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CLEP Principles of Marketing - International Marketplace
Terms in this set (47)
when marketing managers use a global plan to effectively market their goods and services on an international basis.
a fear of global marketing
domestic workers losing their job
___ % of manufacturing companies in the US export
marketing within one's own country's borders.
reasons why company market globally
growing international middle class, slow domestic growth, more competitive marketplace, less barriers w/ technology
Using __________ to sell to international consumers is a very __________ business decision
Using the Internet to sell to international consumers is a very low risk business decision
the buying and selling of products or services over electronic systems such as the Internet
Pros of Internet Marketing
easy and customizable software and new technology (databases, translator, conversions); international logistics companies (UPS); huge growing target markets
Cons of Internet Marketing
international laws; lack of use of credit cards and investing in brick & mortar stores
marketing managers must take into account _____ __________ __________ to insure that they are promoting correctly to the different target markets.
marketing mix adaptation
4 key areas to consider for global marketing
economic, infrastructure/technological, sociocultural, and government
A key step in global marketing is
to assess the viability of potential markets for growth
areas of economics marketers are concerned with in selecting a market (economic feasibility)
GDP, HDI, market size, pop. growth rate & evaluation of real income.
the market value of the goods and services produced by a country in a year.
(Human Development Index), which represents a combination of life expectancy at birth, education attainment, and average incomes.
concerned with the basic facilities and services needed for a country to function, such as a transportation systems or public institutions.
sophisticated logistic systems that will support product inventory, supply and delivery.
Government feasibility in International Marketing
takes into consideration tariffs, quotas & trade agreements
which are intergovernmental agreements designed to promote trade.
quantities set of how much of a specific product is allowed into a country during a time period
Social identity and other background factors, such as gender, ethnicity, social class, and culture
global marketing standardization
keep products the same
when the product itself has to change entirely
when a marketer alters a product slightly to suit different cultures.
when the marketer decides to keep the product exactly the same but alters the promotional strategy
exchange rate is
a huge factor, because it depends on the demand for and supply of each currency
the sale of an exported product at a much lower price than it is sold in the original market.
all or part of the payment for goods or services is in the form of other goods or services
when a company decides to expand into overseas markets it needs to first
analyze the new market, examine marketing mix, utilize internet to make it easier
international marketing strategy with the lowest risk
international marketing strategy with the lowest risk is exporting
benefits of exporting
least expensive, no local government interference, no real investment
disadvantages of exporting
trade barriers, high transportation costs
the quickest way to start international business is
the quickest way to start international business is licensing
A global strategy in which a firm allows a foreign company to produce its product in exchange for a fee.
six paths to foreign market (low risk to high risk)
exporting, licensing, contract manufacturing, franchising, joint venture, direct investment
disadvantages of licensing
(lack of control) quality control, supply, stealing the license, constant communication
a global strategy to have the ability to use a trademark name and be given the process to actually make a product/service between two parties.
Cost of franchising
one time large fee & percentage of profits for marketing, sales, promotion and training support from a franchisor in return
Advantages of Franchising
low risk, low involvement & most suited for fast food, restaurants, services
private-label manufacturing by a foreign company. The foreign company uses the firm's brand name and produces the product based on the firm's specifications (foxconn)
Disadvantages of Contract manufacturing
the foreign company could illegally produce and sell the product without authorization
when a domestic firm buys part of a foreign company or partners with a foreign company to create a new business.
Advantages of Joint Venture
an effective and inexpensive way to gain experience in a foreign market
Disadvantages of Joint Venture
extremely risky venture, as one partner can be bought out by the other or management cannot agree on overall strategies.
the most risky option and consists of active ownership of a foreign company or a factory.
Advantages of Direct Investment
an extremely quick presence in overseas markets.
Disadvantages of Direct Investment
very costly to pursue this mode and it requires a huge employee investment
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