International Marketing Final Ch. 15 and 17 – Flashcards

It excludes the physical handling of goods. It includes activities related to the promotion of goods and services. The ownership title remains with the distributor even on completion of the transaction. It includes buying and selling negotiations between middlemen and customers. Middlemen do not play a role in the distribution process.

Several independent agencies providing functions such as advertising, marketing research, and financing are a part of this distribution structure. The relationship between the importer and any middleman is different from that found in a mass-marketing system. The idea of a channel as a chain of intermediaries performing specific activities and each selling to a smaller unit beneath it until the chain reaches the consumer is common. These distribution systems are national rather than local in scope. The marketing system develops around the philosophy of selling an unlimited supply of goods at low prices to a large number of affluent customers.

Fast delivery Direct sale Loyalty Variety Price war

Japanese manufacturers are independent of wholesalers. The costs of Japanese consumer goods are among the lowest in the world. The Japanese distribution structure supports short-term dealer-supplier relationships. Large stores serve an important role for Japanese consumers. Japanese consumers favor personal service over lower-priced goods.

Toyota Motor Corporation Honda Motor Company Tesla Motors Nissan Motor Company General Motors

Small dominant retailers can be sold to directly, but there is no adequate way to reach large retailers who handle a great volume of sales. The extremes in size in retailing are drastically different from those that are observed in wholesaling. Selling directly to the consumer is often the approach of choice in markets with sufficient or developed distribution systems. Retailing shows greater diversity in its structure than does wholesaling. Direct sales through catalogs have proved to be an unsuccessful way to enter foreign markets.

wholesaler agent manufacturer retailer consumer

they take title to the merchandise By using agents, the manufacturer maintains the right to establish policy guidelines. they are less controllable by manufacturers than are merchant middlemen they are frequently criticized for not representing the best interests of a manufacturer they assume the risks of trading

they take title to manufacturers' goods they are more controllable by manufacturers than agent middlemen they do not assume the risks of trading they work on commission and arrange for sales in the foreign country they represent the best interests of a manufacturer

merchant agent domestic broker credited

export management companies trading companies export associations global retailers complementary marketers

It ranges in size from 100 to 250 people. It works under the name of the manufacturing firm. It does not have direct responsibility to the parent company. It acts as a middleman for companies willing to involve their own personnel in international functions. It acts as a middleman for firms with relatively large international volume.

Communication Contribution Capacity Continuity Commission

Speak to the consumers of the product personally to find whom they consider to be the best distributors. Issue a request-for-proposal to all distributors in the target market and evaluate their responses. Consult other manufacturers of similar products and select the distributor recommended by them. Consult trade organizations and select the distributor recommended by them. Conduct a background check on all the distributors available in the target market.

human accounting transportation mode advertising and promotion of goods grievance handling after-sales services

trustee. general manager. salesperson. chairperson. marketing manager.

The standard of living is low. The language is easy to master. It is a developing country. It is an information-oriented culture. It is a relationship-oriented society.

consulting services. in relationship-oriented countries. a low-technology product. requires an extensive background of information. a product that requires the most complete local knowledge.

local nationals. foreign managers. outsourcers. native managers. expatriates.

proven dependability fewer legal barriers better understanding of distribution channels narrowing of the cultural gap elimination of the risk of employee-poaching

adverse effect on the prestige of the product deterioration of product quality lack of technological expertise inadequate knowledge of the company legal barriers

Managers can have close contact with their subordinates. Managers have closer contact with their customers. Companies are benefitted by diversity-driven creativity. Managers possess complete local knowledge. Problems related to cross-cultural communications can be avoided.

They are more efficient in influencing the personnel at the home office. They will be better able to lead a company through referral networks. They are more knowledgeable about the company and its product line. They are likely to have superior technical expertise. They are less likely to accept any form of bribe.

Foreign nationals are not keen on keeping relationships at home office warm. Foreign nationals have limited English communication skills. Foreign nationals lack the knowledge of local culture and prevalent practices. Foreign nationals cannot build a close relationship with subordinates and customers. Foreign nationals are corrupt and often leak company secrets.

long-term virtual expatriate. native salesperson. third-country national. short-term virtual expatriate. local national.

They are virtual expatriates who work from home. They are paid better than their U.S. counterparts. They are expatriates who work from their home country. U.S. firms have to pay double tax when hiring third-country nationals. They are expatriates from their own countries working for a foreign company in a third country.

They should not have cultural empathy as this might distract them from their main purpose. When working in a foreign country, they must be capable of taking decisions that are not influenced by the habits of the market. They should consider their culture to be superior so that they can represent a positive image of their country's products. They should be hypersensitive to the behavioral variations in different countries. They require emotional stability and a high level of flexibility.

emphasis on collectivism high corruption levels practice of cultural chauvinism democratic form of government emphasis on capitalism

An individual incentive plan Corporate culture An individual financial reward Attraction of a foreign assignment An individual commission system

existence of a specialized expatriate department existence of a personal career plan opportunity to continue with cultural training offer of increased compensation existence of a family migration plan