exam 4 international marketing

A comprehensive set of flashcards focusing on key concepts related to global product and branding strategies.

Tangible value

The physical, measurable part of a product, such as features, quality, performance, durability, size, or materials.

Intangible value

The non-physical aspects that influence how a product makes you feel, such as confidence, pride, status, or trust in the brand.

Convenience goods

Products bought with little thought or effort, such as snacks or toothpaste.

Shopping goods

Products compared before buying based on price, quality, and style, like clothes or smartphones.

Specialty goods

Products that customers actively seek out, often luxury or unique, such as Rolex or Tesla.

Product classifications

Categories like convenience, shopping, and specialty that influence marketing decisions.

Packaging value

Ways packaging adds value: protecting the product, communicating brand meaning, and creating recognition.

Labeling importance

Essential in global markets for following local laws, showing correct info, and influencing perceptions.

Aesthetics in product decisions

The look and feel of a product, including colors, shapes, and design style, which can vary culturally.

Brand definition

The entire experience and meaning attached to a name or logo.

Good brand benefits

Offers a promise of quality, consistency, easier decision-making, and trust connected to the brand.

Brand image

The overall impression and feelings people associate with a brand.

Brand equity

The long-term value and strength of a brand in the market, viewed as an invisible asset.

Local brand

A brand that primarily operates in one country or local market.

International brand

A brand sold across multiple countries, often within a region.

Global brand

A brand with a consistent core image and message across many countries worldwide.

Powerful global brand traits

High quality, inspiring global myths/stories, and social responsibility.

Country-of-origin effect

Consumer judgments about products based on their country of origin.

Country of origin benefits

Can add credibility and allow for higher pricing if associated with quality.

Country of origin drawbacks

Negative stereotypes may reduce willingness to buy a product.

Dual extension in marketing

Using the same product and communication/message in all markets.

When dual extension works best

When customer needs and product usage are consistent across countries.

Product extension with adaptation

Same product but different advertising/message for local culture.

Product adaptation with same message

Modified product for local needs but core brand message remains unchanged.

Dual adaptation

Changing both the product and message for each market.

Product innovation definition

Creating a new product designed for a market with unmet needs.

Standardization benefits

Saves costs and keeps a strong global identity.

Why adapt products/messages

To align with local culture, regulations, tastes, and expectations.

Levels of innovation

Continuous, dynamically continuous, and discontinuous innovations.

Continuous innovation

A small change or improvement to a product.

Dynamically continuous innovation

A significant update to a product that changes its function but not its concept.

Discontinuous innovation

A completely new product that transforms consumer behavior.

Price communication

Price indicates brand positioning (premium vs budget, exclusive vs accessible).

Price floor

The lowest price a company can charge without incurring a loss.

Price ceiling

The highest price customers will pay, based on perceived value.

Optimal price location

The price point between the floor and ceiling that maximizes profit.

Market skimming

Starting with a high price for early adopters and lowering it over time.

Skimming strategy usage

Effective when products are new, unique, or have limited supply.

Penetration pricing

Launching a product at a low price to rapidly gain market share.

Penetration pricing risk

Customers may become accustomed to low prices, complicating future increases.

Razor-and-blades model

Sell the main product cheaply, profiting from repeat purchases of related items.

Target costing

Setting prices based on what customers are willing to pay and designing accordingly.

Value-based pricing

Pricing set by the perceived value to customers rather than production costs.

Charging premium prices

Possible when special benefits or emotional value are communicated effectively.

Export price escalation

Increased costs for products sold abroad due to transport, tariffs, and intermediaries.

Reducing export price escalation

Possible by local sourcing, simplifying packaging, or redesigning logistics.

Currency fluctuations impact

A weaker currency makes exports cheaper abroad, while a stronger currency does the opposite.

Inflation effect on pricing

Rising costs may necessitate price increases; low inflation complicates justifying hikes.

Government regulations effect

Influence pricing through price controls, subsidies, and trade rules.

Competition influence on pricing

Drives firms to find efficient sourcing and adjust prices or differentiate value.

Ethnocentric pricing

Using a single global price irrespective of local market conditions.

Polycentric pricing

Each local market sets its own prices.

Geocentric pricing

Headquarters sets guidelines while local teams adjust prices within those rules.

Gray market definition

Unauthorized reselling of products bought in low-cost countries at higher prices.

Gray market problems

Cause loss of control over distribution and consistency in warranties.

Dumping definition

Selling products abroad at lower prices than domestically, often below cost.

Dumping controversy

Considered unfair competition and may lead to penalties.

Price fixing definition

Illegal agreement among companies to maintain high prices and limit competition.

Transfer pricing definition

Price for goods/services sold between a company and its subsidiaries.

Countertrade definition

Transaction where companies receive goods in exchange for products instead of cash.

Integrated Marketing Communication (IMC)

Coordinating all communication tools to ensure a consistent brand message.

IMC in global marketing importance

Prevents mixed messages across different countries and teams.

Communication mix tools

Advertising, promotions, digital media, sponsorship, and product placement.

Global advertising advantages

Cost efficiency and a stronger global brand identity.

Global advertising challenge

Cultural differences can lead to misunderstandings.

Standardization in communication

Using the same core message and ad across different markets.

Adaptation in communication

Modifying the message to fit local cultures.

Pattern advertising definition

One global concept adapted for different markets in execution.

Communication breakdown types

Message not received, misunderstood, unpersuasive, or lost in noise.

Rational appeal in advertising

Focus on facts, savings, and functional benefits.

Emotional appeal in advertising

Focus on feelings like joy, belonging, and comfort.

Creative execution styles

Straight sell, demonstration, comparison, story-based, and animation.

Art direction in advertising

Visual design elements that shape message interpretation.

Culturally safe visuals

Important to avoid offending or confusing audiences due to different interpretations.

Copywriting rules in global ads

Use simple language, short sentences, no slang, and ensure translatability.

Cultural expectations effect on ads

Influences interpretation of colors, gestures, and humor in advertisements.

Main global media categories

Print, electronic, digital & social media, and outdoor/transit.

Sales promotion purpose

To encourage immediate action through savings or value.

Consumer promotion tools

Sampling, discounts, premiums, and contests.

Trade promotion tools

Allowances, incentives, temporary price reductions, and display support.

Promotion overuse risks

Can lead to customer price expectations and brand devaluation.

Sponsorship definition

Brand support of events, teams, or causes for association.

Product placement definition

Brands integrated into movies or shows for visibility.

Outdoor and transit media definition

Ads displayed in public spaces and along transportation.