Global Marketing Management

These flashcards cover key concepts related to global marketing management, focusing on market entry strategies and planning processes.

What does piggyback exporting allow a company to do?

It offers some control over foreign operations by using the distribution channel of another company.

What is the first step in the global marketing planning process?

Selecting the target market.

What are indicator variables in the screening process?

Demand related, supply related, competition, and context variables driven by strategy goals.

What is an advantage of indirect exporting?

It provides instant foreign market expertise with low risk and low resource commitment.

What is a disadvantage of direct exporting?

It requires a significant resource commitment in both human and financial terms.

What are the advantages of licensing as a market entry strategy?

Low resource commitment, ability to enter markets with high import barriers, and low exposure to political/economic instability.

What is a major risk associated with franchising?

Low revenue and lack of control over franchisees’ operations.

What is a characteristic of joint ventures in strategic alliances?

They are collaborations between firms to share resources for mutual benefit.

What is an advantage of wholly owned subsidiaries?

Full control of operations and profits go entirely to the company.

What factor increases the risk associated with a market entry mode?

High resource commitment, as it can expose the company to greater political and economic risks.

What should companies consider about external factors when choosing a market entry strategy?

Political stability, legal requirements, competitive scenario, and local infrastructure.

What is the disadvantage of mergers and acquisitions in local markets?

Potential culture clashes and possible bad integration strategies.

What is localization in global marketing?

Launching local brands and sponsoring local events to be perceived as part of the community.

What are the advantages of indirect exporting?

allows companies to enter foreign markets with lower risk and cost, as they can leverage the expertise and resources of intermediaries, such as agents or distributors. It also enables access to established distribution networks and customer bases.

What is a disadvantage of indirect exporting?

the lack of control over marketing and sales strategies, as intermediaries may not align with the exporting company's goals and may not represent their brand effectively.

What are contractual agreements in international business?

legally binding contracts between parties in different countries that outline the terms and conditions of business arrangements, including licenses, franchising, and distribution agreements.

What are strategic alliances?

Strategic alliances are partnerships between companies from different countries that collaborate on shared objectives while remaining independent, allowing them to leverage each other's resources and capabilities to achieve goals.

What are wholly owned subsidiaries?

Wholly owned subsidiaries are companies that are completely owned by a parent company, allowing full control over operations and strategy in foreign markets.

What are greenfield operations?

the establishment of a new business facility from the ground up in a foreign country, allowing for complete control over the design, operations, and management without the constraints of existing structures or processes.

What are mergers and acquisitions?

Mergers and acquisitions (M&A) are strategic moves where companies consolidate through the purchase of another company (acquisition) or combine to form a new entity (merger), aiming to enhance competitive advantage, expand market reach, or achieve synergies.