Term
| Localization vs. Adaptation |
|
Definition
Local- changes required for prod/service to function in new country.
Adapt- changes to products to to match customer prefs in diff. country market |
|
|
Term
| Standardization- PROS/CONS |
|
Definition
pros- global customers, cost reduction, improved functional quality, global segments
CONS- off-target, lack uniqueness, vulnerable to trade barriers, strong local competition |
|
|
Term
| Globalizing brand name- Checklist questions |
|
Definition
Name make sense outside home country?
Positive association/effect?
Name legal/available in new country?
Brand name compete with other brands in portfolio? |
|
|
Term
|
Definition
Why: competitive/lower price, acceptable quality.
Actions against: search and destroy, coding |
|
|
Term
| Preliminary screening: Developing new global products |
|
Definition
- cross-functional teams w/ major country markets
- compatibility issues w/ company objectives, strategies, resources
- 1st attempt- product design and localization requirements |
|
|
Term
| conjoint analysis (eval. of product features) |
|
Definition
ppl eval product's multiple features. Score pref based on indiv features of prod that would have resulted in overall evals.
Fundamental assump: ask overall evals of product thru conjoint analysis. Bc ppl cant express feature weights realistically. |
|
|
Term
|
Definition
- select key feat./attributes taht appeal to target customers.
- list all combos of features. develop product profiles
- sample target customers rank prefs
- reg. analysis to derive relationship between indiv. feature and overall portfolio.
- calc. relative importance of features using reg. coefficients. |
|
|
Term
|
Definition
- factors: cost, experience curve, competition, demand.
-cost-plus formula- various costs+ markup= final price
- curve pricing- unit costs decrease as production increases. companies can offer lower intro prices upon entry into new market.
- competitive value pricing- commodity + premium price differential |
|
|
Term
|
Definition
| High price in strong demand market may/may not be determined by competition supply. |
|
|
Term
|
Definition
genuine branded goods sold thru unauthorized channels.
Takes advantage of price diff among other identical products in diff country markets. |
|
|
Term
|
Definition
POLYcentric- low prices, local $, no headquarter constraints. Locally adapted. (not coordinated, more gray trade)
ETHNOcentric- same price to all no matter what nationality. No gray trade. (no local adaptation)
GEOcentric- global/regional base price + markup (varies across countries). Some coordination, lil gray trade, some adaptation. (not locally adapted, but regional) |
|
|
Term
| Exchange rate fluctuation |
|
Definition
Asymmetrical pattern
depreciating $, increased ability to lower prices abroad, increase competition for exporter. |
|
|
Term
| foreign exchange exposure-managing it, and avoiding it(math) |
|
Definition
- investment, assets, liabilities at risk bc of unanticipated changes in exchange rates.
- Managing exposure: reduce loss, reduce business uncertainty.
-hedging- purchase insurance against loss bc of currency inflation.
forward contract- sale/purchase of specific amt of foreign $ at fix. exchange rate for delivery/settlement on agreed date in future.
- Money market hedging- borrow/lend in multiple $, minimizes risk of foreign exchange rate fluctuations. |
|
|
Term
|
Definition
prices of goods are transferred from Co. operations/sales in one country to units elsewhere.
Advantages: lowers tariff costs by shipping gds to high tariff countries at minimal transfer prices. reduces income taxes in high tax countries by overpricing gds transferred to other units.
- Cost of transfer pricing to nat'l gov'nts: loss in potential tax revenues |
|
|
Term
| Global logistics- airexpress systems |
|
Definition
transport/storage necessary to transfer product from manuf.plant/warehouse in diff countries countries to local market countries.
- airexpress systems logistics: local express mail office for pick up; transport in evening to domestic transshipment pt; ship out to country of dest; clear customs; ship to local dest. |
|
|
Term
| Entrepreneurs motivation for Gray Trade |
|
Definition
-wide discrepencies between natl markets
- ltd availability of models/versions in one market.
- inexpensive logistics/transport ease |
|
|
Term
| Seiko's Channels of Distribution |
|
Definition
author. distrib to Europe, Hong Kong, N.America
unauthorized between retailers and distributors. |
|
|
Term
| effects of gray trade- channel/pricing actions contra |
|
Definition
EFFECTS: erosion of brand equity, strained relationships w/ auth. channels, legal liab, complication of global mktg strategies.
CHANNEL actions: supply interference, dealer interference, demand interf., strategic attack
PRICING actions: econ controls, centralization, informal coordination |
|
|
Term
| global advertising (global promotion tool) |
|
Definition
media ad uniform across many countries with media reach.
-identical ads- w/ localization such as language voice-over and copy translations.
- pattern standard.-positioning theme is unified, some alternate creative concepts. cost saving, global markets and products. (image and symbols may not be acceptable, media not avail.) |
|
|
Term
| sales promotions (glob. prom. tool) |
|
Definition
- in store- inside store.
- trade- targeted at channel intermediaries
- issues- localized. diff countries, diff distribution structures that limit transferibility of instore promotions. |
|
|
Term
| global PR (globe prom. tool) |
|
Definition
focus on creating goodwill toward corp.
Increasingly important bc of antiglobalization feelings.
- Damage- critical. flexible and respect norms!
- cause marketing- Co. associates with worthy social cause.
-global publicity- publish news of Co. and products. more credible than paid ads, no airtime needed, positive press coverage enhances consumer interest. (mgmt required for this, labor intensive, negative publicity keeps brand name in public eye)
- sponsorship: increase with global media and global events (olympics, XGames, etc) |
|
|
Term
| cross marketing (globe mktg tool) |
|
Definition
| of related products leverages strong brand name into product line extensions (disney) |
|
|
Term
| Legal/Ethical Issues of Global Ad |
|
Definition
- consumer doubts on ad credibility
- decency standards are receiving public attention
- gov't regulations: laws control ad, laws against harmful product ads, limits on length and amt of TV ads |
|
|
Term
|
Definition
| online ad, ad as part of entertainment, ad in movies, investments in design |
|
|
Term
|
Definition
| online ad, ad as part of entertainment, ad in movies, investments in design |
|
|
Term
|
Definition
Global- coordinates/integrates across multiple country markets.
INT'L- older term- all mktg efforts in foreign countries. (foreign is not used bc its offensive) |
|
|
Term
| multidomestic vs. global mrkt |
|
Definition
MULTI- local consumers have wide diff prefs and functional requirements. Ex. McDonalds- diff food products
GLOBAL- similar buyer prefs across similar countries. Ex. High tech-ipods |
|
|
Term
|
Definition
MULTInational- adaptation to local markets while foreign mkts could be easily penetrated after WWII.
GLOBAL- standardization to global mkts, strong foreign competitors appear.
ANTI-GLOBAL- question econ, poli, and social benefits of globalization. |
|
|
Term
| globalization -definition, of mkts, of products |
|
Definition
shift to more integrated/interdependent world economy.
- of mkt- merge of historic. diff nat'l mkts into one global marketplace.
-of products- tendency of firms to source goods from locations around globe, take advantage of cost and quality factors of production.
lowers prices, increase consumer income, creates jobs, stimulates econ growth. (destroys jobs in wealthy/advanced countries, wage rates of unskilled labor drops) |
|
|
Term
|
Definition
TECH- telecommunications (ecommerce, email); transportation advances (commercial jets, ship containers, tankers)
COST- economies of scale, sourcing advantages (diff costs in countries)
GOV'T- free trade, deregulation, global standards
COMPETITION- global comp.( follow competition, respond to it)
MKT- common customer needs, global customers, gloval channels, transfer mkt (same across country mkts) |
|
|
Term
| Absolute Advantage theory |
|
Definition
nation should produce ONLY goods where MOST efficient, trade w/ those not efficient (assumes balance among nations)
Adam Smith
countries differ in ability to produce goods efficient |
|
|
Term
| Comparative Advantage Theory |
|
Definition
why buy products from others when we can produce them more efficient
David Ricardo
nation should specialize in production of goods with comparative advantage. |
|
|
Term
| Porters Diamond- thry of nat'l competitive advantage |
|
Definition
why does nation achieve int'l success in particular industry?
- factors- production such as labor or infrastructure needed
- demand- nature of home demand for industry product
- firm strategy, stucture, rivalry- creation, organization, mgmt of company, and competition nature.
- Related/Supported Industry- presence/absence of supplier industries int'lly competitive. |
|
|
Term
|
Definition
| related to system of shared assumptions, ideas, beliefs, values that guide human behavior. |
|
|
Term
| Low vs high context culture |
|
Definition
LOW- explicit verbal communication- you say what you think
HIGH- implicit nonverbal communication- beat around the bush, sugarcoat, you say not what you think. |
|
|
Term
| Country Market Eval.- 4 steps |
|
Definition
1. country ID- poli risk (terrorism, military upheaval), environ. research (econ, physical, socio-cultural, regulatory)
2. Prelimin. screen- rate ID countries on macro-analysis level, eval. costs of market entry
3. indepth screen- mkt size, mkt growth, competitive intensity
4. final selection- personal experience!!! |
|
|
Term
| Research process (of intl mkt research) |
|
Definition
-consumer survey probs: hard to receive accurate responses in high context, informal face to face are bias
- Trade surveys- good start to get data, key informants in trade are good info source to buyers.
- measure/scaling- cognitive consumer measurements, difficult to scale attitudes.
- questionnaire- hard to translate into other language
- focus groups(quantitative)- inexpensive, quick, local. (unreps samples, bias with paid participants) |
|
|
Term
| Local mkting in Emerging Mkts |
|
Definition
lack of mkting infrastructure (distr. channels, local standards)
2 types:
- NonDev- Russia, China, PostCommunist nations
-Developing- nations of africa, central america, asia
- Differences- pop's basic needs are satisfied in NDC- solid edu, strong social control, secure life. |
|
|
