Chapter 16-19 Int Mkt (Chatgpt Generated)

What are the key components of IMC?

Advertising, sales promotions, trade shows, personal selling, direct selling, public relations.

What is the goal of IMC?

To achieve synergies across communication efforts.

What is sales promotion directed toward, and what are examples?

Consumers or retailers; examples include advertisements, direct selling, sampling, and sweepstakes.

What are encoding errors in marketing?

When symbols used in messages send unintended or confusing signals.

What are decoding errors, and give an example?

Misunderstanding the message due to poor encoding or incorrect assumptions. Example: Pepsi’s "Come Alive" interpreted as "Come out of the grave."

What is a "linguistic hiccup"?

When a brand name or phrase has unintended or offensive meaning in another language (e.g., Mercedes "Bensi" meaning “rush to die” in Chinese).

What is “psychological overlap”?

Shared understanding and context between sender and receiver, important for effective communication.

Why is the salesperson important in international selling?

They are the company’s direct tie to customers and the final link in marketing and sales efforts.

What are the three sources for recruiting international salespeople?

Expatriates, local nationals, and third-country nationals.

What are two advantages of using expatriates?

Greater technical training and better knowledge of company/product line.

What are two disadvantages of using expatriates?

High cost and cultural/legal barriers.

What is a virtual expatriate?

A salesperson who manages foreign operations remotely using digital communication tools.

What are advantages of using local nationals in sales?

Better knowledge of local business structure and culture; lower cost.

Why is training important for international marketing?

Because training must be adapted to the cultural and role-specific needs of the personnel.

How does culture impact pricing?

In high power-distance cultures, consumers are less price-sensitive and rely on price as a quality indicator.

What are two pricing objectives?

As an active instrument to achieve goals (e.g., profits) or a static element (e.g., moving excess inventory).

What is full-cost pricing?

Every unit bears its share of fixed and variable costs; used when variable costs are high.

What is variable-cost pricing?

Focuses on marginal costs for international sales; used when fixed costs are high and there is extra capacity.

What is skimming pricing?

Charging a premium price to a segment willing to pay more; common in markets with rich and poor segments.

What is penetration pricing?

Setting low prices to gain market share; may be considered “dumping.”

What are tariffs and how do they impact pricing?

Special taxes on imports that increase costs and may provoke counter-tariffs.

What should be avoided when preparing for international negotiations?

Relying on cultural stereotypes.

What factors affect negotiation beyond culture?

Individual personalities, backgrounds, and communication styles.

Why are cultural differences challenging in negotiations?

They affect language, nonverbal cues, values, and decision-making styles.

What is the difference in concession styles between Americans and other cultures?

Americans make concessions early; others often wait until the end.

How should concessions be made in high-context cultures?

In ways that allow the counterpart to save face.