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Chapter 16 - Global Marketing and R&D (New-Product Development…

- - - - In a concentrated retail system, a few retailers supply most of the market. A fragmented retail system is one in which there are many retailers, none of which has a major share of the market
    - - refers to the number of intermediaries between the producer andthe consumer
    - - An exclusive distribution channel is one that is difficult for outsiders to access.
    - - refers to the expertise, competencies, and skills of established retailers in a nation and their ability to sell and support the products of international business
- - - - Cultural differences limit a firm's ability to use the same marketing message and selling approach worldwide
    - - Source effects
        
        occurs when the receiver of the message evaluates the message on the basis of status or image of the sender
      - Country of Origin Effects
        
        the extent to which the place of manufacturing influences product evaluation
  - - - Customer education may be important when consumers have less sophistication toward the product, which can be the case in developing nations or in advanced nations when a new complex product is being introduced, or where high-quality channels are absent or scarce
    - - Media availability is limited by law in some cases
    - - The longer the distribution channel, the more intermediaries there are that must be persuaded to carry the product for it to reach the consumer
    - - A marketing strategy emphasizing personal selling rather than mass media advertising
    - - A marketing strategy emphasizing mass media advertising as opposed to personal selling
  - - - Second, there is the concern that creative talent is scarce, so one large effort to develop a campaign will produce better results than 40 or 50 smaller efforts
      - Third, many brand names are global
      - First, it has significant economic advantages. Standardized advertising lowers the costs of value creation by spreading the fixed costs of developing the advertisements over many countries
    - - First, cultural differences among nations are such that a message that works in one nation can fail miserable in another
      - Second,advertising regulations may block implementation of standardized advertising
    - - Some firms are experimenting with capturing some benefits of global standardization while recognizing differences in countries' cultural and legal environments
- - - - A measure of how responsive demand for a product is to changes in price
    - - When a small change in price produces a large change in demand
    - - When a large in price produces only a small change in demand
  - - - The use of price as a competitive weapon to drive weaker competitors out of a national market. Once the competitors have left the market, the firm can raise prices and enjoy high profits
    - - refers to the fact that a firm's pricing strategy in one market may have an impact on its rivals' pricing strategy in another market
    - - Aggressive pricing designed to increase volume and help the firm realize experience curve economies
  - - - Dumping occurs whenever a firm sells a product for a price that is less than the cost of producing it
      - Antidumping rules set a floor under export prices and limit firms' ability to pursue strategic pricing
    - - Most developed nations have regulations designed to promote competition and to restrict monopoly practices. These regulations can be used to limit the prices a firm can charge in a given country
- - - - Second, the team should be composed of at least one member from each key function
      - Third, the team members should physically be in one location if possible to create a sense of camaraderie and to facilitate in different nations
      - First, the team should be led by a "heavyweight" project manager who has high status within the organization and who has the power and authority required to get the financial and human resources the team needs to succeed