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75 Cards in this Set

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International Marketing
Exchange of goods and services across national boundaries
Global firm
one that by operating in more than one country gains advantages not available to purely domestic competitors
Born- global firm
a firm that from its begining, enters more than one national market
Reasons to enter the international market
Opportunity for Growth
Comparative advantage
Relaxation of protectionism
Rise of economic communities
Increase in global consumers
Opportunity for growth
Mature saturated Us markets
Growth, inductory stage in foreign markets
Comparative advantage
to take advantage of specialized conditions:
expertise
Labor environment
lower competition
Relaxation of protectionism
Fewer political and legal barriers
NAfta
Rise of economic communities
Makes global trade easier
European union, Apec, Nafta,Mercosur
Increase in global consumers
Information flow is increasing demand
"global teenager"
Culture
Significant differences in values, behaviors across countries, regions

Acceptable business practices differing customs, norms, conventions
Language problems- must be careful in translating-use "back translation"
Economic factors
Average disposiable income
Income distribution
Currency stability and convertibility
Types of economies
less developed
Developing
developed
Trade barriers
Quotas- limit on number of imports
Tariffs-taxes on entry into country
Local content rules
Government bureaucracy and practices
How easy is it to do trade?
Political instability
Risk of government take-over
Nationalization or expropriation
Risk of community disruption
Product options
Straight extension
Product adaptation
Product invention
Straight extension
assumes needs and wants are similar in different countries
Same product, same promotion, IBM computers
Product adaptation
Product is modified to meet needs ofthe foreign market

Same or very similar promotional theme, Shampoo scents, food ingredients
Product invention
Assumes consumers are different
Unique products, themes for each country
Promotion
Promotion is very culturally sensitive because of:
Humor
Product comparisions
Acceptable language, situations
Availability of technology affects media mix
Personal selling techniques vary
Place adaptations
intermediaries are often different
Pipeline inventory/ time is much greater
Transportation infrastructure is often not as good
Pricing adaptations/issues
Must be sensitive to issules of "Dumping"- selling in the foreign market at price significantly lower that in domestic market in order to eliminate competition
Often more expensive to sell internationally compared to domestic markets
How to enter the market: Factors to consider
Company's experience in market
Degree of risk in market
Methods of entering the international market
Exporting
Lincensing or franchising
Strategic Alliance
Direct investment
Exporting
Sell product to US intermediary who reslls or sells to international intermediary
Licensing and Franchising
Domestic firm grants a foreign firm the right to use firm's name, processes in return for royalty payments
Strategic alliance
Joining with a foreign firm to produce or market products
Direct investments
Building manufacturing, assembly facilities, significant warehouses, etc. In a foregn company
Three levels of planning
Strategic (corporate level)
Functional (department level)
Operational- line/supervisory level
Marketing planning is at the
functional level
Strategic Planning
planning done and action taken at the corporate level
to develop long range approaches to business survival and growth
SWOT analysis
Strengths weaknesses, opportunities, threats,
Strategic business units (SBUs)
major divisions a company is in
Portfolio analysis
is used to determine the value of and actions for different sbus
Boston consulting group growth matrix
classfies products into four categories
considers relative market share and rate of industry/ market growth
Hold
Maintain resources at current level and watch for changes in environment, changes in company mission, skills etc.
Market penetration
Exisiting market, existing products-increase sales
Product development
New product, existing market
Market development
new markets, exisiting products
diversification
new market, new product
diverstment
eliminate entire product line or division
Harvesting
cut back on resources devoted to product/market
Pruning
eliminating specific product (specific variety)
Retrenchment
cut back geographically
Set specific marketing objective
for each sbu, specify desired marketing performance
Based upon growth/ consolidation as indicated in the portfolio analysis
Develop a specific marketing strategy to meet objectives
identify the TM and the 4ps for the sbu
specific actions must be consistent w/ growth consolidation strategy
Develop a specific marketing plan
who, what , when etc
Time based agenda and steps
Logistics
movement of goods and materials from the point of origin (or supply) to the final consumer supplier to manufacturer to consumer
Purpose/goal of logistics
To make sure that the targeted level of consumer service is provided to the customer at the lowest possible price
Transportation
physically moving the product between locations
Inventory Management
deciding how much stock of product is needed and where it should be stored

Making sure goods are always available to meet consumer needs
Warehousing
physically storing inventory in anticipation of sale
Materials handling
Moving the product w/in a facility
Order processing
receiving and handling orders
EDI- electronic data interchange
ERP systems
enterprise wide resource planning systems

information systems that use a combined data bade and link together the functions of logistics
Activities performed by a 3pl (third party logistics provider)
outsourcing, transportation, warehousing etc.
Service marketing
Text: intangible products that are exchanged directly from the producer to the consumer

Any deed, act, or performance

purchase of a service does not result in ownership of anything
Importance of services in the economy
account for approximately 70% of GDP
80% of workers are in service positions
fastest growing sector
Characteristics of Services:
Intangibility
can't be seen, tasted, felt or heard prior to purchase
Mean harder to evaluate
Characteristics of services:
Variability
because people are so involved in process services are not the same from time to time
Quality depends on who, when, where, how
Characteristics of Services:
Persishability
services can not be produced ahead of time and stored
no inventory of services
Characteristics of services: Inseparability
services cannot be seperated from the service provider

Producer and consumer at the same time

cannot inspect our defects ahead of time
Defition 2: Inseparability
consumer is a part of the service

consumer is generally present and influences the quality of the services recieved
High credence attributes (products are generally high in one of the following attributes)
Search attributes- can effectively evaluate the product prior to purchase ( most physical goods)
experience attributes- can not effectively evaluate prior to purchase, but can evaluated after purchase
Credence attributes- can not effectively evaluate even after you have received the service
Expanded marketing mix for services: People
employees
the customer
and other customers all inifluence quality of experience
Expanded Marketing mix for services: Physical evidence
the tangible part of the service
the servicescape
Many consumers judge service quality based on the servicescape
Expanded Marketing mix for services
activities which lead up to and are a part of the service
usually more visible than those for physical goods , so process must be managed
Focus on employees
Employees that are well matched for their job trained and motivated
research has consistently shown that satisfied loyal employees provide value to the customer

Loyal customers are the most profitable
Build and maintain relationships
better to have fewer, more loyal customers than a higher number of less loyal customers
Regularly research expectations and performance
Must know what customers want
must know how company is doing in eyes of customer
Reliability
is service performed correctly?
Responsiveness
is service performed on time?
Assurance
do employees look like/ talk like they know what they are doing?
empathy
do employees care?
tangibles
are physical surroundings attractive, clean, etc.?