Week 9

Question 1

More stable and predictable in demand

Answer 1

Basic products

Question 2

Higher stock keeping units (SKUs), between 60-80%

Answer 2

Basic products

Question 3

More competition
Lower profit margin
Less forecast error
Less likely to become obsolete quickly

Answer 3

Basic products

Question 4

Less stable and unpredictable in demand

Answer 4

Fashion products

Question 5

Lower stock keeping units (SKUs), between 20-40%

Answer 5

Fashion products

Question 6

Less competition
Higher profit margin
More forecast error
More likely to become obsolete quickly

Answer 6

Fashion products

Question 7

Higher overstock or out-of-stock situations

Higher markdown towards end of season

Answer 7

Fashion products

Question 8

The ‘old’ version of luxury: exclusive, expensive, best quality, self-indulgent, conspicuous, tangible, overt

Answer 8

Materialism

Question 9

Emphasis on quality of life, experiential, personal, authentic, subtle/convert materialism

Answer 9

Enrichment

Question 10

The value of relaxing and destressing from the pace of everyday life, focus on self-development and quality of life, intangible, non-material

Answer 10

Time

Question 11

Concept becoming increasingly fragmented and individual. Now more experiential rather than being rooted in materialism. Customers increasingly choose these items.

Answer 11

The massification of luxury

Question 12

As this concept changes, the role of price becomes less clear and time and experience become more important factors. The challenge is to connect emotionally with customers and emphasize the experience they will have.

Answer 12

The massification of luxury

Question 13

Assessing products and foreign markets: choosing the target product and market

Answer 13

Element of International Market Entry Strategy

Question 14

Setting objectives and goals

Answer 14

Element of International Market Entry Strategy

Question 15

Choosing the entry mode: export, contractual arrangement, or investment

Answer 15

Element of International Market Entry Strategy

Question 16

Designing the marketing plan: price, promotion, distribution, etc.

Answer 16

Element of International Market Entry Strategy

Question 17

Control system: monitoring operations/revising entry strategy

Answer 17

Element of International Market Entry Strategy

Question 18

Target country market factors
Target country environmental factors
Target country production factors
Home country factors

Answer 18

External Factors in the Entry Mode Decision

Question 19

Company product factors

Company resource/commitment factors

Answer 19

Internal Factors int he Entry Mode Decision

Question 20

Direct exporting
Indirect exporting
Intra corporate transfer

Answer 20

Non-Equity Mode Exporting

Question 21

Manufacturers export agents
Export commissions agent
Export merchants

Answer 21

Indirect Exporting

Question 22

Piggybacking
Wholly-Owned Subsidiaries
Exporting: Turnkey Project

Answer 22

Licensing and Franchising (Non-Equity Mode)

Question 23

Wholly-Owned Subsidiaries
Joint Ventures
Mergers and Acquisitions
Strategic Alliances

Answer 23

Equity Based Mode of Entry

Question 24

Pooling alliances

Trading alliances

Answer 24

Strategic Alliances

Question 25

Similarity and integration

Answer 25

Pooling Alliances

Question 26

The contribution of dissimilar resources

Answer 26

Trading Alliances

Question 27

Collective and distinctive knowledge and skills an organization has.

Answer 27

Core competencies

Question 28

An organization's ability to integrate a variety of specific technologies and skills in the development of new products and services.

Answer 28

Core competencies

Question 29

The skills that enable a business to deliver a fundamental customer benefit.

Answer 29

Core competencies

Question 30

Core competencies manifest in core __________ that serve as a link between the competencies and the end product.

Answer 30

Core products

Question 31

Once a company has successful core _________, it can expand the number of uses in order to gain a cost advantage via economies of scale and economies of scope.

Answer 31

Core products

Question 32

Financial (profit, balance of equity, return of capital, economic value added)

Answer 32

Measure of Performance

Question 33

Customer (satisfaction, retention, profitability, market share, acquisition)

Answer 33

Measure of Performance

Question 34

Internal Business Process (quality, response time, cost, new product launch time)

Answer 34

Measure of Performance

Question 35

Organizational Learning and Growth (employee satisfaction, worker productivity)

Answer 35

Measure of Performance

Question 36

Strategy: Product customized for each market Decentralized control- local decision making Effective when large differences exist between countries

Answer 36

Multi-Domestic Strategy

Question 37

Strategy: Product differentiation, local responsiveness, minimized political risk, minimized exchange rate risk

Answer 37

Advantages of Multi-Domestic Strategy

Question 38

Strategy: Product is the same in all countries Centralized control- little decision-making authority on the local level Effective when differences between countries are small

Answer 38

Global Strategy

Question 39

Strategy: Cost, coordinated activities, faster product development

Answer 39

Advantages of Global Strategy

Question 40

Strategy: Products available before competition Strong applied research capability needed Can set high price to skim market or set lower price to gain market share

Answer 40

First-to-Market Strategy

Question 41

Strategy: Quick imitation of first-to-market companies Less emphasis on applied research and more emphasis on development Learn from first-to-markets mistakes

Answer 41

Second-to-Market Strategy

Question 42

Strategy: Wait until market becomes standardized and large volume demanded Compete on basis of costs instead of product features Research efforts focus on process development versus product development

Answer 42

Late-to-Market Strategy (Cost Minimization)

Question 43

Use domestic approach worldwide.

Answer 43

Ethnocentric

Question 44

Customize product to meet needs of local market

Answer 44

Polycentric

Question 45

Use a standardized approach worldwide

Answer 45

Geocentric

Question 46

The firm adopts a standard price for its products, regardless of where they are sold.

Answer 46

Standard price policy (Geocentric)

Question 47

The firm sets one price for domestic sales and a second price for international sales. Often used by firms that are new to international markets.

Answer 47

Two-Tiered Pricing (ethnocentric)

Question 48

The firm changes the profit-maximizing price in each market, that is, the firm sets: marginal revenue=marginal cost in each market.

Answer 48

Market Pricing (polycentric)

Question 49

High rate of new product introduction. Price cutting as a strategy to maintain or regain market share. Increased availability of bargain-priced dealer and generic brands. More efficient and better-informed buyers/customers.

Answer 49

Factors influencing price setting

Question 50

Profit maximization Satisfactory profits Target Return on Investment (ROI)

Answer 50

Profit-Oriented Pricing Objectives

Question 51

Market Share | Sales Maximization

Answer 51

Sales-Oriented Pricing Objectives

Question 52

Maintain existing prices | Meet competitions prices

Answer 52

Status Quo Pricing Objectives

Question 53

Standard Price, two-tier price and market price

Answer 53

International Pricing Strategies

Question 54

How do you negotiate the best terms of sale? (3)

Answer 54

Discounts Shipping Charges Dating and Payment terms

Question 55

Trade, Quality and Seasonal __________

Answer 55

Discounts

Question 56

The price the manufacturer or retailer pays or the list price minus the trade discount

Answer 56

Net Price

Question 57

A per cent of the list price

Answer 57

Discount

Question 58

Rate x List Price =

Answer 58

Trade Discount

Question 59

List Price - Trade Discount

Answer 59

Net Price

Question 60

EOM Terms

Answer 60

End-Of-Month

Question 61

ROG Terms

Answer 61

Receipt of Goods

Question 62

A cash discount is allowed when the bill is paid within the specified number of days from the _____________, not from the date of the invoice.

Answer 62

ROG Terms

Question 63

A payment that does not equal the full amount of the invoice less any cash discount.

Answer 63

Partial Payment

Question 64

A cash discount applied only to the amount of the partial payment.

Answer 64

Partial Discount

Question 65

The sum of the partial payment and the partial discount.

Answer 65

Amount Credited

Question 66

The invoice amount minus the amount credited

Answer 66

Outstanding Balance

Question 67

Freight on Board or Free on Board

Answer 67

FOB

Question 68

Two or more independent brands combined into a new joint product or service.

Answer 68

Co-branding

Question 69

Involves two or more brands, both with significant customer recognition.

Answer 69

Co-branding

Question 70

All participating brand names are retained. | Medium to long term duration.

Answer 70

Co-branding

Question 71

The net value creation potential is not large enough to justify developing a new brand and/or joint legal venture.

Answer 71

Co-branding

Question 72

Reach Awareness Values Endorsement Ingredient co-branding Complementary

Answer 72

Co-branding Format

Question 73

- Increase sales due to either expansion in current market or access to new geographical or sector markets. - Enhanced benefits for consumers - Lend credibility to the other brand - Share expensive promotional costs with a partner - Access to cutting edge technology - Decreased cost of entering new markets - Limit the risk of entering a new product category in which consumers may question the firms expertise

Answer 73

Advantages of Co-branding

Question 74

- Trying to combine incompatible corporate personalities - Overextending a brand to sectors far removed from where the brand's reputation lies - The effect of one partner repositioning its original brand - Financial Difficulties for either partner - Failure to meet co-branding targets - The dilution or loss of distinctive features of one of the ingredient brands

Answer 74

Disadvantages of Co-branding

Question 75

Unlike the traditional character licensing model which deals with a short timescale, this license tends to be for an average term of four to seven years.

Answer 75

Brand Extension

Question 76

- Intensify the brand image and enhanced the equity in a brand. - Low investment. The cost for launching a new brand in consumer markets is very high.

Answer 76

Advantages of a Brand Extension

Question 77

- Risk of diluting the brand image or brand equity - Rather than adding sales to the total brand, a brand eats into existing sales - The risk of giving out a negative or confusing message about the original brand

Answer 77

Disadvantages of a Brand Extension

Question 78

1. From consumers to people 2. From product to experience 3. From honesty to trust 4. From quality to preference 5. From notoriety to aspiration 6. From identity to personality 7. From function to feel 8. From ubiquity to presence 9. From communication to dialogue 10. From service to relationship

Answer 78

10 Commandments of Emotional Branding