Course Final Exam

Final Exam

• Part I is worth 20 points, Part II is worth 14 points for a total of 34 points
• Peer Evaluation is worth 8 points

Final Exam Part I

• The exam is in class on March 3rd (Monday) and necessitates the use of a lockdown browser
• Exam duration is 60 minutes
• Exam includes 10 multiple-choice questions at 1.5 points each, plus 2 short-answer questions worth 2.5 points each
• Laptop required

Final Exam Part II

• Begins March 3rd (Monday) with a 24-hour window to complete at home
• The time limit for completion lasts 120 minutes in a single attempt
• Format is open book and online, collaboration strictly prohibited
• Involves 2 short-essay questions worth 7 points each, requiring knowledge application in real world scenarios

Peer Evaluation

• Assignment for Module 7 is due March 3rd (Monday)
• Missing the submission leads to point deductions

Course Evaluation

• Due March 2nd (Sunday)
• Visit http://asu.edu/evaluate

Topics Covered

• Before Quiz 2 topics include an introduction to Global Marketing, the Global Economic Environment, the Global Social and Cultural Environment, Global Market Entry Strategy, and Global STP
• After Quiz 2 topics include Global Products and Brands, Global Pricing Strategies, Global Channel and Distribution, and Global Marketing Communications
• Case or reading-related questions will include relevant information provided in the quiz itself

Marketing Mix and Customer Values

• Marketing Mix (4Ps) includes Value Creation (Product), Value Capture (Price), Value Delivery (Place), and Value Communications (Promotion)
• Four types of customer value include Social, Functional, Experiential, and Economic

Economic Value to the Customer (EVC)

• EVC is value-based pricing methodology
• EVC is the maximum price a customer is willing to pay for a product

Global Marketing Approach

• Can be expanded globally via the Product/Market Growth Matrix
• Globalization (Standardization) involves developing standardized products marketed worldwide with a standardized marketing mix
• Global Localization (Adaptation) involves mixing standardization and customization to minimize costs and maximize satisfaction

Types of Economic Systems

• Traditionally, four types of economic systems are based on resource allocation and resource ownership
• Resource allocation can be Market or Command
• Resource ownership can be Private or State

Stages of Economic Development

• World Bank uses a four-category system based on per capita gross national income (GNI)
• Four categories include low-income, lower-middle income, upper-middle income, and high-income countries
• A given category has common characteristics, opportunities, and risks

Frameworks for Understanding Culture

Edward Hall's Culture Classification

• Concerns High vs. Low-context Culture

Geert Hofstede's Six Cultural Dimensions

• Dimensions include:
• Power Distance
• Individualism vs. Collectivism
• Masculinity vs. Femininity
• Uncertainty Avoidance
• Long vs. Short-term Time Orientation
• Restraint vs. Indulgence

High and Low Context Cultures

High Context Cultures

• Relational, collectivist, intuitive, and contemplative
• Emphasize interpersonal relationships, trust, and more indirect and formal communication

Low Context Cultures

• Logical, linear, individualistic, and action-oriented
• Value logic, fact, directness, decisions based on facts, and straightforward, concise communication

Hofstede's Cultural Typology (6D Model)

• Power Distance Index (PDI) is the extent to which less powerful members expect power to be distributed unequally
• Individualism vs. Collectivism (IDV) assesses group dynamics
• Uncertainty Avoidance Index (UAI) measures the degree to which a society feels uncomfortable with uncertainty and ambiguity
• Masculinity vs. Femininity (MAS) contrasts achievement with cooperation
• Long Term vs. Short Term Orientation (LTO) looks at future vs past focus
• Indulgence vs. Restraint (IVR) indicates gratification preference

Global Market Entry Modes

• Entry mode choices depend on vision, risk attitude, available capital, and desired control
• Modes include exporting, licensing, contract manufacturing, franchising, joint venture, and direct foreign investment
• Levels of involvement/control and cost/risk should be considered along with advantages and disadvantages

STP Decision Process

• 1: Segmentation. Divide the market into smaller segments
• 2: Profile each segment
• 3: Evaluate the attractiveness of each segment

Segmentation

• Divide the market into smaller segments
• Profile each segment
• 4: Select the segment(s) to serve
• 5: Develop brand positioning to appeal to selected target
• Successful segmentation requires needs to be similar within groups and different between groups
• Targeting profits based on reach
• Positioning uses a focused marketing program

Types of Segmentation

• Segmentation can geographic, demographic, psychographic and behavioral

Global Targeting

• Involves various market strategy options
• Concentrated Global Marketing focuses on niche markets.
• Differentiated Global Marketing involves multi-segment with use of a different marketing mix
• Standardized Global Marketing employs a mass-market, standardized marketing mix

POD & POP

Points of Difference help stand out from competitors based on positivity and reasons to choose those differences.

• Points of Parity help by being as good as competitors to avoid rejection

Culture and Global Positioning Strategy

• Global consumer culture positioning is based on global culture or segment and is high-touch and high-tech
• Local consumer culture positioning involves local cultural meanings and personal nondurables
• Foreign consumer culture positioning positions the product as a symbol of a specific foreign culture

Global Products and Brands

• Global products meet global market needs and are found in all world regions at each stage of development
• Key features are economies of scale/scope, global brand recognition
• Global brands have the same name and similar image/positioning worldwide

Global Product Decision: Three Strategic Alternatives

• Extension offers products virtually unchanged in markets outside home country
• Adaptation involves element changes according to country needs
• Product Invention involves development new products for the world market

Global Product Planning: Strategic Alternatives

• Product strategy consists of one, dual extension, two communication adaptation, three product adaptation, four duel adaptation
• Innovation is a fifth new product strategy

Global Brand Images

• The sum of brand impressions come from information sources and cues
• Three types of brand images are functional (problem solving), social (membership), and sensory (variety)
• Culture and brand image affects high distance, collectivist, uncertainty and/or individualism culture

Country of Origin Effect

• Country of origins extends to products and brands in those countries
• Consumers associate areas with quality
• Competing products can be viewed of less quality/authentic due to the origins effect

Global Pricing Objectives and Strategies

• Pricing objectives feature financial (ROI, profit) and non-financial (market share, recovery) goals
• Pricing strategies include cost-plus, market-based, competitive-based, market skimming, market penetration, and captive pricing

Global Pricing Policy Alternatives

• Extension pricing keeps the per-unit prices the same everywhere
• Adaptation pricing permits affiliate managers to set prices best for local circumstance without coordination
• Geocentric pricing has affiliates supply local information and sets prices to maximize profit

Chanel Utility

• Place utility makes the product/service available in the most location
• Time utility makes sure the product/service is available when needed
• Form utility has the product processed at quality and prepared ready for use and purchase
• Information helps with questions about product features and communication

Push vs. Pull Strategy

• Push strategies incentivize intermediaries to sell to users
• Push uses advertising to encourage the intermediaries and consumers

Consumer Products Channels

• Channels tend to be longer (require more intermediaries) as the number of customers to be served increases and the price per unit decreases

Industrial Product Channels

• Channels tend to be shorter for industrial versus customer products

Channel Establishment for Global Expansion

• Global expands by distribution channels or build its own
• Two types of involvements; Direct and Indirect
• Direct requires sales force operations
• Indirect involves wholesalers, distributors or independent agents

Global Marketing Communication

Marketing Communication Mix

• Marketing communications inform, persuade, and remind consumers about products

Types of Media and Targets

• Can be categorized by Paid, Owned, and Earned media

Global Advertising

• The role of advertising includes informative to create brand awareness and persuasive role to purchase/preferences
• Advertising is approached through two methods; Standardize- use the same messages, appeals, copy in multiple countries if global
• Localize- adaptation based on linguistic or cultural constraints