Please explain these in your own words in the view of international or National Marketing Management… (a) Negative Publicity (b) Strategic Alliance (c) Counter Trade (d) General Agreement on Trade and Services (GATS) (e) EPRG Orientation (f) Transfer Pricing (g) Stratified Sampling (h) Advantages of Branding (i) Telemarketing (j) e-commerce (k) counter Trade (l) Counter Trade (m) Merger of Acquisition (n) Franchising as a tool for overseas market entry (o) International Product Life cycle (p) Importance of Research in International Marketing
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Answers ( 4 )
1) Strategic Alliance:-
A strategic alliance is an arrangement between two companies that have decided to share resources to undertake a specific, mutually beneficial project. A strategic alliance is less involved and less binding than a joint venture, in which two companies typically pool resources to create a separate business entity. In a strategic alliance, each company maintains its autonomy while gaining a new opportunity.
2) Counter trade:-
Counter trade means exchanging goods or services which are paid for, in whole or part, with other goods or services, rather than with money. A monetary valuation can however be used in counter trade for accounting purposes. In dealings between sovereign states, the term bilateral trade is used.
3)Negative Publicity:-
The main focus for publicity is to create awareness for an organization, brand or individual. Despite this, publicity can also create a negative effect resulting in negative publicity. One of the most important factors in relation to influencing a consumers buying decision falls down to how a company, brand or individual deal with the negative publicity surrounding themselves. The power of negative publicity may also result in major loss of revenue or market shares within a business.
4)Stratified Sampling – Transfer price is the price at which divisions of a company transact with each other, such as the trade of supplies or labor between departments. Transfer prices are used when individual entities of a larger multi-entity firm are treated and measured as separately run entities. A transfer price can also be known as a transfer cost.
g) Stratified Sampling – Transfer price is the price at which divisions of a company transact with each other, such as the trade of supplies or labor between departments. Transfer prices are used when individual entities of a larger multi-entity firm are treated and measured as separately run entities. A transfer price can also be known as a transfer cost.
h) Advantages of Branding –
* Recognition and loyalty
* Image of size
* Image of quality
* Image of experience and reliability
* Multiple products
i) Telemarketing – Telemarketing is the direct marketing of goods or services to potential customers over the telephone, internet or fax. Telemarketing may either by carried out by telemarketers, or increasingly, by automated telephone calls or “robocalls.” The intrusive nature of telemarketing, as well as reports of scams and fraud perpetrated over the telephone, has spurred a growing backlash against this direct marketing practice. Telemarketing may also be referred to as “telesales” or “inside sales.”
j) E-commerce – Electronic commerce is a type of business model, or segment of a larger business model, that enables a firm or individual to conduct business over an electronic network, typically the internet.
m) Merger of acquisition – Mergers and acquisitions (M&A) is a general term that refers to the consolidation of companies or assets through various types of financial transactions.
Transfer price is the price at which divisions of a company transact with each other, such as the trade of supplies or labor between departments. Transfer prices are used when individual entities of a larger multi-entity firm are treated and measured as separately run entities. A transfer price can also be known as a transfer cost.
a) Negative Publicity:-
The main focus for publicity is to create awareness for an organization, brand or individual. Despite this, publicity can also create a negative effect resulting in negative publicity. One of the most important factors in relation to influencing a consumers buying decision falls down to how a company, brand or individual deal with the negative publicity surrounding themselves. The power of negative publicity may also result in major loss of revenue or market shares within a business. Negative publicity can also play a part in damaging a consumers perception of a brand or its products. Its high credibility and greater influence compared to other company-controlled communications also play a part in negative publicity occurring and the potential damage it may have upon a corporate image. Crises involved with an organization may also result in negative publicity as well.
b) Strategic Alliance:-
A strategic alliance is an arrangement between two companies that have decided to share resources to undertake a specific, mutually beneficial project. A strategic alliance is less involved and less binding than a joint venture, in which two companies typically pool resources to create a separate business entity. In a strategic alliance, each company maintains its autonomy while gaining a new opportunity.
c) Counter trade:-
Counter trade means exchanging goods or services which are paid for, in whole or part, with other goods or services, rather than with money. A monetary valuation can however be used in counter trade for accounting purposes. In dealings between sovereign states, the term bilateral trade is used.
d) General Agreement on Trade and services (GATS):–
The GATS schedules of commitments confer benefits on foreign service providers by establishing benchmarks and improving transparency. Benchmarks comprise full and partial commitments that describe the extent of existing trade-impeding measures and prevent them from becoming more onerous in the future.
e) EPRG Orientation:-
*Ethnocentric Orientation – The practices and policies of headquarters and of the operating company in the home country become the default standard to which all subsidiaries need to comply. Such companies do not adapt their products to the needs and wants of other countries where they have operations. There are no changes in product specification, price and promotion measures between native market and overseas markets.
* Polycentric Orientation – In this approach, a company gives equal importance to every country’s domestic market. Every participating country is treated solely and individual strategies are carried out. This approach is especially suitable for countries with certain financial, political and cultural constraints.
* Regiocentric Orientation – In this approach a company finds economic, cultural or political similarities among regions in order to satisfy the similar needs of potential consumers. For example, countries like Pakistan, India and Bangladesh are very similar. They possess a strong regional identity.
* Geocentric orientation – Geocentric approach encourages global marketing. This does not equate superiority with nationality. Irrespective of the nationality, the company tries to seek the best men and the problems are solved globally within the legal and political limits. Thus, ensuring efficient use of human resources by building strong culture and informal management channels.