Define strategic planning. How is strategic planning different for international marketing than domestic marketing?
Strategic planning is a systemized way of relating to the future. It is an attempt to manage the effects of external uncontrollable factors on the firm's strengths, weaknesses, objectives, and goals to attain a desired end. In addition, strategic planning
Discuss the benefits to an MNC of accepting the global market concept. Explain the three points that define a global approach to international marketing.
Major objective for MNC is the discipline imposed by the process. Once you've already planned, you have the framework for analyzing marketing problems and opportunities and a basis for coordinating info from different countrys markets. Process of planning
In phases one and two of the international planning process, countries may be dropped from further consideration as potential markets. Discuss some of the conditions in each phase that may exist in a country that would lead a marketer to exclude a country
In phase one of the planning process, there are a host of reasons why a country would no longer be considered. On balance, those countries that do not offer sufficient potential for further consideration will be eliminated. Some of the reasons why this ma
How will entry into a developed foreign market differ from entry into a relatively untapped market?
The differences between entering a fully developed market and an untapped foreign market are many and extremely varied. Some of these differences are channels of distribution that may or may not be developed. Governmental attitudes toward business, foreig
Explain the popularity of joint ventures
Joint ventures have become popular for a number of reasons. One important marketing reason is to gain access to markets. Nearly all of the developing countries, and many developed countries, require some degree of local participation for operating in thei
Compare the organizational implications of joint ventures versus licensing.
Joint ventures involve the partners in a new venture and usually require significant inputs of both capital and management. In licensing, the companies retain separate identity. Usually the licensor is little affected by his licensing actions.
Corporate planning
long term, incorporating generalized goals for the enterprise as a whole
Strategic planning
conducted at the highest levels of management and deals with products, capital, research, and the long and short-term goals of the company
Tactical planning
pertains to specific actions and to the allocation of resources used to implement strategic planning foals in specific markets
Direct exporting
the company sells to a customer in another country
Indirect exporting
the company sells to a buyer in the home country, which in turn exports the product (customers are large retailers like Sears or Walmart)
Licensing
a means of establishing a foothold in foreign markets without large capital outlays; patent rights, trademark rights, and rights to use technological processes are granted in foreign licensing
Franchising
a form of licensing in which the franchiser provides a standard package of products, systems, and management services, and the franchise provides market knowledge, capital, and personal involvement in management.
Strategic International Alliance
a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective
Joint Venture
a partnership of two or more participating companies that have joined forces to create a separate legal entity; partnerships between legally incorporated entities
Quality
the character of something; defined in two dimensions: market-perceived quality and performance quality; consumer perception of a product's quality often has more to do with market-perceived quality than performance quality
Product homologation
changes mandated by local product and service standards
Green marketing
concern with environmental consequences of a variety of marketing activities
Innovation
any idea perceived as new by a group of people
Diffusion
the adoption or spread of products across markets by increasing numbers of consumers
Product Component Model
to identify all the possible ways a product may be adapted to a new market, its many dimensions are separated into three distinct components: core, packaging, and support services
Global Brand
the worldwide use of a name, term, sign, symbol, design, or a combination thereof to identify goods or services of a seller and to differentiate them from those of competitors
Debate the issue of global versus adapted products for the international marketer.
A recurring debate exists relative to product planning and focuses on the question of standardized products marketed worldwide versus differentiated products adapted or even redesigned for each culturally unique market. Those with a strong production and
Define the country-of-origin effect and give examples.
Country of Origin Effect (COE) can be defined as any influence that country-of-manufacturer has on a consumer's positive or negative perception of a product. Today a company competing in global markets will manufacture products worldwide and, when the cus
Discuss product alternatives and the three marketing strategies: domestic market extension, multidomestic markets, and global market strategies.
The marketer has at least three viable alternatives when entering a new market: (1) sell the same product presently sold in the home market (Domestic Market Extension Strategy); (2) adapt existing products to the tastes and specific needs in each new coun
What are the three major components of a product? Discuss their importance to product adaptation.
The three major components of a product are: (1) its core, the physical product and all its functional features; (2) the packaging component that includes the physical package in which the product is presented, as well as the brand name, trademark, stylin
Give an example of how a foreign marketer can use knowledge of the characteristics of innovations in product adaptation decisions.
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Old products (that is, old to the U.S. market) may be innovations in a foreign market. Discuss fully.
It is important for the marketer to appreciate that a product which has gained acceptance and is now at the top or perhaps even in the declining stage of the product life cycle, may be perceived in another culture as a new and, in fact, very innovative pr
Derived demand
Demand that is dependent on another source; it can be fundamental to the success of efforts to sell capital equipment and big-ticket industrial services
Price-quality relationship
The balance between a product's price and how well the product performs. Often the price-quality of a product is ideal if it meets basic expectations and no more, allowing it to be priced competitively.
ISO 9000s
A series of international industrial standards originally designed by the International Organization for Standardization to meet the need for product quality assurances in purchasing agreements.
Client followers
Companies, often providers of services, that follow companies that first moved into a foreign market
Relationship marketing
The aspect of marketing products that depends on long-term associations with customers
What are the differences between consumer and industrial goods, and what are the implications for international marketing?
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Discuss how the various stages of economic development affect the demand for industrial goods.
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Parallel market
When products intended to be sold in one market, exclusively at a particular low price (often a government controlled low price), are sold in a second market (usually illegally) where market prices are higher
Gray market
(same as parallel market) When products intended to be sold in one market, exclusively at a particular low price (often a government controlled low price), are sold in a second market (usually illegally) where market prices are higher
Exclusive distribution
A practice in which a company restricts which retailers can carry its product; often used by companies to maintain high retail margins, to maintain the exclusive-quality image of a product and to encourage retailers to provide extra service to customers
Variable-cost pricing
A method of pricing goods in foreign markets in which a company is concerned only with the marginal or incremental costs of producing goods for sale in those markets.
Full-cost pricing
A method of pricing based on the view that no unit of a similar product is different from any other unit of a similar product and that each unit must bear its full share of the total fixed and variable cost, whether sold in the home market or abroad
Skimming
A method of pricing, generally used for foreign markets, in which a company seeks to reach a segment of the market that is relatively price insensitive and thus willing to pay a premium price for the value received
Penetration pricing policy
A low price policy directed at gaining market share from competitors
Price escalation
The pricing disparity in which goods are priced higher in a foreign market than in the home market (caused by added costs in exporting)
Dumping
An export practice, generally prohibited by laws and subject to penalties and fines, defined by some as the selling of products in foreign markets below the cost of production and by others as the selling of products at blow the prices of the same goods i
Countervailing duty
A fee that may, under WTO rules, be imposed on foreign goods benefiting from subsidies, whether in production, export, or transportation
Countertrade
A type of transaction in which goods are imported and sold by a company from a country in exchange for the right or ability to manufacture and/or sell goods in that country
Barter
The direct exchange of goods between two parties in a transaction
Administered pricing
The attempt to establish prices for an entire market through the cooperation of competitors, through national, state, or local governments, or by international agreement
Cartel
An arrangement in which various companies producing similar products or services work together to control markets of the goods and services they produce
Letters of credit
Financing devices that, when opened by a buyer of goods, allow the seller to draw a draft against the bank issuing the credit and receive dollars by presenting proper shipping document
Bills of exchange
A forum of international commercial payment drawn by sellers on foreign buyers; in transactions based on bills of exchange, the seller assumes all risk until the actual dollars are received, making them riskier for the seller than the letters of credit.
Forfaiting
A financing technique that may be used in an international transaction in which the seller makes a one-time arrangement with a bank or other financial institution to take over responsibility for collecting the account receivable.
What is the importance of collaborative relationships to competition?
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Formulate a general rule for deciding where international business decisions should be made.
International business decisions should reflect the culture of the country in which they will be implemented. Thus the decision should be made as close to the country where it is to be implemented as possible.
Products can be adapted physically and culturally for foreign markets. Discuss.
Products can be adapted to a new culture in a variety of ways ranging from simple package changes to total redesign in the physical product. Some need for change becomes obvious with relatively little analysis. For example, a cursory analysis of a country
How can knowledge of diffusion of innovations help a product manager plan international investments?
Knowledge of the diffusion of innovation provides the international marketer with several important pieces of information. For example, a knowledge of the concept may provide the marketer with an estimate of the time it will take before his innovation wou
Discuss "environmentally friendly" products and product development.
Environmentally friendly" products have a lesser negative impact on the environment than similar products. Because of a growing consumer demand for environmentally friendly products, manufacturers are seeking eco-labels for products, like Blue Angel labe
What ISO 9000 legal requirements are imposed on products sold in the EU? Discuss.
ISO 9000 legal requirements on products sold in the EU include products being free from defects or deficiencies, manufacturers are liable if a person is harmed by a product that fails because of a faulty component, and the company can meet published quali
Discuss the competitive consequences of being ISO 9000 certified.
An increased desire for quality products makes ISO 9000 certification almost a necessity. Many manufacturers will not buy from suppliers if they are not ISO 9000 certified. Being ISO 9000 certified also helps to distinguish product classes and differentia
Discuss how the characteristics that define the uniqueness of industrial products lead naturally to relationship marketing.
The long-term relationships with customers that define relationship marketing fit the characteristics inherent in industrial products. The first characteristic of industrial goods markets is the motive of the buyer: to make a profit. Secondly, the need fo
Discuss some of the more pertinent problems in pricing industrial goods.
It is difficult to price industrial goods because..................
Discuss the distinguishing features of the Japanese distribution system.
The distinguishing features of the Japanese distribution system are: (1) a structure dominated by many small middlemen dealing with many small retailers�high density of middlemen, (2) channel control by manufacturers, (3) a business philosophy shaped by a
Discuss the way Japanese manufacturers control the distribution process from manufacturer to retailer.
Control is maintained through: (1) Inventory financing with credits extending for several months, (2) Cumulative rebates, (3) Merchandise returns that are allowed to the manufacturer, and (4) Promotional support to intermediaries in the form of displays,
Describe Japan's Large-Scale Retail Store Act and discuss how the Structural Impediments Initiative (SII) is bringing about change in Japanese retailing.
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In what circumstances is the use of an EMC logical?
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Why is the EMC sometimes called an independent export department?
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