ENGLISH S3

INTERNATIONAL MARKETING

ACRONOMYS AND THEIR DEFINATION

MANAGEMENT BUY-OUT: A transaction where a company’s management team

purchases the assets and operations of the business they manage.

MANAGEMENT BUY-IN (MBI), it is a transaction in which an external

management team acquires a company and replaces the existing management
team.

Business-to-business (B2B) refers to a situation where one business makes a

commercial transaction with another business. This typically occurs when:

 One business needs the services of another for operational reasons (e.g. a
food manufacturer employing an accountancy firm to audit their
finances).

Electronic Data Interchange (EDI; a process which allows one company to

send information to another company electronically rather than with paper.
Business entities conducting business electronically are called trading partners.

EDI replaces the faxing and mailing of paper documents. Business document
Such as purchase orders, invoices, shipping notices, and many others are now
send electronically rather than with paper.

JUST IN TIME (JIT): It is a system use by management that keeps inventory

levels low by only producing for specific customer orders. The aim is to control
inventory costs while still meeting customer demands.

Business to customers (B2C): It is a business transaction which involves

the process of selling goods to customers through multiple channels of
distribution to earn a profit.
BRAND DILUTION: is the weakening of a brand through its overuse. This
frequently happens as a result of ill-judged brand extension.

The decision making unit or DMU consists of a group of people who take
collective decisions about the purchasing of goods and services. There are a
number of key players in this process namely the initiators, the gatekeepers, the
buyers, the deciders, the users and the influencers.

Consumer buying behavior: It is the sum total of the attitudes,

preferences, beliefs and decisions regarding the consumers behavior when
purchasing a product or service in a market.

BUYING BEHAVIOR: These are the decisions processes and acts of people
involve in buying and using of products.

A UNIQUE SELLING PROPOSITION (USP, also known as unique selling

point) is a factor that differentiates a product from its competitors, such as the
lowest cost, the highest quality or the first-ever product of its kind. It makes a
business to stand out from the rest in a market.

Total Quality Making: Total quality Making is a description of the culture,

attitude and organization of a company that strives to provide customers with
products and services that satisfy their needs.

MISSION STATEMENT: It is a formal written summary prepared by a

company as part of its business plan outlining what the company stand for
and what its goals are.
A business guru or management guru: is a leading authority on
business practices and can be defined as 'a person with influential ideas
or theories about business.

FAIR TRADE: Trade in which fair prices are paid to producers in developing
countries.

RELATIONSHIP MARKETING: Relationship marketing is a marketing approach

that focuses on creating ongoing and long-term relationship with customers.

PRODUCT LIFE CYCLE (PLC): The product life cycle describes the period of
time over in which a product is developed, brought to market and eventually
removed from the market. The cycle is broken into four stages: introduction,
growth, maturity and decline. The idea of the product life cycle is used in
marketing to decide when it is appropriate to advertise, reduce prices, explore
new markets or create new packaging.

Newly industrialized country (NIC): These countries whose national economy

has transitioned from being primarily based in agriculture to primarily base in
goods-producing industries.

For example manufacturing, construction, and mining, during the late 20th and
early 21st centuries. An NIC also trades more with other countries and has a
higher standard of living than developing countries. However, it has not yet
reached the level of economic advancement of developed countries and regions
such as the United States, Japan, and Western Europe.

VARIOUS FINANCIAL STATEMENTS;

A financial statement (or financial report): is a formal record of the financial

activities and position of a business.

1. A balance sheet, also known as a statement of financial position,

reports on a company's assets, liabilities, and owners equity at a given
point in time.
2. An income statement, also known as a statement of comprehensive
income, P&L or profit and loss report, reports on a company's income,
expenses, and profits over a period of time. A profit and loss statement
provides information on the operation of the enterprise. These include
sales and the various expenses incurred during the stated period.
3. A Statement of changes in equity, also known as equity statement or
statement of retained earnings, reports on the changes in equity of the
company during the stated period.

Example of items found in changes in equity

a) Share capital
b) Retained earning
c) Revaluation reserve
d) Share premium
e) Share issue
f) Profit for the year.

A cash flow statement reports on a company's cash flow activities, particularly

its operating, investing and financing activities.
Examples of cash inflow :
A. Disposal of Noncurrent assets.
B. Sales revenue
C. Discount received
D. Loan from bank
E. Share capital invested
F. Grant and subsidies.
G. Interest on saving account.
Example of cash outflow
a) Purchases of Asset
b) Dividend paid
c) Interest paid on load
d) Taxes paid.
e) Discount allowed
f) Payment of loan.
g) Wages and salaries

GEARING: refers to the level of a company’s debt related to its equity capital,
usually expressed in percentage form. It is a measure of a company’s financial
leverage and shows the extent to which its operations are funded by lenders
versus shareholders. The term "gearing" also refers to the ratio between a
company’s stock price and the price of its warrants.

PROFITABILITY AND UNPROFITABILITY PRODUCTS;

Reasons for selling a product at a loss

1) To get rid of excess stocks or old so as restock the warehouse with new
products.
2) Because the profitability of the main product depends on its components.
3) Pricing strategy: for example, loss leader pricing strategy where a product
is sold at a loss to attract customers.
4) The product is very important for customers.
5) Puts Competitors at a Disadvantage and in turn improve company’s
images.
 6) To retained and brings in More Customers.
7) The vendor expects that customers will purchase other profitable items in
order to cover the cost incurred on loss one.
8) It is a kind of special offering.
9) For the aim of delivering a message/ an idea to the general public.
10) To avoid paying high taxes to authorities.

VARIOUS ORGANISATIONAL STRUCTURES;

ORGANISATURE STRUCTURE: The typically hierarchical arrangement of lines of

authority, communications, rights and duties of an organization. Organizational
structure determines how the roles, power and responsibilities are assigned,
controlled, and coordinated, and how information flows between the different
levels of management.
It outlines the roles and responsibilities of individuals and groups within an org
anization.

TYPES OF ORGANIZATIONAL STRUCTURE

1) Entrepreneurial: It is a type of structure found in small companies in

the early stage of their
development.The entrepreneur often has specialist knowledge of the prod
uct or service.
2) FUNTIONAL STRUCTURE: It is a types of organizational structure in
which the organization is divided into small group based on specialized
functional area or similar set of roles or tasks.
3) DIVISIONAL STRUCTURE: A type of organizational structure that divides
employees into groups and every group is responsible for particular type
of product or service according to the workflow.
4) TEAM STRUCTURE: A team structure, in a business setting, involves
groups of people who form teams that work toward a common goal of the
overall structure.
5) HIERARCHICAL STRUCTURE: Hierarchical organization structure
is a top-down pyramid system used to organize and arrange the
relationships between the departments in an organization. Responsibilities
are concentrated on the top of the pyramid and decisions flow from the
top down.
6) MATRIX STRUCTURE: This type of organizational structure combines
the traditional departments seen in functional structures with project
 teams. It is a structure that outlines practice of managing individuals with
more than one reporting line.
In a matrix structure, individuals work across teams and projects as well
as within their own department or function.
This type of structure is most suitable for organizations operating in a
dynamic environment.
7) GEOGRAPHICAL STRUCTURE: This is the type of organizational
structure base on grouping activities on the basis of location. It is
commonly used by organizations which operate in wider geographical
area.

BRAND AND BRANDING

FACTORS THAT AFFECT A BRAND OF PRODUCT:

QUALITY OF A PRODUCT: The quality of a product or service refers to the

perception of the degree to which the product or service meets the
customer's expectations. This may be understood in different ways by
different customers meaning everyone has his/her own definition.
Example for some is the degree to which a product is correctly produced

Positioning: It is the place that a brand occupies in mind of its targeted

audiences. This includes the perceptions, opinions and feelings that a
customer has for a brand as compare to a similar product in the market.
Companies apply this strategy to create a suitable image in mind target
market through advertisement.
RE POSITIONING: This is act of updating / of implementing a major
change in the brand. This may arise as result of decline in sales, losing the
market share, due to major shift in the environment. A company may
notice that its products' image is outdated, or can be improved.

First Mover Advantage (FMA): First mover is a term that describes

a certain competitive advantage a business obtains by virtue of being the first to
bring a specific product or service to market.
Internal marketing: it is the act of promoting the company and its
policies to employees as if they are the (internal) customers of the company. It
also involves is placing value on the employees’ contribution to the company.
Internal marketing is based on the idea that customers’ attitudes toward a
company are based on their entire experience with that company, and not just
their experience with the company’s products. Any time a customer interacts
with an employee, it affects their overall satisfaction. Therefore; customers’
satisfactions depend on the performance and attitude of a company's staff.