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43 Cards in this Set
- Front
- Back
International marketing strategy |
Determines the entry mode and the degree of control |
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3 internal market distribution strategies: |
Intensive-distribution in all possible outlets Selective- fewer, selective intermediaries Exclusive- limited number of intermediaries |
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Is product complexity and size and development part of the firm's marketing strategy internally? |
Yes |
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What are 5 elements of the external market strategy? |
1. Characteristics of the distribution system 2. Local regulations 3. Stage of PLC 4. Consumer shopping habits and market size 5. Competitive advantage |
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What influences the distribution channel? |
The country's economic development which creates need for more efficient channels |
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Distribution considerations include: (3) |
1. Direct vs indirect 2. Conventional vs. vertical marketing system (VMS) 3. Different types of intermediaries |
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Direct distribution system: |
Manufacturer sells directly to customer |
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Indirect distribution system: |
One or more intermediaries (agent, wholesaler, retailer, etc.) are involved |
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What determines the length of a distribution system? |
The number and types of intermediaries |
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What determines the depth of a distribution system? |
The number of intermediaries of the same typology |
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What is the order of the distribution channel? (Including all 5 channels involved) |
Manufacturer-Agent-Wholesaler-Retailer-Consumer |
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4 characteristics of direct channels: |
1. Limited number of customers 2. Internal, qualified staff 3. Common in B2B 4. Requisite for complex products |
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What are direct channels typical y used for? (4) |
1. Door to door sales 2. Mail orders 3. Telephone selling 4. Internet selling-today |
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3 functions performed by intermediaries: |
1. Reduce number of exchanges 2. Overcome cultural barriers 3. Simplify the selling process |
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In indirect channels, the relation between manufacturers and customer is filtered by intermediaries such as: (3) |
Agents, wholesalers, and retailers |
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Conventional channel |
Intermediaries independent, act as if they run a separate business |
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Vertical Marketing Systems (VMS) |
Intermediaries are linked in a unique integrated system which favors cooperation and synergies |
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4 examples of when VMS is beneficial: |
1. Complex products both in the sale and after sale phases 2. No reliable distribution partner 3. Channel partners operate with very high mark ups, making final price uncompetitive 4. Retailing format available in the foreign country is not suitable for its goods (owned stores and franchising) |
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Corporate VMS |
A vertical marketing system that combines successive stages of production and distribution under single ownership (DOS-directly owned stores) |
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Contractual VMS |
A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than they could achieve alone (wholesaler sponsored voluntary chains, retailer cooperatives or franchise) |
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Administrative VMS |
A vertical marketing system that coordinated successive stages of production and distribution, not through common ownership or contractual ties, but through the size and power of one of the parties |
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Multichannel strategies |
Direct and indirect channels with different types of intermediaries. They choose the more suitable channel organization, either conventional or vertical. Depends on the characteristics of the foreign market. (L'Oreal) |
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3 types of intermediaries: |
Agents, Wholesalers, or Retailers |
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Agents |
Operate in the name of the company but do not take title to goods |
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Wholesalers |
Take title to goods and sell to customers for resale or business use. Either full or limited service |
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Retailers |
Intermediaries that sell directly to final consumer. Are final link between provider and customer |
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What are some of the activities of the retailer? |
Ordering, storing, creating assortments, presenting goods in the most attractive way, packaging, financing, and providing after sales services |
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Differences in retail format may arise from ______________________ |
Local legislation |
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International retailing |
The prerequisite to manage the development of an international network is the creation of a brand value recognized by foreign consumers |
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Value creation models are different for ________________________ |
Different retailers |
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A key decision for business people: |
Standardization vs adaptation |
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The need to adapt to national cultures is strongly perceived by global retailers who are far from standardizing not only their retailing format but also their ______________________ |
Local offer |
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_______________________ is a long process and each phase must be carefully evaluated |
Partner selection |
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5 attributes for evaluation: |
1. Company strengths 2. Financial resources 3. Marketing skills 4. Sales skills 5. Commitment |
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____________________________ is critical in foreign markets |
Relationship market |
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2 things maximum distributor commitment must obtain: |
Guarantee exclusivity and provide info technology |
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Successful management practices are based upon 4 dimensions: |
1. Performance management 2. Coverage management 3. Capability management 4. Motivational programs |
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Performance management |
Identifies activities that are finalized to improve operating performances through the definition of roles, responsibilities and measurable goals |
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Coverage management |
Focuses on channel structure efficiency and its coordination with the target market |
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Capacity |
Building programs and motivational programs. Include all those activities that support the operations of the channel members and increase partners' motivation that strengthen the relationship |
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What is the objective of physical distribution? |
Manage the movement of finished products from the company to its customers |
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Efficiency and quality are achieved through ______________________ |
Effective logistics |
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5 areas included in logistics: |
Handling, transport, inventory, labeling, and storage |