MKT 330- Exam 1 (extra: ch. 4-6)

Question 1

1. Selecting a research problem
2. Developing the approach to be taken
3. Selecting research strategy and designing the research
4. Identifying the participants and planning the ethical process
5. Completing a pilot study
6. Carrying out the fieldwork
7. Analyzing the data
8. Preparing the report and presentation

Answer 1

the role of marketing research and opportunity analysis: the process

Question 2

Around 3⁄4 of marketing research agencies’ revenue is derived from online research. Research has three major roles:
- cross-cultural research
- foreign research
- multi-country research

Answer 2

what big data is telling us

Question 3

across a nation or culture groups

Answer 3

cross-cultural research

Question 4

in another country than the one of the commissioning company

Answer 4

foreign research

Question 5

conducted in all represented countries

Answer 5

multi-country research

Question 6

problems in using secondary data:
- availability
- accessibility
- accuracy
- scarcity
- timeliness of collection

Answer 6

the market profile analysis

Question 7

– attractive profit/growth opportunities
– ability to easily modify products for export markets
– public policy programmes for export promotion
– foreign country regulations
– possession of unique products
– economies from additional orders

Answer 7

Proactive stimuli

Question 8

– presence of export minded manager
– opportunity to better utilize management talent and skills
– management beliefs in value of exporting

Answer 8

Managerial elements

Question 9

– adverse domestic market conditions
– opportunity to reduce inventories
– availability of production capacity
– favorable currency movements
– opportunity to increase the number of country markets and reduce market-related risk
– unsolicited orders from overseas customers

Answer 9

Reactive stimuli

Question 10

• exporting
• international niche marketing
• domestically delivered or developed niche services
• direct marketing including e-commerce
• participation in the international supply chain

Answer 10

SME international marketing strategies

Question 11

is concerned with selling abroad domestically developed and produced goods and services.

Answer 11

Exporting

Question 12

is concerned with marketing a differentiated product or service overseas, usually to a single segment, using the full range of market entry and marketing mix options.

Answer 12

International niche marketing

Question 13

can be marketed or delivered internationally to potential visitors.

Answer 13

Domestically delivered or developed niche services

Question 14

including e-commerce allows firms to market products and services globally from a domestic location.

Answer 14

Direct marketing

Question 15

of an MNE can lead to SMEs piggybacking on the MNE’s international development.

Answer 15

Participation in the international supply chain

Question 16

• it avoids the costs of establishing local manufacturing operations
• it helps the firm achieve experience curve and scale economies
• low risk

Answer 16

exporting is attractive

Question 17

• there may be lower-cost manufacturing locations
• high transport costs and tariffs can make it uneconomical
• agents in a foreign country may not act in exporter’s best interest

Answer 17

exporting is unattractive

Question 18

targets a large share of a smaller market.

• Limited company resources
• Knowledge of the market
• More effective and efficient

Answer 18

Niche marketing

Question 19

For the international niche player to be successful, the product or service must…

Answer 19

• be distinctive (highly differentiated)
• be recognized by consumers and other
  participants in the international supply chain
• have clear positioning

Question 20

• opportunities for learning from MNE (multinational enterprise)
• security through reliable and predictable
  ordering
• able to focus on production and technical issues

Answer 20

supply chain internationalization: Advantages for SMEs

Question 21

• need for dependence on one/two major customers
• internationalization driven by demands of MNE
• continual pressure to improve product and operations
• weakening of external marketing

Answer 21

supply chain internationalization: Disadvantages for SMEs

Question 22

the nature of SME international marketing strategies

Answer 22

• relationships
• born global/INVs
• concentration vs. expansion

Question 23

the internationalization process involves developing business relationships in other countries through:

Answer 23

• establishing relationships
• developing relationships
• connecting networks

Question 24

Establishing relationships in country networks that are new to the firm: ____

Answer 24

extension

Question 25

Developing relationships in those networks: ____

Answer 25

penetration

Question 26

Connecting networks in different countries:_____

Answer 26

integration

Question 27

have a managerial vision from the start of their business, have a clear niche focus, are highly innovative and active in their strategic international development from inception.

Answer 27

Born globals/INVs (international new ventures)

Question 28

______ managers view the world as their marketplace from the outset - management sees foreign markets as adjuncts to the domestic market and hence focuses on regional markets

Answer 28

born global; INVs'

Question 29

a ___ ___will own or control subsidiaries and engage in value-added business alliances and networks in each continent and each major country ... it will sell its goods and services in each of the main markets of the world

Answer 29

global firm

Question 30

- cheaper labour - better quality - better technology - local access - economies of scale - lower taxes - lower logistics costs - consistent supply

Answer 30

benefits of global sourcing

Question 31

- ethnocentric - polycentric - regiocentric - geocentric

Answer 31

alternative strategic responses

Question 32

competitive pressures in the global marketplace (2)

Answer 32

1. pressures for cost reductions (force the firm to lower unit costs) 2. pressures to be locally responsive (require the firm to adapt its product to meet local demands)

Question 33

1. With homogenised demand in global market segments for commodity type products that fill universal needs 2. When major competitors are globally active or based in low-cost locations 3. Where consumers are powerful and face low switching costs 4. Where there is persistent excess capacity

Answer 33

Pressures for cost reductions are greatest

Question 34

1. Differences in consumer tastes and preferences 2. Differences in traditional practices and infrastructure 3. Value of personalized customer service 4. Differences in distribution channels 5. Host government demands

Answer 34

Pressures for local responsiveness arise from

Question 35

increase profitability and profit growth by reaping the cost reductions from economies of scale, learning effects, and location economies - goal is to pursue a low-cost strategy on a global scale Global

Answer 35

global strategy

Question 36

- There are strong pressures for cost reductions and demands for local responsiveness are low - Company has the management capacity/capability to manage a global organization

Answer 36

when to use a global approach

Question 37

increase profitability by customizing goods or services so that they match tastes and preferences in different national markets

Answer 37

Multi-domestic strategy

Question 38

- Customers continue to demand locally differentiated products - cost pressures are not too intense - industry standards remain diverse - being an insider remains critically important - global organizations are difficult to manage - management myopia (self reference)

Answer 38

when to use a multi-domestic approach

Question 39

different strategies are formulated for each region. This strategy makes sense when: - Pressures for low costs and local responsiveness are relatively low - As a response to regional trading blocs - Regions are effectively different

Answer 39

Regional strategy

Question 40

- More manageable compromise between the extremes of global standardization and multi-domestic strategies. - convenience of creating manageable teams - regional trading blocs tend to favor own MNEs

Answer 40

when to use a regional approach

Question 41

– How marketing strategy for one region is differentiated from others – Quick response to threats or opportunities that emerge in the region

Answer 41

Key to effective regional strategies is

Question 42

tries to simultaneously achieve low costs through location economies, economies of scale, and learning effects - firms differentiate products across geographic markets to account for local differences and foster a multidirectional flow of skills between different subsidiaries in the firm’s global network of operations

Answer 42

Transnational strategy

Question 43

this strategy makes sense when both cost pressures and pressures for local responsiveness are intense these companies aim to build 3 strategic capabilities: 1. global scale efficiency and competitiveness 2. national level responsiveness and flexibility 3. cross-market capacity to leverage learning on a world wide basis

Answer 43

transnational strategies