International Marketing Exam 3

Front 1

Global Targeting

Back 1

The process of evaluating the segments and focusing market efforts on a country, region, or group of people that have high potential to respond. Specific marketing

Front 2

Global Segmentation

Back 2

An effort to identify and categorize groups of customers and countries according to common characteristics, like PC's categorized as home, corporate.....

Front 3

Pluralization of Consumption

Back 3

Similar demands come up in many different areas of the world, sushi. pizza.....

Front 4

Demographics

Back 4

dividing the segment by age, income, race, population....

Front 5

Majority of the worlds GNI

Back 5

75% of the worlds GNI comes from the U.S. Japan, and Western Europe. For low cost items such as shampoo and such population might be more important then class or income.

Front 6

World population vs. U.S. population

Back 6

World population is 7.2 Billion and the U.S. population is 312 million. (lots of potential outside the borders)

Front 7

Standard of living and income in lower class countries.

Back 7

Standard of living can be higher than most people think in these countries because they grow and make a lot of what they use they have higher discretionary income.

Front 8

McDonalds location strategy

Back 8

Although they operate in 120 countries, 90% of their stores are located in the densest population areas of the world.

Front 9

Psychographic Segmentation

Back 9

Involves grouping people together based on lifestyle, hobbies, attitudes, and values. VAlS analysis.

Front 10

Behavioral Segmentation

Back 10

Groups people based on their consumer behavior, usage amount, heavy user/light user, the 80/20 rule...

Front 11

Benefit Segmentation

Back 11

Positioning things based on their benefits, toothpaste for whitening power, soap for moisturizing...

Front 12

Target Market Strategy Options

Back 12

Standardized Global marketing
Concentrated Global marketing
Differential Global marketing

Front 13

Standardized marketing

Back 13

Creating a single marketing mix to suite everyone in the world.

Front 14

Concentrated marketing

Back 14

Devising a marketing mix to reach a niche market.

Front 15

Differentiated marketing

Back 15

Multisegment targeting involves targeting two or more distinct market segments with multiple marketing mixes. making several different ads for s single product positioning it to taylor different groups.

Front 16

Positioning

Back 16

Attribute or Benefit
Quality and Price
Use or User
Competition

Front 17

Attribute or Benefit

Back 17

Positioning a product based on its Benefits or Attributes, toothpaste for whitening or tarter control, cars for accessories or features...

Front 18

Quality and price

Back 18

If it expensive it must be high quality, rolse royce, rolex... position it as superior quality

Front 19

Use or User

Back 19

Die hard users, coupons, frequent user benefits, positioning max factor makeup as the makeup makeup artists use.

Front 20

Competition

Back 20

positioning your product in comparing it with the competitor, directly competing with the competitor

Front 21

GCCP

Back 21

Global Consumer Culture Positioning, strategy that identifies the brand as a symbol of a particular global culture or segment. Using the product as the symbol.

Front 22

GCCP

Back 22

Brand identity is a global product, Sony, Nike.....

Front 23

FCCP and LCCP

Back 23

FCCP- Positioned as a foreign brand, VW as a german brand.
LCCP- Positioned as a local brand, Chevy, Budweiser, Levi...

Front 24

Export selling vs. export marketing

Back 24

Export selling- Selling across borders without modifying any of the 4 P's
Export Marketing- Selling across borders and changing one or more of the 4P's to do so.

Front 25

Subsidies and CAP

Back 25

Subsidies are supplements from the government to help get a product going or not promote it because there is already too much.
CAP- Common Agriculture Policy, guaranteed prices on stuff

Front 26

Tariffs and Duties

Back 26

Tariffs- Fees for bringing products into other countries, not just fees but paperwork, rules, regulations...
Duties- Taxes that punish individuals for making choices of which their governments disapprove

Front 27

HTS

Back 27

Harmonized Tariff System- importers and exporters have to determine the correct classification number for a given product or service that will cross borders.

Front 28

Quotas

Back 28

A specified amount of something that either must be reached or can not be exceeded

Front 29

Single Column vs. Two Column tariff

Back 29

Single- All countries involved get the same duty charges for example the NAFTA
Two- No agreements and all countries get different rates.

Front 30

Preferential tariffs

Back 30

Reduced tariff rate given to less developed countries, only allowed for 3 reasons
1- Historical or grandfathered rights such as british common wealth preferences
2- Preferences that are apart of a formal treaty such as free trade agreements
3- Industrial countries can grant lower tariffs to companies based on less developed countries

Front 31

Ad valorem duty

Back 31

A percentage of the value of the goods being exported.

Front 32

Countervailing duty

Back 32

Additional duties used to offset the subsidies given in the country of origin, for example higher duties on canadian timber because of the subsidies on canadian timber

Front 33

Antidumping duty

Back 33

You cannot dump products at less than cost in other countries if it compromises the market there

Front 34

Key export participants

Back 34

Purchasing agent
Export broker
Freight forwarder

Front 35

Purchasing agent

Back 35

Work for overseas customer, seeking foreign companies that will get them the best deal on the product

Front 36

Export Broker

Back 36

Third party dealer who is payed to bring the seller and buyer together

Front 37

Freight Forwarder

Back 37

Licensed specialists in traffic operations, they buy shipping space then sell it

Front 38

Components of a brand

Back 38

Complex bundle of images and experiences in the customers mind. Brands perform two important tasks.
1- represents a promise by a particular company about a particular product
2- brands enable customers to better organize their shopping experience by helping them seek out and find a particular product

Front 39

Brand equity
(4 components)

Back 39

Represents the the total value that accrues to a product as a result of a companies cumulative investments in the marketing of the brand. All components of the brand
Brand loyalty
Brand awareness
Perceived quality
Brand Image

Front 40

Local products and brands

Back 40

Large push to promote local brands as apposed to mega organizations.

Front 41

International Brands

Back 41

Brands that are well known throughout a country

Front 42

Global brands

Back 42

Brands that are known all over the world Nike, Coke....

Front 43

What is Tiered Branding

Back 43

where you promote the brand in the title, example Ford Focus...

Front 44

What is Co-branding

Back 44

Joining two companies together to promote a product, dell with intel inside, Campbells soup and the NFL...

Front 45

Brand Extension

Back 45

Extending your brand to many different product categories for example Richard Branson and Virgin mobile.

Front 46

Maslows Hierarchy of needs

Back 46

First are Physiological needs
Then are safety needs
Then are social or belonging needs
Then are Esteem or ego needs
And finally there are self actualization needs

Front 47

Maslows needs and marketing

Back 47

Marketers use these needs to appeal to us in the positioning of their products

Front 48

Can the same product meet different needs in different countries

Back 48

Absolutely, take the refrigerator for example, a product that means different things in different countries, some places a complete luxury item, others not as much.

Front 49

Country-of-origin effect?

Back 49

It becomes part of a brands image, Things made in italy are high quality and expensive things made in china are low quality and cheap.

Front 50

Brand quality extending back to country of origin?

Back 50

Nokia is a brand from finland, not many people knew that, as Nokia gained popularity and awareness people began to see where it was from and associate it with high quality

Front 51

Packaging, Labeling and Aesthetics

Back 51

These are all extremely important factors because all of these can have very strong effects on the product based on the perception of the culture it is being introduced into.

Front 52

Product Extension

Back 52

A company that has a good local product may choose to extend its distribution outside of the borders unchanged, simply extending your product out

Front 53

Product adaptation

Back 53

This involves changing certain elements of your product or promotion to sell it across borders.

Front 54

Product Invention

Back 54

developing new products from the ground up with the world market in mind

Front 55

Promotion Strategy 1 when persuing global markets
Product/ Communication extention

Back 55

Involves using the same product and promotions schemes as in the original country in other countries

Front 56

Global Strategy 2
Product extension/ Communication adaptation

Back 56

Same product/different promotion, Leaving the product the same and developing new marketing schemes for other countries

Front 57

Global strategy 3
Product adaptation/ communication extension

Back 57

Alter the product and change the promotion scheme.

Front 58

Global Strategy 4
product/communication adaptation

Back 58

Changing the product and the marketing scheme to suite the new market segments

Front 59

Global Strategy 5
New product invention

Back 59

Completely new product and marketing scheme,

Front 60

Discontinuous innovation

Back 60

Making completely new product or technology that phases out an older one, for example the ipod making CD's obsolete

Front 61

Dynamically continuous innovations

Back 61

Products that incorporate pieces of old technology in the new product.

Front 62

Continuous innovation

Back 62

Simply a new or improved version of an existing product, new car/ iphone4

Front 63

Price Skimming

Back 63

Basically testing the market segment to see how high consumers will pay.

Front 64

Price Penetration

Back 64

Setting prices for a product low enough to enter the segment quickly and gain attraction

Front 65

Companion products

Back 65

Razors and blades, Make the blades so expensive you can practically give the razor itself away

Front 66

Cost-based pricing

Back 66

Calculating the cost of the product for the company then adding the desired margin

Front 67

Rigid cost plus pricing

Back 67

Pricing is fixed and and little room for negotiation is left

Front 68

Flexible cost based pricing

Back 68

Adjusting the price for items up and down accordingly

Front 69

Incoterms

Back 69

The different terms of trade when dealing with buyers and sellers, who is responsible for what?

Front 70

Ex-works

Back 70

Buyer pays all

Front 71

Delivered duty paid
DDP

Back 71

Seller pays

Front 72

Free Carrier F.O.B.

Back 72

seller is responsible until it gets on the ship

Front 73

Cost insurance freight CIF

Back 73

Responsible until it reaches the port of destination and passes the ships rails

Front 74

Pricing Policy Alternatives

Back 74

Extension-ethnocentric, same price in all markets
Adaptation-polycentric, managers set prices in each country
Geocentric, coordinated global strategy

Front 75

Fluctuation of currency

Back 75

currency fluctuation can often make cross border business difficult due to differing values of money and contracts

Front 76

Inflation

Back 76

Inflation can often cause issues too because of quotes and trying to base future prices and predicting what inflation is going to do

Front 77

Government controls

Back 77

Governments have crazy policies and quotas sometimes

Front 78

Gray market areas

Back 78

Goods that are smuggled from one country to another and distributed by unauthorized dealers and distributors.

Front 79

Black market products

Back 79

Products that are actually illegal.

Front 80

Parallel importing

Back 80

Occurs when companies employ a polycentric multinational pricing policies that calls for setting different prices in different country markets.

Front 81

Dumping

Back 81

selling below cost, illegal

Front 82

Horizontal price fixing

Back 82

When two companies selling the same product agree to fix their prices similarly usually to keep the price high

Front 83

Vertical price fixing

Back 83

When a manufacturer conspires with wholesalers or retailers to channel and secure different levels of the distribution chain

Front 84

Barter

Back 84

straight trade for items no money involved.