Unit 2 (Marketing) Flashcards
(186 cards)
1
Q
\What is marketing?
A
Marketing is the management process of identifying, anticipating and satisfying consumer requirements such as their needs and wants
2
Q
What is market orientation?
A
Will research what consumers needs and wants are then produce the product to facilitate those needs and wants.
3
Q
What is product orientation?
A
Looking at what they can make instead of making products that they can sell. Focuses on making products that they hope to be demanded by the market.
4
Q
Market orientation advantages?
A
- Greater flexibility, ability to respond quickly to change in market from market information
- Lower risk, confident that products will sell as they meet needs and wants of consumers
5
Q
Market orientation disadvantages?
A
Market research - Can be expensive and time consuming to conduct
No guarantee - dynamic nature of external environment, research might be outdated
6
Q
Product orientation advantages?
A
- Quality assured
- More control over operations
- Specialised in making specific product
7
Q
Product orientation disadvantages?
A
- Needs of market are ignored
- High risk with high chance of failure
8
Q
What is market share?
A
Organisation’s shares of total value of sales in specific industry, firms with higher market share benefit from status, price setting abilities and less threat.
9
Q
What is market share formula?
A
Firm’s sales revenue / Industry’s sales revenue * 100
10
Q
Ways to increase market share?
A
- Brand promotion
- Product development
- Motivating / training workforce
- Using efficient channels of distribution
11
Q
What is market growth?
A
The rate at which a size of market increases or decreases
12
Q
Fórmula for market growth?
A
Current market size - original market size / original market size * 100
13
Q
What is market leadership?
A
Position of business having largest market share in a given market?
14
Q
Advantages of market leadership?
A
- Premium pricing
- Economies of scales
- Longer product life cycles
- Favourable distribution, better location
- Better publicity / brand exposure
- Easier to attract and recruit qualified employees
15
Q
What is the process of marketing planning?
A
Process of devising marketing objectives and appropriate strategies to achieve these goals
16
Q
What are the steps of these processes for marketing planning?
A
- Identify market audience
- Set marketing objectives
- Plan marketing strategies
- Monitor and review performance
- Evaluation
17
Q
Adv of planning?
A
- Increase chances of success
- Clear objectives and constraints
- Better understanding and control
18
Q
What is segmentation?
A
Market for a particular good or service of different types of consumers into market segments.
19
Q
A
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20
Q
What is the target market?
A
Firm using to sell to a particular market segment known as target market
21
Q
What is the disadvantages of planning?
A
- Time cost
- Money cost
- HR cost
- Plan may be inflexible or outdated
22
Q
What is the market segment?
A
Different groups of consumers with similar characteristics with similar needs and wants.
23
Q
What are consumer profiles?
A
Similar characteristics based on a consumer profiles such as demographic, geographic and psychological factors.
24
Q
What is geographical factors of segmentation?
A
Location of customers have implications for segmentation because demographic can be influenced by geographical issues.
- Location
- Climate
25
What is psychological factors of segmentation?
Factors considering emotions and lifestyles of consumers
- Hobbies / interests
- Values
- Religion
- Status
- Culture
26
What are demographical factors of segmentation?
Study of characteristics in human population with area, country or region
- Age
- Race
- Religión
- Income
- Gender
- Marital status
- Language
- Social economic class
27
What are position maps?
Customer perceptions of product or brand in relation to the competition in the market, this allows business to identify gaps in product portfolio and refine strategies such as target markets and overcoming undesirable customer perceptions.
28
What is a niche market?
Targets a specific and defined market segment such as luxury goods and minority sports.
29
What are adv of niche market?
- Better marketing focus
- higher price due to less competition
- Specialized in meeting needs and wants
30
what are dis of niche markets?
- Limited customer base
- Fewer economies of scale
- Successful marekts can attract competition
31
What are mass markets?
Targets multiple market segments to maximize sales such as cola, nike, apples, and more
32
What are adv of mass markets?
- Economies of scale
- Able to use marketing to address optimum market
- Large customer base
33
What are dis of mass markets?
- Higher barriers to entry
- Heavy competition
- Less focus, many do not satisfy individuals' needs and wants
34
What are unique selling points?
Aspect of a business that makes them stand out from competitors, explains why customers buy products over rivals
EX:
- Only firm in a certain area
- Reputation for high-quality or low cost
- Popular slogan
35
How do businesses differentiate?
Product Differentiation
Service Differentiation
Price Differentiation
Distribution Differentiation
Image or Reputational Differentiation
36
What are adv of differentiation?
- Brand recognition/loyalty
- Distribution advantages
37
What is dis of differentiation?
- Costly to make
- Economies of scale cannot be exploited
- Excessive differentiation can cause confusion
38
What is sales forecasting?
Numerical way to predict the level of sales over some time
Useful to firms to help identify problems and opportunities in advance
39
What are ways to sales forecast?
- Market research
- Time series and analysis
- Extrapolation
40
What is extrapolation?
Identifying trends by using past data and extending the trend to predict future sales.
41
What is market research?
Identifying and forecasting the buying habits of consumers is vital to a firm's survival and prosperity.
42
What is time series analysis?
Predict the level of sales by identifying the underlying trend from a sequence of sales figures
The main elements are:
- Seasonal variations
- Random variation
- CYcliccal variation from economic growth/regression
43
what are adv of time series analysis?
- Working capital and cash flow
- Stock control
- Productive efficiency
- Secure external sources of finance
44
What are dis of time series analysis?
- Limited information
- Bad data leads to bad decisions
- External influences
- Inaccuracy of predictions
45
What is the role of market research?
Refers to marketing activities designed to discover opinions beliefs and preferences of potential and existing customers of industry operated in.
46
What is the purpose of market research?
- Up-to-date information
- Tailors market mixes for their target segments
- Assess customer reaction to products
- Helps understand activities and strategies used by rivals
- Helps understand trends in the market for the future
47
What is primary research?
The process of gathering information directly from consumers in the target market using field research methods gathers new information that is new and doesn't exist in any format.
48
What are adv of primary research?
- Focuses on the needs of the business
- Info is not available to rivals
- Can get in-depth information from respondents
- More up-to-date and can be used to ask specific questions, more relevant to business
49
What are dis of primary research?
- Sample size too small and unrepresentative of all consumers leading to unreliable results
- Respondants may respond in particular ways or influenced by response of others leading to inaccurate information.
- May need to hire specialists in a market research agency to help process which is time consuming and expensive
50
What are surveys?
- Method where a series of questions are asked to a certain number of people, results from the sample are used to make inferences and thus extrapolated to apply to the wider population.
- Wide range reached using online survey tools and websites
51
ADV of surveys?
- Lots of data collected quickly
- Easily completed by respondents
52
DIS of surveys?
- Can result in poor or inaccurate results
- Random sampling can lead to bad results
53
What are interviews?
Questions asked by interviewers through verbal conversations, takers longer but allow for follow-up questions to gather info that can easily be missed in surveys.
54
Adv of interviews?
- Provides detailed opinions and perceptions
- high response rates can be achieved
55
DIS of interviews?
- Time-consuming process as interviews are one-to-one
- Interview bias can affect the validity of results.
56
What are focus groups?
Free-range discussions to collect detailed feedback on all marketing mixes from target markets, limited to small groups of 4-6 people.
57
Adv of focus groups?
- Detailed information on opinions and perceptions gathered
- Less time-consuming as data from multiple people gathered at once
58
Dis of focus groups?
- May be relevant to share true opinions in group situations or influenced by other responses
- Rewards for participation can be more expensive than other methods.
59
What are observations?
To stand in an appropriate location to study consumer behavior in a store to judge potential customer traffic at certain locations.
60
Adv of observations?
- Useful for capturing data on human behavior
- A large number of consumers observed in a short period
61
Dis of observations?
- Needs to be combined with other methods to create logical analysis and conclusions with results.
62
What is secondary research?
Involves the collection, compilation, and analysis of data that already exists.
63
What are adv of secondary research?
- Information abroad available, quicker to collect than primary research, and saves time
- Info is free, and cheaper to collect thus lowering marketing costs
- Suitable for small businesses with a smaller marketing budget
64
What are dis of secondary research?
- Collected for other purposes and may lack relevance or not be valid
- Expensive to purchase specific secondary data from specialized companies
- Information may be out of date, especially in fast-growing industry
- Information also available to competitors
65
What are marketing analyses?
Companies specialty in market research produce and sell in-depth reports on various industries, markets, and consumer trends.
66
What are academic journals?
Research conducted by university-published research papers provides insight and data on specific industries, consumer behaviors, and market trends.
67
What are government publications?
Government reports and statistics such as economy, demographics, industry trends and consumer behaviour.
68
What are media articles?
Articles, opinion pieces, and investigation reports that offer insight into market trends, consumer behavior, and industry developments.
69
What are online databases?
Provide access to a wide range of secondary market research.
70
What is qualitative data?
Open-ended questions on opinions from respondents aimed to understand behaviors, activities, and perceptions of consumers, employees, or other respondents
71
What is quantitative data?
Close-ended questions that are numerical data able to be measured, info is more factual and measurable rather than opinion-based.
72
What is sampling?
practice of selecting a small group of population for a particular market for primary research purposes
73
What is quota sampling?
A certain number of people selected from different market segments
74
Quota sampling adv?
- Relatively representative sample collected quickly
- Findings more reliable than random sampling
75
Quota sampling dis?
- Sample is not always representative of the population to the number of people interviewed for each segment are randomly selected
76
What is random sampling?
Giving everyone in the population an equal chance of being selected for the sample
77
random sampling adv?
- Easy to select a sample
- Minimise bias or unrepresentative samples
78
random sampling dis?
Not fully representative of people in specific target market due to randomness of selection, convenience of sampling
79
What is convenience sampling?
uses subjects that are easy to reach and collect
80
convenience sampling adv?
Availability and quickness of data collection
81
What is a product?
A good or service that serves to satisfy the needs and wants of consumers
82
What are consumer products?
Products purchased by individuals for personal use
83
What are producer products?
Industrial goods that are purchased by businesses to use in the production stage
84
What is the product life cycle?
Shows different stages that a product likely go through from initial design and launch to its decline
85
What are stages of Product life cycle?
- Research and development
- Launch
- Growth
- Maturity
- Decline
86
What is a product portfolio?
Collection of all products owned by a business at a point in time
87
How does research and development work on the product life cycle?
- Companies invest money to develop new idea for a product including research and development costs
- No sales revenue as product not on the market yet
- Prototypes and tests markets are used
88
How does the launch stage work in the product life cycle?
- Products introduced into a market
- Sales increasing slowly
- Extensive promotion required due to low product awareness
- Product not profitable due to low sales and high expenses
- Objective is to move into growth stage as quickly as possible to become market leaders
- Buyers in this stage known as innovators
89
How does the growth stage in the product life cycle?
- Rapid increase in sales due to greater consumer awareness
- More channels of distribution due to higher awareness and popularity
- Strong profits due to higher volume of sales
- High investment required
- Buyers in this stage known as early adopters
90
How does the maturity stage work in the product life cycle?
- Sales increasing but at slower rate
- Economies of scales maximised
- Heavy promotion to differentiate brand
- Extension strategies used to extend product life cycle
- More market control due to market leadership and higher market share
- Buyers in this stage known as majority
91
How does decline stage work in the product life cycle?
- Sales and profits fall
- Demand low due to change in preference due to newer versions or replacements
- Spending falls or stops
- Buyers in this stage known as laggards
92
What are fad products?
Products that don’t go through a normal product life cycle
EX: Movie or concert tickets
93
How does the investment, profit and cash flow work in each stage of product life cycle?
Research and development: High investment / No profit / Highly negative cash flow
Launch: High investment / Little profit / Negative cash flow
Growth: High investment / Profits achieved as launch costs recovered / Turns positive
Maturity: Low investment / Maximum profit / Highly positive cash flow
Decline: No investment / Profits decreased as sales decrease / Positive but failing
94
What are extension strategies?
Companies try to extend the length of the maturity stage as sales and profits are greatest
95
What are some extension strategies?
- Price reductions
- Redesigning
- Repackaging
- New markets (Increase or change distribution)
- New promotional activities for product
96
What is price?
Amount paid by customer to purchase good or service, difficult decision to get right
97
What is cost plus pricing?
Working out average cost per unit of product then adding a percentage mark up to calculate exact profit margins.
98
What are adv of cost plus pricing?
Simple and easy to calculate
Ensures profit is made on each item sold
99
What are dis of cost plus pricing?
Doesn't consider needs of customers
100
What is penetration pricing?
Where new products initially sold at low price to break into market and gain market share quickly, once firm has enough market share the prices will increase.
101
What are adv or penetration pricing?
- Suitable for mass markets sold in large volumes
- Competitors unable to match low price may be forced out of the market leading to less competition
102
What are dis of penetration pricing?
- If price is too low, can cause customers to perceive product as inferior and low quality
- Lower profit margins on each unit sold due to lower pricing
103
What is loss leader?
Selling product at or below value to tempt customers to buy profitable products at the same time which will recoup loss by selling complementary items
104
What are adv of loss leader?
- Effective way to attract customers to suitable brand
- Incentivizes customers to switch brands
- Losses minimized for businesses that have high levels of stock turnover for loss leader products
105
What are dis of loss leader?
- Setting prices too low may damage prestige and image of the brand
- Risky as customers may not buy other complementary products
106
What is predatory pricing?
- Temporarily reducing price with intention to force competitor out of the market, used when existing firm threatened with new competition, can lead to price wars with competitiors.
- Commonly used in supermarkets, airlines, smartphones etc.
107
What are adv of predatory pricing?
- Can bring customers in short term
- Allows business to gain dominant position in market
- Barrier to entry for firms considering entering the market
108
What are dis of predatory pricing?
- Customers may not stay with firm in long term as they are not brand loyal due to increase in price once competition has left the market.
- Usually illegal or regulations in placed
- Expensive strategy as business needs sufficient finance to fund
109
What is premium pricing?
- When price of good or service set significantly higher than similar competing products. Usually because product is higher quality or unique enough to justify premium price
110
What are adv of premium pricing?
- Higher profit margins
- Creates barriers to entry for new competition
- Emphasizes exclusivity and improves value of the brand
111
What are dis of premium pricing?
- Lower volume of sales due to higher prices
- Requires high quality raw materials and components so production cost higher
112
What is dynamic pricing?
Varying the price of a good or service depending on demand of market, business charges higher during peak periods and lower during off periods, flexible and adaptable method to capitalize on changing market conditions.
113
What are adv of dynamic pricing?
- Greater control over method by pricing to maximize profits
- Can be optimal use of resources
114
What are dis of dynamic pricing?
- Customers can feel unhappy on not knowing why a higher price is charged
- can lead to price wars during off periods which is not sustainable in the long term
115
What is competitive pricing?
Firms set price of goods or services at same or similar level to competitors, used when product is on market for a while and when many substitutes are available
116
Adv of competitive pricing?
- Consumers likely to be accepting of product because they align with expectations and familiarity of price
- Helps gain market share by offering prices that are in line with rivals
- Flexibility, price can be changed according to competitors
117
Dis of competitive pricing?
- Non price methods used to differentiate themselves in competitive market which can add to firm's costs
- If prices are constantly pushed lower to match competitors price than profit margins per unit sold will be lower
118
What is contribution pricing?
Setting price based on direct cost of producing a product
119
Adv of contribution pricing?
Ensures selling price high enough to cover both direct and indirect costs
120
Dis of contribution pricing?
Allocation of indirect costs between products can be subjective
121
What is price elasticity of demand?
measure degree of responsiveness of demand for a product due to change in price of a product, provides information on how sales revenue likely to change if prices are adjusted.
122
What are price elastic products?
Large change in demand following a small change of price, products with many substitutes likely to be price elastic, they can increase revenue by decreasing prices.
123
What is promotion?
- Communicating messages to the market usually with intention of selling firm's goods.
124
What are key objectives of promotion?
- Inform: Alert market on new or updated products to influence purchasing decisions
- Persuade: TO make purchase, switch from rival brand adopt brand loyalty
- Rewind: Retain customer awareness and interest on established products.
125
What is above the line promotion?
Form of paid promotion method through independent mass media sources
126
What is below the line promotion?
Use of non mass media promotional activities, allowing business to have direct control
127
What is through the line?
Use of strategies that involves both above and below the line methods in integrated marketing approaches.
128
How to design a promotion mix?
Effective promotional mix that involves response from its target market.
- Attention: Capture attention from target market
- Interest: Generate attention of target market
- Desire: Create need for a product in target market
129
What is television advertising?
Advertising on television to exploit power of combining sounds and moving images to convey powerful message to viewers
130
ADV/DIS of television advertising?
ADV: Reaches large audience base
DIS: Huge cost of production and for advertising for only short 30 second time slot
131
What is radio advertising?
Exploits opportunities of listeners who can't engage with other forms of advertising
132
ADV/DIS of radio advertising?
ADV: Reach large audience whilst being significantly cheaper than television
DIS: Not visual, harder to show brand image and product thus promotion being less ineffective.
133
What is cinema advertising?
Similar to television advertising, finds way to increase engagement with captive audience
134
ADV/DIS of cinema advertising?
ADV: Targeted to specific audiences (before or after movie shown)
DIS: Limited audience size compared to radio or television advertising
135
What is newspaper advertising?
Reach large audiences without expense of television advertising through audience interested in daily news
136
ADV/DIS of newspaper advertising?
ADV:
- Targeted to specific audiences with greater precision
- Can be referred to later unlike radio advertising
DIS:
- Short shelf life as most people won't read previous days news
137
What are advantages of above the line promotion?
- Reach large and diverse audience because mass media channels provide higher visibility
- Effective to create strong brand image enhancing brand recognition and establishing sense of credibility and trust
- Can be communicated in impactful manner using sound images and graphics
138
What are disadvantages of above the line promotion?
- Expensive especially for businesses with limited budget
- Focuses on reaching wide audience, harder to target specific segments and may not reach intended audience
- May offer limited interaction or engagement with consumers
- Role of digital media due to less consumption of traditional media as consumers can filter out or ignore advertisements
139
What is direct marketing?
Promotional activities that aim to sell a product straight to a customer through a intermediary.
Includes:
- Telemarketing
- Email advertising
- Direct mail by post
140
What is personal selling?
Promotional activities that rely on sales representatives directly helping and persuading customers to buy goods and services
141
What is sales promotion?
Temporary way to boost sales and attract new buyers by offering discounts or promotions.
Includes:
- Buy one get one free
- Discount vouchers
- Free Samples / gifts
142
What is point of sales?
Promotion of a product at a location where customers pay for the product, often used in supermarkets to encourage impulse purchases as they queue up waiting for a service.
143
What is publicity?
Process of promoting a business and its products by getting media coverage without directly paying for it, celebrities often given free products in hopes that they are photographed using publicly.
144
What is public relations?
Aimed to establish and protect desired image of business, goal is to set media to report events in positive way from pov of the business.
145
What are trade shows?
Enables exhibitors to conduct demonstrations to showcase / promote their products. Often used to showcase latest models of products or illustrating provision of service.
146
What are sponsorships?
Providing financial funds and resources to support an event or another organization in return for publicity and prime advertising space.
147
What is word of mouth?
- Spread of information from one person to another through communication, development of e-commerce allows for written reviews of goods / services.
148
What is packaging promotion?
Powerful component of marketing mix, useful form of promotion as customers reuse packaging in some instances
149
What is considered in through the line promotion?
When deciding on TTL promotion mix, marketers must consider following factors:
- Cost: Budget for promotional activities
- Product: Methods of promotion needed to suit the nature of the product
- PLC: Different types of promotion required for different stages
150
Advantages of through the line promotion?
- Combines both ATL and BTL which can increase engagement
- Integrated approach can lead to better brand recognition as customers receive message in various ways.
151
Disadvantages of through the line promotion?
- Coordinating TTL campaign requires marketing expertise which business may need to employ expensive specialist marketing agency
- Careful planning needed to ensure all elements present coherent message
152
What is social media marketing?
- Practice of gaining internet traffic through social media platforms such as facebook, twitter, youtube and instagram
- Strategy focuses on creating content that attracts attention and encourages people to future share the content.
153
What is social networking?
- Platform used by individuals to build social relationships, focuses on human interaction aspect of social media
- Non social media relationships used for social networking such as blogs with corporate bloggers engaging with readers in comments under blog posts.
154
What is advantages of social media marketing?
- Social platforms have billions of active users which allow business to reach vast audience across different demographics and location
- Enables business to deliver promotional content to specific groups based on interests and behaviors increasing chances of reading intended audience
- Can share and create content to increase brand exposure and visibility which would help generate brand awareness.
155
What are disadvantages of social media marketing?
- Requires consistent time and effort to create quality content, manage platforms and engage with audience which is time consuming
- Opens up opportunity for public feedback which can include negative comments and be viewed by other users
- Frequent update of algorithm which affects visibility and reach of content
- Lots of competition, difficult to break through and capture users attention for their posts.
156
What is place
Refers to business activities that make the product available to consumers
157
What are channels of distribution?
Means sued by firms to ensure customers gain access, done by selling directly to consumers or using in intermediaries which are firms who act as middle person between consumers and producers.
158
What are levels of distribution?
- Zero level
- One Level
- Two level
Business can choose one or more level of distribution
159
What is zero level distribution?
Producer to consumer
160
What is one level distribution?
- Producer -> retailer -> consumer
- producer -> distributor -> consumer
- producer -> agent -> consumer
161
What is two level distribution?
Producer -> wholesalers -> retailers -> consumers
sometimes wholesalers can act as both wholesalers and retailers
162
What are wholesalers?
Business that purchase large quantities of products from manufacturer and then breaks bulk purchase into smaller units for resale to retailers
163
ADV of wholesalers?
- Wholesaler takes cost of storage
- Retailers don't purchase in large quantities
- Producers have lower transaction costs
- Wholesalers deal with distribution issues
164
DIS of wholesalers?
- Loss of control on selling the product for producers
- Producers lose control of marketing
- Wholesalers or retailers may not promote the product the way producers want
- Some retailers don't use wholesalers in order to cut costs
165
What are retailers?
Referred to shops that sell the product to customers. EX: supermarkets
166
What are agents?
negotiators who act on behalf of buyers and sellers of a product, charges commission for services. EX: travel / retailer agents.
167
What are distributors?
Independent and specialists businesses that have exclusive distribution rights and trade in product of only a few manufactures. EX: motor vehicle industries
168
What are specialists channels of distribution?
Indirect way to distribute products that don't involve any intermediaries. Examples include: telemarketing, mail order, E-commerce, vending machines
169
What is telemarketing?
Use of telephone systems to sell products to potential customers, using sales people to cold call potential customers, used in businesses with existing database of consumers
170
What is E-commerce?
Trading through internet, transferred by development of E-commerce websites. Access to customers beyond geographical boundaries of markets benefitting to e-tailers.
171
What are vending machines?
Specialists machines that stock products for sales, available almost everywhere due to compact size.
172
What is mail order?
Sending promotional material through a mailing system to entice customers to buy the product.
173
Benefits of specialists distribution channels?
- Increased profits, not shared with intermediaries
- Greater control of distribution
- Growing demand for convenience of e-commerce
- Can reach customers that can't access retail outlets.
174
What are factors affecting channels of distribution?
Product - More perishable product, better to choose shorter channel of distribution
Market - niche markets catered directly by supplier, large markets usually need intermediaries
Time - Items with urgent delivery need short distribution channels
Legal constraints - Some products prohibited from being distributed
Costs - Direct selling increases profit margins but limits access to consumers.
175
4 or 7 p’s?
Marketing mix has three p’s to address the specific nature of services, they are people, processes and physical evidence.
176
What is people?
Provision of services relies on goodwill of employees, important for service orientated business to build good relationships and trust with customers.
177
What are methods of measuring of customer service?
- Appearance / body language
- Attitudes / Apitudes
- Feedback (Customers / Stakeholders)
- Effeciency ( Working quickly / no mistakes)
178
Why is international marketing required?
Variation in culture / social normalities depending on different geographic locations thus international marketing required in order to effectively market the service.
179
What are processes?
Way in which service is provided or delivered. Processes can include:
- Payment methods
- Waiting time
- Customer services
- After sales gifts
- Delivery processes
180
What are physical evidence?
Physical evidence is tangible aspects of a service, strategies will depend on service that is being provided. EX: Physical evidence of cruise ship differs greatly from a community ferry service.
181
What are internal and external methods of entry?
Can enter international markets using various methods:
Internal: Direct Investment, E-commerce
External: Mergers / Acquisitions, Takeovers, Franchising, Strategic Alliance
182
How do businesses sell products internationally?
Idea of not just making product available in foreign markets but lots of factors to consider.
183
Opportunity of entering and operating internationally?
- Increased customer base
- Maximizing Economies of scales
- Increased brand recognition / awareness
- Spread risks
- More distribution channels
- Extends product life cycle
- Higher profit margins
184
What are threats of entering and operating internationally?
- Social: Different demographic / sociographic conditions
- Economic: Competitive markets due to freer international trade and additional costs from fluctuating exchange rates
- Political: More risky for investment especially for political instability
- Legal: Advertising laws, copyright / trademark regulations, consumer protection laws
185
How does understanding local contexts work?
To not assume people overseas behave in same way as home country, awareness and understanding of local business context, stakeholders involved and different cultures.
186
What are cultural difference in local and international contexts?
Cultural experts: Transfer of ideas and values, local preferences need to be considered
Language: Ignorance of language can affect customer satisfaction
Business etiquette: Customs important to business etiquette
Ethics: Ethical standards in one country different to another country
