International Business
International Business
1. Q: List elements of the national business environment that influence the standardization-versus-adaptation decision. Standardized is just one of a number of strategies with which firms successfully enter the international marketplace today. Standardization may not always be the most appropriate strategy, even. Smaller companies may also be better off adapting to local cultures and exploiting their international image to gain market share locally. Consumers in different national markets often demand products that reflect their unique tastes and preferences. Cultural, political, legal, and economic environments have a great deal to do with the preferences of both consumers and industrial buyers worldwide. A culture’s aesthetics involves, among other things preferences for certain colors.
2. Q: What five generic methods are used to blend product and promotional strategies for international markets? Describe each briefly. (a). Product/communications extension (dual extension)- This method extends the same home-market product and marketing promotion into target markets. Under certain conditions, it can be the simplest and most profitable strategy. (b). Product extension/communications adaptation- Under this method a company extends the same product into target markets but alters its promotion. Communications require adaptation because the product satisfies a different need, serves a different function, or appeals to a different type of buyer. (c). Product adaptation/communications extension- Using this method a company adapts its product to the requirements of the international market while retaining the product’s original marketing communications. There are many reasons why companies need to adapt their products. One might be to meet legal requirements in the local market. (d).Product/communication adaptation (dual adaptation)- This method adapts both the product and its marketing communication to suit the target market. The product
1. Q: List elements of the national business environment that influence the standardization-versus-adaptation decision. Standardized is just one of a number of strategies with which firms successfully enter the international marketplace today. Standardization may not always be the most appropriate strategy, even. Smaller companies may also be better off adapting to local cultures and exploiting their international image to gain market share locally. Consumers in different national markets often demand products that reflect their unique tastes and preferences. Cultural, political, legal, and economic environments have a great deal to do with the preferences of both consumers and industrial buyers worldwide. A culture’s aesthetics involves, among other things preferences for certain colors.
2. Q: What five generic methods are used to blend product and promotional strategies for international markets? Describe each briefly. (a). Product/communications extension (dual extension)- This method extends the same home-market product and marketing promotion into target markets. Under certain conditions, it can be the simplest and most profitable strategy. (b). Product extension/communications adaptation- Under this method a company extends the same product into target markets but alters its promotion. Communications require adaptation because the product satisfies a different need, serves a different function, or appeals to a different type of buyer. (c). Product adaptation/communications extension- Using this method a company adapts its product to the requirements of the international market while retaining the product’s original marketing communications. There are many reasons why companies need to adapt their products. One might be to meet legal requirements in the local market. (d).Product/communication adaptation (dual adaptation)- This method adapts both the product and its marketing communication to suit the target market. The product