Chapter 18 book Flashcards
(24 cards)
Global firms
Operate in more than one country and capture R&D, production, logistical, marketing and financial advantages not available to purely domestic competitors
Reasons to go abroad
Better profit opportunities
Larger customer base
Reduce one market dependence
Counterattack global competitors in their home markets
Customers are going abroad that require international service
Risks of going abroad
No understanding of foreign preference
No understanding of foreign business practices/culture
No understanding of foreign regulations
Lack of managers with international experience
Waterfall foreign market entry strategy
Gradually entering countries in sequence
Sprinkler foreign market entry strategy
Entering multiple countries simultaneously
Ways of foreign market entry (4)
Indirect or direct export
Licensing
Joint ventures
Direct investment
Direct investment (buying full or part of local company) advantages
Cheaper labour & materials Image strengthening by creating jobs Local relations Retain control over investment Market access assurance
Direct investment disadvantages
Exposure to risks such as;
Blocked or devalued currencies
Worsening markets
Expropriation (onteigening)
Straight extension
Introducing a product in a foreign market without any changes (works well for camera’s and electronics)
Product adaptation
Altering a product for foreign markets
Grey markets
Grey market goods are goods sold outside the authorised distribution channels by entities which may have no relationship with the producer of the goods.
This form of parallel import frequently occurs when the price of an item is significantly higher in one country than another.
Internal marketing
Internal marketing requires that everyone in the organisation accepts marketing concepts and goals and engage in choosing, providing and communicating customer value
5 types of marketing department organisation
Functional organisation
Geographic organisation (country managers)
Product/brand management organisation
Market-management organisation (customer type managers)
Matrix-management organisation (both product and market managers)
Sustainability
The ability to meet humanity’s needs without harming future generations.
Greenwashing
Products that appear environmentally friendly but are actually not
Corporate societal marketing (CSM)
CSM is marketing efforts that have at least one non-economic objective related to social welfare and use the resources of the company and/or of its partners
Cause-related marketing
Cause-related marketing links a firms contributions to a designated cause
Cause marketing can…; (6)
Build brand awareness Enhance brand image Establish brand credibility Evoke brand feelings Create a sense of brand community Elicit brand engagement
Marketing control
Is the process by which firms assess the effects of their marketing activities and programs and make necessary changes and adjustments
4 types of needed marketing control
Annual-plan control
Profitability control
Efficiency control
Strategic control
4 tools to analyse performance
Sales analysis
Market share analysis
Marketing expense to sale analysis
Financial analysis
Marketing audit
A marketing audit is a systematic and periodic examination of a company’s marketing environment
The future of marketing
To succeed in the future, marketing must be more holistic and less departmental.
Marketers need to face ethical dilemma’s
Triple bottom line
Refers to sustainability and is people, planet and profit
