国际市场营销答案

Chapter 1
Multiple choices
1. d
2. d
3. d
4. a
5. c
6. c
7. b
8. d
9. e
10. d
11. b
True or false
1.True
2.True
3.False
4.False
5.False
6.True
7.True
Discussion
1 China successfully participating in the WTO offers both challenges and opportunities to Chinese companies.
China officially joined the WTO on 10th November 2001. WTO is one of the most influential international governmental bodies to affect marketing. WTO and the World Court are set up to help to solve international trade disputes, and they also help the member countries to gain fair treatment in international trades. Since China is a member country of the organization, China can also enjoy low trade tariffs and seek equal treatment among association members, which would, of course, give companies more chances to expand their international markets.
2 international marketing is more complex than domestic marketing in a number of ways. 1. Different environments, 2. Different applications of marketing principles, concepts and techniques 3. Different relations between enterprises and government.
3 Contact: The seeking out of prospective consumers and it may be based on a variety of determinants. Improper handling of the initial contact can keep a company out of the marketplace indefinitely. Merchandising: Merchandising is the process of bringing the right product to the right place at the right time in the right quantity at the right place. Pricing: The price of a product is often the determining factor when a purchase is made and is always a key to profit. Promotion: Promotion is used to support marketing efforts: paid advertising, personal selling, public relations,
and supplemental efforts. Distribution:The process of putting the consumer and the product together. Human resources :Internal marketing that occurs within a company between employers and employees is a reflection in the ability to market externally to the public. It’s essential that sellers understand, communicate with, and value buyers.
4. There are many reasons for that, environment, Competition, legal restraints, government controls, weather, fickle consumers, and any number of other uncontrollable elements can, and frequently do, affect
Chapter 2
Multiple choices
1. c
2. a
3. a
4. d
5. a
6. b
7. c
8. c
9. d
10. c
True or false
1.False
2.True
3.True
4.True
5.True
6.True
7.True
8.True
9.True
10.False
Discussion
1.
1) A has an absolute advantage in producing both wheat and cars. The resources required
producing 1 unit of wheat in A and B are 1/80 and 1/40 respectively. The resources
required producing 1 car in A and B are 1/10 and 1/8 respectively.
2)Since A has a comparative advantage in producing wheat and comparative disadvantage
in producing cars, it is expected to export wheat and import cars.
3)Under autarky, A would produce 4000 units of wheat and 500 cars while B would
produce 2000 units of wheat and 400 cars. World production of wheat and cars would
then be 6000 units of wheat and 900 cars. Suppose the two countries trade and
specialized in production so that A devotes 80 units of resources to produce wheat and
20 units of resources to produce cars. At the same time, B devotes all its resources to
produce cars. The production pattern is summarized in Table 1 below.
If A agrees to export 2200 units of wheat and in return B agrees to export 350 cars, the
As may be seen, with specialization and trade both countries can consume more of both products and hence be better off.
Chapter 3
Multiple choices
1. c
2. a
3. c
4. e
5. a
6. b
7. d
8. a
9. b
10. b
True or false
1.False
2.True
3.False
4.True
5.True
6.True
7.True
9.True
10.True
Discussion
Review Question Answers
The Global economy has experienced the following changes
a) Capital movements rather than trade have become the driving force of the global economy.
b) production has become "uncoupled" from employment.
c) primary products have become uncoupled from the industrial economy.
d) The world economy is in control.
Reasons
a) World trade is some US$ 3 trillion, whereas the London Eurodollar market - alone is some US$ 75 billion per annum and foreign exchange transactions were US$35 billion per annum. Interest and exchange rate - gains are often more lucrative than investment in goods and services manufacturing.
b) Employment is in decline while manufacturing either grows or remains static. Sectors are becoming more productive, with injections of capital equipment and new technologies.
c) Commodity prices may collapse but industrial economies can be unaffected.
d) World trade is recognized as vital to economies as domestic growth slows down and opportunities overseas grow. Growth achievable in international trade is often at a greater rate than domestically and the returns higher.
Chapter 4
●Multiple choices
1. a
2. d
3. d
4. b
5. d
6. a
7. a
8. c
9. b
10. c
●True or false
1.True
2.False
3.False
4.False
5.True
7.False
8.True
9.True
10.True
DISCUSSION
Review Questions Answers
1. Important to have a regulatory framework for the following reasons.
a) Framework states the political, social and legal ground rules for doing business between and within countries.
b) The framework gives:
i) the basis for all production, exchange and distribution activities
ii) gives rise to expectations and assurances about the actions of others and
iii) gives order and stability to the means of doing business.
The most important rules are these:
a) Defining, allocating and enforcing property rights.
b) Establishing rules and conventions defining allowable and non allowable forms of cooperation and coordination (standards, rules of conduct, fair trading etc).
2. Tariff barriers/duties (terms of access)
a) Tariffs - single column, two column, preferential.
b) Duties - ad valorem, specific, alternative, compound, anti-dumping.
c) Import charges - variable, temporary, compensatory.
Non tariff barriers
a) Quota and trade controls.
b) Discriminatory Government and private procurement policies.
c) Restrictive customs procedures.
d) Selective monetary control and discriminatory exchange rate policies.
e) Restrictive administrative and technical regulations.
Chapter 5
Multiple choices
1. c
2. e
3. b
4. d
5. d
6. d
7. b
8. e
9. c
●True or false
1.False
2.False
3.False
4.True
5.False
6.True
7.True
8.True
9.False
10.False
DISCUSSION
Review Question Answers
1. Main elements of culture -
"Definition of culture" - The integrated total sum of learned behavioral traits that are manifest and shared by members of society.
Elements are - language, social norms, religion, ethics, socio economics, mores, traditions, societal regulations, nationalism, aesthetics, material culture, attitudes, values, social organisation. (Discuss each in turn with students).
2. Main approaches to culture
a) Anthropological - relevance to interpretation of ways of doing business e.g. Japan versus USA.
b) Maslow's hierarchy of needs - relevance to product type, sophistication and price
c) Self reference criterion - relevance in the standardisation versus adoption concepts of marketing strategy.
d) Diffusion theory - relevance to rates of adoption of innovations and of new products.
e) High and low context - relevance to the degree of necessity to have explicitly verbal or written communications e.g. contracts.
f) Perception - relevance to sensitivity in operation of the marketing mix variables e.g. advertising Chapter 6
●Multiple choices
1. a
2. d
3. a
4. c
5. c
6. e
7. c
8. c
9. c
●True or false
1.False
2.True
3.True
4.True
5.True
6.False
7.False
8.True
9.False
10.True
DISCUSSION
Review Question Answers
1. Answer: Primary data is data collected through observation, survey or controlled experiment for the first time during a marketing research study. Marketers rely on primary data when up-to-date, specifically targeted information is essential; when they have sufficient time to conduct the analysis; and when the good or service plays a major role in the company's total marketing strategy to warrant the expense of data collection.
Secondary data refers to previously collected data from internal and external sources. Internal data include sales records, product performance, sales force activities and marketing costs. External data are obtained from local, provincial (state) and federal governments and private sources. The reasons for using secondary data include the relative low cost, the easy availability and the limited time taken by searching for it.
2. Answer: A marketing information system (MIS) is a planned, computer-based system designed to provide managers with a continuous flow of information relevant to their specific decision areas. An MIS permits a continuous, systematic study of any deviation from marketing goals, and allows management to adjust actions as conditions change. A marketing decision-support system (MDSS) consists of computer software that helps users obtain and use information to make marketing decisions. An MDSS is the portion of an MIS that enables marketers to explore the state of the market and do market forecasting and simulations that illustrate what might happen if various components of the marketing strategy were changed. Data mining consists of a program that searches customer information stored in data warehouses for connections. Organizations are using data mining to enhance decisions about customer preferences, sales trends, and marketing programs.
Chapter 7
●Multiple choices
2. b
3. a
4. d
5. a
6. a
7. c
8. c
9. e
10. d
True or false
1.True
2.False
3.True
4.False
5.False
6.True
7.True
8.True
9.True
10.False
DISCUSSION
1. (your answer should include the following requirements and major points of each. Measurable, meaning the size, purchasing power, and profiles of the segments can be measured. Accessible relates to the fact that, unless you can define and communicate wi th a segment, it isn’t of much value. A segment must also be substantial, or large or profitable enough to be served economically.
A segment must be distinguishable from other segments, or differentiable. Finally, company resources and skills must be such that programs to a segment must be actionable, or capable of being implemented.)
2.Answer: If a market segment is large, but not homogeneous enough, it becomes
difficult to develop a marketing mix that would effectively fit all customers in this segment. In this case some customers may become dissatisfied and lured away by competitors who offer a better tailored marketing mix. If market segments are properly defined most customers should be addressed with a marketing mix that can satisfy their needs well. Very well satisfied customers are more loyal. On the other hand breaking markets down into too many segments and addressing each of them with a separate marketing mix is costly. This is why it is very important to define segments in such a way that they would be large enough to be profitable, and, on the other hand, homogeneous enough to be satisfied with the same marketing mix.
Note: other answers to the essay questions could be acceptable if they are properly justified.
3. Omitted
●Multiple choices
1. c
2. b
3. b
4. d
5. d
6. a
7. c
8. e
9. e
10. d
●True or false
1.True
2.True
3.False
4.False
5.False
6.False
7.True
8.True
9.True
10.True
DISCUSSION
Review Question Answers
1. Different methods
These are either "direct", "indirect" or "cooperative " based.
2. Advantages:
·sharing of risk and know-how,
·may be only means of entry,
·may be source of supply for third country.
Direct - Agent, distributor, Government, overseas subsidiary
Disadvantages:
·partners do not have full control or management,
·may be impossible to recover capital,
·disagreement between purchasers or third party - served markets,
·partners have different views on exported benefits.
Indirect - Trading company, export management company, piggyback, countertrade
1) Export processing zones -
Definition:
A zone within a country, exempt from tax and duties, for the processing or reprocessing of goods
Foreign - Licensing, joint venture, contract manufacture, ownership, export processing zone. Students should give a definition and expand on each of these methods.
Advantages:
·host country obtains know-how,
·capital, technology, employment opportunities;
·foreign exchange earnings;
·"reputation", "internationalisation".
Disadvantages:
·short term investments,
·capital movements,
·employment movements,
·transaction costs and benefits,
·not part of economy so alienisation,
·labour laws may be different,
·bureaucracy creation.
2) Barter-
Definition:
Direct exchange of one good for another. (may be straight or closed or clearing account method) Advantages:
·simple to administer,
·no currency,
·commodity based valuation or currency based valuation.
Disadvantages:
·risk of non delivery,
·poor quality,
·technological obsolescence,
·unfulfilled quantities,
·risk of commodity price rise thus losing out on an increased valuation,
·depressed valuation,
·marketability of products.
3) Countertrade -
Definition:
Customer agrees to buy goods on condition that the seller buys some of the customer's own products in return (may be time, method of financing, balance of compensation or pertinence of compensating product based)
Advantages:
·method of obtaining sales by seller and getting a slice of the order,
·method of breaking into a "closed" market.
Disadvantages:
·not covered by GA TT,
·so dumping may occur,
·variety differences,
·difficult to set price and service quality,
·inconsistency of delivery and specification,
·difficult to revert to currency trading.
Chapter 9
●Multiple choices
1. d
2. a
3. e
4. a
5. a
6. c
7. c
8. c
9. a
10. c
●True or false
1.False
2.False
3.False
4.False
5.False
6.False
7.True
8.True
9.True
10.True
DISCUSSION
Review Question Answers
1. Comparative advantage is the ability of one country to achieve a lower production ratio, under total specialization, in one commodity, compared to that commodity in another country. Competitive advantage is based on lower production costs and/or quality of market factor differentiation between one country or industry and another in like products.
2. Market leader - through cost or innovation advantage (Kodak, photography),
Market challenger - through price or product innovation/promotion (IBM, computers)
Market follower - through price umbrella or share (Pure&Natural, hand soaps)
Market nicher – through smart niching ( A.T. Cross which niches in the high-price pen and pencil market)
Market flanker - through taking up market interstices (Thailand tuna)
Copy - adapt - through advertising known technology/products (Mahindra tractors)
Chapter 10
●Multiple choices
1. b
2. e
3. c
4. e
5. a
6. c
7. b
8. d
9. b
10. e
●True or false
1.False
2.True
3.True
4.False
5.True
6.False
7.True
8.True
9.True
10.True DISCUSSION Omitted
Chapter 11
●Multiple choices
1. a
2. b
3. d
4. b
5. c
6. b
7. d
8. c
9. c
10. c
●True or false
1.False
2.False
3.True
4.False
5.False
6.True
7.False
8.True
9.False
10.False
11.False
DISCUSSION
1. A product is anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a want or need. It refers to both tangible and intangible products. When talking about product, one needs to consider its characteristics. They are 1) primary functional purpose, 2) secondary purpose, 3) durability and quality, 4) method of operation, and 5) maintenance.
2.Product may be classified according to a variety of criteria. Traditionally, classification of products is based on users, hence the consumer goods and industrial goods.
Consumer products include Convenience products, Shopping products, Specialty products, Unsought products, Industrial products include Materials and parts, Capital items, Supplies and services. Another traditional method of classifying products is how long a product may exist. Thus, there are durable, consumable, or disposable goods. In recent years, with the fast speed of globalized economy, a product with international profit potential is more likely to gain attentions than that with local potentials. Therefore, some researchers further classified products according to their marketing potentials, ie. Local products and international products
3. Products have a limited market life. Typically there are 4 stages for the development of a new product: Introduction, growth, maturity and decline.
Introduction stage is a period of slow sales growth as the product is introduced in the market. This stage starts when the new product is first launched. Introduction takes time, and sales growth is apt to be slow. Innovators will buy product in this stage. In growth stage, sales will start climbing quickly. It’s a period of rapid market acceptance, and substantial profit improvement. The innovators will continue to buy, and early adopters will start to follow their lead, especially if they hear favorable word of mouth. They will introduce new product features, and the market will expand. Maturity stage is a period of a slowdown in sales growth because the product has achieved acceptance by most potential buyers. This maturity stage normally lasts longer than the previous stage, and it poses strong challenges to marketing management. Most products are in the maturity stage of the life cycle. In the decline stage, because the demands are less, technology advances, consumer tastes shift, or competition increases, sales show a downward drift and profits erode. Some firms withdraw from the market. As for those remaining companies, they may cut the promotion budget and reduce their prices further.
4. Product design is the process of designing a product’s style and function: creating a product that is attractive, easy, safe, and inexpensive to use and services, and simple and economical to produce and distribute.
Eight major steps are necessary for the new product development process. They are idea generation, idea screening, concept development and testing, marketing strategy development, business analysis, product development, test marketing, commercialization.
The systematic search for new product ideas is called idea generation. The second stage is to reduce the ideas generated. This stage is known as idea screening. A product development is a detailed version of the new product idea stated in meaningful consumer terms. It offers the most quality, performance, and features of the product that the consumer may favor. To find out the best concept, concept testing is necessary. Concept testing is the process to testing the new product concepts with groups of target consumers. Marketing strategy development includes three parts: the first part describes the target market, market positioning, sales, market share and profit goals for the first few years. The second part is about the planned price, distribution, and marketing budget for the first year. The third part is about the planned long run sales, profit goals and marketing mix strategy. Business analysis is a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives. Product development is a strategy for company growth by offering modified or new product to current market segments. It is the process to develop the product concept into a physical product in order to assure that the product idea can be turned into a workable product. In test marketing stage, new product and marketing program are introduced into more realistic market settings. It lets the company test the product and its marketing program. Test marketing gives management the information to make a final decision about whether to launch the new product. So the last step for a new product design is to commercialize it, that is, to introduce the new product to the market. The company must decide on introduction timing and then the place to launch it. Companies with international distribution systems may launch new product through global rollouts.
5. Some companies such as Toyota, McDonald’s, Shell Oil, and Sony have established international brand names. Branding brings both advantages and disadvantages.
On a positive note, companies with well established brand can be recognized pretty soon by new markets. If the target markets have no preconceived notion about what the company represents, products of the companies can be very easily accepted by the consumers in those new markets. But famous brands of big companies sometimes are rejected for local protest. They are also
blamed for some serious social and environmental problems. The fact of the international market is many companies are not equipped with highly accepted brands. These companies have even bigger problems. They have to spend extra time and money to persuade the local government, their distributors and consumers. In a foreign market, more effort would be taken to overcome problems of language and cultural differences.
People are willing to buy products with well established brand because of the brand equity. Brand equity is defined as the added value a brand name gives to a product beyond the functional benefits provided. In another word, it is the value of a brand, based on the extent to which it has high brand loyalty, name awareness, perceived quality, strong brand associations, and other assets such as patents, trademarks, and channel relationships. The most valuable brands have a brand equity that is considered an important company asset. It is very important to establish the brand equity of product.
6. Omitted
Chapter 12
●Multiple choices
1. c
2. a
3. b
4. d
5. a
6. c
7. c
8. c
9. d
10. c
●True or false
1.True
2.False
3.True
4.False
5.False
6.True
7.True
Discussion
1.Price is the value of what a consumer exchanges in return for products. It may take the form
of monetary exchange, bartered services, or other goods.
Pricing is driven by three major forces. They are costs, demands and competition. Costs are very important factors that set the floor for the price that the company can charge. Whereas
costs set the lower limit of prices, the market and demand set the upper limit. Competition forces companies to offer special prices to attract customers.
2.Profitability objectives involve profit levels and target-return.. Volume objectives include
sales maximization and market-share goals, which are specified as a percentage of certain markets. Some prices are set to beat competition by beating the pricing leader's prices hence, the meeting competition objectives.
3.Market skimming price charges the highest price possible over those buyers who most desire
the product will pay. In market penetration pricing, a relatively low initial price is established for a new product. Market holding pricing is a strategy intended to hold market share. There are basically two types of cost plus pricing: the historical accounting cost method and the estimated future cost method. While costs are important they should be looked at alongside the prices of competitive products in the target markets, hence competitive pricing. Marketers of raw commodity traded on the international market subject to world prices have no alternative but to take the going price - a price governed by competition, especially on the supply side. They accept market pricing strategy. Pricing strategy also involves psychological pricing and product life cycle pricing. Psychological pricing considers how consumers’ perceptions and beliefs affect their price evaluations. Product life cycle pricing strategies recognize that products and product categories generally go through a cycle, including introduction, growth, maturity and decline.
4.Explain the increasing importance of value-based pricing and contrast it with cost-based
pricing.
To compete effectively, marketers may be the lowest cost producer. Sometimes the companies set their price low to gain market share and preventing competitors from entering the market. They must be willing and able to change the price frequently by responding quickly and aggressively. However, competitors can also respond quickly. Customers adopt brand switching to use the lowest priced brand. Sellers move along the demand curve by raising and lowering prices. Price sensitivity varies among market segments and across different products. Marketers need to know buyers’ acceptable range of prices and sensitivity towards price changes and set their price according to different segments.
Cost plus pricing includes direct and indirect costs or assumptions of production volume which will be a principal factor determining costs, but it has the disadvantage of ignoring demand and competitive position in the target market which now plays a very important role.
5. Extension (standardized pricing) is to set the same global price no matter where the target market is. It is a very simple method but does not respond to market sensitivity. Few firms use these method to price their products in the international trade.
Adaptation (differential pricing) is to set different prices in different markets. The only control is setting transfer prices within the corporate system. It prevents problems of arbitrage when the disparities in local market prices exceed the transportation and duty costs separating markets.
Invention is to a mix of extension and adaptation strategy. This takes cognizance of any unique market factors like costs, competition, income levels and local marketing strategy. In addition, it recognizes the fact that headquarters price coordination is necessary in dealing with international accounts and arbitrage and it systematically seeks to embrace national experience.
6. When a company decentralizes, organizing itself into separate profit centers, it is necessary to transfer components or finished products between units. Transfer pricing is used to motivate profit center managers, provide divisional flexibility and also further corporate profit goals. Across national boundaries the system becomes complicated by taxes, joint ventures, attitudes of governments and so on.
Many governments see transfer pricing as a tax evasion policy and have, in recent years, looked more closely at company returns. Rates of duty encourage the size of the transfer price: the higher the duty rate the more desirable a lower transfer price. A low income tax creates a pressure to raise the transfer price to locate income in the low tax setting. Harmonization of tax rates worldwide may make the intricacies of transfer pricing obsolete. Government controls, like cash deposits on importers, give an incentive to minimize the price of the imported item. Profit transfer rules may apply which restrict the amount of profit transferred out of the country. Although many multinational companies practice transfer pricing, they have various attitudes towards it. Many companies regard it as a means of encouraging and measuring corporate efficiency. Others emphasize the opportunities for financial gain or market manipulation.
7.How do international trade finance? What are the most commonly used payments of
international trade?
Drafts covering exports, Sales against cost advances, Sales on a consignment basis, collection arrangement, Letters of credit, letter of credit is of most common use.
8. Omitted
Chapter 13
●Multiple choices
1. C
2. C
3. B
4. A
5. D
6. C
7. A
8. B
9. A
10. D
●True or false
1.True
2.False
3.True
4.False
5.False
6.True
7.True
8.Ture。