MKTG 4820 Exam 1 Study Guide

MKTG 4820 Exam 1 Study Guide - International Marketing Exam...

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International Marketing Exam # 1 – Study Guide Chapter 1 Globalization and its implications o Refers to the increasing unification of the world's economic order through reduction of such barriers to international trade as tariffs, export fees, and import quotas. The goal is to increase material wealth, goods, and services through an international division of labor by efficiencies catalyzed by international relations, specialization and competition. It describes the process by which regional economies, societies, and cultures have become integrated through communication, transportation, and trade. The global marketplace Global industry Four levels of globalization Drivers of globalization o Market : Common customer needs, global customers, global channels, transferable marketing, leading markets o Competitive : Common competitors using global strategies o Cost : Scale economies, scope economies, sourcing advantages, avoidance of duplication o Government : Favorable trade policies, acceptance of foreign investment, compatible technical standards, common marketing regulations o Other Drivers : Revolution in information and communication (the Internet), Globalization of financial markets Global market strategy o Competing everywhere, Appreciating that success demands a presence in almost every part of the world in order to compete effectively, # Making the product the same for each market, Centralized control, Taking advantage of customer needs and wants across international borders, Locating their value adding activities where they can achieve the greatest competitive advantage, Integrating and co- coordinating activities across borders, A global strategy is effective when differences between countries are small and competition is global. It has advantages in terms of: Economies of scale, Lower costs, Co-ordination of activities, Faster product development Standardization o Developing standardized products marketed worldwide with a standardized marketing mix. Essence of mass marketing Adaptation o The process of adjusting to environmental stimuli such that the stimuli become less noticed. o Mixing standardization and customization in a way that minimizes costs while maximizing satisfaction. Essence of segmentation. Think globally, act locally. Global localization o Think globally, act locally. Coca-Cola’s example of the logo around the world and how the principle is the same but they have changes for each country.
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The TRIAD Economies of scale o The increase in efficiency of production as the number of goods being produced increases. Typically, a company that achieves economies of scale lowers the average cost per unit through increased production since fixed costs are shared over an increased number of goods. There are two types of economies of scale: -External economies - the cost per unit depends on the size of the industry, not the firm. -Internal economies - the cost per unit depends on size of the individual
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MKTG 4820 Exam 1 Study Guide - International Marketing Exam...

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