International Marketing Final

types of innovation (3)

- Continuous innovation (change to an existing product, no new demand patterns) - Dynamically continuous innovation (some disruption on demand patterns) - Discontinuous innovation (entirely new product, demand patterns)

Factors that impact sourcing

- costs of production (including labor costs) - shipping costs - logistics - country infrastructure - political risk - regulatory environment - customer needs

packaging and labeling (5 types)

- dual extension (same product, same message) (iPhone) - product extension, communications adaption (same product, new messaging) (Ben and Jerry's different color packagin) - production adaption, communications extension (adapted product, new messaging) (China less sweet Oreo's) - dual adaption (new product, new messaging) (Nike in China) - innovation (completely products for new market)

Global Pricing Strategies (3)

- ethnocentric (extensions) - polycentric (localized pricing) - geocentric (a mix of the two)

Advantages of Licensing

-Provides additional profitability with little initial investment -Provides method of circumventing tariffs, quotas, and other export barriers -Attractive ROI -Low costs to implement -License agreements should have cross-technology agreements to share developments and create competitive advantage for each party

value network

An overarching system of formal and informal relationships within which the firm participates to procure, transform, and enhance, and ultimately supply its offerings in final form within a market space cost structures dictate optimal profit margins

Steps in Global Brand Development (4)

Compelling value prop Think about brand assets that can be globalized Research adaption vs. extension alternatives Develop company-wide communication system

key export participants (4 types)

Export management companies Export distributor Freight forwarder Manufacturer's export representatives

types of market entry: low to high risk/involvement

Exporting Licensing Contract manufacturing Equity stake or acquisition

factors that affect supply chain disruption (6)

Material scarcity Increase in freight prices Port congestion due to labor shortage Difficult demand forecasting Changing consumer attitudes Digital transformation

Types of Cost-Plus Pricing (2)

Rigid cost pricing: no regard to market or competition Flexible cost plus: ensure that product is competitive

Dumping

Selling goods in another country below market prices Byrd amendment requires payment from violator to company with damages

factors that impact price escalation (4)

Shipping Tariffs Inspections fee Distributor margin

criteria for selecting a market entry strategy (4)

Vision for future Comfortability with risk Available investment capital How much control is desired

Consortia

a form of global strategic alliance, very formalized w each company having an outlined role, typically in a market not operated in by participants

Countertrade

a form of trade in which all or part of the payment for goods or services is in the form of other goods or services types: - barter - buyback agreements - compensation deals

Sustained Technology

changes to existing technology, improved performance

parallel imports

goods purchased in one country by unauthorized intermediaries and sold to unauthorized retailers in another country

Containerization

grouping individual items into an economical shipping quantity and sealing them in protective containers for transit to the final destination

Dunkin Donuts in India

has not succeeded, Indian market has very different demands, extensions of Donuts have not worked, need more adaptations of products and creation of new products

COF (Cost, Insurance, Freight)

once goods pass ship's rail, seller is no longer responsible

organic growth vs. franchise

organic growth: appropriate culturally close, company uses its own resources franchise: best when culturally distant

4 types of utility for customers

place time form information

transfer pricing

prices charged in sales between an organization's units

non-tariff barriers (3 types)

quotas monetary barriers discriminatory procurement policies

5 characteristics of innovation

relative advantage compatibility complexity trialability observability

CFR (cost and freight)

seller is not responsible at any point outside of factory

ex works

seller places goods at the disposal of the buyer at the time specified in the contract; buyer takes delivery at the premises of the seller and bears all risks and expenses from that point on.

FOB (freight on board)

seller's responsibilities do not end until goods have been placed on ship

supply chain (Apple)

sourcing manufacturing warehousing distribution return

Types of Retailers

specialty store department store supermarket convenience store discount store off-price retailer superstore hypermarket supercenter shopping mall outlet mall

disruptive innovation/technology

totally new product, have to create a new market

intermodal transportation

two or more transportation modes used in combination