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Meaning of Counterfeit goods |
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are imitation production passed off as legitmate trademarks, patents, or copyrighted works--products that normally enjoy legal production |
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- Developing nations often are weakest in enforcing such legal protections, they normally hae the most active counterfieting markets
- Typically sodl to consumers on what is called the black market
- Can damage buyer's image of a brad when the counterfeits are of inferior quality
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Top the list for the portion of their market comprised of counterfeits include |
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- China
- India
- Russia
- Thailand
- Turkey
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Common high visible brand-name consumer goods |
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- Watches
- Perfumes
- Clothing
- Movies
- Music
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A market place of underground transaction that typically appears because a product is either illegal |
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Comprises a company's efforts to reach distribtion channels and target customers through communications such as personal selling, advertising, public realtions and direct marketing |
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- A promotional strategy designed to created buyer demand that will encourage distribution channel members to stock a company's product
- Buyer demand is denerated in order to "pull" products through distribution channels to end users
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- Is a promotional strategy designed to pressure distribution channel members to carry a product and promote it to final users
- sold through department and grocery stores often a push strategy
- Use for office products, including computers and office furniture
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Can be difficult when distribution channel members wield a greater deal of power relative to that of producers
Ineffective are lengthy |
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developing and emerging markets typically have fewer avaiable forms of mass media for use in implementing a pull strategies |
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most appropriate when buyers display a great deal of brand loyalty toward one particular brand name |
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to be appropirate for inexpensive consuemrm goods characterized by buyers who are not brand loyalty
Suited to industrial product because potentional buyer usually need to be informed about a product's special features and benefits |
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Theordor Levitt argued that because the world |
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is becoming standardized and homogenous, comapnies should market the same products in the same way in all countries |
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Standardization in marketing |
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is just one of number of strategies with which firms successflly enter the international marketplace today and it may not always be the most appropirate strategy |
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Product Standardization is |
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more likely when nations share the same level of economic development |
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But companies that advertise in |
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Multiple markets determine the aspect of the advertising campaign that can be standardized across markets and those that cannot |
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market their product across naotinal boundaries to try to contain costs by standardizing as many aspects of their campaign as possible |
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Can acheive consistency by standardizing their |
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basic promotional messages, cretive concepts, graphic, and informaiton content |
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However, companies seldom standardize all aspect of their international promotions for a variety of reason, including differences in culture and laws |
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Marketing Communications Process |
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(translated into image, words and symbols)s into a promotional messages that the company is trying to get across.
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is then sent to the audience (potential buyers) through various media. |
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used by companies to communicate their promotional messages include radio, TV, newspapers, magazines, billboards and direct mailing |
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After the audience receives the messages |
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they decode the message and interpret its meaning. |
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Information in the form of |
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Feedback (purchase or non-purchase) then flows back to the source of the message. |
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the audience can be disrubpted by the presence of noise--anything that disrupts the audience's ability to receive and interpret the promotional message |
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translated into
images
words
symbols |
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that the company is trying to get across |
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purchase or non-purchased |
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anything that disrupts the audience's ability to receive and interpret the promtional message |
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Planning, implementing and controlling the physical flow of a product from its point of origin to its point of consumption |
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Meaning of distribution channel |
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The physical path that a product follows on its way to customer |
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Channel members or intermediaries |
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Companies along this channel that work together in delivering products to customers |
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Companies develop their international distribution strategies based on two related decisions |
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How to get goods into a country
How to distribute goods within a country |
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Exclusive Channels
Intensive channels |
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- is one in which a munfacture grants the right to sell it product to only one or a limited number of reseller
- gives producers a great deal of control over the sale of their product by wholesaler and retailers
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- When a producer wants its product to be made avaiable through as many distribution outlets as possible
- One in which a producers grants the right to sell its product to many resellers
- Locations convenience because of the large number of outlets through which a product is sold
- Grocery stores and department stores
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Companies along this chanles that work together in delivering products to customers |
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to the number of intermediaries between the producer and the buyer |
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which is also called direct marketing producers sels directly to final buyers |
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place only intermdieary between the producer and the buyer |
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In general, the greater the number |
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of intermediaries in a channel the more costly it becomes |
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The more levels of intermediaries that there are |
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the more distribution channel members there are who must be convinced to carry a products |
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Let's now examine two pricing policies (worldwide pricing and dual pricing) that companies use in the international markets and then explore the important factors that influence manager's pricing decision |
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- In which one selling price is established for all internatinoal markets
- Is very difficult to achieve
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Worldwide pricing (Is very difficult to achieve) |
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- Production cost differ from one nation to another
- A company that produces in just one location ( to maintain an equivalent cost of production for every product) cannot guarantee that selling price will be the same in every target market
- The purchasing pwoer of local buyers must be taken into account
- Fluctuating currency values also must be taken into account
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- in which pricing in which a product has a different selling price in export markets than it has in the home market
- To apply dual pricing successfully in internatinal marketing a company must be able to keep its domestic buyers and international buyers separate
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When a product has higher selling price in the target market then it does in the home market (or the country where production take place) |
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buying products where they are sold at lower prices and reselling where they command higher price
If company cannot keep its buyer separate when using dural pricing, buyer could potentially udermine the policy through |
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- Occurs when the price of a goods is lower in export markets than it is in the domestic market
- Although charges of dumping normally result from deliberate efforts toundercut the prices of competitors in the domestic market changes in exchange rates can cause unintentional dumping
- When a country's government charges another nation's producers of dumping a good on its market, antidumping tariffs are typically imposed
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Role of consumer protection laws in developing countries |
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The fact that many developing coutnries haver fewer consumer proections law creates an ethical issue for some companies |
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