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Chapter 14 Study Guide for Exam 4
For Final Exam in International Business
56
Business
Undergraduate 2
04/20/2015

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Term
Meaning of Counterfeit goods
Definition
are imitation production passed off as legitmate trademarks, patents, or copyrighted works--products that normally enjoy legal production
Term
Counterfeit Goods
Definition
  • 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 
Term
Top the list for the portion of their market comprised of counterfeits include
Definition
  • China 
  • India 
  • Russia 
  • Thailand
  • Turkey 
Term
Common high visible brand-name consumer goods
Definition
  • Watches
  • Perfumes
  • Clothing 
  • Movies
  • Music 

 

Term
Black Market
Definition
A market place of underground transaction that typically appears because a product is either illegal
Term
Promotion Mix
Definition
Comprises a company's efforts to reach distribtion channels and target customers through communications such as personal selling, advertising, public realtions and direct marketing
Term
Pull Strategies
Definition
  • 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
Term
Push Strategies
Definition
  • 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 
Term
Push Strategies
Definition

Can be difficult when distribution channel members wield a greater deal of power relative to that of producers

Ineffective are lengthy 

Term
Access to Mass Media
Definition
developing and emerging markets typically have fewer avaiable forms of mass media for use in implementing a pull strategies
Term
A pull is
Definition
most appropriate when buyers display a great deal of brand loyalty toward one particular brand name
Term
A push strategy tend
Definition

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

Term
Theordor Levitt argued that because the world
Definition
is becoming standardized and homogenous, comapnies should market the same products in the same way in all countries
Term
Standardization in marketing
Definition
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
Term
Product Standardization is
Definition
more likely when nations share the same level of economic development
Term
But companies that advertise in
Definition
Multiple markets determine the aspect of the advertising campaign that can be standardized across markets and those that cannot
Term
Companies that do
Definition
market their product across naotinal boundaries to try to contain costs by standardizing as many aspects of their campaign as possible
Term
Often control campaigns
Definition
from the home office
Term
Can acheive consistency by standardizing their
Definition
basic promotional messages, cretive concepts, graphic, and informaiton content
Term
International promotions
Definition
However, companies seldom standardize all aspect of their international promotions for a variety of reason, including differences in culture and laws
Term
Marketing Communications Process
Definition
[image]
Term
Encoded
Definition

(translated into image, words and symbols)s into a promotional messages that the company is trying to get across. 

 

Term
Promtional messages
Definition
is then sent to the audience (potential buyers) through various media.
Term
Media commonly
Definition
used by companies to communicate their promotional messages include radio, TV, newspapers, magazines, billboards and direct mailing
Term
After the audience receives the messages
Definition
they decode the message and interpret its meaning.
Term
Information in the form of
Definition
Feedback (purchase or non-purchase) then flows back to the source of the message.
Term
The decoding process by
Definition
the audience can be disrubpted by the presence of noise--anything that disrupts the audience's ability to receive and interpret the promotional message
Term
Encoded
Definition

translated into

images

words

symbols

Term
Promtoinal message
Definition
that the company is trying to get across
Term
audience
Definition
potential buyers
Term
feedback
Definition
purchase or non-purchased
Term
Noise
Definition
anything that disrupts the audience's ability to receive and interpret the promtional message
Term
Meaning of Distribution
Definition
Planning, implementing and controlling the physical flow of a product from its point of origin to its point of consumption
Term
Meaning of distribution channel
Definition
The physical path that a product follows on its way to customer
Term
Channel members or intermediaries
Definition
Companies along this channel that work together in delivering products to customers
Term
Companies develop their international distribution strategies based on two related decisions
Definition

How to get goods into a country 

How to distribute goods within a country 

Term
Types of channels
Definition

Exclusive Channels

Intensive channels

Term
Exclusive channels
Definition
  • 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 
Term
Intensive channel
Definition
  • 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
Term
Intermediaries
Definition
Companies along this chanles that work together in delivering products to customers
Term
Channel length
Definition
to the number of intermediaries between the producer and the buyer
Term
Zero-level channel
Definition
which is also called direct marketing producers sels directly to final buyers
Term
One level channel
Definition
place only intermdieary between the producer and the buyer
Term
Two level channel
Definition
two intremdiaries make
Term
In general, the greater the number
Definition
of intermediaries in a channel the more costly it becomes
Term
The more levels of intermediaries that there are
Definition
the more distribution channel members there are who must be convinced to carry a products
Term
Pricing Policies
Definition
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
Term
Worldwide Pricing
Definition
  • In  which one selling price is established for all internatinoal markets
  • Is very difficult to achieve 
Term
Worldwide pricing (Is very difficult to achieve)
Definition
  • 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 
Term
Dual Pricing
Definition
  • 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
Term
Price Escalation
Definition
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)
Term
arbitrage
Definition

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 

Term
Dumping
Definition
  • 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 
Term
Role of consumer protection laws in developing countries
Definition
The fact that many developing coutnries haver fewer consumer proections law creates an ethical issue for some companies
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