Global Marketing Exam 2

Major Companies as service providers in third-party supplier audits

• Major firms hire large, specialized firms to independently evaluate their suppliers, used to give unbiased verification that a supplier is trustworthy

• These companies perform audits for safety, quality, compliance, etc. 

  • Ex- SGS, Bureau Veritas, Intertek

Fair Trade

• System that promotes fair wages and ethical working conditions for producers in developing countries 

  • Workers rights, environmental sustainability, etc

• Products with the Fair Trade Label meet standards 

Balance between Centralization and Empowerment for SBU’s Overseas

• SBU- Strategic Business Unit, a division of a company that operates like its own mini business 

• Centralization: headquarters keeps control of major decisions to ensure consistency

• Empowerment for SBU’s: get decision making freedom to adapt to customers and culture 

  • Maintains global standards while allowing flexibility 

Franchising internationally

• Pros: rapid expansion, brand presence grows fast, lower risk for the franchisor, local market knowledge

• Cons: loss of control, consistency issues, cultural/legal complexities, franchisee selection risk

cultural differences

supply chain and logistics

foreign exchange risks

political risks

IP protection

Ways to ensure consistency/quality across Franchises 

• Standardization: detailed and clear operations manuals, standard training programs, very clear brand guidelines

• Monitoring: regular audits (scheduled and surprise), tracking KPI’s across stores

• Continuous and ongoing training 

• Supply Chain Control: approved or centralized suppliers to ensure products are uniform, required use of certain equipment 

• Communication and regular meetings

Company Exit Strategies: ways to get rid/sell a company

• Resale: owner sells the business to an individual or another company

  • Often used when the owner wants to retire or just move on 

  • Buyer takes over everything

• MBO (Management Buyout): existing management team buys the company from the owner 

  • Good for when the managers know the company and want more control

  • Normally keeps employees, easy transition 

• IPO (Initial Public Offering): company sells shares to public on a stock exchange

  • Allows founders to slowly cash out

  • Good for large, fast growing companies 

• Merger or Acquisition

• Liquidation 

Certifications for Foreign Market Entry

• Social Responsibility: 

  • SA8000: ensures ethical labor practices

  • Fair Trade Certification: fair wages and ethical sourcing 

• Quality/Safety:

  • ISO9001: most common, quality management system

  • ISO14001: environment management system 

  • ISO22000: food safety standards (CRITICAL)

• Religious Foods: 

  • Halal certification: required in majority-Muslim markets

  • Kosher certification: for Jewish-majority markets 

• Organic Foods:

  • USDA Organic: organic standard in US

  • EU Organic Certification: required for Europe organic food

FSC (Forest Stewardship Council)

• international certification that ensures wood, paper, and forest products come from responsibly managed forests

  • Environmental protection, sustainable harvesting, etc. 

HACCP (Hazard Analysis and Critical Control Points)

• food safety management system used worldwide 

  • Identifies biological, chemical, and physical hazards in food production

  • Finds potential hazards and sets critical control points

FEMA-GRAS: Flavor and Extract Manufacturers Association - Generally Recognized as Safe

• List of food flavoring and extracts that are considered safe for use in food, mainly used in the US

IFRA: International Fragrance Association

• Sets safety standards for fragrances used in perfume, cosmetics, candles, and other household products

• Limits and restrains certain fragrance ingredients 

Compliance Issues for US Companies in Europe: 

• Data protection and privacy (GDPR)

• Employment and Labor laws: strong worker protections in EU

• Product safety and standards 

• Environmental regulations are stronger

• Antitrust Laws for monopolistic behavior

also

Corporate Sustainability Due Diligence Directive

EU Whistleblowing Directive

EU Regulation on AI

Anti-corruption obligations in France

CE Mark

• mandatory mark for many products sold in the EU

  • Shows that product meets safety, health, and environmental standards 

  • NOT a quality mark, its a LEGAL compliance mark 

    • Without this mark, products cannot be legally sold in the EU

products covered: toys, electronics, watches, eyewear, machinery, bikes, medical devices, construction materials, AC adapters, LED lighting products, PPE, measuring instruments, elevators

Etiquette in Japan

• Daily: overly polite, quiet in public spaces, remove shoes when entering home, waiting in line is orderly, no PDA, no pointing 

• Food: no tipping, slurping is okay, don’t point with chopsticks

• Social Life: personal space, very punctual, gift giving is common

• Onsen (Hot springs): no swimsuits, quiet, no cameras or phones

• Tattoos: associated with organized crime, many places restrict tattoos unless they are covered

Regional Differences in Japan

• Kanto: includes Tokyo, formal, fast paced, darker flavors, urban

• Kansai: Osaka/Kyoto, friendly, relaxed, lighter cuisine

Corporate Culture (Meetings)

• being early is expected, meetings are formal, polite, and structured, sit according to seniority, bow, people avoid direct communication, long duration and slow pace

Popular Retail Methods

• Lucky Bags (Fukubukoro): customers don't know exact content, popular around New Years

• Gentai (limited editions): sold only during certain seasons or holidays, drives impulse buying

• Pop Up Shops: used short term for testing new products

CCC Certification

• China Compulsory Certification

• Mandatory safety/quality certification for many products sold in China

• Products must be tested in approved Chinese labs with factory inspections

• Without this, products cannot be sold/imported into China 

ASEAN Cuisine and Etiquette:

• Some staple foods include rice, noodles, coconut milk, herbs, chili, and fish sauce/pase

• agricultural products: jasmine rice, sticky rice, organic pepper, tropical fruits

• manufacturing products: steel, scrap metal

• Some areas are Muslim (Brunei, Malaysia): cannot have pork or alcohol 

• Hindu (Bali): avoid beef

• More vegetarian options as well because of the Buddhist influence

• Meals are shared family style

EMS Chain (Electronics Manufacturing Services Chain)

• process of outsourcing electronics production to specialized manufacturers

  • Reduces costs and speeds up production

  • Major EMS Firms: Foxxcon, Flex, Pegatron

  • Brand Loyalty: EMS has to provide consistent quality and fast production so it doesn't damage brand trust

Digital Nomad

• someone who works remotely while traveling or moving 

  • How to monetize this living style: remote work or freelancing, online businesses, content creation, investing or passive income, endorsement, online travel agency partnership, partnering with short term rental platforms

important people: Steven K Roberts, Rolf Potts

Leaderless Group Distribution (LGD)

• group discusses topics together without a designated leader to observe leadership potential and teamwork 

Ways to show leadership: initiate conversations, organize ideas, encourage participation, conflict resolution

Issues: group conflict, problem analysis, decision making, participation, keeping on track, group organization

Outsourcing industry in India

• India is a global leader in tech outsourcing due to the skilled laborers at a lower cost 

• India handles call centers and customer support for a lot of global clients 

Staffing Service

• provides workers to companies, helps scale workforce quickly

  • International Giant Agencies include Adecco, Randstad, Kelly Services, Robert Half

  • Gives access to pre screened and qualified candidates 

Consultant workflow and delivering quality candidates

understand client needs, source candidates, screen and shortlist, client presentation, placement

CITES I

• highest protection level, commercial trade of these species is prohibited

  • Need export and import permits 

CITES II

• not threatened species but require controlled trade

  • Import permit not required for a lot of countries 

Short Term Rental Platforms/Two Sided Market

short term rentals are digital marketplaces that connect hosts (supply) and guests (demand)

two sided market because platform creates value through interactions btwn 2 diff groups

In the article What the War on Tourism Gets Wrong, balancing tourism’s econmic benefits against local backlash/regulation is main point

Short term rentals increase access and choice for visitors and can boost tourist spending

But criticized for negative local impacts— reduce long term housing supply and raise rents for residents

Japan Promotions in the street

Marketing in public spaces to influence tourist behavior

signage, staff, mascots, information booths

guide tourists, promote destinations, enhance visitor experience

Japan Convenience Store Operation

Konbini

high frequency, fast inventory turnover, localized product innovation, expanded non-retail services (banking, postal, bill pmts)

24 hour inventory replenishment (sell fresh, ready to eat foods)

7/11, Lawson, FamilyMart

Minimalism in fashion Products in Japan

simplicity, functionality, neutral colors, high quality materials

Uniqulo and MUJI

value over trendiness

less labels/no brands

Insight from YKK, Huhtamaki, Tetra Pak

YKK: zipper production

Huhtamaki: mistaken for Japanese brand, focus on sustainable food packaging

Tetra Pak: known for liquid food packaging solutions— aseptic cartons

all have a B2B focus

driven by operational excellence, sustainability, and integrated solutions over consumer branding

Marketing to China and Retailing Strategies in East Asia

emphasize mobile-first commerce, speed, and integrated digital-physical experiences

Mobile Payment: default transaction method, Alipay, WeChat Pay

QR Codes: link physical retail to digital platforms; QR codes across the city to scan for jobs, gifts, beggars, dog finder, tracking data, installing apps, offline pmts

Same Day Delivery: expectation in major urban markets

Singles Day: large scale shopping events, platform driven promotions, shape consumer behavior

China’s Lova Affair with Luxury Has Cooled

luxury market slowing due to weaker economy, higher prices, shifting consumer values

consumers moving toward experiences, fitness, cost-effective and local brands

Temu, Shein, and Tiktok Shop’s Emerging Power

Temu electronics, Shein apparel, TikTok shop beauty

Amazon still top retailer but rising competition led to a dip in market share

rapid growth due to extremely low pricing— low commission fees compared to amazon

Major in-store displays including islands and endcaps at a retailer

islands, encaps, floor stands, ceiling displays

high visibility merchandising tools used by retailers to drive impulse purchases and increase sales

placed off the shelf in high traffic areas

usually temporary, branded, and promotional

ex: Kraft’s Parmesan Tower, Tropicana’s cold juice display, Nestle’s modular sampling stations, Frito-Lay’s SkyBox ceiling displays

Apps-Enabled Economy in ASEAN

high mobile penetration, growing middle class and digital consumers, digital payment and fintech integration, government and infrastructure support

major sectors driven by apps: rides and transportation, food deliver and ecommerce, financial services, healthcare and education

Local e-commerce equivalents of Amazon and their logistic partners for courier services

Most ASEAN countries rely on a mix of regional giants like Shopee and Lazada and homegrown platforms (Tokopedia, Tiki, Sendo), with logistics handled either by national postal services or private couriers like J&T Express, Kerry Express, GrabExpress, Ninja Van, Lalamove, GDEX, and Pos Malaysia

International Streaming Services vs Bollywood

Streaming Services: Netflix, Amazon Prime, Disney+; global content, subscription service, urban and young audience, OTT (over the top) apps

Bollywood: Hindi films, star driven, culturally rooted, theatrical releases, mass Indian audience

streaming is growing in India and Bollywood films are being released on streaming

streaming can tap into an indian market and co-produce with Bollywood

Bollywood can increase global reach and streaming revenue

How can Netflix, Hulu, and others better serve various regions of India

Produce shows/movies in regional languages with local cultural content

tailor storylines, humor, and social themes to resonate with local audiences

incorporate local actors, directors, folklore, traditions

introduce affordable subscription models

As a boss/company, how can you ward off competitors/recruiting agencies from poaching talented employees?

competitive compensation and benefits

provide career growth and development

have strong company culture an engagement

non-compete and retention agreements

conduct regular feedback sessions, promote open communication

build a reputation as a desirable place to work

Strategies for managing international sales teams

recruit locally when possible

relocate with cultural and personal support

adapt incentives to local values

flexible work policies for work-life balance

regional sales hubs with local autonomy

regular cross-cultural training and integration

wellness and social integration support

Recreational Fishing in the jungles of the Amazon River

High value adventure tourism targeting US/EU tourists

fishing for peacock bass and Arapaima fish

main access via Manaus Brazil

best season is dry season (June-Nov) when low waters concentrate fish

Brazilian Tropical Fish import/export business

large scale ornamental fish industry that captures and exports colorful, small species from the Rio Amazonas

Key export hub is Belem, Brazil

huge global business that supports major international aquarium equipment, food, and plant brands (EHEIM, FLUVAL, Hikari, Tropica)

business requires well-maintained export facilities, precise management of water parameters (pH, temp), and strict adherence to CITES I and CITES II

Air cargo procedures for importing tropical fish

	Time-Sensitive Logistics governed by IATA Live Animal Regulations (LAR) to minimize stress and mortality of live shipments.
	Packaging (Critical Step):
	1. Preparation: Fish are fasted (24-48 hrs) to reduce waste/ammonia buildup.
	2. Bags: Double/triple-layered plastic bags filled with 1/3 water, 2/3 pure oxygen.
	3. Container: Bags placed inside Styrofoam/Expanded Polystyrene (EPS) boxes for thermal insulation (temp range: 26°C–30°C), then sealed in a durable outer cardboard box.
	Required Documentation (High Regulation):
	1. Air Waybill and Shipper's Certification for Live Animals.
	2. Veterinary Export Health Certificate from the country of origin (e.g., Brazil).
	3. CITES Permits (I or II) for protected species, ensuring legal acquisition.
	Goal: Maximize fish density while maintaining high survival rate (must survive unattended for at least 48 hours).

Using Social Media for International Promotions

Core strategy: shift from owned media to creator led marketing

creator content drives 12x more impressions and 17x more engagement

works bc its a content first approach where brands leverage local creators to ensure cultural resonance and viral reach across borders

key platforms: insta, tiktok, youtube

top trends: short form video most effective, AI integration, creators consider sustainability/ethics before partnering

Holiday Marketing, demand spikes, and overseas warehousing

Holiday Marketing: promotions and campaigns timed with holidays/events to boost sales

Demand Spikes: short term surges in purchases; manage w/ forecasting, extra inventory, dynamic pricing

Overseas Warehousing: store inventory near target markets for faster delivery; ex: Amazon FBA handles storage, packing, shipping, and customer service

align marketing, inventory, and logistics to maximize sales and customer satisfaction during peak seasons

Insights on pet industry and relevant marketing

valued at $260 billion in 2024

driven by humanization of pets

demand for specialized wellness products

online sales are main growth driver led by platforms like Chewy

Omnichannel is key— major retailers blend physical services with a strong online presence

marketing strategies: focus on pet-owner bond, pet comfort, leverage pet influencers and user generated content, invest in customer service to foster emotional loyalty, position brand as trusted resource

Break-even analysis

financial tool to determine sales value or revenue needed to cover total costs

at BEP, profit = 0

helps businesses set prices, plan production, and assess risk

pitfalls: assumes linear costs/revenues, ignores market conditions, simplifies product mix, doesn’t consider seasonal changes, time value of money, or dynamic cost, excludes qualitative factors

Lingua franca and major languages for enabling Intl business

Lingua franca: a language that is adopted as a common language btwn speakers whose native languages are different

major languages: english, mandarin, spanish, french, arabic

other key business languages: portuguese, german, japanese

Cultural Influences on Product: Individualism vs Collectivism

individualism: personal achievements, individual rights, self-expression, uniqueness; products are modular and customizable

collectivism: family, community, group harmony, shared cultural values, deep sense of belonging; products resonate with traditional designs and can accomodate communal gatherings

individualistic countries: US, Germany, most western European nations

collectivist countries: China, Mexico, India, many parts of Africa

in the middle: Spain

Brands, colors, and the color industry

color influences perception, recognition, and emotion

strong brand color association increases recall and loyalty ex: Coke → red, Tiffany → blue

Pantone color system: standardized color reproduction system used globally, announces color of the year

Counter-sample of colored products: products or packaging presented in multiple color variations to test consumer preferences and market appeal, ex: apple releasing iphones in multiple colors

Coloring agents: add/modify color in products

Brand names in Intl Contexts: color and brand names carry cultural meanings; ex: white = purity in west, black = luxury in fashion

EAN Country Codes

country digital for the major exporting countries

barcode used worldwide to uniquely identify products

first 3 digits is country code

Barcode Design Process

determine what barcode will be used for

assign unique product number

design barcode layout

validate and test

integrate with packaging and systems

print and monitor

Country of Origin

nation where product is grown, manufactured, processed

In netherlands, called BV

Opportunities and threats from fast fashion

Opportunities: rapid market response, affordable products, global expansion, increased revenue potential, digital and social media leverage

threats: environmental impact, ethical concerns, brand reputation risk, high competition, inventory and quality issues

Sweepstakes Pros/Cons

Pros: Low media cost due to peer-to-peer sharing, Wide reach if consumers actively forward the offer, Encourages engagement and word-of-mouth

Cons: low control over message accuracy, can feel like spam, rewards are delayed decreasing motivation

Explicit Discounting Pros/Cons

Pros: easy to understand, immediate sales boost, effective for price sensitive consumers

Cons: trains consumers to wait for discounts, erodes brand value and margins, difficult to stop once started

Implicit Discounting Pros/Cons

Pros: maintains original price perception, incr perceived value, less damaging to brand image than price cuts

Cons: higher production and packaging costs, consumers may delay purchases waiting for extra, not effective for premium brands long term

Mix and Match Bundles Pros/Cons

Pros: Encourages trial of multiple products, Increases basket size, Helps clear slow-moving inventory

Cons: Lower margins, Complex inventory management, Risk of cannibalizing individual product sales

Cause-Related Discounting Pros/Cons

Pros: Builds positive brand image, Appeals to socially conscious consumers, Differentiates brand beyond price

Cons: Skepticism about authenticity, Less effective if cause isn’t credible or relevant, Donations reduce profits

GIfts (In-pack, on-pack, at counter) Pros/Cons

Pros: Increases perceived value, Drives impulse purchases, Effective for family/child segments

Cons: High costs (gift sourcing, packing, POP, labor), Retailers may resist due to space constraints, Weak brands gain limited long-term benefit

Games Pros/Cons

Pros: High engagement, Builds brand interaction and excitement, Encourages repeat purchases

Cons: Complex to manage, Participation rates can be low, Can distract from core product benefits

Cash-back Promotions Pros/Cons

Pros: Strong purchase incentive, Encourages higher volume buying, Flexible (single, multiple, joint, accumulating)

Cons: High administrative and advertising costs, low redemption rates reduce perceived fairness, Long promotion duration reduces urgency

Certificates and Coupons Pros/Cons

Pros: Targets price-sensitive segments, Easy to track redemption, Supports co-marketing efforts

Cons: Often ignored (especially inserts), Low redemption rates, Can cheapen brand image

Free Sampling Pros/Cons

Pros: “Try before buy” builds trust, Effective for new products, Encourages immediate trial and feedback

Cons: High operational and staffing costs, Limited reach, Requires careful retailer coordination

Fukubukuro

Japanese lucky bags/mystery bags sold by retailers during New Years

AQL

Acceptance Quality Limit

used for inspecting product quality in international purchasing

Brand Names

in any culture: easy to pronounce, easy to write, easy to remember, free from bad meaning

in cross-cultural contexts: free from bad interpretations, appropriate in target culture, free from infringement, protectable by local laws

EAN Country Codes for Major Exporting Countries

USA and Canada: 00-13

Germany: 400-440

Japan: 45 + 49

China: 690-695

Brazil: 789-790

Netherlands: 87

Identifying a company’s COO

SND BHD = Malaysia

GmbH & AG= Germany/Austria

SA & SARL: France, Italy, Spain

BV/NV: Netherlands

A/S: Denmark

SPA: Italy

PLC: England

AB/OY: Finland and Sweden

SA de CV: Mexico

KK/YK: Japan

PT/TBK: Indonesia

Pte/PVT/PTY: Singapore/Australia

Overseas warehouses vs bonded warehouses & FBA

bonded: storage of goods in a warehouse not subject to duties in bonded area; can save a lot on costs

overseas: store domestic goods in overseas OR store foreign goods in domestic
FBA: Fulfillment by Amazon; can outsource order fulfillment to Amazon and offer customers free two day shipping through prime

Which organization is a major firm that provides independent, third-party supplier audits for safety, quality, and compliance? a) Foxconn b) Adecco c) SGS d) Tetra Pak

C) SGS

The ISO 22000 certification is a critical standard related to what area? a) Environmental management b) Quality management systems c) Food safety d) Fragrance ingredients

C) Food Safety

What is the core function of an Electronics Manufacturing Services (EMS) firm like Foxconn or Flex? a) To design and market their own consumer electronics. b) To provide staffing services for technology companies. c) To handle outsourced electronics production for other brands. d) To develop software for electronic devices.

C) To handle outsources electronics production for other brands

Shopee and Lazada are identified as regional giants in which sector within ASEAN countries? a) Electronics Manufacturing Services b) Ride-sharing and transportation c) E-commerce d) Telecommunications

C) E-commerce

An IPO (Initial Public Offering) is an exit strategy best suited for: a) Small family businesses seeking to remain private. b) Companies that are ceasing all operations. c) Owners who want to sell directly to their management team. d) Large, fast-growing companies seeking to raise capital and allow founders to cash out

D) Large, fast growing companies seeking to raise capital and allow founders to cash out

The Electronics Manufacturing Services (EMS) Chain involves outsourcing electronics production. Which of the following is a major EMS firm? A) SGS B) YKK C) Pegatron D) MUJI

C) Pegatron

What is a primary objective of using an EMS provider like Foxconn or Flex? A) To gain control over intellectual property. B) To reduce production costs and speed up time-to-market. C) To access new consumer markets directly. D) To manage marketing and social media campaigns.

B) to reduce production costs and speed up time-to-market

In the ASEAN region, what platform is considered a regional e-commerce giant, equivalent to Amazon? A) Tiki B) Sendo C) Tokopedia D) Lazada

D) Lazada

A product with a barcode beginning with the digits "402" would most likely originate from which country? A) China B) Japan C) Brazil D) Germany

Germany

In Malaysia, what abbreviation is used to denote a limited liability company? A) GmbH B) SND BHD C) SA de CV D) KK

B) SND BHD

What is the ISO22000 certification specifically for? A) Environmental management systems. B) Quality management systems. C) Food safety standards. D) Ethical sourcing and fair wages.

C) Food safety standards

According to the source, what is a key driver of the apps-enabled economy in ASEAN? A) A decline in traditional retail stores. B) Strict government control over the internet. C) High mobile penetration and a growing middle class. D) A cultural preference for Western entertainment.

C) high mobile penetration and a growing middle class

Which certification is specifically designed to ensure ethical labor practices, including prohibiting child labor and protecting workers' rights?

SA8000

What is the EAN (European Article Numbering) Country Code range for products exported from China?

690-695

Which legal abbreviation is commonly used to identify a company's Country of Origin as Indonesia?

PT/TBK

A product label shows an EAN (European Article Numbering) Country Code of '87'. Which country is the product's Country of Origin most likely to be?

Netherlands

A global company is identified by its legal structure abbreviation, 'KK/YK'. This indicates the company's Country of Origin is:

Japan

Which company, alongside SGS and Bureau Veritas, is listed as a major, specialized firm hired to provide unbiased, third-party verification of a supplier's trustworthiness for safety, quality, and compliance?

Intertek

Which EAN (European Article Numbering) Country Code is specifically assigned to products originating from Brazil?

789-790

What is the key legal abbreviation used to identify a company's Country of Origin as Finland and Sweden?

AB/OY

What are Japan’s EAN code(s)

45 and 49

What is the purpose of the ISO 9001 certification? a) To certify a company's environmental management system b) To certify a company's quality management system c) To certify food safety standards d) To certify that products come from responsibly managed forests

B) To certify a company’s quality management system

5. One of the major cons of international franchising is the risk associated with: a) Slow market entry b) Over-investment in physical assets c) Franchisee selection d) Excessive corporate oversight

C) Franchisee selection

The barcode design process begins with: a) Assigning a unique product number b) Determining what the barcode will be used for c) Designing the barcode layout d) Printing and monitoring the barcode

B) Determining what the barcode will be used for

Which promotional tactic has the potential con of "cannibalizing individual product sales"? a) Free sampling b) Certificates and coupons c) Mix and Match Bundles d) Cause-related discounting

C) Mix and match bundles