question

GDP

answer

Gross Domestic Product

question

GNI

answer

Gross National Income

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LDC

answer

Less Developed Countries

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MDC

answer

Most Developed Countries

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PPP

answer

Purchasing Power Parity

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COO

answer

Certificate of Origin

question

EEI

answer

Electronic Export Information

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FDI

answer

Foreign Direct Investment

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PAT

answer

Protected Approval Team

question

NPD

answer

New Product Development

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IPS(Definition)

answer

International Partner Search- Service provided by the US commercial Service Connecting firms with potential foreign partners

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CKD(Definition)

answer

Completely knocked down- method of foreign assembly where the product is shipped in components & then assembled in the foreign market

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Pull Strategy

answer

strategy attempting to gain business by bringing consumers to the manufacturer, often through heavy consumer advertising

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Push Strategy

answer

a strategy attempting to gain business by incentivizing the channel (wholesalers, retailers) to "push" the product to buyers. This strategy often uses incentives & promotions aimed directly at the wholesalers or retailers

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Sensory Segmentation

answer

segmenting consumers based on their likes & dislikes, especially as related to sensory factors (taste & smell)

question

Product line Extension

answer

process of developing a new product (or model) primarily based on an existing product offering new or enhanced characteristics or benefits

question

Brand Extension

answer

A new product can be introduced with lower incremental advertising expenditures by using a well-known & previously established brand name

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Licensing

answer

arrangement where the licensor gives something of value to the licensee in exchange for specified performance & payments from the licensee

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Vertical Trade Mission

answer

trade mission focused within a single industry

question

Horizontal Trade Mission

answer

Trade mission focused across a wide spectrum of industries but typically within a single market or region

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Vertical Trade show

answer

trade shows focused within a single industry

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Horizontal Trade Show

answer

trade show focused across a wide spectrum of industries but typically within a single market or region

question

Product Platform

answer

common technology, design, architecture, or formula base which a line of products is developed

question

Product Family

answer

a collection of products built on a common platform of technology, design, architecture, or formula

question

6 Modes of Market Entry

answer

• Indirect exporting • Direct exporting • Direct exporting with FDI • Foreign manufacturing, sales, & distribution • Licensing • Joint Venture / Strategic Alliances

question

Japanese Model of Managing NPD:

answer

-work with few suppliers -develop long-term partnerships with suppliers -require continuous improvement from suppliers in quality, speed, & time to supply -require lower prices & fewer numbers of parts -involve a limited number of key suppliers early in the design & development of new products

question

Types of Retailers

answer

• Vending Retailers - firms maintaining traditional brick-and-mortar retail stores • Mail-order Retailers - firms selling through catalogs & the internet • Direct-selling Retailers - firms using a sales force to make their

question

7 Characteristics of a Global Brand

answer

1. Brand is strong in home market 2. Geographic balance exists 3. Product addresses a similar need worldwide 4. Ever global brand has a Country of Origin that is part of its brand identity 5. Brand's main focus is on a single broad product category 6. Consistent positioning occurs so the brand represents same practical and emotional attributes 7. There is a link to the corporate brand.

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5 Elements of a strong brand:

answer

1. Share of mind (awareness / familiarity) 2. Share of heart (high regard) 3. Value (value for money) 4. Momentum (potential for future growth) 5. Singularity (business choice)

question

Promotional Tools: Advertising

answer

-- the paid communication of company messages through impersonal media. ex. Audio (radio), Visual (billboards), autovisual (internet, tv, movies)

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Promotional Tools: Personal Selling

answer

-- direct contact with a potential buyer for the purpose of making or influencing a sale. Paid communication that can be altered quickly targeted at specific individuals. Most individualized promotion

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Promotional Tools: Public Relations

answer

effort to influence the opinion people have towards a company, brand, product, or service. Company does not pay for this directly

question

Promotional Tools: Sales Promotion

answer

includes things "all other" category of promotional tools. Coupons, email, traditional mail, sponsorship of events.

question

Standardized Promotion

answer

identical in all markets.

question

Independent Promotion

answer

has little similarity among countries

question

International Promotional Budget Approaches: Percentage-of Sales Approach

answer

method for determining the amount to spend on promotion in a country where the promotion budget is based on a specific percentage of sales, typically based on the percentage of sales spent on promotion in current markets

question

International Promotional Budget Approaches: Competitive-Parity Approach

answer

method for determining the amount to spend on promotion in a country whereby the promotion budget is based on matching the amount spent by competitors in that country

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International Promotional Budget Approaches: Objective-and-Task Approach

answer

method for determining the amount to spend on promotion in a country where the promotion budget is based on how much it costs to achieve specific promotion objectives (Ex: level of sales or brand awareness)

question

International Promotional Budget Approaches: Comparative-Analysis Approach

answer

method for determining the amount to spend on promotion in a country whereby the country is grouped into a category with other markets according to characteristics relevant to promotion (Ex: language, availability of media types, market size) & markets in the same category have similar promotion budgets

question

International Promotions differ in Different Markets:

answer

• Language • Media Availability • Government Controls on the Media • Competition • Agency Availability

question

Supply Chain -

answer

sum of activities related to the moving of goods from their source (raw materials, components) to the final consumer (finished goods)

question

Supply Chain Management -

answer

management of all events within a firm's supply chain

question

Reverse Logistics -

answer

range of activities associated with customer support (returns, warranties, & repairs)

question

Third-Party Logistics (3PL) -

answer

use of companies to outsource specific functions of supply chain management

question

Freight Forwarders -

answer

companies providing services to support the transportation & movement of goods

question

Distribution -

answer

sum of activities moving products from a firm to its customers

question

Warehousing -

answer

storing of materials or products in one location for further distribution at a later date

question

Cross-docking -

answer

moving products immediately from one delivery vehicle at a logistics facility to another vehicle in the same facility that will then take the products directly to a retail store or to the buyer ---- Use of cross-docking eliminates the intermediate step of warehousing

question

Commercial Invoice -

answer

a shipping document issued by the seller identifying key sales information, including the buyer, products or services sold, payment terms, shipping date, mode of transport, & prices

question

Packing List -

answer

shipping document detailing each product included with a shipment & in which box

question

Bill of Lading -

answer

shipping document issued by the freight carrier (shipping company) acting as receipt for the cargo, contract for the transport of the cargo, & document of ownership (title)

question

Export License -

answer

permission by the US government for a company to make a shipment or shipments to a foreign buyer that otherwise would be illegal without the license ---------- Export licenses are not required for all shipments but are required if the product or the foreign buyer is subject to export controls

question

Inventory Turnover Ratio =

answer

Inventory Turnover Ratio = COGS / Avg. Inv. ex. (50m / 5m) = 10m

question

Days of Sales Inventory =

answer

Days of Sales Inventory = Avg. Inv. / COGS (5m / 50m) = .1 * 365 = 36.5 days

question

9 supply chain strategic decisions

answer

1. Supplier 2. Location of Production 3. Transportation 4. Warehousing 5. Technology 6. Outsource or In0House 7. Management of Delivery Times 8. LT needs vs ST needs 9. International Compliance

question

6 Major Modes of Market Entry: Indirect Exporting

answer

third party conducts export transaction → (manufacturer has very little control/feedback) ---Piggybacking ---Export Management Companies ----Export Trading Companies

question

6 Major Modes of Market Entry: Direct Exporting:

answer

manufacturer exports & directly sells to importer (may be final consumer or intermediary) in another country → (offers great control/feedback, but costs/risks are higher) ---Agents: makes international sales on behalf of manufacturer ----Distributors: takes ownership of manufacturers product and sells ----Direct Sales: internet sales

question

6 Major Modes of Market Entry: Direct Exporting with FDI

answer

a financial investment in a foreign market involving ownership of foreign assets or foreign offices/employees Factors Forcing FDI: Barriers 2 Export Success, Need more control/feedback, sales/customer needs ---Overseas Salesperson ---Overseas Sales and Marketing Office ---Overseas Distribution

question

6 Major Modes of Market Entry: Foreign Manufacturing / Foreign Sales & Distribution

answer

produces product in foreign market rather than exporting ---Foreign Assembly: firm produces domestically most of the components of its product & ships them to foreign markets for assembly -----Completely Knocked Down ---Contract Manufacturing: firm's product is produced in foreign market by another producer under contract with the firm (Marketing handled by firm) -----Drawbacks→ quality control and limited profits ---Wholly Owned Foreign Production: 100% ownership by international firm ----Acquisition: buying foreign producer or firm ----Greenfield: establishment of brand new facility built from ground up

question

6 Major Modes of Market Entry: Licensing

answer

licensor gives something of value to the licensee in exchange for specified performance & payments from the licensee ** Requires no capital ** Quickest and easiest way to enter foreign market -----Patent Rights -----Trademark Rights -----Copyrights -----Know-How on Products or Processes

question

6 Major Modes of Market Entry: Joint Venture/Strategic Alliances

answer

international company has enough equity in a new company to have a voice in management but not enough to completely dominate the venture Mixed Ventures: joint venture with foreign government entities as opposed to foreign firms ** Greater returns over royalties ** Greater control over production and marketing → better market feedback

question

Strategic Alliance:

answer

relationship formed by a firm & another partner covering a variety of contractual relationships → may involve competitors & usually does not involve equity

question

Sales Channel:

answer

means by which a manufacturer gets a product to market

question

Merchant Wholesalers:

answer

firms performing traditional role of buying products and selling to retailers

question

Single-Line Wholesalers:

answer

firms focusing on a specific product line

question

Specialty Wholesalers:

answer

firms carrying a very narrow line of products, often to an equally narrow retail market

question

Step-Wise Approach to Manage NPD:

answer

Utilizes a project approval team (PAT) composed of employees from multiple departments 1. Idea Generation 2. Feasibility Study 3. Product Development 4. Product Launch

question

Trade in Services-accounts for about 20% of all world trade

answer

**become more important as an economy becomes more developed Examples) - Banking & Financial services - Insurance - Legal and accounting - Computer software & data

question

Intangibility:

answer

makes selling services more difficult because buyer must take quality of service on faith

question

Heterogeneity:

answer

of service may occur because different customers going to the same company may not

question

receive same service -

answer

different people perform service, not the same way each time

question

Perishability:

answer

services cannot be inventoried, saved, or stored

question

Simultaneous Production/Consumption:

answer

production/consumption services take place at same time

question

Measuring Service Quality:

answer

difficult to measure, particularly in cross-cultural settings

question

Inventory turn over ratio=

answer

COGS/AVG Inventory

question

Day's of Sales Inventory=

answer

(Inventory/COGS)x 365

question

Supply Chain:

answer

sum of activities related to the moving of goods from their source (raw materials, components) to the final consumer (finished goods)

question

FCA -

answer

Free to carrier: Buyer agrees to pay all fees after supplier transports the goods to the main carrier

question

Incoterms -

answer

set of 11 transportation-related terms issued by the International Chamber of Commerce (ICC) & used worldwide in sales contracts

question

ExW -

answer

Ex-Works: Buyer agrees to assume all responsibility for transporting the goods from the supplier's factory

question

DDP -

answer

Delivered Duty Paid: Seller is responsible for all fees & transportation to the buyer

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