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Theme 4 AO1 Flashcards

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1
Q

What is meant by a polycentric marketing strategy?

A

When a business alters their marketing mix to tailor to different markets.

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2
Q

What is meant by an ethnocentric marketing strategy?

A

When a business use the same marketing mix globally.

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3
Q

What is meant by a geocentric marketing strategy?

A

When a business partially uses a standardised marketing mix globally but tailors some parts to suit the needs of different markets.

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4
Q

What is meant by ethical trade?

A

Businesses take responsibility of the rights of any workers connected to their operations.

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5
Q

Name 4 shareholder objectives.

A

High dividends, high profits, a positive corporate image, a part of decision making.

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6
Q

Name 4 ethical objectives.

A

Low emissions, safe waste disposal, fair wages, usage of sustainable materials.

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7
Q

What are three reasons why a business would have become an MNC?

A

Saturated domestic market, Extension strategy for their products, Profit incentive.

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8
Q

What does ‘mcdonaldization’ mean?

A

When more sectors of the world take on characteristics of a fast-food company.

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9
Q

What are five benefits to a country if an MNC moves there?

A

Increase employment, Improve infrastructure, Raises a countries profile, Introduce new tech, Increase standard of living.

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10
Q

What are 5 drawbacks for a country if an MNC moves there?

A

Low paid jobs, Environmental damage, Increases mass migration, Influence on the governments, Loss of national culture.

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11
Q

What are 4 characteristics of countries with high context communication needs?

A

Establish trust first, Value relationships, agreement by trust, ritualistic negotiations.

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12
Q

What are 4 characteristics of countries with low context communication needs?

A

Get straight to business, Value expertise, Contractual agreements, Efficient negotiations.

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13
Q

What is a global niche market?

A

A very small market in each country that is very profitable when combined.

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14
Q

What are 4 advantages of operating in a global niche market?

A

Higher market share, Higher revenue, Less risk, Typically reduced PED.

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15
Q

What are three disadvantages of operating in a global niche market?

A

Some EOS may not be achieved in some markets, Communication struggles, less potential for growth.

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16
Q

In the marketing mix, what would be the ‘price’ in global niche markets?

A

Firms can charge premium prices for their specialist goods.

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17
Q

In the marketing mix, what would the ‘product’ be in global niche markets?

A

Either tangible or intangible, typically specialised, logical life cycle.

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18
Q

In the marketing mix, what would the ‘place’ be in global niche markets?

A

The methods of how the product will be distributed and produced between the different countries.

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19
Q

In the marketing mix, what would the ‘promotion be in global niche markets?

A

Advertising will be more subtle and targeted to make the consumer feel special but may be adapted for different languages and cultures.

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20
Q

In the marketing mix, how would a business standardise the ‘product’ in global markets?

A

The product design and features will stay the same and be sold the same in every country.

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21
Q

In the marketing mix, how would a business standardise the ‘Place’ in global markets?

A

Goods will likely be moved from manufacturer to wholesaler to retailer and then to the consumer.

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22
Q

In the marketing mix, how would a business standardise the ‘price’ in global markets?

A

They would set a standard price and convert it roughly to other countries.

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23
Q

In the marketing mix, how would a business standardise the ‘promotion’ in global markets?

A

The packaging and advertisements will stay the same in every country but the language will be changed.

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24
Q

In the marketing mix, how would a business adapt the ‘product’ in global markets?

A

Businesses will change their product to suit the different tastes/ cultures of different countries.

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25
In the marketing mix, how would a business adapt the ‘place’ in global markets?
There will usually be different chains of distribution in different countries and there will most likely be more parties involved.
26
In the marketing mix, how would a business adapt the ‘price’ in global markets?
Prices will be adjusted to the average disposable incomes of the different countries.
27
In the marketing mix, how would a business adapt the ‘promotion’ in global markets?
Firms will make sure to follow cultural beliefs and differences when marketing in different countries rather than simply changing the language.
28
What are 4 positives of a business standardising their global marketing?
Lower costs, Consistency in brand image, High brand profile and power, Uniformity in marketing practices.
29
What are 4 negatives of a business standardising their global marketing?
Cultural differences, Consumers may respond differently to the marketing mix, Differences in competition, Different legal environments.
30
What is meant by ‘global competitiveness’?
A measure of a business’ ability to compete both domestically and against foreign firms.
31
What is low cost leadership?
When a business gains the competitive advantage by producing goods at a lower cost and sell the product at a lower price.
32
Name three ways a business gains lower costs?
Waste management, Efficient production, Good resource management.
33
What is meant by differentiation?
When a business changes their product or service in some aspect to make it more unique and appealing, allowing them to charge premium prices.
34
What are the three ways in which a business can become more globally competitive?
Differentiation, Low cost leadership, Exchange rates.
35
How can businesses become more globally competitive via changes in the exchange rates?
If the domestic currency weakens, the exporters’ goods will become cheaper for foreign consumers, making them more competitive.
36
When looking for a country to produce in, what might a business analyse the costs of production?
To make sure that costs aren’t too high in prefer to have good profit margins.
37
When looking for a country to produce in, what might a business analyse the labour force?
To ensure that workers will be able to produce goods efficiently and that there will not be any shortages of labour.
38
When looking for a country to produce in, what might a business analyse the infrastructure?
To plan distribution routes and logistics when they start their operations.
39
When looking for a country to produce in, what might a business analyse the location of the country?
To assess whether international trade is feasible and whether or not the country is part of a trade agreement.
40
When looking for a country to produce in, what might a business analyse the legislation and regulations?
To assess the ease of doing business and how much they will pay in taxes etc.
41
When looking for a country to produce in, what might a business analyse the political stability?
To ensure that it is safe to do business and minimise danger.
42
When looking for a country to produce in, what might a business analyse the level of natural resources?
A greater level of natural resources means that the business will be more profitable as less importing costs will be made.
43
What is meant by a push factor?
A factor that makes a business want to move out of the given country.
44
What is meant by a pull factor?
A factor that attracts a business to move to a given country.
45
What are 4 push factors?
Saturated market, need to reduce risk, end of product life cycle, low growth opportunities.
46
What are 4 pull factors?
EOS opportunities, opportunity to exploit comp advantage, extension of product lifecycle, lower taxes.
47
What is offshoring?
When a business decides to relocate operations overseas.
48
What is outsourcing?
When a business hires a third-party to complete a business function.
49
What is protectionism?
Where a government will make trade barriers to protect domestic producers from foreign competition.
50
Name 4 different trade barriers.
Tariffs, Quotas on imports, Technical barriers, Subsidising domestic firms.
51
What is a tariff?
A tax placed on imports to reduce demand for the imports.
52
What is a quota?
A limit on the allowance of a certain import.
53
What is meant by a subsidy?
An amount of money given to a firm by the government to incentivise production.
54
What is meant by technical barriers to trade (TBT)?
Regulation and bureaucracy put in place to make it more difficult to import goods.
55
What is globalisation?
The increased interconnectedness between countries due to the movement of people, goods, and capital across borders.
56
How does trade liberalisation contribute to globalisation?
Less trade barriers means that more goods and services can be imported and exported between countries.
57
What are 3 advantages of trade liberalisation?
Markets more competitive, greater business opportunities, drives investment.
58
What are imports?
Goods that are made in foreign countries that are brought into the domestic country.
59
What are exports?
Goods that are made in the domestic country which are transported to foreign countries.
60
What is specialisation?
When a country only produces particular goods or when a business only focuses in one part of a market.
61
What are 3 benefits of specialisation?
Increased EOS, Scale of production is increased, Boost economic growth.
62
What are 3 drawbacks of specialisation?
Lack of risk spreading, Competition with other countries in exporting the same good, Diseconomies of scale when the growth capacity has been reached.
63
What is foreign direct investment (FDI)?
When a company sets up a new business or merges with a business abroad.
64
What is meant by inward FDI?
When foreign companies invest in the UK.
65
What is outward FDI?
When UK businesses invest abroad.
66
What is meant by Greenfield FDI?
When a group builds a completely new factory or business.
67
What is Brownfield FDI?
When a group buys an existing business and grow it.
68
What is a positive from Greenfield FDI?
It creates new jobs for an economy.
69
What is a positive about Brownfield FDI?
It incentivises development of new technology and innovation.
70
What are 4 benefits of inward FDI to the UK?
New jobs, New markets, Reduces transport costs, Development of new technology

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