International Marketing
(2025-2026)
Question and Answers
Expert Verified
(With A+ Grades Guarantee)
,nvestment Cost of Marketing Entry Strategies Exporting
Licensing
Contract Manufacturing
Joint Venture
Equity Stake or Acquistion
Licensing A contractual arrangement 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.
Contract manufacturing limited commitment of financial and managerial resources and quick entry into
target countries, especially when the target market is too small to justify
significant investment
Disadvantage: companies may open themselves to public scrutiny and criticism if
workers in contract factories are poorly paid or labor in inhumane circumstances
Franchising Great appeal to local entrepreneurs anxious to learn and apply Western-style
marketing techniques
ex) McDonalds
Foreign direct investment (FDI) Reflect investment flows out of the home country as companies invest in or
acquire plants, equipment, or other assets. Foreign direct investment allows
companies to produce, sell, and compete locally in key markets
Brand equity The total value that accrues to a product as a result of investments in the
marketing of the brand
An asset that represents the value created by the relationship between the brand
and customer over time
Three Categories products & brands can be broken into local, global, international
Co-branding Engender customer loyalty and allow companies to achieve synergy. However,
co-branding can also confuse consumers and dilute brand equity. The approach
works most effectively when the products involved complement each other
Ex) Credit card companies have discounts for cars and frequent flyer miles
Maslow's hierarchy of needs provides a useful framework for understanding how and why local products and
brands can be extended beyond home country borders
Extension Strategy Strategy 1: Common for B2B
Strategy 2: Low-cost because the product is unchanged, communication is
adapted
Strategy 3: Cadillac wanted to sell 20,000 autos outside the U.S. by 2010; will
adapt to local market requirements
Strategy 4: Combines local market conditions recognized in Strategies 2 and 3
Countertrade • Countertrade occurs when payment is made in some form other than money
• Options
- Barter
- Counterpurchase or parallel trading
- Offset
- Compensation trading or buyback
- Switch trading
Skimming Strategy setting a deliberately high price, demand is limited to innovators and early
adopters who are willing and able to pay the price. When the product enters the
growth stage of the life cycle and competition increases, manufacturers start to
cut prices
Global pricing • Extension or Ethnocentric
• Adaptation or Polycentric
• Geocentric
, Types of Retailers • Hypermarkets are hybrid retailers combining the discounter, supermarket &
warehouse club; 20,000-30,000 sq. ft.
• Supercenters have lower priced groceries plus general merchandise; half the
size of a hypermarket
• Superstores aka Category Killers & Big-Box sell vast assortments of a product
category
- Toys "R Us, Home Depot, IKEA
• Full-line discounters
- Wide variety of merchandise; Ex. Walmart
• Warehouse clubs
- Memberships fees; Ex. Sam's Costco
• Dollar stores
- Sell at a single low price; Ex. in U.S. Family Dollar, Dollar Tree, Internationally,
My Dollarstore has rapid growth
• Hard discounters
- Limited assortment, rock bottom prices
Retail Market Entry Strategy
Transportation - Method or mode a company should utilize when moving products through
domestic and global channels; the most common modes of transportation are
rail, truck, air, and water
Peer to Peer Marketing • The Internet and other related media are dramatically altering distribution
• Interactive TV may become a viable direct marketing channel in the future
• eBay pioneered P2P
- Helped Disney and IBM set up auction sites for B2C auctions
• Interactive TV is coming when homes are wired for 2-way
Four difficulties that compromise an organization's - The message may not get through to the intended recipient.
communication efforts - The message may reach the target audience but may not be understood or may
even be misunderstood.
- The message may reach the target audience and may be understood but still
may not induce the recipient to take the action desired by the sender.
- The effectiveness of the message can be impaired by noise.
Pattern Advertising • A middle ground between 100% standardization and 100% adaptation
• A basic pan-regional or global communication concept for which copy, artwork,
or other elements can be adapted as required for individual countries
Advertising Appeal • Rational appeal
- Depend on logic and speak to the consumer's intellect; based on the
consumer's need for information
• Emotional appeal
- Tugs at the heartstrings or uses humor
Advertising as PR function • Corporate advertising
- Compensates for lack of control over publicity
- Calls attention to the company's other communication efforts
• Image advertising
- Enhances the public's perception, creates goodwill
• Advocacy advertising
- Presents the company's point of view on a particular issue
Public relations (PR) department or function responsible for evaluating public opinion about, and
attitudes toward, the organization and its products and brands
Fostering good will, understanding, and acceptance among a company's various
publics
Convergence The coming together of previously separate industries and product categories.
Web Sites • Promotion sites: marketing communications
• Content sites: news and entertainment; support PR
• Transaction sites: online retail operations
• Web sites can function as all three
(2025-2026)
Question and Answers
Expert Verified
(With A+ Grades Guarantee)
,nvestment Cost of Marketing Entry Strategies Exporting
Licensing
Contract Manufacturing
Joint Venture
Equity Stake or Acquistion
Licensing A contractual arrangement 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.
Contract manufacturing limited commitment of financial and managerial resources and quick entry into
target countries, especially when the target market is too small to justify
significant investment
Disadvantage: companies may open themselves to public scrutiny and criticism if
workers in contract factories are poorly paid or labor in inhumane circumstances
Franchising Great appeal to local entrepreneurs anxious to learn and apply Western-style
marketing techniques
ex) McDonalds
Foreign direct investment (FDI) Reflect investment flows out of the home country as companies invest in or
acquire plants, equipment, or other assets. Foreign direct investment allows
companies to produce, sell, and compete locally in key markets
Brand equity The total value that accrues to a product as a result of investments in the
marketing of the brand
An asset that represents the value created by the relationship between the brand
and customer over time
Three Categories products & brands can be broken into local, global, international
Co-branding Engender customer loyalty and allow companies to achieve synergy. However,
co-branding can also confuse consumers and dilute brand equity. The approach
works most effectively when the products involved complement each other
Ex) Credit card companies have discounts for cars and frequent flyer miles
Maslow's hierarchy of needs provides a useful framework for understanding how and why local products and
brands can be extended beyond home country borders
Extension Strategy Strategy 1: Common for B2B
Strategy 2: Low-cost because the product is unchanged, communication is
adapted
Strategy 3: Cadillac wanted to sell 20,000 autos outside the U.S. by 2010; will
adapt to local market requirements
Strategy 4: Combines local market conditions recognized in Strategies 2 and 3
Countertrade • Countertrade occurs when payment is made in some form other than money
• Options
- Barter
- Counterpurchase or parallel trading
- Offset
- Compensation trading or buyback
- Switch trading
Skimming Strategy setting a deliberately high price, demand is limited to innovators and early
adopters who are willing and able to pay the price. When the product enters the
growth stage of the life cycle and competition increases, manufacturers start to
cut prices
Global pricing • Extension or Ethnocentric
• Adaptation or Polycentric
• Geocentric
, Types of Retailers • Hypermarkets are hybrid retailers combining the discounter, supermarket &
warehouse club; 20,000-30,000 sq. ft.
• Supercenters have lower priced groceries plus general merchandise; half the
size of a hypermarket
• Superstores aka Category Killers & Big-Box sell vast assortments of a product
category
- Toys "R Us, Home Depot, IKEA
• Full-line discounters
- Wide variety of merchandise; Ex. Walmart
• Warehouse clubs
- Memberships fees; Ex. Sam's Costco
• Dollar stores
- Sell at a single low price; Ex. in U.S. Family Dollar, Dollar Tree, Internationally,
My Dollarstore has rapid growth
• Hard discounters
- Limited assortment, rock bottom prices
Retail Market Entry Strategy
Transportation - Method or mode a company should utilize when moving products through
domestic and global channels; the most common modes of transportation are
rail, truck, air, and water
Peer to Peer Marketing • The Internet and other related media are dramatically altering distribution
• Interactive TV may become a viable direct marketing channel in the future
• eBay pioneered P2P
- Helped Disney and IBM set up auction sites for B2C auctions
• Interactive TV is coming when homes are wired for 2-way
Four difficulties that compromise an organization's - The message may not get through to the intended recipient.
communication efforts - The message may reach the target audience but may not be understood or may
even be misunderstood.
- The message may reach the target audience and may be understood but still
may not induce the recipient to take the action desired by the sender.
- The effectiveness of the message can be impaired by noise.
Pattern Advertising • A middle ground between 100% standardization and 100% adaptation
• A basic pan-regional or global communication concept for which copy, artwork,
or other elements can be adapted as required for individual countries
Advertising Appeal • Rational appeal
- Depend on logic and speak to the consumer's intellect; based on the
consumer's need for information
• Emotional appeal
- Tugs at the heartstrings or uses humor
Advertising as PR function • Corporate advertising
- Compensates for lack of control over publicity
- Calls attention to the company's other communication efforts
• Image advertising
- Enhances the public's perception, creates goodwill
• Advocacy advertising
- Presents the company's point of view on a particular issue
Public relations (PR) department or function responsible for evaluating public opinion about, and
attitudes toward, the organization and its products and brands
Fostering good will, understanding, and acceptance among a company's various
publics
Convergence The coming together of previously separate industries and product categories.
Web Sites • Promotion sites: marketing communications
• Content sites: news and entertainment; support PR
• Transaction sites: online retail operations
• Web sites can function as all three
