Integrated Marketing Communications and International Business Negotiations

Flashcards covering key concepts from lectures on Integrated Marketing Communications, International Sales, Pricing Policies, and International Business Negotiations.

Integrated Marketing Communications (IMC)

A strategy focused on achieving synergies in advertising, sales promotions, trade shows, personal selling, direct selling, and public relations.

Encoding Error

In IMC, when symbols used send an unintended message due to self-reference criteria or inappropriate media channels.

Decoding Error

Occurs when a message is poorly encoded, misunderstood due to incorrect knowledge, meaningless to the receiver, or garbled due to poor media selection.

Psychological Overlap

Refers to the shared understanding and cultural context between the sender and receiver that impacts the effectiveness of communication.

International Selling (B2B)

Focuses on importance of salesperson as the final link and most direct tie a company has to its customers in marketing and sales efforts.

Expatriates

A person living away from their home country, often used in international sales to provide technical knowledge and dependability.

Local Nationals

Sales personnel who are citizens of the foreign country, offering advantages like knowledge of local business structures and cultural adaptation.

Third-Country Nationals

Individuals from a country that is neither the home country nor the host country, serving as intermediaries in international sales.

Virtual Expatriates

Sales force that operates internationally using communication technology, allowing management of operations without relocation.

Full-Cost Pricing

A pricing strategy where each unit bears its full share of total fixed and variable costs, suitable when variable costs are high relative to fixed costs.

Variable-Cost Pricing

A pricing strategy focused only on the marginal or incremental cost of producing goods sold overseas, ideal when fixed costs are high and there is unused production capacity.

Skimming Pricing

A pricing strategy used to reach a price-insensitive market segment willing to pay a premium.

Penetration Pricing

A strategy of offering products at low prices to capture market share.

Dumping

Selling products in a foreign market at a lower price than in the exporter's home market.

Tariffs

Special taxes levied to protect a market or increase government revenue, often discriminating against foreign goods.

Cultural Stereotypes in Negotiation

Recognizing that negotiations occur between individuals, not stereotypes, and behavior is influenced by personal background as well as culture.

Concessions and Agreement (International Negotiations)

Understanding that differences in decision-making styles (sequential vs. holistic) affect how concessions are made, with high-context cultures structuring concessions to allow counterparts to save face.