chapter 8 marketing

value of the dollar declines in relation to other currencies, it benefits US marketers who
export goods to other countries
what are the major trade agreements affecting global marketing
NAFTA, EU, ASEAN, CAFTA
marketers considering operations and trade with a specific country must consider whether the country belongs to a trading bloc. a trading bloc is a group of countries
that have established a formal agreement to manage trade activities
which one of these trade agreements represents the highest level of integration among participating nations
EU
global businesses often find it particularly difficult to understand the what of a countries cultures
underlying values
what two pieces of socicultural factors could go wrong in a campaign
visible artifacts and underlying values
geert hofsetedes cultural dimensions concept focuses on five dimensions of what in a country
underlying values
what are hofsetedes cultural dimensions
power distance, uncertainty avoidance, individualism, masculinity, and time orientation
marketers use hofsetedes cultural dimensions to design marking campaigns that are
consistent with underlying cultural values in a country
culture affects
every aspect of the purchase decisions consumer make
generally firms entering foreign markets begin with
less risky strategies first
when entering a foreign market the least risky strategy is
exporting because the firm does not own or establish anything in the country
global expansion often begins with
an order from another company
many american realtors have expanded globally using
franchising
not a lot risk and limitations on control of international stores often lead to which strategy
franchising
domestic firms developing a global entry strategy might consider franchising however what are the disadvantages
it has limited ability to ensure foreign operations follow concepts, might become a competitor, limits profit potential because profits will be split with the franchisee
when firms pool their resources to enter a new market they create
joint venture
china requires firms to create what when expanding in their markets
joint ventures
what is a joint venture
a business formed with two or more firms pool their resources it is a medium risk strategy for global market entry
of the five strategies for entering new markets direct investment
creates the greatest potential risk
direct investment
strategy in which the firm owns property and equipment in foreign market and has control of the business operations
global tsp are more complicated because
consumers may view their roles differently in different countries
global stp ar e more complicated because of cultural nuances, significant subcultures and
differences in the way consumers see themselves and the way they see products and services
most important strategy in global market should be
needs of target market
tariffs quotas and currency exchange policies affect global
pricing strategies
global pricing strategies should be consistent with
positioning strategies
global marketers are under constant pressure to shorten distribution channels to
reduce costs
distribution globablly is more complex because
they must go through many types of distribution channels
reason for not doing the same global campaign as the domestic
differences in languages customs and culture might make the campaign meaningless and ineffective in some markets
marketing in children in europe runs into what probelm
regulations of advertising especially to children can widely vary from country to country
to cope with language branding difficulties companies can
develop brand names that are meaningless in known languages
which of the following is one of the global entry strategies
direct investment
when a company decides to minize risk and enter a global market by shipping its products to buyers in other countries this is known as
exporting
direct investment global entry strategy
firm maintains total ownership of its plants operation facilities and offices in a foreign country
the term trade deficit refers to
higher levels of imports than exports
imported cars are more expensive because of
tariff
what term is used to refer to the firm that is granted the right to operate a business using the franchise name
franchisee
which describes global expansion through a strategic alliance
relationship where two firms collaborate on a business opportunity but do not invest in each other
global product strategy
selling the same product in multiple countries
trade agreement for us canada and mexico
NAFTA
globalization of the fiesta
same product design and features with variations in promotional campagins
reverse innovation
when an innovation is first developed in the developing world and then moves to developed countries
bric countries
brazil, russia, india and china
what do the bric countries have in common
they are experience significant levels of economic growth
what is negative factor for foreign investment in russia
russia is known for corruption, creating ethical dilemmas for firms
which of the following is currently a negative factor for foreign investment in india
indias infrastructure for supply chain manageet is not up to date
negative factor for investment in china
population is aging rapidly
which one of the bric countries has the highest illiteracy rate
india
why should marketers be aware of bric countries
liekley to be source of most market growth
what about indias population is true
indias workforce is highly skilled, particularly in technology
with a median age of 34.1 years is one of the most rapidly aging countries
china
changes in what have been a driving force for growth in global markets for decades
technology
which country has a large literate population that helped it to become the worlds seventh largest economy
brazil
which country is projected to become europes largest online market in the next few years with internet users growing at a rate of 15 percent anually
russia
which government has recently made changes that will modernize the retail environment allowing joint ventures and direct ownership
india
which country has embraced market-oriented economic development in spite of maintaing communist political ideals
china
which country has a rapidly again population
china
once a firm has done analysis of the viable product markets it must
conduct an internal assessment of its capabilities
mary wants to sell in europe but doesn’t have a lot capital and is risk averse
exporting
franco wants to start a business without having an existing firm or product so he might
open a mcd franchise
when ford introduced figo in india it was responding to
economic and social trends in india toward smaller cars
kfc in china practices what global product strategy
sell totally new products or services
franc has disponible income because he has no debt and has little interest in saving and only makes 600 a month where does he live
russia
core company learned that when selling in euorpe local fulfillment can be more cost effective because it decreases delivery time and improves customer service this which global strategy
distribution
global communication strategies are hampered by media availability in countries
with state controlled media
china has three main languages and many dialects this presents a particular challenge to developing a global
communication strategy
components of global market assessment include
infrastructure technology anwyslis anayalysi sod government actions socivulution and economci