what is a global marketing entry strategy?

the use of marketing to balance the benefits (cost

reduction) and limits (hard to meet local taste) of entering a new market. It is not about
standardizing every process on a global basis.

What are the benefits of global marketing? (1) cost reduction (2) improved products & program
effectiveness (3) enhanced customer preference (4) increased competitive advantage

What are the limits of global marketing? (1) standardization vs. adaptation issues
(2) globalization vs. localization
(3) global integration vs. local responsiveness
(4) scale of economy vs. sensitivity

International market selection consists of... (1) select criteria (2) assign weight (3) score each
country (4) calculate overall score

What needs to be considered when looking into mode of entry choices? (1) the benefits of
increase control
(2) the costs of resource commitment and risk

indirect exporting Pro's:

- low committment in terms of resources
- low risk

Con's:
- lack of control
- lack of contact w/foreign market
- no learning experience
- potential opportunity cost

Licensing Pro's:
- little or no investment
- rapid way to gain entry
- means to bridge import barriers
- low risk

Con's:
- lack of control
- potential opportunity cost
- need for quality control
- risk of creating competitor
- limits to market development

Franchising Pro's:
- little or no investment
- rapid way to gain entry
- managerial motivation
Con's:
- need for quality control
- lack of control
- risk of creating competition

contract manufacturing Pro's:

- little or no investment
- overcome import barriers
- cost savings

Con's:
- need for quality control
- risk of bad press (ex: child labor)
- diversion of gray and/or black markets

joint venture Pro's:

- risk sharing
- less demanding on resources (compared to wholly owned)
- a potential of synergies (access to local distribution networks)

Con's:
- risks of conflicts w/partner(s)
- lack of control
- risk of creating competitor

acquisition Pro's:
- full control
- access to local assets (plants, distribution networks, brand assets)
- less competition

Con's:
- costly
- high risk
- need to integrate differing national/corporate cultures
- cultural clashes

What is important to consider for a market exit? (1) the timing of the entry - products aren't
always first launched in the country's home market
(2) what are the reasons for the exit?

Direct exporting Pro's:

- more control (compared to indirect)
- more sales push

Con's:
- need to build up export organization
- more demanding on resources

greenfield Pro's:
- full control
- latest technologies
- no risk of cultural conflicts

Con's:
- costly
- time consuming
- high political & financial risks

What is segmentation? the subdividing of a market into distinct subsets of customers,

where any subset may be selected as a target to be reached with a distinct marketing strategy

Country-as-segments/aggregate segmentation classifies.... prospect countries geographically on

a single dimension or on a set of multiple socioeconomic, political and cultural criteria -
questions relevance of segments

disaggregate international consumer segmentation Has a individual consumer focus where the
segments are ID'd in terms of consumer similarities regardless of location - logitical nightmare

two-stage international segmentation (1) macro - classification of cournties into different groups
and (2) mirco - segmenting consumers for each country cluster

macro segmentation is the.... classification of countries into different groups

micro segmentation is the... segmenting consumers for each country-cluster

What are the bases for country segementation? (1) geographic

(2) demographic
(3) behavior based
(4) per capita GNP
(5) cultural
(6) socioeconomic

What are the 6 steps for international positioning formulation? (1) ID the relevant set of
products/brands
(2) determine current perceptions held by consumers about your product/brand and the
competition "draw positioning map"
(3) develop possible positioning themes
(4) screen the positioning alternatives and select the most appealing one
(5) develop a marketing mix strategy
(6) monitor the effectiveness of your positioning strategy
Uniform positioning strategies uses the same positioning world-wide and uses when target
consumers are very similar worldwide

localized positioning strategies uses positioning themes that are tailed to individual markets
and many firms position a brand that is mainstream in its home market as a premium brand in
their overseas markets

GCCP (symbolic brand positioning strategy) positions the brand as a symbol of a given global
consumer culture

LCCP (symbolic brand positioning strategy) positions the brand as an intrinsic part of the local
culutre

FCCP (symbolic brand positioning strategy) positioning a product as symbolic of a desired

foreign culture

global product policy decision - standardization vs. adaptation - there are several forces that
favor globalized/standardised product strategies, however, we MUST consider the balancing act
between standardization and adaptation

What is the new product development process? ID new product ideas --> screening -->
concept testing --> test marketing --> timing of entry --> launching

Waterfall timing of entry model is a staggered rollout beginning with the home country and
gradually moving to others over a period of time (Ex: >3 years) - preferred for long life cycles

Sprinkler timing of entry model global rollout simultaneously (1-2 years) (Ex: high tech
goods)

brand equity is the... incremental utility or value added to a product by its brand name

Strong brand happens when... (1) affects customer's willingness to pay a premium price
(2) increase the probability of brand choice
(3) increase brand name extendibility and brand licensing opp's
(4) decrease vulnerability to competitive marketing actions

Best global brands of 2016 (1) Apple (2) Google (3) XX

What is a global brand? one that has a consistent ID with consumers across the world - high
quality with a sense of belonging and more visiability

What is a local brand?different positioning where the name or similar name is already is already
used and local brand may lower any cultural barriers

What are some options to take against product piracy? Legal actions, lobbying activities,
product protection options (holograms) and changes in the distribution strategy
List some characteristics of country-of-origin (COO) effect - is an important cue to consumers to
assess quality
- not stable perceptions over time with change
- influences the elderly, less educated and politically conservative

What are the 3 main drivers of foreign market pricing? (1) company: company's goal,
marketing strategy
(2) customer: price sensitiveness
(3) distribution channel

No

how to respond to different competitor situations

global pricing coordination deals with... (1) nature of customers (2) amount of product
differentiation (3) nature of channels (4) nature of competition (5) market integration (6) gov
regulation

a price corridor is... finding middle ground by upping prices in low-price countries and cutting
them in high-price countries

Pricing-to-market (PTM) exporters stabilize prices in the buyer's currency

Local-currency price stability (LCP's) exporters lower markups much higher in price-
conscious export markets

global advertising method emcompasses areas such as advertising planning, budgeting,

creative strategy, media decisions, advertising regulations, and coordination of multi-country
communication efforts

persuasive global advertising is to switch to your brand, change the perception of value, build
existing preferenes and using comparative advertising

reminder advertising is to maintain relationships and keep the brand in customer's mind during
off-seasons

Global advertising methods power distance, uncertainty avoidance, individualism, masculinity,

and long-termism

Global advertising methods

What does the creative global communication strategy deal with? this deals with
standardization vs. adaption - considering what are the barriers to standardizing
What are some major advertising regulations? - advertising of "vice products" and
pharmaceuticals
- comparative advertising
- content of advertising messages
- advertising targeting children

What are some facts about the global AD market? (1) advertising is a more than $500 billion
market
(2) AD spending growth is 3.9% in 2015
(3) worldwide AD spending is at an all-time high
(4) regional spending is a mixed picture
(5) A giant BRIC
(6) digital AD captures 29.5% of global AD dollars

Sales promotion is .. short term incentives to encourage purchase/sale of product

direct marketing is when... direct connections with targeted individual consumers to cultivate
lasting relationships

public relations deals with... building good relations with the company's various publics by
building up a good corporate image

Global IMC (GIMC) is... a system of active promotional management that strategically
coordinates global communications in all of its component parts, delivering consistent, clear and
compelling messages through different vehicles.

The definition of material management is... the inflow of raw material, parts, and supplies to
and through the firm

When managing physical distribution, we need to consider facts that increase the complexity and
cost of global logistics. These are.... things such as distance and exchange rate fluctuation

What does it mean by, "how to source"? intra-firm vs. outsourcing

What does it mean by, "where to source" domestic vs. abroad

In international distribution channels, direct sales is... is the use of our own sales force

In international distribution channels, agent intermediary is when.. those who do not take title to
goods but gets a percentage of sales (has legal ownership)

In international distribution channels, merchant intermediary operates as an independent

businesses (exchange and operate in their own right)

Barriers to global internet marketing is... (1) language

(2) cultural barriers
(3) infrastructure
(4) access charges
(5) government regulations

What is sustainability? (1) profit (2) planet (3) people

What is the definition of corporate social responsibility? NEED ANSWERS

Which of the following is a step in the market entry decision:

A. Forecast a corporate budget
B. Conduct a marketing audit
C. Decide on a mode of entry
D. Analyze domestic demand C. Decide on a mode of entry

Most companies start their international expansion with....

A. exporting
B. joint ventures
C. liscensing
D. contract manufacturing A. exporting

In the Australian market, rather than manufacturing disposable diapers, Procter & Gamble
decided to import them since the size of the market did not warrant local manufacturing
according to P&G. Unfortunately, by using packaging designed for the Asian region with non-
English labeling, P&G alienated its customers in Australia. This is an example of
improper:

A. Global policy decisions.

B. Pricing decisions.
C. Distribution decisions.
D. Product policy decisions. D. product policy decisions

Timing is a very important element in any new product launch. One of the strategies is described
as being the ________________ where there is a phased rollout. In this approach the product
uses a trickle down approach over more than 3 years span.
A. sprinkler method
B. shotgun method
C. dribble method
D. waterfall method D. waterfall method

Strong brands tend to increase the probability of brand choice and affect customer's willingness
to pay premium price. According to the Interbrand.com 2016 report, which of the following
brands was ranked the number one brand in the world?
A. Apple
B. Google
C. Coca-Cola
D. Samsung A. Apple

When making pricing decisions, ______________ set(s) the floor.

A. profits
B. costs
C. demand
D. supply B. costs

Translation errors include:

A. Simple carelessness.
B. Multiple-meaning words.
C. All of the above.
D. None of the above. C. All the above

With respect to budget forms for advertising, the _______________ method simply sets the
overall advertising budget based on either past or expected sales revenue.
A. percentage of sales
B. competitive parity
C. all-you-can-afford
D. objective-and-task A. percentage of sales

As firm starts operating on a global basis, ___________________ need to manage the shipping
of raw materials, components, and supplies among various manufacturing sites at the most
economical and reliable rates.
A. human resource managers
B. logistics managers
C. operations managers
D. outsourcing managers B. logistics managers

The country with the most Internet users is:

A. United States
B. Japan
C. India
D. China D. China

T or F: Contract manufacturing is also known as outsourcing. True

T or F: The goal of standardization is to minimize competition. False

T or F: In the competitive parity rule, advertisers use competitors' advertising spending as a

benchmark. True

T or F: Global logistics encompasses materials management only. False

T or F: Access charges are the one of the most critical barrier to global internet marketing.
True
T or F: Corporate social responsibility is the company's status and activities with respect to its
perceived societal obligations. True

why do we do global market segmentation? because there is a variation in consumers needs and
wants across different countries

modular approach standardize the parts (Ex: LEGO)

core-product by assembling parts in a different way (EX: LEGO)

local currency price stability method same price across different countries

price coordination find the middle ground, pricing cooridoor, which will help you manipulate
price accross different countries

geographic region, country, city, density, and climate

demographic age, gender, family size, income, occupation, education, religion, race and social
class

psychographic life style, personality, attitudes, opinions

behavior-based purchase occasion, user status, usage rate, brand loyalty status, marketing
sensitivity and benefits