B fccp foreign consumer culture positioning when

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b. (FCCP) Foreign Consumer Culture Positioning – when communicating a brand is important needed. i. Fosters ads used in U.S. were never used in Australia. c. (LCCP) Local Consumer Culture Positioning – strategy that associates the brand with local meanings, reflects the cultures norms, and portrays the brand as consumed by national culture. d. High-tech Products – sophisticated, technologically complex, or hard to understand which require information and analytical reasoning when purchasing. e. High-touch Products – consumers are more moved by the emotional side by performance, aesthetics by appealing to emotion rather than intellect. Chapter 9 Global Market-Entry Strategies: Licensing, Investment, and Strategic Alliances 1. Licensing - a contractual agreement whereby one company (the licensor) makes a legally protected asset available to another company (the licensee) in exchange for royalties, license fees, or some other form of compensation and can offer nice return on investment for life of agreement as long as performance clauses are built in. Advantages : o Because the licensee is typically a local business that will produce and market the goods on a local or regional basis, licensing enables companies to circumvent tariffs, quotas, or similar export barriers . o When appropriate, licensees are granted considerable autonomy (independence) and are free to adapt the licensed goods to local tastes . Disadvantages : o Licensing agreements offer limited market control because the licensor typically doesn’t become involved in the licensee’s marketing program, potential returns from marketing may be lost . o The agreement may have a short life if the licensee develops its own know-how and begins to innovate in the licensed product or technology area (can develop into competitors and potentially market leaders) This is because the very nature of licensing allows a company to “borrow” (leverage and exploit) another company’s resources. o Upfront easy money from licensing may become an expensive source of revenue. 1. Special Licensing Arrangements a. Contract Manufacturing – companies provide tech specs to a subcontractor or local mfg. i. Licensing firm specializes in product design and marketing and avoid manufacturing responsibilities with a quick entry and limited resources committed. b. Franchising - a variation of licensing strategy that is a contract between a parent company/franchiser and a franchisee that allows the franchisee to operate a business developed by the franchiser in return for a fee and adherence to franchise-wide policies and practices. i. “One of the key things licensees bring to the business is their knowledge of the marketplace, trends, and consumer preferences”
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2. Foreign Direct Investment - investment flows out of the home country as companies invest in or acquire plants, equipment, or other assets. Allows companies to produce, sell, and compete locally in key markets.
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