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BUSI 4205 (1)

Midterm cheat sheet.docx

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Carleton University
BUSI 4205
Jason Baillargeon

Chapter 1 The Scope and Challenge of International Marketing  International Marketing is the activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.  Differences of Intl Marketing from National marketing: the difficulties created by different environments and the need to coordinate international expansions across cultures to achieve efficiency and effectiveness to achieve firms’ goals.  Globalization: the increased mobility of goods, services, labor, technology, capital throughout the world.  HOW does globalization affect Canadian marketers? Positive impacts  marketers how now much more access to more information about their markets and consumers (domestically and internationally)  much easier communication with suppliers and consumers today  because of free trade agreements, easier to penetrate/venture into other foreign markets  opportunities to lowering production and marketing costs due to the ability to standardize products and processes  and ultimately benefit from having to deal with fewer national currencies (e.g transactions could be in US Dollar, or Euros because EU nations use that), which reduces risks and costs. Negative impacts  small Canadian companies and marketers find it difficult to compete on an even playing field with larger transnational companies.  Globalization is forcing firms to identy core competencies and develop sustainable advantages that will insulate them from competition.  Uncontrollable elements: competitive structure, economic climate, political/legal forces, competition, legal restraints, government controls, weather, fickle consumers. Marketers can’t control these factors but must adjust or adapt to them in a manner consistent with a successful outcome.  Controllable elements: firm characteristics, research, price, place, promotion, product. Should be impemented in such a way to ensure marketing objectives are achieved. These elements can be adjusted to changing market conditions, consumer tastes, corporate objectives.  In international marketing, the environment from country to country/region to region can change dramatically; therefore it is every marketer’s primary concern to coordinate international operations across cultures/countries to achieve efficiency and effectiveness in business operations. Marketing Decision Factors Aspects of the domestic Environement uncontrollables: political decision involving domestic foreign policy (tariffs, export quotas, embargoes, free trade agreements, bilateral/multilateral etc) Aspects of the foreign Environment uncontrollables  The difficulty lies in adjust their marketing efforts to unfamiliar cultures and recognizing its unique characteristics and impact. They need to use the right frames of references when evaluating and making marketing decisions.  Self-Reference Criterion: an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions, which most of the times is fuelled by ethnocentrism. Your own SRC can prevent you from being aware of recognizing the importance in cultural differences, or even prevent you from realizing that cultural differences exist.  It’s best to isolate the SRC influences and use following steps as a framework: 1) Define the business problem/goal in home country (cultural traits, habits, norms) 2) Define the business problem/goal in host country (same factors) but consultation with natives of host country. 3) Isolate the SRC influence in the problem & examine carefully to see how it complicates the situation 4) Redefine the problem without the SRC influence, and olve for the optimum business goal objective and situations.  Global awareness/global mindset: requires one to be locally responsive and have a global perspective at the same time  5 degrees of international market involvement Degrees of marketing involvement and commitment it’s prepared to make.  4 approaches that dominate strategic thinking:  domestic market extension orientation: The firm’s orientation remains domestic. It seeks a sales extension of a domestic products into foreign markets, viewing that international operations as secondary to domestic operations. Foreign sales are seen as a profitable extension of domestic operations  multidomestic market orientation: firms with this orientation market on a country-by-country basis, with separate marketing strategies for each country. It aims for adaptation to local country markets. They are polycentric and are in stage 2 and 3 of internationalization. Subsidiaries tend to operate independently of one another, advertising campaigns are often localized so is pricing and distribution decisions.  regional market orientation and global market orientation: has a standardized product but country-specific advertising depending on the product and market! Chapter 2 Chapter 3  Staples Economy  Staples Trap and its effect on Canadian businesses  national character, what is to be Canadian?  Canadian International Trade and Investment  canada’s trade problematique, because of high concentration of canda’s export to the US (77% of the total exports go to the US) this proportion only leaves behind for about 12.5 to do trade with the rest of the world (excluding EU countries, and Japan). Other countries are more open and less dependent to the US, even the US has 53.% of its exports to the rest of the world, leaving only 20% for Canada. A heavy concentration in one market (the US) and just a couple of sectors, means that there are comparatively too few products left for too many other markets.  This fact answers why there is relative decline in the “presence” of Canadian goods that researchers are reporting. Because Canadian tends to prefer trading with US….Japan, US and EU enjoy a “critical mass” advantage abroad which Canadian exporters do not have. That’s why Molson is less popular abroad compared to Corona’s beer from Mexico. TODAY’S COMPETITIVE ADVANTAGE: 1) resource based advantage shouldn’t be the only source of strength of a country in the international marketplace, “competitive advantage can be engineered” 2) Even when the natural resource endowment is rich, advanced marketing is necessary to capitalize on it! For ex: Columbian coffee, and florida orange juice….no one would know these products until marketers effectively market these internationally…popularity due in large part of the growers’ success at generating loyal consumers internationally through well designed international marketing mixes. Chapter 4 Cultural Dynamics of International Markets  markets are a result of culture. Marketers constantly adjusting their efforts to cultural demands of the market, BUT they also act as “cultural change agents” whenever the product or idea being marketed is innovative for buyers e.g Iphones iPOD smartphones, iPad.  What is Culture? SUM of the values and beliefs rituals….which acquired from socialization and acculturation (adjusting to a new culture)  Value:….. people posses many values and some values are more important than the others.  Belief: a mental acceptance …. BELIEFS are long lasting and not subject to significant change.  Attitude: a mental…. Attitude contains cognitive (our mental contruction of the phenomenon), affective (how we feel about it), behavioural (our tendencies to act regarding to act regarding the person, object or idea)  ALL VALUES ARE BELIEFS. BUT NOT ALL BELIEFS ARE VALUES.  Terminal Values: end state of existence that is personally&socially worth striving for for example, harmony, peace and equality. An instrumental value relates to the means by which one attempts to achieve terminal value, for example honesty, forgiveness, love, open minded are instrumental values. These values establish the core components of an individuals cognitive system which are used to collect, interpret, and respond to external stimuli.  Adolf Hitler’s end value: social recognition, security and power. His instrumental values would be ambition and obedience for example.  LINGUISTIC DISTANCE. PROVES USEFUL to marketing segmentation and strategic entry decisions, crossing “wider” language differences increases transaction costs. Singular for of “you” where as in chinese theres ni, nin and nimen. Ignoring social context and status.  FACTUAL KNOWLEDGE: different meanings of colors, different tastes (spicy, salty, sweet, sour), cultural symbols; and other traits native to a culture that marketers can anticipate, study and absorb. INTERPRETIVE KNOWLEDGE: ability to … for example meaning of time (different across cultures), attitudes toward other people and certain objects  Cultural imperatives: a country’s customs that must be accommodated (be met or avoided) to ensure business success. For example: guanxi in China. Imperative in one country might not be the case in another. Eg prolonged eye contact). Cultural electives: customs to which adaptation is useful but not necessary (drink alcoholic beverages, greet someone with kisses or bow in Japan/Korea) however doing so can be seen as a gesture of goodwill. Cultural exclusives: foreigners must carefully refrain from participating in those that are reserved. Foreign managers need to be perceptive enough when they are dealing with these factors and have the adaptability to respond to each. Impacts on business relationships and broader marketing applications.  Each language can reveal unspoken attitudes and information.  M-Time: monochromic, most low context cultures operate m time. P time: ….. Chapter 5 The Economic and Technological Environments  Marketers must understand consumer attitudes, preferences and past habits in order to cater to their needs and wants.  Adam Smith-Absolute Advantage: countries produce products for which they have a cost or resource advantage.  David Ricardo-Comparative Advantage: why certain countries focus on certain products and not others; opportunity cost. Countries should produce goods which they possess a comparative advantage, not sol
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