International Marketing Final

Front 1

Services are best marketed through which entry mode?

Back 1

Foreign Direct Investment

Front 2

Which mode of entry is common to control retailing channels?

Back 2

Direct Investment

Front 3

Direct exporting is better suited for standardization or adaptation?

Back 3

Standardization

Front 4

a foreign market entry mode in which the manufacturer is not the exporter, instead a third party conducts the export transaction

Back 4

Indirect Exporting

Front 5

What are the benefits to exporting when it comes to NPD?

Back 5

the firm has freedom to choose how many or few products

Front 6

What are the downsides of licensing when it comes to NPD?

Back 6

less freedom in product selection, licensees may not be available for all products, licensees may not have appropriate technology, licensee's product line can limit the licensor

Front 7

What are the downsides of JV when it comes to NPD?

Back 7

restricts the product line, when national partner has complimentary products the product line possibilities are confined

Front 8

What are the downsides of wholly owned operations?

Back 8

more risk, higher cost

Front 9

What are the benefits of wholly owned operations when it comes to NPD?

Back 9

flexibility, products can be suited to local needs

Front 10

a form of indirect export in which one product rides on the back of another from one national market to another

Back 10

piggybacking

Front 11

the sum of activities related to the moving of goods from their source to the final consumer

Back 11

supply chain

Front 12

Best practices in supply chain mgmt?

Back 12

a firm is continually addressing how it can be more competitive about decisions through its supply chain

Front 13

the sum of activities that move products from a firm to its customers

Back 13

Distribution

Front 14

highly focused on the consumer and being readily available

Back 14

Consumer Product Distribution

Front 15

closer communication with buyers, shipments are often grouped together

Back 15

Industrial Product Distribution

Front 16

Key Challenge of Distribution

Back 16

how to maximize effectiveness of a firm's distribution system in meeting customer needs while remaining cost competitive

Front 17

Trends in distribution

Back 17

companies are removing layers in distribution, direct to consumer, favors global sourcing, less tariffs

Front 18

the sequence of discounts leading to the pocket price

Back 18

Price Waterfall

Front 19

Pricing pressures leaning towards what?

Back 19

Uniform Pricing

Front 20

What is the relationship between supply chain, distribution, and pricing?

Back 20

Simpler supply chain leads to less layers in distribution leads to cheaper

Front 21

nonpersonal, sponsor paid communication using mass media

Back 21

advertising

Front 22

Disadvantages to advertising?

Back 22

nonpersonal

Front 23

Advantages to advertising?

Back 23

inexpensive per contact

Front 24

When to use advertising?

Back 24

big, homogeneous, dispersed markets

Front 25

sponsor-paid communication that is in personal

Back 25

personal selling

Front 26

Downsides to personal selling?

Back 26

expensive

Front 27

Advantages to personal selling?

Back 27

can be tailored to individual needs and message can be changed quickly, immediate response

Front 28

nonpersonal, medium-paid communication using mass media

Back 28

public relations

Front 29

Advantages to public relations?

Back 29

effective and persuasive

Front 30

Disadvantages to public relations?

Back 30

not easily controlled, effectiveness is difficult to measure

Front 31

When to use public relations?

Back 31

damage control or introduction of new products

Front 32

sponsor-paid communication in mass media as well as direct-mall, generally short term

Back 32

Sales promotion

Front 33

Advantages to sales promotion?

Back 33

effectiveness is easy to measure and technology is making it more personal

Front 34

Downside to sales promotion?

Back 34

nonpersonal

Front 35

When to use sales promotion?

Back 35

heavy brand switching, price-sensitive products with mass appeal

Front 36

divides customers according to their responses to sensory product characteristics

Back 36

sensory segmentation

Front 37

What are the benefits of sensory segmentation?

Back 37

allows for the development of a limited range of products within a product line to satisfy a large number of product needs across countries

Front 38

divides customers according to their specific behavioral patterns they display when making purchasing decisions

Back 38

behavioral segmentation

Front 39

What are the current trends in international retail?

Back 39

trend towards large scale retail stores, such as those commonly found in the US

Front 40

Relationship between global companies and information systems?

Back 40

Without information, global systems could not be integrated efficiently. Information systems allow a firm to reduce inventory significantly and increases communication.

Front 41

Why would personal selling be different in a different geography?

Back 41

National, not international. Very culturally dependent. Personal selling has a low status in other countries. Plus, people don't want to talk to strangers, especially to persuade.

Front 42

a set of 11 transportation related terms issued by the ICC and used worldwide in sales contracts

Back 42

Incoterms

Front 43

What happens when you can't convert earnings?

Back 43

You are unable to completely integrate operations, make proper transfer payments, or repatriate capital. Countertrade is a solution.

Front 44

the exchange of goods for goods rather than money

Back 44

countertrade

Front 45

direct exchange of goods for goods

Back 45

barter

Front 46

the seller agrees to receive goods or services over some future time period as payment for goods or services provided

Back 46

counterpurchase

Front 47

This is for low risk businesses. This role gives considerable autonomy to subsidiaries and uses measurements, such as profits by SBU, to determine when to intervene (classic mgmt)

Back 47

HQ as Controller

Front 48

This role decentralizes authority to subsidiaries but is available to provide support and advice. This means that HQ will intervene when necessary, attempting to strike the right balance.

Back 48

HQ as coach

Front 49

This is for high risk businesses. This role has central control for everything and subsidiaries have less autonomy. Good for: oil, steel, mining, financial services, where integration is important and investment needs are large

Back 49

HQ as orchestrator

Front 50

Controller's Synergy

Back 50

Little/None

Front 51

Controller's Risk

Back 51

Low

Front 52

Controller's Competition

Back 52

Stable

Front 53

Coach's synergy

Back 53

medium

Front 54

Coach's risk

Back 54

medium

Front 55

Coach's competition

Back 55

open

Front 56

Orchestrator's synergy

Back 56

high

Front 57

Orchestrator's risk

Back 57

high

Front 58

Orchestrator's competition

Back 58

intense

Front 59

Advantages to "no brand?"

Back 59

lower production cost, lower marketing cost, lower legal cost, flexible quality and quantity control

Front 60

Disadvantages to "no brand?"

Back 60

severe price competition, lack of market identity

Front 61

Advantages to "branding?"

Back 61

better ID and awareness, better chance for product differentiation, possible brand loyalty, possible premium pricing

Front 62

Disadvantages to "branding?"

Back 62

higher production cost, higher marketing cost, higher legal cost

Front 63

Advantages to "private branding?"

Back 63

better margins for dealers, possibility of larger market share, no promotional problems

Front 64

Disadvantages to "private branding?"

Back 64

Severe price competition, lack of market identity

Front 65

Advantages to "manufacturer's brand?"

Back 65

better price due to more price inelasticity, retention of brand loyalty, better bargaining power, better control of distribution

Front 66

Disadvantages to "manufacturer's brand?"

Back 66

difficulty for small manufacturer with unknown brand or identity, brand promotion required

Front 67

Advantages to "multiple brands?"

Back 67

market segmented for varying needs, creation of competitive spirit, lower inventory cost, avoidance of negative connotation of existing brand, more retail shelf space gained, no damage to existing brand's image

Front 68

Disadvantages to "multiple brands?"

Back 68

higher marketing cost, higher inventory cost, loss of economies of scale

Front 69

Advantages to "single brand?"

Back 69

marketing efficiency, more focused marketing permitted, elimination of brand confusion, advantage for product with good reputation (halo effect)

Front 70

Disadvantages to "single brand?"

Back 70

market homogeneity assumed, harm to existing brand's image when trading up/down, limited shelf space

Front 71

Advantages to "local brands?"

Back 71

meaningful names, local ID, avoidance of taxation on international board, quick market penetration by acquisition of local brand, variations of quality and quantity across market allowed

Front 72

Disadvantages to "local brands?"

Back 72

higher marketing costs, higher inventory costs, loss of economies of scale, diffused image

Front 73

Advantages to "worldwide brand?"

Back 73

maximum marketing efficiency, reduction of advertising costs, elimination of brand confusion, advantage for culture free product, advantage for prestigious product, easy ID for international travelers, worldwide uniform image

Front 74

Disadvantages to "worldwide brand?"

Back 74

market homogeneity assumed, problems with black/gray markets, possibility of negative connotation, quality and quantity consistency required, LDCs opposition and resentment, legal complications

Front 75

Where are services most likely to be prominent?

Back 75

Services become more important as an economy becomes more developed. They are increasingly important in industrialized nations.

Front 76

Selling at high prices and higher margins. The strategy assumes that as the market grows and evolves, the price will be cut gradually.

Back 76

skimming

Front 77

Selling high volumes at low prices. Relies on the idea that unit costs will fall rapidly as sales grow.

Back 77

Pricing to penetrate

Front 78

Occurs when a firm is judged to be pricing its products below costs to gain market share

Back 78

Dumping

Front 79

the unauthorized importing and selling of products intended for one market in another higher priced market

Back 79

Gray Marketing

Front 80

How must packaging change internationally?

Back 80

packaging adaptation may be due to climate, transportation conditions, and consumer preferences. Information required on labels varies by countries.

Front 81

the use of companies to outsource specific functions of supply chain management

Back 81

3rd party logistics

Front 82

Benefits to trucks

Back 82

primary method to pick up and drop off at facilities, can go anywhere there are roads

Front 83

Cost of trucks

Back 83

relatively high versus rail or ocean

Front 84

When to use trucks?

Back 84

Most common mode for starting and ending

Front 85

Benefits of Rail

Back 85

very efficient and ideal for multiple containers

Front 86

Cost of Rail

Back 86

low versus other modes

Front 87

When to use rail?

Back 87

Relies on availability of rail between shipping points

Front 88

Benefits of barge

Back 88

efficient for rivers

Front 89

Costs of barge

Back 89

low versus other modes

Front 90

When to use barge

Back 90

Bulk commodities, containerized freight

Front 91

Benefits of ocean

Back 91

most efficient method for long distances

Front 92

Costs of ocean

Back 92

Low versus other modes, especially if goods are containerized

Front 93

When to use ocean

Back 93

When time of delivery is not critical

Front 94

Benefits of Air

Back 94

fast and reliable

Front 95

Costs of Air

Back 95

High, especially for large goods

Front 96

When to use Air

Back 96

Not with low value, high weight.

Front 97

Benefits of containerized

Back 97

lowers overall freight costs

Front 98

Costs of containerized

Back 98

most efficient, lowers costs

Front 99

When to containerize

Back 99

when possible

Front 100

moving freight in standard cargo containers by ocean, air, rail or truck

Back 100

Intermodalism

Front 101

organizational form with a separate unit to focus on international business that concentrates on international expertise, personnel, and vision in one part of the company

Back 101

International Division Structure

Front 102

Advantages to International Division Structure

Back 102

allows international expertise, personnel, and vision to be concentrated in one part of the company, creates a unit with a sole focus on international business

Front 103

Disadvantages to International Division Structure

Back 103

may receive fewer resources than it needs, may be perceived as "backwater" that is not relevant to the company's success, may have less political clout, may have difficulty integrating international business issues into the overall corporate strategy

Front 104

When to use International Division Structure?

Back 104

When limited international operations, where domestic concerns predominate, where product line complexity is limited

Front 105

organizational form with separate units to focus on major geographical areas

Back 105

Regional Organizational Structure

Front 106

Advantages to Regional Organizational Structure

Back 106

matches recent trend towards regionalization, regional and country expertise can be grouped together, improves country/regional communication, ensures best use of a company's regional expertise

Front 107

Disadvantages to Regional Organizational Structure

Back 107

less optimal use of a company's product and functional expertise, duplicates functional and product roles in each regional grouping, may optimize regional performance at the expense of corporate performance, danger of minimal coordination among regions

Front 108

When to use Regional Organizational Structure

Back 108

marketing oriented companies that have relatively stable technology, consumer nondurables, pharmaceuticals, automotive, farm

Front 109

organizational form with separate units to focus on major products or services offered by the organization

Back 109

Worldwide Product Organizational Structure

Front 110

Advantages to Worldwide Product Organizational Structure

Back 110

provides flexibility to add new products easily, product expertise can be grouped together, improves product communication, ensures best use of a company's product expertise

Front 111

Disadvantages to Worldwide Product Organizational Structure

Back 111

may overly focus on domestic market, often has limited regional expertise, each product group can usually not afford a full int'l staff, danger of minimal coordination inside countries or regions

Front 112

When to use Worldwide Product Organizational Structure

Back 112

companies with several unrelated product lines because their marketing tasks vary more by product line than by region

Front 113

complex organizational form with a dual chain of command where units report to superiors about both product and geographical issues

Back 113

Matrix Organizational Structure

Front 114

Advantages to Matrix Organizational Structure

Back 114

improves coordination along product and regional lines, resolves many of the problems of regional and product structures, fosters conflict management and balance of power, product and region receive equal merit

Front 115

Disadvantages to Matrix Organizational Structure

Back 115

complex, difficult to implement, creates dual lines of authority, can be difficult to manage

Front 116

organizational form that balances conflicting needs of global integration and local responsiveness by centralizing some units and distributing others to product or regional units

Back 116

Transnational Organizational Form

Front 117

Needs and conditions of use are same, ability to buy exists

Back 117

Product and communications extension

Front 118

Needs are different, conditions of use are same, ability to buy exists

Back 118

Product extension and communications adaptation

Front 119

Needs are same, conditions of use are different, ability to buy exists

Back 119

Product adaptation and communication extension

Front 120

Needs and conditions of use are different, ability to buy exists

Back 120

product and communication adaptation

Front 121

Needs are same, conditions of use not applicable, ability to buy is low

Back 121

new products

Front 122

How is technology used in supply chains?

Back 122

Logistics partners now provide tools that customers can integrate into their website or corporate management information system. Technology solutions range from modeling transportation costs using different warehouse scenarios to real time tracking.

Front 123

What is the most basic control mechanism?

Back 123

Budget

Front 124

What are the 5 data mgmt mechanisms?

Back 124

information, measurement, resource allocation, strategic planning, budgeting

Front 125

What are the 5 managers' mgmt mechanisms?

Back 125

choice of key managers, career paths, reward/punishment systems, mgmt development, and patterns of socialization

Front 126

What are the 6 conflict resolution mechanisms?

Back 126

Decision responsibility assignments, integrators, business teams, resource allocation, coordination committees, issue resolution process

Front 127

What services are home country preferred?

Back 127

Travel and medical

Front 128

transfer pricing at the lowest cost

Back 128

Manufacturer's costs

Front 129

transfer pricing at the same price as an outside buyer

Back 129

Arm's Length

Front 130

transfer pricing at a compromised price

Back 130

Cost-plus

Front 131

the prices used on goods sold between related parties- such as from division to division

Back 131

Transfer Pricing

Front 132

the activities associated with customer support such as warranties, repairs, and returns

Back 132

Reverse Logistics

Front 133

Which service attribute deals with lack of differentiation of service?

Back 133

Intangibility

Front 134

Which service attribute deals with variations in quality?

Back 134

Heterogeneity

Front 135

Which service attribute deals with issues of forecasting demand?

Back 135

Perishability

Front 136

Which service attribute deals with providing the service at a distance?

Back 136

Simultaneous production and consumption

Front 137

Which service attribute deals with the difference in customer perceptions?

Back 137

Quality of Service

Front 138

How to build a global brand?

Back 138

A global brand follows standard, uniform brand positioning and a strategy across all its key markets.

Front 139

convenient, relates promotion to the volume of sales in a country, when sales are declining, promotion declines, although long term considerations might suggest that promotion be stepped up, most common approach

Back 139

Percentage of sales approach

Front 140

matching competitor's advertising outlays

Back 140

Competitive parity approach

Front 141

determines objectives, then determines the cost of the tasks needed to reach objectives

Back 141

Objective and task approach

Front 142

markets are grouped into categories according to characteristics relevant to promotion, more flexibility and control

Back 142

Comparative analysis approach

Front 143

Factors contributing toward standardization

Back 143

Centralized management and direct exporting, country of origin effects, economies of scale in production/R&D/marketing

Front 144

Factors contributing toward adaptation

Back 144

Differences in tech standards, consumer and personal use products, variation in needs and use, variations in ability to buy, market's level of economic development, influence of gov't

Front 145

Should product testing be done in lots of markets?

Back 145

Yes. Products must be tested under realistic conditions which are often unavailable in a lab. This might mean testing in multiple countries.

Front 146

Allows consolidation of larger shipments to be broken down into smaller shipments

Back 146

Warehousing

Front 147

Implications of cash in advance?

Back 147

most risky for buyer, least risky for seller

Front 148

Implications of LC?

Back 148

common compromise

Front 149

Implications of Documentary Collections?

Back 149

More risky to seller than LC, but less expensive and a good option when there is some trust of the foreign buyer

Front 150

Implications of Open account?

Back 150

most risky for seller, preferred by buyer

Front 151

a common form of export financing where the buyer's bank agrees to pay the seller as long as the seller fulfills the terms

Back 151

Letter of Credit (LC)

Front 152

a payment method in which the seller utilizes a foreign bank to collect payment for a transaction with the understanding that the buyer will not receive the goods until payment has been made

Back 152

Documentary Collections

Front 153

a payment method whereby the seller extends credit to the buyer such that the buyer typically does not have to pay for the goods in advance but instead some time later

Back 153

Open Account