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
