International Marketing || with 100% Error-free Solutions.

Investment Cost of Marketing Entry Strategies correct answers Exporting Licensing Contract Manufacturing Joint Venture Equity Stake or Acquistion Licensing correct answers 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 correct answers 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 correct answers Great appeal to local entrepreneurs anxious to learn and apply Western-style marketing techniques ex) McDonalds Foreign direct investment (FDI) correct answers 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 correct answers 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 correct answers local, global, international Co-branding correct answers 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 correct answers provides a useful framework for understanding how and why local products and brands can be extended beyond home country borders Extension Strategy correct answers Strategy 1: Common for