International Makreting Final Exam Study Guide PDF

**Chapter 8 Research** 1. Different Research Methods **Secondary Data**: Information that already exists somewhere, having been collected for another purpose **Primary Data**: Information that is collected for the specific purpose at hand **Exploratory Research**: Secondary Data, Qualitative Re...

**Chapter 8 Research** 1. Different Research Methods **Secondary Data**: Information that already exists somewhere, having been collected for another purpose **Primary Data**: Information that is collected for the specific purpose at hand **Exploratory Research**: Secondary Data, Qualitative Research, or Observations **Descriptive Research**: Surveys **Causal Research**: Experiments 2. Quantitative Research vs. Qualitative Research **Qualitative Research**: First Step, Focus groups and Interviews, open ended questions with detailed responses, small samples **Quantitative Research**: Descriptive, Causal, more survey or experiment research 3. Steps in the Research Process 1. Define the problem and establish research objectives 2. Determine the sources of information to fulfill research objectives 3. Consider costs vs. benefits 4. Gather data from secondary and/or primary sources 5. Analyze, interpret, and summarize results 6. Communicate results to decision makers 4. Minimizing Translation Errors **Back Translation**- Translate one language to another. Second translator translates it back to original and compare the two versions for mistakes **Parallel Translation**- Same as back translation but with two translators. The results are compared, differences discussed, and the most appropriate translation selected 5. Sales Forecasting Methods **Sales Force Composite Estimates**: Personal observations and expectations of the local sales force **Jury of Expert Opinion**: Opinions of different experts about future demand **The Delphi Method**: Experts estimate market demand; findings/results are aggregated, and experts are queried again, process is repeated till consensus reached **Time Series and Econometric Models**: Uses a series of past data points to make a forecast **Analogy Methods**: Uses similar markets, culture, economic development, etc. **Point of Scale Research (POS)**: Used in store scanners in markets where they are available **Chapter 9 Advertising** 6. Standardization, Adaptation, and Pattern advertising **Standardization**: Using the same advertising strategy and message across all markets, regardless of cultural, economic, or regional differences. Idea is to maintain consistent brand image often to save costs and establish a global identity **Adaptation**: Advertising to fit the local culture, language, and market needs. Considers the unique characteristics of each market, such as language, customs, consumer preferences, and regulatory standards. **Pattern**: Keep certain standards the same and make local adjustments. A middle ground between 100% standardization and 100% adaptation. A basic pan-regional or global communication concept for which copy, artwork, or other elements can be adapted as required for individual countries 7. Creative Challenges 7. Legal and Tax Considerations 8. Language Limitations 9. Cultural Diversity 10. Media Limitations 11. Production and Cost Limitations 8. Media Planning and Analysis (reach, frequency, and CPM) **Reach**: Number of different people exposed at least once to ad during a specific time period **Frequency**: Number of times a person has an opportunity to be exposed to an ad in a specified time period **CPM**: cost of ad/audience size per 1000; Measures sot efficiency of a medium; Cost/audience reached x 1000 9. Promotion Mix 12. Advertising 13. Personal Selling 14. Publicity 15. Sales Promotion 16. Direct Marketing 10. Budgeting Methods 17. Percentage of Sales 48% 18. All-You-Can-Afford 12% 19. Objective and Task 64% 20. Executive Judgement 33% 11. Communication Model **Source**: Sender of Message **Encoding**: Translating idea into words and symbols that convey meaning **Channel**: carrier of message **Decoding**: Receiver translating symbols and words back into meaning **Receiver**: Target audience **Noise**: Distraction that reduces effectiveness of communication process **Chapter 10 Market Entry Strategies** 12. 4 types of competition **Monopoly:** One supplier, many buyers **Oligopoly:** Few suppliers, many buyers **Monopolistic Competition:** Many suppliers and buyers, differentiated products **Perfect Competiton:** Many suppliers and buyers, homogeneous products, ease of entry/exit 13. Proactive entry objectives **Pre-emption:** Enter Before competitors (first mover) **Confrontation:** Challenge key competitor to steal market share **Build-up:** Enter neutral markets to gain experience 14. Entry strategies in terms of risk and control Lowest to highest risk: -Indirect Exporting -Direct Exporting -Licensing/Franchising -Joint Ventures -Wholly Owned Subsidiaries (Local Manufacturing) 15\. Pros and Cons of major entry strategies Indirect Exporting P's: Limited Commitment, Minimal Risk, Flexibility C's: Potential opportunity loss, Lack control, Lack of contact with market, Price Escalation Direct Exporting P\'s: Greater contact with customers, More control, Better sales effort C's: Investment in sales organization, Commitment to foreign markets, Greater risk, Price Escalation Licensing P\'s: Minimal investment, Quick entry, Ideal to exploit small markets C\'s: Low returns, Often requires costly training, Cost of monitoring quality standards, Builds up potential Contract Manufacturing P\'s: No investment required, Avoid tariffs, Quick entry, Flexible C\'s: Need for strict quality control, Requires costly training program, Supply limitations Acquistion P\'s: Rapid entry, Access to distribution channels, Access to established brands C\'s: Integration with existing facilities, Communication and Coordination 15. Joint Ventures **Chapter 11 Pricing** 16. 6 determinants of pricing A. Nature of Procut/Industry- High tech, specialized, cost of raw mat B. Location of production facility- Proximity to markets, labor costs C. Chosen system of distribution- Long or short channels, direct vs. Indirect D. Environment of foreign market- Climate, inflation, exchange rate fluctuations, cultural adaptations E. U.S. Government Regulations- Ex. FCPA may be a disadvantage for U.S. businesses F. Attitude of firm's management- Full cost or marginal costs 17\. Effect of currency exchange rates on pricing (weak vs. Strong USD) Weak- Stress, price benefits; Expand product line and add more costly features; Shift sourcing and manufacturing to domestic market; Use full-costing approach, but use marginal-cost pricing to penetrate new/competitive markets Strong- Engage in nonprice competition by improving quality, deliver, and after-sale service; Improve productivity and engage in vigorous cost reduction; Shift sourcing and manufacturing overseas; Trim profit margins and use marginal-cost pricing 18\. Price Escalation- concpet, problem, solution Concept: Export price \> Domestic Price, due to unique export-related costs Problem: May lead to parallel imports Solutions: Lower cost of goods, Lower tariffs, and Lower distribution costs 19\. Parallel Imports (Gray Markets)- concept, problem, effects, and solutions Concept: Genuine products that are sold in a market without the consent of the trademark owner in that market Problem: Hurts legitimate owners of trademarks by damaging brand reputation/image. Gray marketers get a "free ride" on the trademark owner's marketing and promotional activities. May not meet customers normal expectations of warranties and returns Effects: Erosion of Trademark Image, Strained Manufacturer-Dealer Relationship, Legal Liabilities, Disruption of Marketing Strategy and Profits Solutions: Reactive Strategies- Dealer Education, promote dealers strengths and gray markets weaknesses via publicity, Emphasize intangible product differences to consumers via promotions, Collaboration with Gray marketers, Acquistion Proactive Strategies- Product differentiation with exclusive features, pay attention to dealers development to strengthen network, marketing information systems to track and monitor, constantly reinforce to long-term image, lobby government to enact legislation 20\. Transfer Pricing MNC's that operate as individual profit centers Prices charged by one division of a company for sales to another division of the same company Intra-Company Pricing 21\. Countertrade Pros and Cons Pros: To overcome lack of hard currency, To increase sales (exports) and improve trade balance, To gain access to new or difficult markets, Economic Development Cons: Restrictive Nature, Lack of inhouse demand for good offered, Difficult to a certain value and uncertainty on future prices, Time consuming and increases costs & therefore prices **Chapter 12 Japanese Marketing** 22\. 5 reasons for Japanese dominance in global consumer marketing 1\. Global market participation 2\. Global products 3\. Global activity location 4\. Global marketing 5\. Global Competitive Moves 23\. Marketing in Japan's post bubble era Reasons for collapse: Fall in real estate prices and stock market crash Effects felt: Low coprorate profits, cutback in consumer spending 24\. Changes in Consumer Behavior Segmentation Differentiation: More differentiated market due to increased price sensitivity. - 3 distinct market segments - Upscale buyers- status oriented - Middle-of-the-roaders - Price conscious 25\. Changes in Competition \- Established keiretsus under pressure as manufacturers turned to low-cost suppliers in Asia to cut costs \- Increasing foreign competition \- Competition based on price and value 26\. Companies response to changes (4 P's) \- Product Policies \- Pricing Policies -Promotion Policies \- Distribution (Place) Policies 27\. Current Trends in Intl. Marketing Top 4 share of Japanese Ad Media TV: 28.50 Newspaper: 13.50% Flyers: 9.30% Internet: 8.60% Top 4 Ad Median Environment Penetration in Japan TV: 99% Computers: 85% Internet: 69% Broadband: 66% Cell Phone 80%