Comm 223 Review - Lecture 11

Front 1

Why are the five reasons a company might go international?

Back 1

1. Resource seeking.
- Secure key supplies.
- Access low cost factors of production.
2. Market seeking.
- Competitive advantage over local players.
- Small domestic markets.
- Saturated domestic markets.
3. industry Economics changing.
- Increasing economies of scale.
- Ballooning R&D investment.
- Shortening product life cycle.
4. Learning abilities.
- Exposure to new technology or market needs.
5. Competitive positioning.
- Cross-subsidization of markets for risk-pooling.
- Attack domestic markets' competitors.

Front 2

Who said the following?
"Marketers are confused with homogeneous global village... need to develop standardized, high-quality world products and market them around the world using standardized advertising, pricing, and distribution."

Back 2

Ted Levitt

Front 3

Who said the following?
"Ted Levitt's comment about the world becoming homogenized is bunk. There are two products that lend themselves to global marketing - and one of them is Coca-Cola."

Back 3

Carl Spielvogel

Front 4

Globalization (standardization) is...

Back 4

- Developing standardized products marketed worldwide with a standardized marketing mix.
- Essence of mass marketing.

Front 5

Global localization (adaption) is...

Back 5

- Mixing standardization and customization in a way that minimized costs while maximizing satisfaction.
- Essence of segmentation.
- Thinking globally, acting locally.

Front 6

Avon launched its fragrances for women and bath additives in Japan, both failed. Why?

Back 6

- Women's fragrances were used exclusively by prostitutes.
- Baths were not used for cleaning but relaxation.

Front 7

General Mills developed cake mix that could be cooked in a rice cooker. The product was designed to account for the absence of ovens in Japanese homes. This product failed, why?

Back 7

- Japanese homes ate rice at every meal so the rice cooker was never empty, preventing it from being used for anything but rice.

Front 8

What is the role of government in economy?

Back 8

- Regulating market vs. command economy.
- Taxation policy.
- Managing corruption.
- Implementing foreign investment limitations.

Front 9

What are the four factors of the economic environment?

Back 9

1. Size and distribution of economy.
- Income level, region, urban vs. rural, age, gender.
2. Financial situation.
- Inflation, interest rates.
3. Private consumption by category.
- Food clothing, transportation, health care, education, leisure, consumed at different rates in different areas.
4. Wealth
- Stages of market development.
- Growth rate.

Front 10

What are the four emerging markets? (Hint: BRIC)

Back 10

1. Brazil
2. Russia
3. India
4. Chinese

Front 11

Not only the population of people is important, but also:

Back 11

- Their need to buy,
- Their ability to buy,
- And their willingness to buy.

Front 12

What are the five international market entry strategies?

Back 12

1. Exporting (entrant relies most on local players)
2. Joint venture - licensing
3. Joint venture - contract management
4. Joint venture - joint ownership
5. Full ownership direct investment (entrant has most initiative)

Front 13

What are the five international product and promotion strategies?

Back 13

1. Straight extension - no change to product or promotion.
2. Communication adaption - no change to product, adaption to promotion.
3. Product adaption - adapt product but do not change promotion.
4. Dual adaption - adapt product and promotion.
5. Product invention - develop a whole new product.