Global Marketing and Trade W4-W7

What is the Deliver phase in Supply Chain Management?

The Deliver phase involves order management, transportation, and distribution to ensure products reach customers efficiently.

What are the key components of the Deliver phase?

Order processing, warehouse management, transportation, and last-mile delivery.

What are common challenges in the Deliver phase?

Delays, high transportation costs, inventory mismanagement, and inefficient logistics.

How can technology optimize the Deliver phase?

Through tracking systems, automated warehouses, and AI-driven logistics planning.

What are Place decisions in marketing?

Place decisions refer to how and where a product is distributed to customers, ensuring availability.

What are different distribution strategies?

• Intensive: Products available in many locations (e.g., soft drinks).

• Selective: Limited availability in certain stores (e.g., designer clothes).

• Exclusive: Available in very few locations (e.g., luxury watches).

What factors influence Place decisions?

Market demand, distribution costs, competitor strategies, and logistics infrastructure.

What is the role of intermediaries in distribution?

They facilitate the movement of goods through wholesalers, retailers, and distributors.

What are the main pricing strategies?

• Cost-based pricing: Price set based on production costs + profit margin.

• Value-based pricing: Price set based on perceived customer value.

• Competition-based pricing: Price set according to competitors.

What is price elasticity of demand?

• A measure of how sensitive demand is to price changes. Elastic demand means small price changes affect sales significantly.

What is penetration pricing?

• A strategy where a low price is set initially to gain market share and later increased.

What is price skimming?

• A strategy where a high price is set for early adopters and lowered over time.

What is the promotional mix?

• The combination of advertising, sales promotion, personal selling, public relations, and direct marketing.

What is the difference between push and pull marketing?

• Push: Promoting products through channels (e.g., retailers, wholesalers).

• Pull: Direct marketing to consumers to generate demand.

What is Integrated Marketing Communication (IMC)?

A coordinated approach ensuring all promotional efforts convey a consistent message.

What are common promotional tools?

Discounts, loyalty programs, influencer marketing, and content marketing.

What is field execution in market research?

The process of collecting data through direct observations, surveys, and interviews.

What are common data collection methods?

• Surveys

• Focus groups

• Observational research

What is observation research?

A method where consumer behavior is studied in real-world settings without direct interaction.

What are challenges in field execution?

Sampling errors, biased responses, and logistical difficulties.

What is the goal of analysis in market research?

To interpret collected data and extract actionable insights.

What are common data analysis techniques?

• Qualitative analysis (thematic, narrative)

• Quantitative analysis (statistical tests, trend analysis)

What should a good research report include?

• Executive summary

• Research methodology

• Key findings

• Recommendations

What is globalization?

The increasing interconnectedness of economies through trade, investment, and technology.

What are the main drivers of globalization?

• Advances in transportation and communication

• Trade liberalization

• Growth of multinational corporations

What are the benefits of international trade?

• Access to larger markets

• Lower production costs

• Greater variety of goods for consumers

What is the WTO (World Trade Organization)?

An international organization that regulates global trade to ensure fair practices.

What are common risks in international trade?

• Political risk (e.g., sanctions, instability)

• Economic risk (e.g., inflation, exchange rate fluctuations)

• Legal risk (e.g., contract enforcement, intellectual property laws)

• Logistics risk (e.g., supply chain disruptions, shipping delays)

How can businesses mitigate trade risks?

• Using hedging strategies for currency risks

• Diversifying supply chains

• Establishing strong legal contracts

Break-Even Point (determines number of units)

Fixed Cost / (Price per Unit - Variable Cost)

Profit Margin = profitability as percentage of revenue

(Net Profit / Revenue) x 100

ROI

(Net Profit / Investment Cost) x 100

Contribution Margin = amount available to cover fixed costs and generate profit

Sales Revenue - Variable Costs

NPV = Net Present Value = profitability of investment over time

(Ct / (1 + r)^t) - C0

Ct = Cash flow year t
C0 = initial investment
r = Discount rate

Cash Flow

Total Cash Flow - Total Cash Outflow