International Marketing Concepts and Strategies
1. The Development of Global Markets
1.1 Contributing Factors
Two major events/trends have contributed to the development of global markets and internationalization:
- Fall of the USSR: The dissolution of the Soviet Union opened up new markets and opportunities for international trade.
2. Obstacles to Success in International Marketing
A person’s self-reference criterion and ethnocentrism are the primary obstacles to success in international marketing. These biases can lead to misinterpretations of cultural cues and ineffective marketing strategies.
3. Uncontrollable Factors in Domestic and Foreign Environments
True. Political/legal forces and the economic climate are two uncontrollable factors that affect both domestic and foreign environments. Businesses must adapt to these external forces.
4. Controllable Factors in Marketing
Pricing, product, and promotion belong to the group of controllable factors in marketing. These are elements that businesses can directly influence.
5. Secondary Research in Marketing
If you conduct marketing research using information that has already been collected, it is known as secondary research.
6. Quantitative Research Techniques
Surveys are the most likely research technique to be used for conducting quantitative research. They allow for the collection of numerical data from a large sample size.
7. Steps in Marketing Research
Mary’s next task in her marketing research project is to determine the sources of information to fulfill the research objectives. This step involves identifying where the necessary data can be found.
8. First Step in the Marketing Research Process
The first step in a marketing research process is to define the research problem and establish research objectives. This sets the foundation for the entire research project.
9. Order of Steps in the Research Process
The correct order of steps in the research process is:
- Define the research problem and establish research objectives.
- Determine the sources of information to fulfill the research objectives.
- Consider the cost and benefits of the research effort.
- Gather the relevant data from primary or secondary sources, or both.
- Analyze, interpret, and summarize the results.
- Effectively communicate the results and recommendations to decision-makers.
10. Back Translation in Marketing Research
In the back translation method, a questionnaire is translated from one language to another, and then a second party translates it back to the original language. The two original language versions are then compared to ensure accuracy and cultural appropriateness.
11. Demand Forecasting Methods for International Marketers
Expert opinion and analogy are two methods of demand forecasting that are particularly suitable for international marketers. These methods rely on insights from experts and comparisons with similar markets.
12. Survey Method in Marketing Research
Through the survey method, a large number of respondents are typically asked to reply verbally or in writing to structured questions using a specific response format or to select a response from a set of choices.
13. Problems with Secondary Data
Secondary data may present problems such as all of the above (availability, reliability, comparability, and validity). Researchers must carefully evaluate the quality and relevance of secondary data sources.
14. Positioning in Marketing
True. Positioning refers to consumers’ perception of a brand as compared with that of competitors’ brands. It is the mental image that a brand evokes.
15. Internationalization Motivations of Proactive SMEs
Tax benefits and economies of scale are two major internationalization motivations of proactive SMEs (small and medium-sized enterprises). These firms actively seek opportunities in foreign markets.
16. Product Adaptation
Product adaptation is the process of modifying an existing product so it is suitable for different customers or markets. This may involve changes to the product’s design, features, or packaging.
17. Internationalization Motivations of Reactive SMEs
Excess capacity and overproduction are two major internationalization motivations of reactive SMEs. These firms enter foreign markets in response to pressures or challenges in their domestic market.
18. Benefits of Product Standardization
Benefits of product standardization include:
- Economies of scale: Lower production costs due to larger volumes.
- Faster set-up time: Reduced time to market for new products.
- Single coherent global image: Consistent brand identity across markets.
19. Disadvantages of Product Adaptation
Disadvantages of product adaptation include:
- Higher costs: Increased expenses for product modification and marketing.
- Time-consuming: Longer development and launch cycles.
- Poor speed of execution: Delays in getting adapted products to market.
- Difficulty knowing what consumers really want: Challenges in accurately assessing market needs and preferences.
20. Internal Change Agents
New management or new employees and significant events are examples of internal change agents. These factors can drive changes within an organization.
21. The Exploring Firm
It would be fair to say that a firm is in Stage 3: The Exploring Firm when it has desires of exporting because the managers believe that exporting may be a desirable activity. This stage is characterized by initial exploration and assessment of international opportunities.
22. Product Adaptation for Consumer Goods
True. Consumer goods often require product adaptation because of their higher degree of cultural grounding. Products must be tailored to meet the specific needs and preferences of consumers in different markets.
23. Counterfeit Goods
Counterfeit goods are any goods bearing an unauthorized representation of a trademark, patented invention, or copyrighted work that is legally protected. These goods infringe on intellectual property rights.
24. Impact of Local Factors on Product Adaptation
False. Local behavior, tastes, attitudes, and traditions significantly affect the decisions marketers make about product adaptation. Products must be aligned with the cultural context of the target market.
25. Actions Against Counterfeiting
One type of action companies can take against counterfeiting is legal action/prosecution. This involves pursuing legal remedies to stop the production and distribution of counterfeit goods.
26. Functions of Packaging
Packaging serves three major functions:
- Protection: Safeguarding the product during transportation and storage.
- Promotion: Communicating product information and attracting consumers.
- User convenience: Facilitating product use and handling.
27. Package Aesthetics
True. Package aesthetics must be taken into consideration. The visual appeal of packaging plays a crucial role in attracting consumers and influencing their purchase decisions.
28. The Universality of Marketing
Yes, the marketer’s task is fundamentally the same whether applied in Miami, Florida, or Dar es Salaam, Tanzania, due to the fact that marketing principles are universal. The core concepts of understanding customer needs, developing products and services that meet those needs, and effectively communicating the value proposition remain consistent across markets. However, the political, legal, and economic factors will differ significantly between countries, and these factors will influence the specific marketing strategies and tactics employed. Marketers must adapt their approaches to suit the unique characteristics of each target market.
29. Country of Origin Effect
The country of origin effect refers to the influence that the country of manufacture has on consumers’ perceptions of a product’s quality and value. This effect is often based on stereotypes and preconceived notions about the manufacturing capabilities and standards of different countries. For example, products manufactured in Germany and the USA are often perceived as high quality, while products from developing countries may be viewed with skepticism by some consumers.
30. Geographical vs. Psychological Closeness
Geographical closeness refers to the physical proximity of countries, typically when they share borders. Psychological closeness, on the other hand, refers to the perceived similarity between countries, even if they are not geographically close. This similarity may be based on shared cultural values, language, historical ties, or other factors. For example, the USA and Canada share a high degree of psychological closeness despite being geographically distant from many European countries with which they have strong cultural and historical connections.