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60 Cards in this Set

  • Front
  • Back
Steps in Formulating Marketing Communications Strategy
1. Assess marketing communications opportunities
2. Analyze marketing communications resources
3. Set marketing communications objectives
4. Develop and evaluate alternative strategies
5. Assign specific marketing communications tasks
Promotional Mix
The tools the international marketer has available to form a total communications program for use in the target markets
Push strategies
Focus on the use of personal selling; pesuading a prospect to buy a good or service
Pull strategies
Focus on mass communications tools like advertising
Integrated marketing communications
Coordinated use of many promotional tools
The choice of media is governed by the appropriate media's ____ and its ____ in reaching that audience.
target audience, efficiency
Broad-based media
Magazines, newspapers
Horizontal media
Focus on a particular marketing task / function such as pricing
Vertical media
Focus on a particular market or industry such as trunking
Direct marketing
The use of various media to elicit an immediate sale or response from a consumer.
Reasons companies might participate in trade shows
1. Customer can examine the product
2. Goodwill and contact cultivation
3. Locating a trade intermediary
4. Opportunity to meet government officals and decision makers
5. Opportunity for market research
6. Exporters able to reach sales prospect sin brief time period at a reasonable cost per contact
Reasons companies might not participate in trade shows
1. High cost
2. Identifying the "right" trade shows to participate int
3. Coordination
Channel length
The number of levels, or different types, of intermediaries
Channel width
The number of institutions of each type of channel
The nature of the product and how it impacts the dsign of the channel
the number of areas in which a product is represented and the quality of that is represented
Exclusive coverage
Gives one merchant the sole right to sell a product within a defined geographical area
Selective coverage
gives several entities the right to sell a product in a defined geographical area
Intensive coverage
Makes a produc available in the maximum number of entities in each region to gain as much exposure and as many opportunities as possible
Two intermediary relationships
1. Distributorship - Purchases product for resale and usually provides complete marketing services. Has own sales force to call on.
2. Agency - Operates on a commission basis and does not physically handle the product
Terms of the Distribution Agreement
1. Contract duration is usually short (1-2 years)
2. Well-defined territories and channels
3. Methods for determining payment amounts
4. Products to be sold and terms of sale
5. Means of communication
6. Method of arbitration in case things go wrong
Channale management
Coordinating two independent entities with shared goals.

The business strategies of the manufacturer and the seller should be aligned.
Factors that complicate channel management
1. Sharine of responsibilities and profits
2. varying expectations of parties involved
3. Different rules of law
Gray Trade
Occurs when legitimate branded products are imported into a country by an unauthroized intermediary and offered for sale at a lower price than could be obtained by an authorized distributor
What allows Gray Marketing?
When companies have to sell the same product at different prices. GM can purchase them in a cheaper region and resell them where the price is higher.

Exchange rate fluctuations
How to minimize gray marketing
1. Produce different versions of the product for different markets
2. Use a one price policy across all markets
3. Add the GM to the authorized network
4. Enforce stiff penalties
Redefined view of marketing research
Systematic and objective identification of information, collection, analysis and dissemination of information for the purpose of improving decision making related to the identification and soluion of problems and opportunities in marketing
Differences in international and domestic research
1. New parameteres (duties, foreign currencies)
2. New environments (legal, consumption habits)
3. Number of factors involved
4. Broader definition of competition
Company controlled by another company or corporation.

Separate, distinct legal entities for the purpose of taxation and liability
Proactive Motivators why firms go international
1. Profit
2. Unique products
3. Technological advantages
4. Exclusive information
5. Managerial urge
6. Tax benefit
7. Economies of scale
8. Pre-empt competition
Reactive Motivators why firms go international
1. Competitive pressure
2. Overproduction
3. Declining domestic sales
4. Excess capacity
5. Saturated domestic markets
6. Proximity to customers and ports
Export Management Companies
Domestic firms that specialize in performing international marketing services such as marketing research, ect.
Two primary forms of EMC
1. Distributor - Takes title of goods and operates internationally
2. Agent - Commissioned entity where title of goods is not taken
Trading company
A company that provides a link between buyers and sellers in different countries
Reason for success of sogo shosha
1. Development of information systems to identify market opportunities
2. Economies of scale in the vast transaction volume to obtain preferential treatment
3. Access to vast quantities of capital on a global scale
Sogo shosha
Famous, successful trading companies in Japan including Mitsubishi and Mitsui
International freight forwarders
Serves as an agent for exporter

Involved in 80% of commercial trade

Provides help with invoices, shipping documentation, pricing, ect.
The granting of permission to use intellectual property rights under defined conditions
A business operated by a franchisee who, in return for an investment and payment of royalties, agrees to use another company's trademarks, brands, logos and technology and operate a business in the name of the grantor
Factors encouraging standardization
1. Economies of scale in production
2. Economies in product R&D
3. Economies in marketing
4. "Shrinking" of the world marketplace
Factors encouraging Adaptation
1. Differ use conditions
2. Government and regulatory influences
3. Differing consumer behavior patters and income levels
4. Local competition
5. True to marketing concept
Backward innovation
To simplify a product or services due to lack of purchasing power or usage conditions
Simply translating a brand name into a foreign language
Testing existing brand name for emotional meaning in the language of the foreign market
Develop a meainingless brand name
Use foreign sounding language name for a brand due to specific country of origin benefits
Major functsion of packaging
1. Protection
2. Promotion
3. User convenience
Price Dynamics
1. Pricing is the only revenue generating element of the marketing mix
2. Pricing is a means of attracting and communicating an offer to a potential buyer
3. Pricing is a competitive tool
4. Pricing can be used to position the product or service in the marketplace
Using high-priced unique products to achieve the highest possible profit in a short initial time period and gradually lowering the price as competitors enter the market.

Good for price insensitive consumers
Market pricing
Following competitive pricing in the target market; adjusting production and marketing mix to competitive condiditons

More of a reactive approach to pricing
Penetration pricing
Offerin low pricing to generate volume sales which hopefully will compesnate for low profit margins

Good approach for mass markets and price sensitive consumers
Variable cost pricing
Variable costs associated with a product are the only costs allocated into the price. Fixed costs are not included.

Price is lower so consumers can afford it
Full cost pricing
Variable and fixed costs are included into price
Price escalation
Clear-cut and hidden costs that drive export prices to a level that far exceeds those of domestic prices
Causes of price escalation
1. Cost of modifying a product for foreign markets
2. Cost of exporting the product
3. Costs of entering the foreign market (tariffs, duties, foreign exchange)
Cash in advance
Favors the exporter because it relieves them of all risk and allows for immediate use of the money
Letter of Credit
Bank promises o pay a specified amount of money with documentation
Irrevocable vs. Revocable L/C
Irrevocable - L/C cannot be canceled of modified
Confirmed vs. unconfirmed L/C
Confirmed - Bank accepts responsibility to pay regardless of financial situation of buyer
Revolving vs. non-revolving L/C
Nonrevolving - L/C is good for this transaction and this transaction only