BUS 368 FINAL

Facilitating Payments

(grease) such as a small fee to expedite paperwork through customs - not considered violations violations occur if payment is made to influence foreign official in exchange for business favors, depending on nature of action sought

2 Dimensions to global brands:

- 1. consistency of brand strength (differentiation, relevance) and brand structure (esteem and knowledge) together - 2. consistency of brand meaning. contributes to strength of brand

Managing Brand Portfolio

- Branding is one of major beneficiaries of well conducted portfolio analysis -- shapes customer decisions and creates economic value - brand: key factor behind decision to purchase in B2C and B2B - strong brands are bale to change a price premium of 19% - Carefully crafted brand portfolios allow marketers to serve defined parts of specific markets - Needs to be regularly assessed, increasingly difficult for global company to manage purely local brands

Brand valuing based on 4 Key Pillars measuring consumer sentient and usage:

- Energized differentiation — pricing power and consideration - Relevance — builds consideration and trial - Esteem — builds loyal along with - Knowledge — moves sales

Penetration Pricing

- Product offered at low price intended to generate volume sales and achieve high market share which would compensate for lower per unit return - Typically requires mass markets, price sensitive customers and decreasing production and marketing costs as sales volumes increases can be used to discourage other marketers from entering market - Price change are called for when new product is launched, when change occurs in overall market conditions (such as change in value of currency), or when change in internal situation (such as costs of production)

Price Escalation

- combined effect of both clear and hidden costs results in export prices that exceed domestic prices - excessive mark ups - complicating price escalation = different size price increases across markets — if customers are willing to shop around before purchasing, problem of price differentials will make distributors unhappy and could result in particular market being abandoned altogether Can be overcome through creative strategies, depending on what demand elasticities in market are — typical methods focus on cost cutting: - reorganize the channel of distribution - adapt the product - use new or more economical tariff or tax classifications - assemble or produce overseas --> duty drawbacks If marketer can convey a premium image then they will be bale to pass increased amounts to the final price

Cause-Related Marketing

- combo of public relations, sales promotion and corporate philanthropy. - marketers have social vision and planned long term social policy (companies partnering with UNICEF and World Bank to improve access to health care in hardest hit regions of the world)

Personal Selling

- involves direct relations between seller and buyer - two-way flow of communication between potential buyer and salesperson - most EFFECTIVE of promotional tools available, but costs per contact are high - sales effort determined by degree of internalization indirect exports direct exports integrated solutions

Sponsorship Marketing

- involves the marketer's investment in events or causes - directed for most part at sports events (team and individual) and cultural events (both in popular and high-culture categories) - spending is relatively even around the world EX: Coca-Cola Company is proud to be longest standing continuous corporate partner of the Olympic Games - Sponsorship events like the Olympics is driven by the desire to be associated with a worldwide event that has a positive image, global reach, ad proven strategic positioning of excellence - Rising costs of sponsorships and the difficulty of establishing return on investment has forced some marketers to bow out - Challenge is that an event may become embroiled in controversy; thus hurting the sponsors' images as well

Social Media Gained Popularity for Several Reasons:

- marketing communications are "one-way" - marketing communications are expensive - marketing communications are inefficient - media are fragmenting

Market Differentiated Pricing:

- pricing exports according to dynamic conditions of marketplace. for these firms, marginal cost strategy provides a basis, and prices may change frequently due to changes in competition, exchange rate changes, or other environmental changes - need for info and controls is crucial if this pricing alternative is attempted - exporters likely to use market based pricing to gain entry or better penetration into new market demand orientation meaning may be more consistent with marketing concept

Global Product Development

- product development is at heart of global marketing process - new products should be developed or modified to cater to changing needs on global or regional basis - competition increasingly able to react quickly when new products are introduced, worldwide planning at product level provides number of benefits — like ability to develop products with specifications compatible on worldwide scale - firms that adopt worldwide approach is able to develop products with specifications compatible on world scale whereas firm that leaves product development to independent units will incur challenges in transferring experience & tech MAIN GOAL of product development process: not to develop standard product or product line but to build adaptability into products and product lines that are being developed to achieve worldwide appeal BUT to accomplish right balance and develop basic capability for capturing consumer info within country organizations - FOCUS groups and INTERVIEWS work well to develop basic capability for capturing consumer information

Positioning

- products can be differentiated by their composition, country of origin, features (packaging and quality) - positioning of product in minds of consumers adds to it's perceived value EX: Volvo having safe reputation -refers to consumers' perception of brace compared to other competitors brands — brand image that brand/company as whole evokes - may change to reflect differing lifestyles of target market

Dual Pricing

-domestic and export prices are differentiated and 2 approaches to pricing products for export are available: cost-driven and market-driven methods - if cost based approach then marketer can choose between: cost plus method and marginal cost method

Gray Markets (parallel importation)

Authentic and legitimately manufactured trademark items that are produced and purchased abroad but imported/diverted to the market by bypassing designated channels - IT estimates that gray market sales of IT products account for $40 billion in revenue each year, costing IT manufacturers up to $5 billion annually in LOST profits - gray market products vary from inexpensive consumer goods to expensive capital goods - not restricted to US; Japan has witnessed this bc of high value of yen and subsidization of cheaper exports thru high taxes - Japanese marketers found it cheaper to go to LA to buy export versions of Japanese made products - conditions that allow unauthorized resellers to exist: price segmentation and exchange-rate fluctuations - bc product priced higher in US, gray marketer can purchase them in EU or Far East and offer discounts b/e 10 and 40 % below list price when reselling them in US market - exchange rate fluctuations cause price differentials and thus, opportunities for gray marketers

Market Power Global marketers have 3 choice for branding within global, regional, and local dimensions

1. have brands feature corporate name 2. have family brands for wide range of products on product variant 3. have individual brands for each item in product line

Trade Shows & Missions

An event at which manufacturers, distributors and other vendors display products or describe their services to current and prospective customers, suppliers, other business associates, and the press firm looking for long term involvement may find investment worthwhile, arguments in favor: - some products difficult to market without customer having chance to examine and see them - appearance at show shows goodwill and contacts - opportunity to find intermediary - one of best reason to attend - contact gov. officials and decision makers - provide excellent change for market research and collecting competitive intelligence - able to reach number of sales prospects in brief time period @ reasonable cost per contact reasons for not going: - high costs - difficult to chose which trade show to go to - problem of coronation with multiple divisions

(budget) Promotional Message

Creative strategy. Determining what consumer is really buying - what the consumer motivation is. - vary depending on: - diffusion of product, service, or concepts into market - criteria on which consumer evaluates product - product positioning ideal situation in developing message strategy: having a WORLD brand: product manufactured, packaged and positioned the SAME around the world. may want to localize their international symbols - consistency - environmental influences that call for modifications (language, symbolism)

Open Innovation

Crowdsourcing. Pioneer that enables organizations to solve their key problems by connecting them to diverse sources of innovation including employees, customers, partners and world's largest problem solving market

Media

Global media vehicles been developed have target audiences on 3 continents for which media buying takes place through centralized office internet provides international marketer with extremely versatile global medium smart approach -- using SEO or paid placement in search marketing word of mouth and grassroots brand advocacy have powerful effect

Campaign Objectives

Essential to clearly defined objectives of promotional campaigns - Campaign objectives at LOCAL level: more specific and measurable targets for individual markets --> Objectives: product/service related to entity itself. Goals: increase awareness, enhance image, improve market share --> ***has to be measurable for control purposes --> set the actual country specific goals Some campaigns (especially global ones) have more headquarters involved but LOCAL input is still important to ensure appropriate implementation of programs at local level

Freight Forwarder

Huge decision exporter makes is selection with international freight forwarder. They act as agent for marketer in moving cargo to overseas destination - advises marker on shipping documentation and packing costs and will prepare and review docs to ensure they are in order - book space abroad carrier - make arrangements to clear outbound goods with customs and, after clearance, forward documents to customer or to paying bank

Product Development Process

Idea Generation Screening Product & Process Development/Testing Scale-Up Commercialization 1. product designs and/or models must be made available to manufacturing and to the team for preliminary market testing. 2. market acceptance studies on current product ideas must be finalized. 3., customer segments must be identified and target markets selected. 4. production studies must be initiated - All development phases should be global in nature with inputs into the process from all affected markets - if this is possible then the original product designs can be adapted easily and inexpensively later on -- can be done through use of Computer Aided Designs (CAD) some companies able to design products so they meet most standards and requirements around world with minor modifications on country by country basis

Corporate Image Advertising:

In support of their more traditional, tactical, product-specific and local advertising efforts - umbrella campaign may help boost image of lesser known product liens or make company be understood/perceived more positively

Effectiveness of Social Media

Derives from power of social networks - Social networks ar collection of people and organizations - Actors (people) and Ties (relationships) consist of individuals and their friendships, companies and commercial transactions, & so on - Strength of ties depends on frequency and quality of customer interactions related to firm's products - Leverage social networks to strengthen ties and enhance effectiveness of marketing activities

Opponents/Supporters of Gray Markets

Disagree on whether issue is price or trade rights Detractors cite arguments: 1. hurts legitimate owners of trademarks 2. trademark owners have little incentive to invest in product development without protection 3. gray marketers will "free ride" or take unfair advantage of trademark owners' marketing and promotional activities 4. parallel imports can deceive consumers by not meeting product standards or expectations of after sale EX: Tesco imported cheap Levi's jeans from US and sold them at prices below other retailers. they can continue sourcing Levi's products within EU from cheapest provider but not outside of it

Reverse Innovation

Economic Development: as country's economy advances, buyers are in better position to buy and to demand more sophisticated products and product versions. - companies have described how they have adopted to new global era through reverse innovation Reverse Innovation: innovation seen or used first in the developing world, before spreading to the industrialized world

Late Stages of Product Development Process

Emphasis on efficient development and design of global product with minimum configuration differences and on development of supporting systems' capabilities in each participating units Result: products developed to serve world markets

Global Brands

Key way of reaching goal to create consistency and impact, both of which are easier to manage with single worldwide identity (global brand) - those that reach the world's mega markets and are perceived as same brand by consumers and internal constituents - some are completely standardized, but some elements of products may be adapted to local conditions adjustments/adaptations include: brand names, positioning, product versions sold under brand name Associated with 3 characteristics: - 1. competes on emotion, - 2. gives off familiar/at ease feeling that local brands can't deliver, establishes credibility in markets, - 3. involvement of social problems linked to what they're marketing and how they conduct business

Terms of Payment

Main Objetive: meet importer's requirements without jeopardizing firm's financial goals Consider factors in negotiating terms of payment: 1. amount of payment and need for protection 2. terms offered by competitors 3. practices in the industry 4. capacity for financing international transactions 5. relative strength of parties involved Pricing and selling = major competitive tools Put on table of negotiating at very beginning of relationship - Marketer may use multiple methods of payment with the same buyer

Global Program Management

Managing unit has prime responsibility for accomplishing: 1. single-point worldwide tech development and design of new product that conforms to global design standard and global manufacturing procurement standards 2. all other activities necessary to plan, develop, originate, introduce and support the product in managing unit 3. integration and coordination of global program activities - Firms using worldwide product management better able to develop products that can be quickly introduced into ANY market

Target Audience

Marketers need to research audiences to ensure the appropriateness of campaign decision making Necessary public communication: suppliers, intermediaries, government, local community, bankers and creditors, media organizations, shareholders, and employees Important aspect of research is to determine multi market target audience similarities Grey Advertising: checks for commonalities in variables like economic expectations, demographics, income, education

Social Contagion

Marketers note the tendency of consumers to imitate buying habits of this they respect. Consumer preferences often depend on social contagion, connotes extent to which people are exposed to, influenced by, knowledge, attitude, or behavior of others, particularly those in peer group - Helps make consumers aware of particular brands - Plays role in helping them revise preexisting beliefs/misconceptions

Advertising Effectiveness

Measures of advertising effectiveness range from pretesting of copy appeal and recognition to possessing of recognition all the way to measuring sales effects Measures most used: sales, awareness, recall, exec judgement, intention to buy, and profitability -- regardless of medium used Testing is expensive. Cost of research in international market is higher in relation to overall expenditure in advertising Biggest challenge: increase of global and regional campaigns

Open Account

Normal manner of doing business in domestic market is open account (open terms) - removes both real/psychological barriers to importing - BUT no written evidence of debt, exporter has to put full faith in references contacted - no guarantee of payment - this is for more involved marketers with units abroad

Skimming Pricing

Objective: achieve highest possible contribution in a short tim period. Product has to be unique, and some segments of market must be willing to pay the high price. - As more segments are targeted and more of product is made available, price is gradually lowered. - Success depends on ability & speed of reaction EX: LF having really high prices but it's one of a kind so everyone buys from them, BUT they realize the demand and gradually lower their prices by having their sales

Eliminating Gray Markets

One Price Policy. - choosing most efficient of distribution channels to market product and sell at lowest price to all customers regardless of location and use - one price strategy must include way to reward providers of other services (warranty repair) Producing Different Versions of Products for Different Markets. manufacturers promote benefits of working with authorized dealers and the dangers of gray market dealers

3 Approaches to Local Brands:

Penetration price approach Cultural Approach Positioning (true defender of local culture) "Chameleon" Approach (brand tries not to look local)

Promotions

Personal Selling Direct Marketing Sales Promotion Trade Shows & Missions Public Relations Internal PR Sponsorship Marketing

Advertising Budget

Promotional budget links established objectives with media, message, and control decisions - budget set as response to objectives to be met, resource constraints often prevent this approach - marketers use judgmental and objective-and-task method — realities may force compromise b/e ideal and resource available. Available funds may dictate basis when objective-and-task can start - Advertising budgets should beset on market-by-market basis bc of competitive differences across markets - global image campaigns — headquarters should provide country organizations extra funds for implementation - budgets also used as control mechanism if headquarters retains final budget approval these cases: headquarters decision makers must have clear understanding of cost and market differences to be to make rational decisions

Decision to Alter Product =

Regional, Country or Local Characteristics + Product Characteristics + Company Considerations = Decision to Alter Product

Documentation

Simplest form of exporting - only docs needed are bill of lading & export of declaration - available from government or transportation firms in most countries Bottom line: exporter has to provide importer with data needed to obtain required licenses from governmental authorities Missing documents can delay payment or cause problems with customs

Value Added Tax (VAT)

Included in calculations, such as those used within the European Union

Termination of Channel Relationship Pt 2

Independent distributors remain long-run reps under certain circumstances; some markets are culturally changing or not strategic so they may carry lines that are complementary this enhances marketer's efforts & acts as partner by sharing info and becoming indispensable - Termination conditions: important consideration, needs to be just-cause for termination or big penalties. - Just-Causes; fraud, deceit, damage, failure to comply w/ contract - Conditions must be spelled out in contract bc may not be possible to terminate in some countries - Important to think about issues before overseas distribution agreement - Important to know local laws say about termination and what experience other people have had in country with this

Test Marketing

Indispensable because prelaunch testing is an artificial situation which tells research what people say they will do, not what they actually do major financial risks - can be limited only if testing can be conducted in limited Test marketing is risky/impossible so researchers developed 3 research methods to cope: - controlled market tests - simulated test markets - vitality lab

Product Characteristics

Inherent features of product offering, actual or perceived. Characteristics of product sand benefits make certain products good candidates for standardization and some not. Product Constituents, Brand, Packaging, Physical form or appearance, Function, attributes, features, method of Operation or usage, durability or quality, Service, country of origin

Summary - Product Adaptation

Issue: "is it worth it?" - answer depends on firm's ability to control costs, estimate market potential, secure profitability in long term - decision to adapt - thorough market analysis - formal market research with primary data collection or testing is warranted - most companies aim for consistency in marketing efforts - translates into requirements that all products fit in terms of quality, price and user perceptions

Cost Plus Method:

True cost, fully allocating domestic and foreign costs to product. - ensures margins, the final price may be so high that firm's competitiveness is compromised — which makes exporters to consider flexible cost plus strategy: which allows for variations in special circumstances. - discounts may be granted depending on customer, size of order, intensity of competition Marginal Cost Method considers direct costs of producing and selling products for export as floor beneath which prices cannot be set --> fixed costs for plants, R&D, domestic overhead and domestic marketing costs are disregarded - thus can lower export prices to be competitive in markets that might have been beyond access - usually doesn't lead to desired results, typically leads to high pricing in weak markets and too low in strong markets by not reflecting existing market conditions - process allows for more flexibility and is more market driven

Market Power

Usually in hands of brand name companies that have to determine most effective use of asset across markets - worlds leading brands command high brand equity values AKA price premium the brand commands x extra volume it moves over what an average brand commands each high ranked brand: derived at least 1/3 earnings outside its home country, be recognizable beyond customer base, have publicly available marketing and financial data - ranking on STRENGTH of INDIVIDUAL brands NOT a portfolio of brand

Service

When product overseas requires repairs, parts, service, problem of obtaining, training and holding a sophisticated engineering or repair staff is not easy - if product breaks down and repair arrangement is not up to standard, image of product will suffer - some abroad may not use product for intended purposes and must require medication in service frequency - product warranties == not only instructions to customer about what to do if product fails within specific period but also promotional tool

Industrial Products

Tend to be more shielded from cultural influences, substantial modifications may sometimes be required as result of government regulations and restraints - B2B marketing, industry uses these products to produce an end good

Transliteration

Testing of an existing brand name for connotative meaning in language of intended meaning

Regional Brand

may have local features or highly standardized product may have local brand names. immediate region characteristic recognition connecting product and place in consumers' minds demonstrates how regional branding efforts are worthwhile. ex: Pepsi adapts products to idiosyncrasies of customers around the world. Like some places its "Pecsi" or "Pesi" to make it more recognizable to those in the regions that use this type of idiosyncrasy

Consignment Selling

most favorable term for importer - allows importer to defer payment until goods are sold - places all burden on exporter - burdensome so not widely used

Emerging Markets

most growth is occurring in emerging markets, traditional approach of introducing a global product may keep new products out of hands of consumers due to their premium price - emerging markets are not just centers of production and trading hubs and shipping goods to more advanced countries, but now starting to become the end destination for consumers in these countries - growth in per capita through exports and imports, & financial conditions

Idea Generation

begins product development phases. Ideas may come from internal company - R&D staff, sales staff, anyone involved in company R&D: picks brains of their employers Customers provide best source of ideas for new products Tend to be developed by Lead Users: companies, organizations, or individuals who are ahead of trends or have needs beyond what is available at present Many companies work together with complementary goods producers in developing new solutions procurement requisitions from governments and supranational organizations (United Nations) are good source of new product ideas

Benefits/Drawbacks of Global Branding:

benefits: in marketing economies and higher acceptance of products by consumers and intermediaries drawbacks: loss of local flavor, especially when local brand is replaced by regional or global brand name. then internal marketing becomes critical to instill ownership of global brand in personnel of country organizations

Product Constituents

must make sure products DO NOT contain ingredients that might be in violation of legal requirements or religious or social customs - when religion or custom determines consumption, ingredients may have to be replaced in order for the product to be acceptable - Ex: Islam ingredients have to be replaced animal fat with vegetable shortening

Consumer Generated Media (CGM)

new form of communication, CGM, growing at 30% per year. - most prominent are online bulletins, blogs, podcasts, website for consumers to post complains and add compliments - challenges: limitless reach, fast diffusion of news, expressive/influential nature - to leverage: someone needs to be put in charge, to motivator relevant info and address negative. - marketers incorporating CGM into promotion mixes (EX: Mercedes puts customers pics on their website living their luxurious lifestyle)

Sales Promotion

does not fall under advertising, personal selling, or publicity - directed at consumers involving: coupling, sampling, premiums, consumer education and demonstration activities, cents off packs, point of purchase material and direct mail -to be effective - campaigns must gain support of local retailer population - varying regulations - may be permissible n one market but illegal in another. - regulations like this ^ make global sales promotions rare and difficult to launch

Global Brand

establishment is more difficult because of how many products, countries, cultures, etc.

Executing an Advertising Campaign

executing ad campaign in multiple markets requires a balance between conveying message and allowing for local nuances

Consumer Non-Durables

food, products, generally show highest amount of sensitivity toward differences in national tastes and habits - "soft" goods, immediately consumed or usually have lifespan of less than 3 years

Controlled Market Tests

allow companies to assess item's sales potential in real world environment with real consumers making real purchases - test design, the marketing plan can be replicated and year one sales volume is forecasted

Gray markets attract:

consumers with high price sensitivities. BUT quality is concern from consumers Concerns: counterfeit versions, deficit guarantee, no service

Letter of Credit:

instrument used by bank at request of buyer where bank promises to pay amount of money on presentation of documents stipulated in letter of credit, consular invoice, and description of goods One of the most frequently used methods of payment in international transactions Can be classified among 3 dimensions : 1. Irrevocable vs. Revocable - cannot be canceled or modified without consent of exporter. 2. Confirmed vs. Unconfirmed - bank might confirm letter of credit and assume risk as well as advisory role 3. Revolving vs. Non-revolving - valid for the one transaction only HAS to match up everything or bank will not honor look out for fraud letters in less-developed countries

Trade mark

legally protected part of brand, indicated by R circle often violated by counterfeiters who illegally use or abuse brand name of marketer

Translation

little pen --> la petite plume

Method of Operation/Usage:

product as is offered in domestic market may not be operable in foreign market - major difference: electrical power systems - should have product testing by local entity - complicating factors eliminated in future through standardization efforts by international organization and by conversion of most countries to metric system

Vitality Lab

provides directional gauge of initiative's potential in real world environment with real consumers making real purchases. - sales rates and consumer responses to initiative can determine if another, more precise level of in store testing is warranted - or if issue needs to addressed prior to roll out

Standard Worldwide Price

same price regardless of beer or may be based on average unit costs of fixed, variable, and export related costs uniform pricing customers AWARE of prices charged little chance of differentiation

Packaging

serves 3 major functions: protection, promotion and user convenience - major consideration: making sure product reaches user in form intended - vary as fiction of transportation mode, transit conditions and left of time in transit - promotional aspect of packaging relates to mostly labeling. major concern: bilingual legal requirements - package size, color, etc. - environmentally friendly affects packaging dimension: 4 R's: Redesign, Reduce Recycle, Reuse

Customs Broker

serves as agent for importer with authority to clear inbound goods through customers and ship them on their destination

Quality

some western exporters must emphasize their quality in order to compete on price alone - many new exporters compete on value in segments they have chosen - marketers may seek endorsement of efforts from gov. or consumer organizations - many exporters may overlook importance of quality when entering an emerging market

(budget) Media Strategy

target audience characteristics, campaign objectives and budget form basis for choice b/e media vehicles and development of media schedule major factors determining choice of media vehicles used: 1. availability of media in given market - (media spending varies by market, rapid spread of internet connectivity, major problems: conflicting national regulations and restrictions) - (news, TV, radio, movies, internet, etc.) 2. product or service itself - differing restrictions on how products can be advertised. some countries ban, ex: tobacco, alcohol, medicine, etc. all heavily regulated. - product placement: in movies, shows, games, internet. 3. media habits of intended audience - reach intended target audience with minimum waste - media strategist needs data on 1. media distribution 2. media audiences 3. ad exposure

Affected Units

these on the other hand have prime responsibility for achieving: 1. identification of unique requirements to be incorporated into product goals and specifications as well in managing unit's technical effort 2. all other activities necessary to plan, originate, introduce and support products in affected units 3. identification of any nonconcurrence with managing unit's plans and activities

Ambush Marketing

use of an vent without the permission of the event owner EX: For the Olympic Games in 1996, Pepsi plastered the town with posters and signs

Transculture:

using foreign language name for brand, regardless of where they originate

General License

Most exports fit under a general license — a generalized authorization consisting simply of a number to be shown on documents - certain goods and data require special validated license for export

Cash in Advance

Most favorable term for Exporter bc relieves exporter of al risk and allows for immediate use of money. Not widely used, except for smaller/first time transactions or situations where exporter has reason to doubt importer's ability Also found in Custom-Made products bc risk to exporter is more than normal transactions Reasons to not do this for importers: insufficient funds or government restrictions

Mandatory or Discretionary Product Adaptation:

all products HAVE to conform to environmental conditions that marketer has no control of.

Export Pricing Strategy

3 General Price Setting Strategies in global marketing: 1. setting standard worldwide price 2. dual pricing 3. market differentiated pricing 1st two: cost oriented & simple to establish and understand 3rd one: demand orientation meaning may be more consistent with marketing concept

Global Brands cont.

Need to achieve high degree of consistency in delivery of customer service and how it's communicated across all consumer points of touch -

Price Dynamics

Overall seen as critical component, meaning made under supervision of top level management Major determinant to success

Country-Of-Origin Effects

"made in country" has considerable influence on quality perceptions of product -manufacture of products in certain countries is affected in built in positive or negative stereotype or product quality - these stereotypes become important dimensions of product category associated with country's image - if not good rep, they can hide it through adoption of carefully crafted brand name (Hong Kong chose name Giordano) - Issue important to emerging countries: which need to increase exports for importers, who source products from countries different from where they are sold - issue sensitive for high end brands

Standardization of Branding

- Ability for company to advertise brand in the same way around the world. (uniform characteristics of a particular brand/product) Brands are one of the most easily standardized items in product offering; allow further standardization of other marketing elements like promotional items Use of standardization in branding is strongest in culturally similar markets Standardization of product and brand don't go hand in hand A global or regional brand may have local features or a highly standardized product may have local brand names. Standardizing names to reap promotion benefits can be difficult bc a particular name may already be established in each market and the action may raise objections from local constituents Despite this ^ globalizing brands presents huge opportunities to cut costs and achieve new economies of scale To avoid problems with brand names in foreign markets, development of these approaches: Translation Transliteration Transparency Transculture

Termination of Channel Relationship

- Most typical reasons: changes in international marketer's distribution approach (ex: establishing a sales office) or a perceived lack of performance by intermediary. Also may result from party not honoring agreements (selling outside assigned territories) and initiating price wars - Channel relationships go through a life cycle. When marketer's capabilities increase while distributor's abilities/willingness decreases. - When producer expands in market presence, may export more effort than distributor is willing to do. Marketer may want to expand product line to items that distributor is not willing or able to support - intermediaries may not be interested in growing business beyond certain point (ex: due to taxation in country) - Marketers may want to expand efficiency and customer-service or to cater to global accounts—where they will need to control distribution to degree that intermediaries not willing to accept or too high of level of service

Cause Related Marketing

- Multinational corporation that wants to boost image with government and local community may sponsor events - Company or one of its brands is linked with cause such as environmental protection or children's health EX: TOMS gave millionth pair of new shoes to needy child. Now gives over 20 countries & works with charitable partners in field who incorporates shoes

Factors Affecting Product Adaptation

- deciding form product should be marketed abroad, consider: 1. markets that have been targeted 2. product and characteristics 3. company characteristics, resources, and policy Key Q linked to Adaptation: is the effort WORTH the cost involved? (adjusting production runs, stock control, servicing) - expense of modifying products should be MODERATE, moderate when modifications are acted on - whereas modifications are considered but rejected when projected cost is substantial - firms are formulating decision support systems to aid in product adaptation - some consider situations independently - adaptation decisions are made to enhance exporter's competitiveness in marketplace - achieved by matching competitive offers, catering to customer preferences, meeting demands of local distribution systems - learning about market and individual characteristics will help marketers establish similarities as result - standardizing marketing approach across similar markets --> this market insight will give exporters legitimacy with local reps in developing common understanding of extent of standardization vs. adaptation

Branding

Brand names convey image of product or service Brand: refers to name, term, symbol, sign, design used by firm to differentiate its offerings from competitors - Brands: most easily standardized items in product offering; may allow further standardization of other marketing elements like promotional items - brand mark may become invaluable when symbol can be used - TRADEMARK: legally protected part of brand, circle R, violated by counterfeiters who illegally use or abuse brand name of market ... more below

Product Development Process: Testing of New Product Concepts

Final stages of product development process: testing product in terms of performance in projected market acceptance - range from reliability tests to mini launches, performance in world markets will be estimated - testing will prolong full scale commercialization and increase possibility of competitive reaction - high rate of new product failure, companies engage in testing or limited launch of the product Reasons for product failure: lack of product distinctiveness, unexpected tech problems, mismatches between functions - mismatches: my be between engineering and marketing and also within the marketing function. - engineering may design features in product that established distribution channels or selling approaches cannot exploit - advertising may promise consumer something not offered Trend is toward complete testing of marketing mix — all components of brand are tested: formulation, packaging, advertising, pricing

Early Stages of Product Development Process

Global emphasis is on identifying and evaluating requirements of both the managing units and affected units and incorporating them into plan

Appearance

More common in consumer marketing than in industrial marketing with product styling, color, size, etc. - color: important role with way consumers perceive product, can be used for brand identification, feature reinforcement

Bill of Lading

Most important document to shipper, carrier, and buyer. Acknowledges receipt of goods, represents basic contract between shipper and carrier, and serves as evidence of title to goods for collection by purchaser - may be negotiable (may be endorsed to other parties - order bill) OR may be non-negotiable (straight)

Parallel Importation

Proponents of parallel importation approach issue from diff. point of view. Argues their right to free trade by pointing to manufacturers that are overproducing and overpricing in some markets Beneficiaries are: consumers who benefit from lower prices and discount distributors who found profitable market

Direct Marketing

Purpose of direct marketing: establish relationship with customer in order to initiate immediate and measurable responses Done by: mobile, internet technologies, direct marketing can be found on places on social media Direct mail: most dominant direct response medium and includes letters, catalogs, ads, brochures, samples, DVDSs. --> Direct mail can be highly personalized tool of communication if target audience is identified and narrowly defined --> Allows for flexibility in amount of information conveyed Catalogs - distributed to overseas customers through direct mail (online versions as well). --> Function: make a marketer known, generate request for further info, stimulate orders, serve reminder between transactions . Useful if firm's products are in highly specialized field Internet connects users of all types around world to each other and contains large info repository. Offers 5 advantages: - 1. allows company to increase presence in marketplace and communicate its overall mission and info about its marketing mix - 2. allows 24 hr access to customers and prospects --> can provide as competitive advantage as customer compares - 3. can improve customer service by allowing customers to serve themselves when and where they choose --> reduce overall communications costs --> important dimensions - after-sales service to solve consumer problems and facilitate formulation of consumer groups web forum where customers can exchange news, build loyalty among customers - 4. ability of marketers to gather info not only in research but in database development for marketing efforts - 5. opportunity to actually close sales function within realm of e-commerce Database marketing: allows creation of individual relationship with customer or prospect - 2 main types: consumer databases and business databases - development of needed databases - through direct mail or internet will advance use of telemarketing Social networking service: online service, platform, site that focuses on building and reflecting social networks that share interests or activities

Shipper's Export Declaration

States proper authorization for export and serves as means for governmental data-collection efforts

Consumer Durables

cameras, home electronics, subject to far more homogenous demand and more predictable adjustment - do not have to be purchased too often, bc long life span

Transparency

develop new, meaningless brand name to minimize trademark complexities, transliteration problems, and translation complexities "Sony"

Simulated Test Markets

offer simulation under realistic conditions from a 360 degree marketing vantage point. Innovations need to establish themselves against competition in terms of advertising, shelf placement, price, and product experience