Global Strategy and Pricing Quiz

Determining the price of a product in a foreign market, influenced by various factors like company goals, costs, competition, and demand.

Measures how sensitive customer demand is to price changes.

Demand greatly changes when price changes, often for luxury or non-essential goods.

Demand changes little with price changes, often for essential goods.

Setting prices in foreign markets is influenced by internal and external factors.

Company goals for pricing, including profit targets, market share, and product type considerations.

Government regulations that limit the maximum price that can be charged.

Firms can compete on price (lower prices) or non-price factors (quality, service).

A form of international trade where goods or services are exchanged for other goods or services, often used in situations where currency exchange is difficult or restricted.

The simplest form of countertrade where goods are exchanged directly for other goods of approximately equal value, without cash involved.

A countertrade arrangement where some cash is exchanged in addition to goods, aiming to equalize the values of the goods exchanged.

A countertrade deal where one party provides technology or equipment to enable the other party to produce goods, and the price of the supplies is repaid with those produced goods.

A countertrade arrangement involving two separate contracts: one for the sale of a product and another for the purchase of goods from the original buyer.

Involves sending a message from a sender (firm) to a receiver (customer, supplier, intermediary) through a channel, encoding and decoding the message with potential noise and feedback.

The process where a sender converts an idea into symbols that the receiver can understand.

The process where the receiver converts the symbols back into thoughts.

Advertising in collectivist cultures focuses on building trust and long-term relationships between buyers and sellers, emphasizing persuasion, repetition, and a hard sell.

Advertising in feminine societies emphasizes nurturing and caring, positioning products as safe and reliable.

Advertising in masculine societies focuses on success, winning, and being first, often showcasing achievements and competition.

Any unpaid, commercially significant news or editorial comment about ideas, products, or institutions.

Programs designed to earn public understanding and acceptance of a company and its products.

Direct inducements offering extra product value or incentives to sales forces, intermediaries, or consumers.

Promoting a company by associating it with a specific event or cause.

Advertising campaigns designed to be fairly uniform across many countries.

Advertising campaigns adapted to particular markets and audiences in message and/or creative execution.

Identifying the specific groups of people a campaign wants to reach, such as suppliers, intermediaries, government, or consumers.

Emerging Market Multinational Enterprises, these are companies that originated in developing countries and achieved global success.

A strategy used by EMMNEs to create new products or services that are cost-effective and meet the needs of developing markets.

EMMNEs often operate in developing countries with limited resources and infrastructure. They develop skills and strategies to manage costs effectively.

EMMNEs learn to operate in environments with frequent changes in political policies, economic conditions, and regulations.

Some EMMNEs benefit from government support and access to resources, giving them a competitive advantage in foreign markets.

A process for making long-term decisions in an international market. It involves aligning company strengths with global opportunities.

A division within a company that focuses on specific customers or product types.

Four frameworks for achieving competitive advantage: cost leadership, differentiation, cost focus, and focused differentiation.

A strategy that aims to be the lowest-cost producer in a broad market segment.

A strategy that sets a company's products apart from competitors with unique features.

A strategy focused on serving a specific market segment with the lowest cost.

A strategy targeting a specific market segment with unique and highly-valued products.

A company with strong home market assets but limited global expansion needs. They focus on leveraging their strengths in their home market, often adapting to local preferences.

A company aiming to compete head-to-head with global giants in specific niches. They have assets that work well internationally and face strong pressure to globalize.

A company targeting foreign markets similar to their home market to maintain profitability. They easily leverage their existing assets and face low global pressure.

Companies originating from developing countries, expanding globally with significant foreign investment. They control assets and participate in value-added activities abroad.

Tata Motors acquisition of Jaguar and Land Rover from Ford demonstrates EMMNES expansion. This involves a significant investment, taking control of assets and shaping the future of these brands in a new market.

Many EMMNES are now major players in various industries, like Haier becoming a leader in the white goods market. This demonstrates the growing influence of emerging markets on the global landscape.

Defender companies focus on their home market and adapt to local needs, while Contenders actively compete in niche markets against global giants.

Extenders focus on replicating success in similar markets, while EMMNES aim for global expansion with significant foreign investments and control.

The only element of the marketing mix that generates revenue, while others are costs.

Factors influencing pricing in foreign markets, including internal company aspects and external market conditions.

Company goals for pricing, including financial targets (like ROI), market-related goals (like market share), and product-specific considerations (like innovation or standard products).

The minimum price a company can charge to avoid long-term losses, considering production costs and potential cost reductions.

Companies can compete by offering lower prices (price competition) or focusing on non-price features like quality or service.

Rules set by governments to control the prices of goods and services, often through price controls, which set maximum prices for certain items.

Advertising effectiveness is heavily influenced by cultural context. In individualistic cultures, the focus is on personalized persuasion. In collectivist cultures, the focus is on building trust and long-term relationships.

Encoding is converting a message into symbols, while decoding is interpreting those symbols back into meaning.

A low transfer price reduces the acquisition cost for the foreign subsidiary, enabling it to price its goods more aggressively in target markets, thus increasing its competitiveness.

Transfer pricing can be used to artificially inflate the profitability of a subsidiary, providing justification for rewarding subsidiary managers.

Inputs are transferred to the subsidiary at the cost to the parent company. This increases profits for the subsidiary, but the supplying unit will not make any profit from the transaction.

Inputs are transferred to the subsidiary at the cost to the parent company plus a percentage markup, ensuring that the supplying unit also receives a profit.

The supplying and purchasing units negotiate a price for the transfer of inputs. If they can't agree, HQ steps in to finalize the price.

Inputs are transferred at a price that would have been agreed upon by independent third parties (not related to the company). This is the preferred method by governments and regulators.

As goods move through a distribution channel, the price at each intermediary stage is added to the cost of the product. This can result in a significantly higher price for the final consumer compared to the manufacturer's home country price.

Strategies include manufacturing overseas, adapting the product to a less expensive version for export, and shortening the distribution channel.

Advertising in collectivist cultures focuses on building trust and long-term relationships between buyers and sellers. It often emphasizes persuasion, repetition, and a hard sell.

EMMNEs often face challenges associated with their origin in developing countries, including weak infrastructure, political instability, and corruption.

For global advertising to be effective, the image, symbols, product features and usage conditions need to be consistent across different countries.

A plan for how a company will compete in international markets. It includes choosing a competitive strategy (like cost leadership) and a country market focus (which countries to target).

The first step in global strategic planning, clarifying the company's market, customers, and competitors. This helps define the scope of the business.

A visual representation of how people progress through a process, like becoming a customer or achieving a goal. It helps visualize the steps involved.

A plan for how a company will market its products or services in international markets. It builds on the global business strategy and includes decisions on product, price, promotion, and distribution.