In no direct foreign marketing stage, the company may not actively involve in international marketing. But yet there are still have possibility of the product to sell in oversea through the distributor or wholesaler without the knowledge of the producer.
Temporary surpluses caused by variations in production levels or demand may result in infrequent marketing overseas. Little or no change is seen in the company organization or product lines.
The next level is regular marketing. In this stage, the company has the intention to do international marketing and has permanent production capacity allocate to international demand. Company may has own sales subsidiaries in the foreign market. However the sales of the company still depend to the domestic market and the sales in foreign market is just a bonus for the company. The final leve is international marketing, where company fully involved and committed in the international market. The company not only setting up sales subsidiaries but the production plant in the foreign country.
2. Why study geography in international marketing?
The geography of a country,its topography,climate,physical position relative to other countries affect a culture's evolution including its marketing and distribution systems. Also it is an element of the uncontrollable environment that confronts every marketer but that receives scant attention.
Geography is much more than memorizing countries,capitals,and rivers.It also includes an understanding of how a society's culture and economy are affected as a nation struggles to supply its people's needs within the limits imposed by its physical makeup.Thus,the study of geography is important in the evaluation of markets and their environment.
3. Discuss the breadth and scope of international marketing research. Why is international marketing research generally broader in scope than domestic marketing research?
(1) The broader scope of international marketing research is called the following types: 1.Economic and demographic 2.Cultural, sociological and political climate 3.Overview of market conditions 4.Summary of the technological environment 5.Competitive situation
(2)In domestic operations,most emphasis is placed on the specific market information which is used to make product,promotion,distribution,and price decisions and to develop marketing plans.However,international marketing research needs two more types of information for higher levels of uncertainty:general information about the country,area,and/or market information necessary to forecast future marketing requirements by anticipating.These data are often available from secondary sources.
4. Define strategic planning. How is strategic planning different for international marketing than domestic marketing?
(1)Strategic planning is conducted at the highest levels of management and deals with products,capital,research,and the long-and short-term goals of the company.
(2)An international marketing plan should optimize the resources committed to company objectives.The organizational plan includes the type of organizational arrangements and management process to be used and the scope and location of responsibility.Because organizations need to reflect a wide range of company specific characteristics--such as size,level of policy decisions,length of chain of command and so on.Companies are usually structured around one of three alternatives:(1)global product divisions responsible for product sales throughout the world(2)geographical divisions responsible for all products and functions within a given geographical area(3)a matrix organization consisting of either of these arrangements with centralized sales and marketing run by a centralized functional staff or a combination of area operations and global product management.
5.How will entry into a developed foreign market differ from entry into a relatively untapped market?
When a company makes the commitment to go international,it must choose an entry strategy.This decision should reflect an analysis of market characteristics and company capabilities and characteristics,including the degree of near-market knowledge,marketing involvement,and commitment that management is prepared to make.
A company has four different models of foreign market entry from which to select: exporting,contractual agreements,strategic alliances,and direct foreign investment.The amount of equity required by the company to use different modes affects the risk,return,and control that it will have in each mode. 6. Discuss product alternatives and the three marketing strategies: domestic market extension, multidomestic market, and global market strategies.
When there are alternative products,all of which meet performance quality standards,the product chosen is the one that meets market-perceived quality attributes.
8. (个人题)Customer value hierarchy(举例) : core benefit, basic product, expected product, augmented product, potential product
The customer value hierarchy suggests that customers conceive of desired value in a means-end way.
core benefit--school ;basic product--classrooms ;expected product--studying equipment ;augmented product--outclass equipment ;potential product--one by one teaching
9. (个人题)Characteristics of service(举例+解释):
intangibility(无形),inseparability(可分离), variability, perishability(易消失)
Services are intangible and have intrinsic value resulting from a process, a performance,or an occurrence that exists only while it is being created. Inseparability means the creation of a service cannot be separated from its consumption.
Variability means a service is individually produced and is thus unique. Perishability means once created it cannot be stored but must be consumed simultaneously with its creation.
EG:dry cleaning,haircut,insurance,hotel accomodations and freight service Taxi intangibility--the products are invisible inseparability--acceptance and payment are divided variability--different routes perishability--the time is limited and passed soon
10. Brand stragety: positioning, name selection, sponsorship, development Brand positioning:3 levels of positioning--Product attributes(least effective) Benefits Beliefs and values(taps into emotions)
Brand name selection:are easy to say;are distinctive;are extendable;translate well
Brand sponsorship:€ Manufacturer brands € Private brands € Licensed brands € Co-branding
Brand development:€Line extensions(minor changes to existing products) €Brand extensions(successful brand names help introduce new products) €Multibrands €New brands
11. Product life cycle strategy:
product development stage: introduction→growth→maturity→decline Introduction:
product-offer a basic product price-use cost-plus basis to set distribution-build selective distribution advertising- build awareness among early adopters and dealers/resellers sales promotion-heavy expenditures to create trial Growth:
product-offer product extensions,service,warranty price-penetration price
distribution-build intensive distribution advertising- build awareness and interest in the mass market sales promotion-reduce expenditures to take advantage of customer demand
Maturity: product-diversity brands and models price-set to match or beat competition
distribution-build more intensive distribution advertising-stress brand differences and benefits sales promotion-increase to encourage brand switching
Decline: product-phase out weak items price-cut price distribution-use selective distribution,phase out unprofitable
advertising-reduce to level needed to retain hard-core loyalists sales promotion-reduce to minimal level
12. Four introductory marketing strategies:
Promotion Price high high Rapid-skimming strategy low Rapid-penetration strategy
13. Review the key variables that affect the marketer’s choice of distribution channels.
Key elements in distribution decisions include(1)the functions performed by middlemen(and the effectiveness with which each is performed) (2)the cost of their services(3)their availability(4)the extent of control that the manufacturer can exert over middlemen activities.
14.Channel memebers are connected via a variety of flows: physical, information, payment, promotion and ownership
low Slow-skimming strategy Slow-penetration strategy 15. Channel design steps(渠道设计步骤) Designing a channel involves several steps:
1.Identify specific target markets within and across countries 2.Specify marketing goals in terms of volume,market share
3.Specify financial and personnel commitments to the development of international distribution
4.Identify control,length of channels,terms of sale and channel ownership 16. Difference between wholesale and retail Wholesale:
Information-Telling retailers about the competition Product-Building assortments needed by retailers Price-Reaching many small retailers at low lost
Place-Producing quickly delivery by being located closer to retailers than the producers are
Production-Having contacts with the buyer Ownership-Holding inventories,absorbing risk Retail:
Information-Collecting information about customers in store Product-Advising manufacturer on product design changes Price-Offer small volume of goods for consumers to buy Place-Offer variety of products in one location for consumers Production-Run own ads or team up with manufacturer in joint ads Ownership-Absorb risk by taking title and bearing cost of theft,demage,etc
17. Six Cs of channel strategy(P281)
Cost--The two kinds of channel cost are(1)the capital or investment cost of developing the channel and (2)the continuing cost of maintaining it.Marketing costs must be considered as the entire difference between the factory price of the goods and the price the customer ultimately pays for the merchandise.Many firms accustomed to using their own sales forces in large-volume domestic markets have found they must lengthen channels of distribution to keep costs in line with foreign markets.
Capital Requirements--The financial ramifications of a distribution policy are often overlooked.Critical elements are capital requirement and cash-flow patterns associated with using a particular type of middleman.One of the highest costs of doing business in China is the capital required to maintain effective distribution.
Control--The more involved a company is with the distribution,the more control it exerts.A company's own sales force affords the most control but often at a cost that is not practical.Each type of channel arrangement provides a different level of control;as channels grow longer,the ability to control price,volume,promotion,and type of outlets diminishes.If a company cannot sell directly to the end user or final retailer,an important selection criterion for middlemen should be the amount of control the marketer can maintain. Coverage--Another major goal is full-market coverage to gain the optimum volume of sales obtainable in each market,secure a reasonable market share,and attain satisfactory market penetration.Coverage may be assessed by geographic
segments,market segments,or both.To achieve coverage,a company may have to use many different channels—its own sales force in one country,manufacturers' agents in another,and merchant wholesalers in still another.
Character--The channel-of-distribution system selected must fit the character of the company and the markets in which it is doing business.Some obvious product requirements,often the first considered,relate to the perishability or bulk of the product,complexity of sale,sales service required,and value of the product.
Continuity--Channels of distribution often pose longevity problems.Most agent middlemen firms tend to be small institutions.When one individual retires or moves out of a line of business,the company may find it has lost its distribution in that area.
18. What is sales promotion and how is it used in international marketing?(P293)
(1)Sales promotions are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation .Cents-off ,in-store demonstrations,
samples ,coupons ,gifts ,product tieins,contests ,sweepstakes ,sponsorship of special events such as concerts and fairs and point-of-purchase displays are types of sales promotion devices designed to supplement advertising and personal selling in the promotional mix.
(2)In markets in which the consumer is hard to reach because of media limitations ,the percentage of the promotional budget allocated to sales promotions may have to be increased .In some less developed countries, sales promotions constitute the major portion of the promotional effort in rural and less accessible parts of the market.In parts of Latin America,a portion of the advertising sales budget for both Pepsi-Cola and Coca-Cola is spent on carnival trucks,which make frequent trips to outlying villages to promote their products.
19. IMC, five steps of IMC, components
Integrated marking communications(IMC)is a term used to describe a holistic approach to marketing communication .It aims to ensure consistency of message and the complementary use of media. Steps in an Integrated Marketing system are:
1.Customer Database :An essential element to implementing Integrated Marketing that helps to segment and analyze customer buying habits.
2.Strategies :Insight from analysis of customer data is used to shape marketing, sales, and communications strategies. 3.Tactics
Once the basic strategy is determined the appropriate marketing tactics can be specified which best targets the specific markets. 4.Evaluate Results
Customer responses and new information about buying habits are collected and analyzed to determine the effectiveness of the strategy and tactics. 5.Complete the loop to start again
IMC is composed of advertising ,sales promotions, trade shows ,personal selling, direct selling ,and public relations—almost all are included in the Barbie campaign described in the Global Perspective.
20. Pull and push strategy cost-based pricing/value-based pricing Cost-Based Pricing: Break-Even Analysis and Target Profit Pricing
Break-even charts show total cost and total revenues at different levels of unit volume.
The intersection of the total revenue and total cost curves is the break-even point.
Companies wishing to make a profit must exceed the break-even unit volume. Value-Based Pricing
Uses buyers’ perceptions of value rather than seller’s costs to set price. Measuring perceived value can be difficult.
Consumer attitudes toward price and quality have shifted during the last decade. Introduction of less expensive versions of established brands has become common.
21. International advertising 5M Mission :sales goals, advertising objectives
Money :factors to consider ,stage in PLC ,market share& consumer base, competition and clutter, advertising frequency, product substitutability Message :message generation, message evaluation and selection, message execution, social-responsibility review
Media: Reach, frequency ,impact; major media types, specific media vehicles ,media timing, geographical media allocation Measurement: communication impact, sales impact
22. Advantages and limits of major media types(P310) In
international
advertising
,an
advertiser
must
consider
the
availability ,cost ,coverage ,and appropriateness of the media(Lack of market data).
Major Media Types: 一、Newspapers
1、Advantages: Flexibility, timeliness; good local market coverage ;broad acceptance, high believability
2、Limitations: Short life; poor reproduction quality; small pass-along audience 二、Television
1、Advantages: Combines sight, sound, motion; high attention; high reach; appealing to senses
2、Limitations: High absolute costs; high clutter; fleeting exposure ;less audience selectivity 三、Direct Mail
1、Advantages: Audience selectivity; flexibility, no ad competition within same medium; allows personalization
2、Limitations: Relative high cost; “junk mail” image 四、Radio
1、Advantages: Mass use; high geographic and demographic selectivity; low cost
2、Limitations: Audio only; fleeting exposure; lower attention ;nonstandardized rates; fragmented audiences
五、Magazines
1、Advantages: High geographic and demographic selectivity ;credibility and prestige; high-quality reproduction ;long life; good pass-along readership 2、Limitations: Long ad purchase lead time; waste circulation; no guarantee of position 六、 Outdoor
1、Advantages: Flexibility; high repeat exposure; low cost; low message competition
2、Limitations: Little audience selectivity; creative limitations 七、Internet
1、Advantages: Audience can get involved in the message;Many creative possibilities;Can deliver lengthy, complex messages cost effectively;Can customize message;No additional cost for reaching global market 2、Limitations:Limited media research available;Limited but growing audience;Not all users speak language used in ad;Quality of image
varies;Audience limited to Internet users interested in the company or product
23. Why is it so difficult to control consumer prices when selling overseas? Active marketing in several countries compounds the number of pricing problems and variables relating to price policy.Unless a firm has a clearly thought-out,explicitly defined price policy,expediency rather than design establishes prices.The country in which business is being conducted, the type of product,variations in competitive conditions,and other strategic factors affect pricing activity.Price and terms of sale cannot be based on domestic criteria alone.
In general,price decisions are viewed two ways:pricing as an active instrument of accomplishing marketing objectives,or pricing as a static element in a business decision.
The more control a company has over the final selling price of a product, the better it is able to achieve its marketing goals.However,controlling end prices is not always possible.The broader the product line and the larger the number of countries involved,the more complex the process of controlling prices to the end user.
24. Factors to consider when setting the price(7个) Internal factors: 1.Marketing
objectives--Positioning;Survival;Current
profit
maximization;Market share leadership;Product quality leadership 2.Marketing mix strategies--Pricing;Target costing;Non-price positioning 3.Costs--Types of costs;How costs vary;Experience curve effects
4.Organizational considerations--Who sets the price;Price negotiation;Some industries pricing departments External factors:
1.Nature of market and demand
2.Competitors' costs,prices,and offers--Consider competitors' costs,prices and possible reactions;Pricing strategy influences the nature of competition 3.Other environmental elements--Economic conditions;Reseller reactions to prices;Goverment may restrict;Social considerations 25. Price-quality strategy(文字说明、不要图) Price Product high Quality medium high Premium Values medium low High Value Medium Good Value Super Value Overcharging Value False Economy Economy low Rip-off 26. 3Cs model for price setting
27. Price adjustment strategies
(1)Discount / allowance:1.Types of discounts--Cash discount;Quantity discount;Functional (trade) discount;Seasonal discount 2.Allowances--Trade-in allowances;Promotional allowances
(2)Segmented:1.Types of segmented pricing strategies--Customer-segment;Product-form pricing;Location pricing;Time pricing 2.Also called revenue or yield management 3.Certain conditions must exist for segmented pricing to be effective
(3)Psychological:The price is used to say something about the product--Price-quality relationship;Reference prices;Differences as small as five cents can be important;Numeric digits may have symbolic and visual qualities that psychologically influence the buyer
(4)Promotional:1.Temporarily pricing products below the list price or even below cost--Loss leaders;Special-event pricing;Cash rebates;Low-interest financing, longer warranties, free maintenance; 2.Promotional pricing can have adverse effects
(5)Geographical:Types of geographic pricing strategies--FOB-origin pricing;
Low Price
No possible profit at this price
High Price
No possible demand at this price
Costs
Competitors’ prices and prices of substitutes
Customers’ assessment of unique product features
Uniform-delivered pricing;Zone pricing;Basing-point pricing;Freight-absorption pricing
(6)International:Prices charged in a specific country depend on many
factors--Economic conditions;Competitive situation;Laws / regulations;Distribution system;Consumer perceptions;Cost considerations
28. New-Product Pricing Strategies: 1.Skimming--Condition
Product’s quality and image must support high price;Costs of producing a
smaller volume can be kept in check;Competitors should not be allowed to enter easily (technology) 2.Penetration--Condition
Highly price sensitive;Production / distribution costs must reduce as sales unit volume increase;
The low price must help keep out competition for a period to benefit.
Market-Skimming Pricing:Setting a high price for a new product to skim maximum revenues layer by layer from segments willing to pay the high price. Market-Penetration Pricing:Setting a low price for a new product in order to attract a large number of buyers and a large market share.
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