Podcast
Questions and Answers
What is the primary purpose of using the BERI index in the case study of Click-IT AB?
What is the primary purpose of using the BERI index in the case study of Click-IT AB?
Which product is Click-IT AB planning to expand into based on market demand forecasts?
Which product is Click-IT AB planning to expand into based on market demand forecasts?
What characteristic of Click-IT AB influences its decision-making regarding international expansion?
What characteristic of Click-IT AB influences its decision-making regarding international expansion?
How does Click-IT AB collect data for the risk analysis related to the BERI index?
How does Click-IT AB collect data for the risk analysis related to the BERI index?
Signup and view all the answers
Why does Click-IT AB choose to evaluate risks rather than directly enter any potential market?
Why does Click-IT AB choose to evaluate risks rather than directly enter any potential market?
Signup and view all the answers
What is the significance of the forecast for flash memory cards for Click-IT AB's business strategy?
What is the significance of the forecast for flash memory cards for Click-IT AB's business strategy?
Signup and view all the answers
What percentage of the world’s hydropower is generated using Voith Hydro turbines or generators?
What percentage of the world’s hydropower is generated using Voith Hydro turbines or generators?
Signup and view all the answers
Which of the following industries utilizes Voith Turbo drive elements?
Which of the following industries utilizes Voith Turbo drive elements?
Signup and view all the answers
In B2B markets, why is segmentation often easier compared to consumer markets?
In B2B markets, why is segmentation often easier compared to consumer markets?
Signup and view all the answers
Which of the following is NOT a criterion for segmenting potential customers in B2B markets?
Which of the following is NOT a criterion for segmenting potential customers in B2B markets?
Signup and view all the answers
What approach can producers of standardized products take for segmentation?
What approach can producers of standardized products take for segmentation?
Signup and view all the answers
What is a potential strategy for producers with less fixed customer relations?
What is a potential strategy for producers with less fixed customer relations?
Signup and view all the answers
What type of product range do specialized producers typically offer?
What type of product range do specialized producers typically offer?
Signup and view all the answers
Which segmentation option is likely used by Voith AG based on their customer base?
Which segmentation option is likely used by Voith AG based on their customer base?
Signup and view all the answers
What is one consequence for a company that faces price competition in its domestic market?
What is one consequence for a company that faces price competition in its domestic market?
Signup and view all the answers
Why can assessing competition in international markets be challenging?
Why can assessing competition in international markets be challenging?
Signup and view all the answers
What is one of the key tasks of international marketing according to Backhaus & Voeth?
What is one of the key tasks of international marketing according to Backhaus & Voeth?
Signup and view all the answers
Which of the following factors is NOT mentioned as part of the international business environment?
Which of the following factors is NOT mentioned as part of the international business environment?
Signup and view all the answers
Why is developing strategies that utilize economies of scale important in international marketing?
Why is developing strategies that utilize economies of scale important in international marketing?
Signup and view all the answers
What aspect of international marketing involves coordinating marketing activities across multiple markets?
What aspect of international marketing involves coordinating marketing activities across multiple markets?
Signup and view all the answers
What can impact a company's ability to operate in international markets?
What can impact a company's ability to operate in international markets?
Signup and view all the answers
What is a potential risk associated with assessing the competition in international markets?
What is a potential risk associated with assessing the competition in international markets?
Signup and view all the answers
Which country has the highest investment risk according to the BERI Index?
Which country has the highest investment risk according to the BERI Index?
Signup and view all the answers
Which country is classified as having the lowest overall risk in the assessment?
Which country is classified as having the lowest overall risk in the assessment?
Signup and view all the answers
What is the overall risk score of Russia?
What is the overall risk score of Russia?
Signup and view all the answers
Which country shows a higher political risk, Italy or Spain?
Which country shows a higher political risk, Italy or Spain?
Signup and view all the answers
Which emerging country has the highest political risk score?
Which emerging country has the highest political risk score?
Signup and view all the answers
What is the predicted overall risk forecast for the USA?
What is the predicted overall risk forecast for the USA?
Signup and view all the answers
Which factor contributes least to the overall risk of Egypt?
Which factor contributes least to the overall risk of Egypt?
Signup and view all the answers
Which country has a higher overall risk forecast than its current overall risk?
Which country has a higher overall risk forecast than its current overall risk?
Signup and view all the answers
What is the primary condition for arbitrage to be beneficial in international markets?
What is the primary condition for arbitrage to be beneficial in international markets?
Signup and view all the answers
What challenge do companies face when implementing a policy of differentiated pricing across multiple markets?
What challenge do companies face when implementing a policy of differentiated pricing across multiple markets?
Signup and view all the answers
How did the deregulation of the airline industry in the 1990s affect airline competition?
How did the deregulation of the airline industry in the 1990s affect airline competition?
Signup and view all the answers
Which of the following best describes the practice of differentiated pricing?
Which of the following best describes the practice of differentiated pricing?
Signup and view all the answers
What effect can arbitrage have on companies targeting similar consumer groups in different national markets?
What effect can arbitrage have on companies targeting similar consumer groups in different national markets?
Signup and view all the answers
What role does competitor feedback play in the context of international marketing?
What role does competitor feedback play in the context of international marketing?
Signup and view all the answers
What is a potential risk that companies may face when prices differ significantly across markets?
What is a potential risk that companies may face when prices differ significantly across markets?
Signup and view all the answers
Why might state-owned airlines have formed global networks post-deregulation?
Why might state-owned airlines have formed global networks post-deregulation?
Signup and view all the answers
Study Notes
Arbitrage and Differentiated Pricing
- Arbitrage takes advantage of price and quality differences across markets when procurement costs are manageable.
- Companies using differentiated pricing face challenges coordinating activities, especially when arbitrage disrupts market strategies.
Competitor Feedback
- Competitor feedback provides insights on rival strategies within similar product sectors.
- The aviation industry post-deregulation saw heightened competition with airlines forming global networks, impacting domestic pricing and market entry strategies.
Definition of International Marketing
- International marketing involves gathering specific information and implementing strategies that adapt to complex cross-border operations.
- Key tasks include:
- Managing supplier, consumer, and competitor feedback.
- Coordinating marketing activities across different countries.
- Optimizing profits in diverse national markets.
Environmental Factors in International Market Development
- International business environments are influenced by technological, political-legal, and socio-cultural factors, each impacting marketing strategies.
- Companies evaluate risks using qualitative models, converting qualitative data into quantitative country risk rankings.
Case Study: Click-IT AB
- Click-IT AB, a Swedish company, seeks to enter the flash memory card market, anticipating growing global demand.
- The family-run organization uses the BERI index to analyze and manage risks in various countries while focusing on the European market.
BERI Index and Country Risk Assessment
- The BERI index ranks countries based on political, operative, investment risks, and overall risk forecasts.
- Country rankings demonstrate varying levels of risk, with Germany and the USA rated highest among industrialized nations, while emerging and developing countries like India and Egypt show lower risk scores.
Global Segmentation in B2B Markets
- B2B market segmentation is often easier than B2C due to fewer potential customers, many of whom are already international.
- Segmentation strategies in B2B include:
- Standardized product ranges for large customer groups.
- Targeted outreach for specialized products where few customers exist.
- Follow-the-customer strategies that focus on individual customer relationships rather than broad marketing strategies.
Voith Company Example
- Voith AG exemplifies a company that utilizes global segmentation in B2B, leveraging standardized products and strong customer relationships to penetrate international markets.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Dive into the fascinating world of arbitrage, where price differences across markets create opportunities for profit. This quiz will explore the methods, advantages, and implications of arbitrage in global trade. Test your knowledge on how companies navigate procurement challenges to capitalize on market disparities.
