International Business: Chapter 14 Rated A+

International Business: Chapter 14 Rated A+ Laws and Regulations 1. Companies must adapt their products to satisfy laws and regulations in a target market. 2. The fact that many developing countries have fewer consumer-protection laws creates an ethical issue; lower levels of education and experience mean that consumers need protection. 3. Many governments impose fewer regulations to hold down production costs and consumer prices. promotion mix. Efforts by companies to reach distribution channels and target customers through communications such as personal selling, advertising, public relations, and direct marketing Cultural Differences 1. Companies sometimes must adapt their products to suit local buyers' preferences rooted in culture. 2. Not all companies modify products but find a different cultural need that it satisfies. Brand name 1. name of one or more items in a product line that identifies the source or character of the items. 2. Companies must review its brand image and update it if needed. 3. Selecting international brand and product names a. Products in international markets need carefully selected names whether standardized or localized. b. Company and product names are made up of morphemes—semantic elements, or language building blocks. c. Brand names seldom offend people in international markets, but product names do. National Image 1. Value customers obtain from a product is influenced by the image of the country in which it is designed, manufactured, or assembled. 2. Because it affects buyers' perceptions of quality and reliability, national image is an important element of product policy. Counterfeit goods 1. imitation products passed off as legitimate trademarks, patents, or copyrighted works. 2. Topping the list for counterfeits: China, India, Russia, Thailand, and Turkey. Counterfeiting is worth tens of billions globally each year. Shortened Product Life Cycles Companies traditionally managed to extend a product's life by introducing it into different markets consecutively; products were first in industrialized countries and later in developing markets. Push strategy: Pressure channel members to carry a product and promote it to final users. Manufacturers of products sold in department and grocery stores often use a push strategy. Pull strategy: Create buyer demand that will encourage channel members to stock a company's product. Buyer demand is generated in order to "pull" products through distribution channels to end-users Distribution system: Implementing a