improving human rights 2) Reforming the legal system |
| Japan’s fast growth in the 1970s and 1980s amazed the world. Then came the early 1990s, and Japan’s economy produced a stunning surprise: it slowed, sputtered, and stalled Four explanatory themes have emerged: | 1)Faulty economic policies 2)Inept political apparatus 3)Disadvantages due to global circumstances 4)Cultural inhibitions |
| Two major villains or political explanations that brought down Japan's Economy | 1)Japan’s long entrenched liberal democratic political party – a one party sickness brought on by a 40-year hardening of political arteries. 2)Hidebound Japanese Bureaucracy – Japanese Bureaucracy controlled its elected politicians |
| 3 Global Factors bringing down Japan's Economy | 1)Japanese population is shrinking faster than the U.S. 2)Disadvantage in the information age: complex language (three alphabet system) hindered software innovations 3)Historically low prices of oil and the US with lots of SUV's Japan tapped mkt late |
| India's five -point agenda: | 1)Improving the investment climate 2)Developing a comprehensive WTO strategy 3)Reforming agriculture, food processing, an small-scale industry 4)Eliminating red tape, and 5)Instituting better corporate governance |
| 3 factors about India that have constrained its growth | 1)India’ s traditional insular policies 2)import substitution 3)aversion to free trade |
| Four Asian Tigers | Hong Kong, South Korea, Singapore, and Taiwan 1st countries in Asia, after Japan, to move from developing countries to newly industrializes -Rapidly industrializing -More important as economic leaders b/c other asian countries are improving |
| Bottom-of-the-Pyramid Markets (BOPMs) | 4Bil people worldwide w/incomes <$1200.Concentrated in the LDCs and LLDCs. Relatively ignored by intl marketers b/c misconceptions of lack of resources(money &technology)&lack of appropriateness of products & services developed for more affluent consumers |
| Asia Pacific Trade Associations | Once a source of inexpensive labor for products shipped to Japan or to third markets, countries in the Asia Pacific region are now seen as viable markets There are 3 free trade associations in this region - See other FC |
| Three free trade associations in the Asian-Pacific Region | 1)Association of South East Asian Nations (ASEAN) 2)ASEAN+3 (ASEAN members plus ministers from China, Japan, and South Korea) 3)Asia-Pacific Economic Cooperation (APEC) |
| Goals of the ASEAN | 1)Operating inFTA 2)Can sell in entire region w/o difering tarif &nonT bariers 3)Distbtn centralized @most cost-eff.point not dist.points dictated bytTarif restrictions 4)More constant pricng->reduce smuglng ¶lel importng 5)Mktng more regionaly+cntrl |
| Four major events that caused the vigorous economic growth of ASEAN | 1Govs commitment to deregultn, liberaliztn, and privatizatn of thr economies 2Decision to shift their economies from comodity based to mnfg based 3Decision to spclze in mnfg components w comparatve advantge 4Japan’s emerge as major provider4tech&capita |
| ASEAN+3 | +China,Japn,&S.Korea,creatd 4 Asian fin.crisis(97-98)to deal wtrade &monetry probs. Both forgn&finance minstrs of each country,meets 1/yr aftr ASEAN mtgs Closr links btwn SE &NE are step twrd strngthng Asias role in global econ creatng glbl 3-bloc confi |
| Asia-Pacific Economic Cooperation (APEC) | formed in 1989 Provides formal structure for major governments to discuss mutual interests in open trade and economic collaboration Includes all major economies of the region and the most dynamic, fastest-growing economies in the world |
| APEC's Common goal and commitment to: (5) | -Open trade -Increase economic collaboration -Sustain regional growth and development -Strengthen the multilateral trading system -Reduce barriers to investment and trade without detriment to other economies |
| There are four regional economies from the north to the south of China, along the Pacific Coast: | 1)Northeast China – Industrial heartland 2)Beijing-Tianjin information technology corridor 3)Yangtze River Delta 4)Pearl River Delta |
| Today’s China is divided into mutually competitive, complementary economic “warring states,” just as it was two thousand years ago, before being united in the ______ | Qin Dynasty |
| What part of China was the industrial and technological center of the country in the 1970s and 1980s | Northeast China |
| The three contiguous provinces in Northeast China: | 1)Liaoning (43.2 mil) closest economic ties w Japan 2)Jilin(27.4 mil) shares border with N. Korea and houses 60% of North Koreans 3)Heilongjiang (38.3 million persons) shares border with Russia; the capital city of Harbin is called the “little Moscow” |
| Global Marketing Management, Trends of 70's, 80's and 90's | 1970s – “standardization versus adaptation” 1980s – “global integration versus local responsiveness” 1990s – “global integration versus local responsiveness” |
| Global Marketing Management The trend back toward localization Caused by the new efficiencies of________ Made possible by the ______ Increasingly flexible_______ processes | 1)customization 2)Internet 3)manufacturing |
| From the marketing perspective ______ is always best | customization Global markets continue to homogenize and diversify simultaneously Best companies will avoid trap of focusing on country as the primary segmentation variable |
| Benefits of Global Marketing | -When large market segments can be identified -Transfer of experience and know-how -Marketing globally |
| Planning allows for: | -Rapid growth of the international function -Changing markets -Increasing competition, and the -Turbulent challenges of different national markets |
| Planning for Global Markets | Planning is the job of making things happen that might not otherwise occur Planning is both a process and philosophy; it relates to the formulation of goals and methods of accomplishing them |
| The keys to successful planning are as follows | Company objectives and resources International commitment The planning process Phase 1 – Preliminary analysis and screening Phase 2 – Adapting marketing mix to target markets Phase 3 – Developing the marketing plan Phase 4 – Implementation and contr |
| The planning process (4 Phases) | Phase 1 – Preliminary analysis and screening Phase 2 – Adapting marketing mix to target markets Phase 3 – Developing the marketing plan Phase 4 – Implementation and control |
| International Commitment: Commitment in terms of: 1___________ 2___________ 3___________ The degree of commitment to an international marketing cause reflects the _____(4)_________ | 1)Dollars to be invested 2)Personnel for managing the international organization 3)Determination to stay in the market long enough to realize a return in investments 4)extend to a company’s involvement |
| An entry strategy into international market should reflect on analysis of ...(2) | -Mkt characteristics -Company capabilities and characteristics |
| A company has four different modes of foreign market entry | Exporting Contractual agreements Strategic international alliances Direct foreign investments |
| Exporting accounts for some __% of global activity | 10 |
| Direct exporting | the company sells to a customer in another country |
| Indirect exporting | The company sells to a buyer (importer or distribution) in the home country, who in turn exports the product |
| Contractual agreements Long-term, Nonequity association between a company and another in a foreign market | -Long-term, -Nonequity association between a company and another in a foreign market |
| Licensing | -A means of establishing a foothold in foreign markets without large capital outlays -A favorite strategy for small and medium-sized companies -Legitimate means of capitalizing on intellectual property in a foreign market |
| Franchising | -Franchiser provides a standard package of products, systems, and management services -Franchise provides market knowledge, capital, and personal involvement in management -Expected to be the fastest-growing market-entry strategy |
| Two types of franchise agreements | 1)Master franchise: Gives the franchisee the rights to a specific area with the authority to sell or establish subfranchises 2)Licensing |
| A strategic international alliance (SIA) | -A business relationship established by two or more companies to cooperate out of mutual need -To share risk in achieving a common objective |
| SIAs are sought as a way to shore up _______and increase _________ | weaknesses competitive strengths |
| Firms enter SIAs for several reasons | -Opportunities for rapid expansion into new markets -Access to new technology -More efficient production and innovation -Reduced marketing costs -Strategic competitive moves -Access to additional sources of products and capital |
| Many companies entering SIAs to... | -To be in strategic position to be competitive -To benefit from the expected growth in the single European market |
| International joint ventures (IJVs) | A partnership of two or more participating companies that have joined forces to create a separate legal entity |
| Four characteristics define joint ventures | 1.JVs r established,separate, legal entitys 2.The acknwldgd intent by partners to share in the mgmt of the JV 3.Hay partnrshps btwn legly incorp. entities-companies,chartered orgs, orGovs,¬ btwn people 4.Equity positions r held by each of the partnrs |
| Consortia: Similar to joint ventures and could be classified as such except for two unique characteristics: 1_______ 2_______ Consortia are developed to pool ___3____ and ______4__ resources and to lessen risks | 1)Typically involve a large number of participants 2)Frequently operate in a country or market in which none of the participants is currently active 3)financial 4)Managerial |
| Factors that influence the structure and performance of direct investments | -Timing -The growing complexity and contingencies of contracts -Transaction cost structures -Technology transfer -Degree of product differentiation -The previous experiences and cultural diversity of acquired firms -Advertising and reputation barrie |
| Locus of decision | -Considerations of where decisions will be made, by whom, and by which method constitute a major element of organizational strategy -Corporate headquarters -International headquarters -Regional levels -National levels -Local levels |
| Tactical decisions normally should be made at ________ | lowest possible level |
| Most organizational patterns of multinational firms fit into one of three categories | Centralized Regionalized Decentralized |
| Important avenues to global marketing that must be implemented in the planning and organization of global marketing management | 1)Collaborative relationships 2)Strategic international alliances 3)Strategic planning 4)Alternative market-entry strategies |
| Quality can be defined on two dimensions | 1-Market-perceived quality 2-Performance quality |
| Physical or Mandatory Requirements and Adaptation | -Product homologation: the changes mandated by local product and service standards. -Product adaptation requirements -Legal -Economic -Political -Technological -Climate |
| Critical issues affecting product development | -Control of the packaging component of solid waste -Consumer demand for environmentally friendly products |
| A product is the sum of the ___1___and ___2____ satisfactions it provides the user | 1.physical 2.psychological Primary function + Psychological attributes |
| Crucial elements in the diffusion of new ideas | An innovation Which is communicated through certain channels Over time Among the members of a social system The element of time |
| Variables affecting the rate of diffusion of an object (3) | -Degree of perceived newness -Perceived attributes of the innovation -Method used to communicate the idea |
| Five Characteristics of an Innovation | Relative advantage Compatibility Complexity Trialability Observability |
| New ideas for products/innovations come from a variety of sources | Countries, Acquisitions Global collaborations |
| Analyzing Product Components for Adaptation | -Product is multidimensional -Sum of its features determines the bundle of satisfactions (utilities) received by consumer -Three distinct components -Core -Packaging -Support services |
| Three distinct components of Analyzing Product Components for Adaptation | -Three distinct components -Core -Packaging -Support services |
| Core Components (3)for adaptation | Product platform Design features Functional features |
| Packaging Component (6)for adaptation | Price Quality Packages Styling Trademark Brand name |
| Support Services Component for adaptation (7) | Deliveries Warranty Spare parts Repair and maintenance Installation Instructions Other related services |
| More than half of Fortune 500 companies are ________ | primarily service providers |
| Consumer services characteristics (4) | Intangibility Inseparability Heterogeneity Perishability |
| A service can be marketed in 2 ways | As an industrial (business-to-business) A consumer service |
| Services Opportunities in Global Markets | Tourism Transportation Financial services Education Communications Entertainment Information Health care |
| Four kinds of barriers face consumer service marketers from entering global mkts: | -Protectionism -Restrictions on transborder data flows -Protection of intellectual property -Cultural barriers and adaptation |
| A global brand | The worldwide use of a name, term, sign, symbol, design, or combination -Intended to identify goods or services of one seller -To differentiate them from those of competitors -Most Valuable company resource |
| National Brands | -Acquiring national brand names -Using global brand names -Nationalistic pride impact on brands -Use global brands where possible and national brands where necessary |
| Country-of-Origin effect | Influences that the country of manufacture, assembly, or design Has on a consumer’s positive or negative perception of a product |
| Countries are stereotyped in 3 ways | 1)On the basis of whether they are industrialized 2)In the process of industrializing 3)In process of developing |
| Issues of standardization versus adaptation | Less relevance to marketing industrial goods than consumer goods |
| Factors accounting for greater market similarities in customers of industrial goods versus consumer goods | The inherent nature of the product The motive or intent for the user differs |
| Three factors affect the demand in industrial markets differently than in consumer markets | 1)Volatility of industrial demand (demand in industrial mkts ismore volatile) 2)Stages of ecnomic dvlpmt(stages of industrial and economic dvlpmt affect demand 4 industrial products) 3)Technology and market demand (the level of tech makes them stand out |
| The Volatility of Industrial Demand | -Cyclical swings indemand -Profesnl buyers act in concrt -Derived demand accelerates changs in mkts -Derived demand can be defined as demand dependent on another source -Minor changes in consumer demand mean major changes in related industrial dem |
| Stages of Economic Development (5) | Stage 1 – the traditional society Stage 2 – preconditions for takeoff Stage 3 – take off Stage 4 – drive to maturity Stage 5 – the age of mass consumption |
| Trends spurring demand for technologically advanced products (3) | -Expanding economic and industrial growth in Asia =The disintegration of the Soviet empire -The privatization of government-owned industries worldwide |
| The companies with the competitive edge will be those whose products are: (3) | -Technologically advanced -Of the highest quality -Accompanied by world-class service |
| Perception of quality rests solely with the customer-4 factors of a costumers evaluation are | -Level of technology reflected in the product -Compliance with standards that reflect customer needs -Support services and follow-through -Price relative to competitive products |
| After-Sale Services | -Installation -Training -Spare and replacement parts -Delivery time -Cost of parts -Service personnel -Almost always more profitable than the actual sale of the machinery or product -Crucial in building strong customer loyalty |
| Secondary methods for marketing:(4) | -Advertising in print media -Catalogs -Web sites -Direct mail |
| _______have become the primary and most important vehicle for doing business in many foreign countries | Trade shows |
| The objective of relationship marketing: | To make the relationship an important attribute of the transaction Differentiating oneself from competitors |
| Distribution process | -Physical handling and distribution of goods -Passage of ownership -Buying and selling negotiations between producers and middlemen -Buying and selling negotiations between middlemen and customers |
| In an import-oriented or traditional distribution structure: | -Importer controls a fixed supply of goods -Marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers |
| Import-Oriented Distribution Structure (Continued Info) | -Demand exceeds supply -The customer seeks the supply from a limited number of middlemen -Distribution systems are local -Few countries fit the import-oriented model |
| Japanese Distribution Structure Four distinguishing features | 1-A structure dominated by many small middlemen dealing with many small retailers 2-Channel control by manufacturers 3-A business philosophy shaped by a unique culture 4-Laws that protect the foundation of the system |
| Channel Control | Inventory financing Cumulative rebates Merchandise returns Promotional support |
| Business Philosophy of Japan | Emphasizes loyalty, harmony, and friendship Supports long-term dealer-supplier relationships The cost of Japanese consumer goods are among the highest in the world Japanese law gives the small retailer enormous advantage over the devlpmt of larger stor |
| Daitenho – the Large-Scale Retail Store Law | Lrg stors must have approval from the prefecture government All proposals 1stjudged by Ministry of International Trade&Industry(MITI)If all local retailers unanimously agreed, the plan was aprvd Could be lengthy process Applied to domestic&forgn compan |
| Daitenho – the Large-Scale Retail Store Law was Replaced by the ____ | -Large-Scale Retail Store Location Act of June 2000 -MITI out of the process -Relaxed restrictions |
| Alternative Middleman Choices: Seller must exert influence over two sets of channels: 1_____ 2_____ Agent middlemen – 3__________ Merchant middlemen – 4________ | 1)One in the home country 2)One in the foreign-market country 3)represent the principal rather than themselves 4)take title to the goods and buy and sell on their own account |
| Home-Country Middlemen (7) | -Manufacturer’s retail stores -Global retailers -Export management companies (EMC) -Trading companies -U.S. export trading companies -Complementary marketers -Manufacturer’s export agent -Webb-Pomerene export associations -Foreign sales corporatio |
| Foreign-Country Middlemen Some of the more important foreign-country middlemen are: 1_______ 2________ | Dealing directly with middlemen in the foreign market gives international organizations the advantage of shorter channels and deal with middlemen in constant contact with the market 1)Manufacturer’s representatives 2)Foreign Distributors |
| Factors Affecting Choice of Channels (6 C's) | Cost Capital requirements Control Coverage Character Continuity |
| Channel Management | Locating middlemen Selecting middlemen -Screening -The agreement Motivating middlemen Terminating middlemen Controlling middlemen |
| Concern for E-vendors:(6) | Culture Adaptation Local contact Payment Delivery Promotion |
| Public relations (PR) is | creating good relationships with the popular press and other media To help companies communicate messages to customers, the general public, and governmental regulators |
| International Advertising - 7 Steps | 1.Perform mkt research 2.Specify goals of comm 3.Develop most effective messages for the market segments selected 4.Select effective media 5.Compose and secure a budget 6.Execute the campaign 7.Evaluate the campaign relative to the goals specified |
| Legal Constraints | -Comparative advertising -Advertising of specific products -Control of advertising on television -Accessibility to broadcast media -Limitations on length and number of commercials -Internet services -Special taxes that apply to advertising |
| Media Planning and Analysis – Tactical Considerations | Availability Cost Coverage Lack of market data Newspapers Magazines Radio and television Satellite and cable TV Direct mail The Internet Social Media Mobile phone applications Other media |
| Campaign Execution managed by 3 types of Advertising Agencies | Local domestic agency Company-owned agency Multinational agency with local branches |
| Compensation for advertising agencies | Commonly 15 percent throughout the world Some companies moving to reward-by-results |
| International Control of Advertising – Broader Issues | Consumer criticism Deceptive advertising Decency and blatant use of sex Self-regulation Government regulations |
| The largest personnel requirement abroad for most companies is the _____ | sales force |
| Virtual expatriates | Manage operations in other countries but don’t live there |
| -Expatriates -Numbers are ________ -Important for highly ______ or involved products -High cost -Cultural and legal barriers -Limited number of high-caliber personnel willing to live abroad | declining technical |
| -Local nationals: -Transcend both ____ and _____ barriers Familiar with ______ systems and referral networks Headquarters personnel may ignore their advice Lack of availability Sales positions viewed negatively | cultural legal distribution |
| Third-country nationals | Expatriates working for a foreign company |
| Selecting Sales and Marketing Personnel: Management must define precisely what is expected of people- Prime Requisites: (7) | -Maturity -Emotional stability -Breadth of knowledge -Positive outlook -Flexibility -Cultural empathy -Energetic and enjoy travel |
| The nature of the training program for intl marketing depends on: 1______ 2______ -Continual __3__ is important in forgn mkts -Companies should provide _4_ with cross-cultural training -The_5__now makes some kinds of sales training much more efficien | 1.The home culture of the sales person 2.The culture of the business system and foreign market 3.training 4.home-office personnel 5.Internet |
| Motivating Sales Personnel: -National __1__must always be considered -Individual incentives that work effectively in the U.S. __2__ -Communications are important in maintaining __3__ A company needs to make clear the opportunities for _4_within the fi | 1)differences 2)can fail completely in other cultures 3)high levels of motivation 4)Growth |
| In the U.S., emphasis is placed on individual performance; it can easily be measured by ________ -In many countries evaluation is more complex where teamwork is favored over _______ | 1)sales revenues generated 2)individual effort |
| In the U.S., the primary tool used by sales managers is the _1__ -In other countries, _2__ and _______ with peers and supervisors are the means of motivation and control | 1)Incentive System 2)corporate control 3)frequent interactions |
| Cost of foreign assignments | Typically from 150-400 percent of the annual base salary Cost increases if the expatriate returns home before completing the scheduled assignment |
| The planning process for foreign assignments | Must begin prior to the selection of those going abroad Must extend to their specific assignments after returning home |
| Reluctance to accept intl assignmnts: -Concerns for career: An absence will adversely affect opportunities for_1_ -Concerns for family 2)_____ 3)_____ 4)______ 5)______ Special _6_ packages deal with concerns | 1)advancement 2)Education of the children 3)Isolation from family and friends 4)Proper health care 5)The potential for violence 6)compensations |
| Reducing the Rate of Early Returns from foreign assignments | Evaluation of an employee’s family 75 percent of families sent abroad experience adjustment problems with children or marital discord Cross-cultural training for families as well as the employee Local ombudsmen |
| Pricing as an active instrument of accomplishing marketing objectives: The company uses_______to achieve a specific objective | Price |
| Pricing as a static element in a business decision: -Exports only ____1___ -Places a low priority on _2_ Views its export sales as _3___ | 1excess inventory 2foreign business 3passive contributions to sales volume |
| Parallel imports: Develop when importers __1___ in one country and sell them in another to distributors who are__2__ -Occur whenever price differences are __3___ Major problem for pharmaceutical companies Exclusive distribution | 1)buy products from distributors 2)not part of the manufacturer’s regular distribution system 3)greater than cost of transportation between two markets |
| Variable-cost pricing: Firm is concerned only with the ______cost of producing goods to be sold in overseas markets | marginal or incremental |
| Full-cost pricing: Companies insist that no unit of a similar product is different from any other unit in terms of _1__ Each unit must bear full share of the _2_ and _3_ cost | 1)cost 2)total fixed 3)Variable |
| Skimming Versus Penetration Pricing: Skimming:Used by a company when the objective is to _1_ -Market is willing to pay a _2__ price for the value received Penetration pricing policy:Used to stimulate market and sales growth by deliberately offering _3 | 1)to reach a segment of the market that is relatively price insensitive 2)premium 3)products at low prices |
| 3 ways of lowering the cost of goods | Manufacturing in a third country Eliminating costly functional features Lowering overall product quality |
| 4 ways of Lowering tariffs | Reclassifying products into a different, and lower customs classification Modify product to qualify for a lower tariff rate within classification Requiring assembly or further processing Repackaging |
| Lowering distribution costs (2) | Shorter channels Reducing or eliminating middlemen |
| Dumping | Use of marginal (variable) cost pricing Selling goods in foreign country below the price of the same goods in the home market |
| Types of countertrade (4) | Barter Compensation deals Counterpurchase or offset trade Product buyback agreement |
| Price Quotations: May include specific elements affecting the price | Credit Sales terms Transportation Currency Type of documentation required Should define quantity and quality |
| Government-influenced pricing, 6 ways they do it: | Establishes margins Sets prices and floors or ceilings Restricts price changes Competes in the market Grants subsidies Acts as a purchasing monopsony or selling monopoly |
| Aisatsu | A meeting or formal greeting for high-level executives typical in Japan |
| Regional generalizations very often are ___ | not correct |
| Cultural differences cause four kinds of problems in international business negotiations | Language Nonverbal behaviors Values Thinking and decision-making processes |
| Four steps for more efficient and effective international business negotiations | 1)Selection of the appropriate negotiation team 2)Management of preliminaries, including training, preparations, and manipulation of negotiation settings 3)Management of the process of negotiations 4)Appropriate follow-up procedures and practices |
| Negotiation Teams should... | Willingness to use team assistance Listening skills Influence at headquarters (senior executive) Gender should not be used as a selection criterion for international negotiation teams |
| Checklist for planning international negotiations (6) | 1)Assessment of the situation and the people 2)Facts to confirm during the negotiation 3)Agenda 4)Best alternative to a negotiated agreement (BATNA) 5)Concession strategies 6)Team assignments |
| Aspects of the negotiation setting that should be pre-manipulated (7) | 1-Location 2-Physical arrangements 3-Number of parties 4-Number of participants 5-Audiences (news media, competitors, fellow vendors, etc.) 6-Communications channels 7-Time limits |
| Business negotiations proceed through four stages | 1-Nontask sounding 2-Task-related exchange of information 3-Persuasion 4-Concessions and agreement |
| Nontask Sounding | Learn the mood of the other side Learn about the client’s background and interest for cues about appropriate communication styles Judgments about the “kind” of person in the negotiation |
Created by:
fetters8
Popular Marketing sets