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International Mkt
UNLV MKT 456/Nill
| Question | Answer |
|---|---|
| Full Cost Pricing | Price = FC + Profit + VC |
| Markup Pricing | Pricing as a percentage of sales |
| Incremental Cost Pricing | Price is set to cover variable cost only |
| Cost Oriented = | Full cost pricing, Markup Pricing , & Incremental Pricing |
| Skim Pricing | Strong relative advantage, low elasticity of demand, low competition , differentiated and difficult to copy, small total market |
| Penetration Pricing | economies of scale in production , high elasticity of demand, strong competition , not differentiadted and easy to copy, large market |
| Legal Restrictions | Most countries have laws relating to , dumping, price fixing , price discrimination ,price advertising |
| Cost of exporting | Taxes , tariffs , administrative costs, inflation , exchange rate fluctuations, varying currency values |
| Lessening Price Escalation | Lower Cost of goods, Lower tarriffs, lower distribution costs, Foreign Trade Zones |
| Countertrades | exchanging goods or services which are paid for, in whole or part, with other goods or services, rather than with money. A monetary valuation can however be used in counter trade for accounting purposes. |
| Forms of Counter trade | barter, compensation deals, counterpurchase or offset trade, product buy-back agreement |
| Benefits of Counter trade | preserve hard currencey, improve balnce of trade, gain access to new markets, upgrade manufacturing capabilities, maintain price of export goods. |
| Transfer Pricing | the pricing of contributions (assets, tangible and intangible, services, and funds) transferred within an organization. |
| Grey Trades | trade of a commodity through distribution channels which, while legal, are unofficial, unauthorized, or unintended by the original manufacturer. |
| characteristic's of import Oriented System | sellers market, one deal mentality, demand exceeds supply |
| Characteristics of Mass Marketing system | Buyers Market, ongoing business, supply exceeds demands |
| Push-Pull Strategy | movement of a product or info between two subjects. On markets the consumers usually "pulls" the goods or info they demand for their needs, while offerers or suppliers "pushes" them toward consumers |
| Decentralized Strategy | An organizational system whereby planning and decision-making responsibility for marketing, advertising, and promotion lies with a product or brand manager rather than a centralized department. |
| Country of origin affect | Any effect on a person's perception arising from stereotypes of associations with a product's country of origin |
| Stimuli | Everything that corresponds with our senses, hearing, seeing, feeling, touching , smelling |
| Perception is affected by | culture, context and individual factors |
| Buyer Motivation is based on | Physiological , Psychological, Sociological needs |
| Involvement | perceived importance a purchase is to a customer , involvement increase with perceived risk |
| positively correlated | Direct association between two variables. As one variable becomes large, the other also becomes large |
| Extended Problem Solving | High degree if complexity Often occurs with expensive items, All 7 consumer decision making stages are often used (need recognition, search for information, pre-purchase evaluation of alternatives, purchase, consumption, post-consumption evaluation and |
| Limited Problem Solving | Low degree of complexity, Consumers don't have time, motivation or resources to engage in EPS ,Little search and evaluation before purchase ,Consumers always look for familiarity and low |
| Leading Markets | 3 criteria , highly competitive , demanding customers, no government involvements |
| cost leadership | compete for lowest price |
| Breakeven Point | fixed cost / price - variable cost |
| Economies of Scale | decreased product cost as volume of product per period increases |
| Economies of Scope | when the same investment can support multiple profitable activities less expensively in combination then separately |
| Brand Name Leveraging | Broadening a company product range by introducing add'l forms of products under a brand name which is already successful in another category. |
| cost advantages through differences in laws and regulations | labor , cost to protect environment , taxes |
| regional trade agreements | economic trade agreement to reduce tariffs and restrictions on trade btwn two or more nations with in a certain region |
| free market economy | economy for which the allocation for resources is determined only by their supply and demand for them |
| global marketing | a business treating the entire world, including the home country, as a single market |
| A leading market typically has | Strong competition, little governmental regulation, and highly demanding consumers |
| Porters Generic Strategies | low cost leadership, differentiation, and focus |
| Differentiation Strategy | A differentiation strategy calls for the development of a product or service that offers unique attributes that are valued by customers and that customers perceive to be better than or different from the products of the competition |
| Focus Strategy | concentrates on a narrow segment and within that segment attempts to achieve either a cost advantage or differentiation |
| cost leadership | prices to earn a profit higher than that of rivals, or below the average industry prices to gain market share. |
| Porters Five Forces | Entry Barriers, Buyer Power,Supplier Power,Threat of Substitutes, Rivalry |
| Produce Diversification | creating a new customer base, which by definition expands the market potential of the original product |
| Market Segmentation | Market segmentation is a strategy that involves dividing a larger market into subsets of consumers who have common needs and applications for the goods and services offered in the market. |
| Product Differentiation | A marketing process that showcases the differences between products. Differentiation looks to make a product more attractive. |
| Global sourcing | selling the same products in many different countries |
| compare a FDI with licensing | FDI ( foreign direct investment)offers more control and more risk than licensing |
| Licensing | ) a market entry strategy whereby one company permits a foreign company to make use of its patents, know-how, technology, company name, or other intangible assets in return for a royalty payment |
| Joint Ventures | a legal entity formed between two or more parties to undertake an economic activity together. |
| objectives of market entry | product selection , country selection, mode of entry , strategy and time of entry |
| Fragmented | Emergence of new segments (in a previously homogeneous market) which have their own distinct needs, requirements, and preferences |
| Concentrated Market | Is a market segmentation and market coverage strategy whereby a product is developed and marketed for a very well-defined, specific segment of the consumer population. |
| Product Positioning | the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization |
| Economic Clusters | Geographic concentrations of interconnected companies in a particular field |
| Factors in country selection | strategic, demand, cost, soci-political , and regulatory factors |
| Country selection Process | region identification, preliminary screening, in depth screening , final selection |
| analysis of market attractiveness | size, growth, competition , trade barriers, analysis of political risk , currency, infrastructure , capital requirements, production cost, taxes |
| Strategic thinking | deals with important issues, anticipates the incalculable, contains irrational and subjective elements |
| operative thinking | deals with pressing issues, contains rational and objective elements, based on incremental thinking , based on the calculable |
| Basic questions of strategic planning | where are we, where do we want to be, how do we get there |
| BCG Model | Boston consulting group model , classification of products (and implicitly also company business units) into four categories based on combinations of market growth and market share relative to the largest competitor. |
| value chain | how we create value for the customer, product design, purchasing, logistics, marketing, distribution, retailing |
| vision | what you want to achieve in the long run |
| elements of a successful vision | openness, spontaneity , realism |
| market segmentation, how do we get there | demographics, psycho graphics, geographic, ethnographic |
| select target market, how do we get there | volume potential , margin potential , persuasion potential . |
| Product positioning | how product is perceived relative to competitors, offerings , company and brand image, country of origin affect |
| What determines the price of currencies | free market (AKA free float), ER are determined by the supply and demand for the currencies |
| currency exchange risk | cash inflow in one currency is higher or lower then corresponding cash outflow in different country |
| factors influencing supply and demand of currencies | Trade, Investment |
| Types of currency exposure | transaction exposure, translation exposure, operating exposure |
| Transaction Exposure | occurs when contract are denominated in a foreign currency |
| Translation Exposure | Occurs when financial statements must be consolidated |
| Operating Exposure | when the value of cash flows depends on exchange |
| Short term hedging | less then 18 months , locks in E.R. through the use of financial instruments |
| Long term hedging | close gap of cash flows in different countries , can not eliminate the currency exchange risk for ongoing business |
| Factors effecting Trade | real price shocks (oil price), Government Policy (tariff/trade) |
| Absolute purchasing power parity | the purchasing power for the dollar is the same everywhere |
| Relative Purchasing Power Parity | Exchange rates move to offset differences in rates of inflation.Works well In the long run When differences in inflation are dramatic Works much less well in the short run |
| brand extension | marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category |
| dumping | the act of a manufacturer in one country exporting a product to another country at a price which is either below the price it charges in its home market or is below its costs of production |
| global marketing | characterized by the firm treating the entire world, including the home country, as a single market |
| 2) A leading competitor typically has | high market share |
| the phrase 'the customer is always right" | c) Does not always provide a good guideline for marketing and product managers because customers don’t always know how their needs can be satisfied |
| expropriation | Compulsory seizure or surrender of private party for the state's purposes, with little or no compensation to the property's owner |
| criteria for good research | objective, validity,reliability, cost |
| objective | unbiased |
| validity | relevance , measures what you want to measure |
| reliability | consistancey |
| cost | marginally decreasing benefits for every dollar invested |
| quantitative research | findings expressed numerically, and are amenable to mathematical (statistical) manipulation enabling the researcher to estimate (forecast) future events or quantitiesdifficult to control for validity but good obj and reliability |
| qualitative research | Interviews conducted with a small number of consumers, primarily to gather initial consumer needs or early reactions to new product concepts.easy for validity not necesarily objective or reliable. |
| trend extropolation | Forecasting technique which uses statistical methods (such as exponential smoothing or moving averages) to project the future pattern of a time series data. |
| regression analysis RA | Statistical approach to forecasting change in a dependent variable (sales revenue, for example) on the basis of change in one or more independent variables (population and income, for example). |
| 3 types of decision making | rational, emotional, behavioral |
| rational | high invlovment , EPS |
| emotional | medium to high involovment |
| behavioral | low invlovment LPS |
Created by:
cyncyn1004
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