MME 7 & 5 International Marketing Notes PDF

MME 7 – NEW MARKET DEVELOPMENT ❖ Which of the following is NOT a major influence on Business Buyer Behavior? Answer: INTERNATIONAL ❖ Means by which products are sold to customers and industrial buyers through the internet. Answer: E-COMMERCE ❖ Number of levels in a distribution chann...

MME 7 – NEW MARKET DEVELOPMENT ❖ Which of the following is NOT a major influence on Business Buyer Behavior? Answer: INTERNATIONAL ❖ Means by which products are sold to customers and industrial buyers through the internet. Answer: E-COMMERCE ❖ Number of levels in a distribution channel. Answer: CHANNEL LENGTH ❖ Is the most popular basis for segmenting customer groups as needs, wants, and usage often vary. Answer: DEMOGRAPHIC ❖ Dividing a market into different groups based on social class, lifestyle, or personality characteristics. Answer: PSYCHOGRAPHIC SEGMENTATION ❖ The way the product is defined by consumers on important attributes – the place the product occupies in consumers’ minds relative to competing products. Answer: POSITIONING ❖ Dividing buyers into groups based on consumer knowledge, attitudes, uses, or responses to a product. Answer: BEHAVIORAL SEGMENTATION ❖ Is anything that can be offered to a market to satisfy needs and wants. Answer: PRODUCT ❖ Is the development of original products, product improvements, product modifications, and new brands through the firm’s own Research and Development efforts? Answer: NEW PRODUCT DEVELOPMENT ❖ It involves a preliminary elimination process in which a large number of product ideas are screened in terms of the organization’s objectives, policies, technical feasibility, and financial viability. Answer: IDEA SCREENING ❖ Which of the following is not a determinant of Behavioral Segmentation? Answer: MARITAL STATUS ❖ Means presenting the product concept to target consumers, physically or symbolically, and getting their reactions. Answer: CONCEPT TESTING ❖ Dividing a market into smaller segments with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. Answer: SEGMENTATION ❖ Are experts in displaying, merchandising, and providing convenient shopping locations and hours for customers. Answer: INTERMEDIARIES ❖ The use of all suitable outlets to sell a product. Answer: INTENSIVE DISTRIBUTION  MME 5 – INTERNATIONAL MARKETING ❖ Are an individual's personal beliefs about whether a decision, behavior, or action is right or wrong? Answer: ETHICS ❖ Is the set of obligations an organization undertakes to protect and enhance the society in which it functions? Answer: CORPORATE SOCIAL RESPONSIBILITY ❖ Establishes the rules by which countries value and exchange their currencies and provides a mechanism for correcting imbalances between a country’s international payments and receipts. Answer: INTERNATIONAL MONETARY SYSTEM ❖ Records international transactions and supplies vital information about the health of a national economy and likely changes in its fiscal and monetary policies. Answer: BALANCE OF PAYMENTS ❖ Countries agree to buy or sell their paper currencies in exchange for gold on the request of any individual or firm and to allow the free export of gold bullion and coins. Answer: GOLD STANDARD ❖ Was the most important currency from 1821 to 1918. Answer: BRITISH POUND ❖ Believed flexible system would hinder ability to create integrated economy. Answer: EUROPEAN UNION ❖ Anglo-Saxon countries view the state, the market, and civil society as separate, competitive, and antagonistic. Answer: ANGLO-SAXON APPROACH ❖ Is the voluntary exchange of goods, services, assets, or money between one person or organization and another? Answer: TRADE ❖ Is trade between residents of two countries. Answer: INTERNATIONAL TRADE ❖ The viability of an exporting strategy can be constrained by transportation costs and trade barriers. Answer: LIMITATIONS OF EXPORTING ❖ Also known as market imperfections. Answer: INTERNATIONALIZATION THEORY ❖ Argues that in addition to the various factors discussed earlier, two additional factors must be considered when explaining both the rationale for and the direction of foreign direct investment. Answer: ECLECTIC PARADIGM ❖ International trade theory suggests that home country concerns about the negative economic effects of_______. Answer: OFFSHORE PRODUCTION ❖ Is an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decision? Answer: SELF-REFERENCE CRITERION ❖ refers to the amount of FDI undertaken over a given time period. Answer: FLOW ❖ A country’s wealth is measured by its holdings of gold and silver. Answer: MERCANTILISM ❖ A country’s goal should be to enlarge holdings of gold and silver by Promoting exports, Discouraging imports. Answer: MERCANTILISM ❖ Because mercantilism does benefit certain members of society, mercantilist policies are still politically attractive to some firms and their workers. Modern supporters of such policies are called. Answer: PROTECTIONISTS ❖ Export those goods and services for which a country is more productive than other countries. Answer: ABSOLUTE ADVANTAGE ❖ Import those goods and services for which other countries are relatively more productive than it is. Answer: COMPARATIVE ADVANTAGE ❖ What determines the products for which a country will have a comparative advantage? To answer this question, two Swedish economists, Eli Heckscher and Bertil Ohlin, developed the theory of relative factor endowments, now often referred to as the__________. Answer: HECKSCHER-OHLIN THEORY. ❖ Describes the evolution of marketing strategies. Answer: PRODUCT LIFE-CYCLE THEORY ❖ A firm develops and introduces an innovative product, such as a photocopier or a personal computer, in response to a perceived need in the domestic market. Answer: NEW PRODUCT STAGE ❖ Do as little as possible to address social or environmental problems. Answer: OBSTRUCTIONIST ❖ Do what is required legally, but nothing more; corporate responsibility is to generate profits. Answer: DEFENSIVE ❖ Meet ethical and legal requirements and more; match employee contributions. Answer: ACCOMMODATIVE ❖ Is a formal and thorough analysis of the effectiveness of the firm’s social performance. Answer: CORPORATE SOCIAL AUDIT ❖ Are costs associated with negotiating, monitoring, and enforcing a contract. Answer: TRANSACTION COSTS ❖ occurs when a firm invests directly in new facilities to produce and/or market in a foreign country. Answer: FOREIGN DIRECT INVESTMENT ❖ Summarizes (the total amount of capital invested in factories, stores, office buildings, and the like). Answer: GROSS FIXED CAPITAL FORMATION ❖ Knowledge spillovers that occur when companies in the same industry locate in the same area. Answer: EXTERNALITIES ❖ Occurs when a firm invests directly in new facilities to produce and/or market in a foreign country. Answer: FOREIGN DIRECT INVESTMENT ❖ Is an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decision? Answer: SELF-REFERENCE CRITERION