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BUSI 3250- FINAL EXAM QUESTIONS WITH COMPLETE ANSWERS
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BUSI 3250- FINAL EXAM QUESTIONS WITH COMPLETE ANSWERS
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BUSI 3250- FINAL EXAM QUESTIONSWITH COMPLETE ANSWERS
Market analysts have identified some interesting traits and trends associated with
millennials including how these can vary across countries and regions of the world.
Five paradoxical trends are identified: - Answer-1. Amortality. - anti-aging trends for
millennials (market dedicated to anti-aging in the millennial market). 2. Share conomy-
also called the Shortcut society - MOOCs, Uber, Air BNB, renting your car to someone
else
3. Cloaking- Creation of private pages or closed groups on social media sites such as
Fb, de sharing and unselfies - deleting or use of self-destructing messages and use of
anonymous website.
4. Predictable- consumer behavior. Analyzing data to improve marketing (as an
example).
5. Serendipity- Enjoying surprises through coincidental discovers on social networks on
through surprise boxes of cosmetics and skim care products, monthly subscriptions for
dog items, makeup, clothes
Market Screening Approaches and Techniques
1. Environmental Scanning - Answer-broader than market screening•
A procedure in which the firm scans the world for changes in the environmental forces
that might affect it. Example - world threats and opportunities
Market Screening Approaches and Techniques
2. Market Screening - Answer-A modified version of environmental scanning in which
the firm identifies desirable markets by eliminating the less desirable ones. Look at a
market's basic needs and external environmental forces. Application of environmental
scan to markets
just because imports of a product are low, does not mean there isn't a market for that
product
Market Screening Approaches and Techniques
3. Country Screening - Answer-A screening that uses countries as the basis for market
selection. Narrowing down to a country (or more).
Market Screening Approaches and Techniques
4. Segment Screening - Answer-A screening that uses market segments, a within-
country analysis of groups of consumers, as the basis for market selection. Within a
country, for example China. Might only look at the top 10 cities of China as a potential
market.....or a region within a country.
Initial Screening—Basic Needs Potential - Answer-Influenced by climate, geography,
and natural resources. Snowmobile demand in Russia versus Costa Rica. • Some
,needs easy to assess (industrial goods); others more difficult, especially when they are
desires (chocolate).
Data include imports, local production.
Second Screening—Financial and Economic Forces - Answer-Trends in inflation,
currency exchange, interest rates, credit availability, paying habits, rates of return on
similar investments.• Market indicators include economic data used to measure relative
market strength of countries or geographic areas.• Market factors include economic
data that correlate highly with market demand for a product.• May have seen this in a
previous class, but still "good" to show again
Alabama for 2019 - Top 10 exports - Answer-1.Mid-sized automobiles (piston engine):
US$2.9 billion (14.2% of Alabama's total exports)
Second Screening—Financial and Economic Forces continued - Answer-Trend analysis
is a statistical technique used to estimate future values by successive observations of a
variable at regular time intervals that suggest patterns.• Using the past information/data
to predict the future. • Cluster analysis is a statistical technique that divides objects into
groups based on similarity. Looking to group based on similar characteristics.• Example
- Automotive industry, or can look at consumer clusters. (anti-aging, green products)
Third Screening—Political and Legal Forces - Answer-Barriers to entry such as
import/export tariffs. Local content laws• Since the crash of 2008, local content laws
have been on the rise. Typically seen in automotive, oil and gas, and energy. "benefiting
domestic firms at the expense of foreign competitors." Local content laws help replace
the removing of many tariffs in the Uruguay Round as a means of protecting workforce
in country.
• Limits on foreign ownership.• Limits on repatriation of earnings.• Stable government
policies (which differ from government stability).
• Political stability versus policy stability.
Fourth Screening: Cultural Forces - Answer-create difficulty for companies because
culture is subjective and interpretive- can offend if don't do your research
data difficult to assemble, particularly from a distance- best to be on the ground to better
witness the culture
Fifth Screening: Competitive Forces - Answer-1. The number, size, and financial
strength of the competitors.
2. Their market shares.
3. Their marketing strategies.
4. The apparent effectiveness of their promotional programs.
5. The quality levels of their product lines.
6. The source of their products—imported or locally produced.
7. Their pricing policies.
8. The levels of after-sales service.
9. Their distribution channels.
,10. Their coverage of the market.
Final Selection of New Markets - Answer-No substitute for personal visits to potential
markets.• Goal of visit is to corroborate what was learned in screening process.• Face-
to-face interviews can reveal information that written reports don't reveal.
Segment Screening:: Traits segments should have: - Answer-1. Definable. That the
segment can be defined...."set parameters around", have similar characteristics.....and
can be measured.
2. Large. Of enough size to pursue as a market....profit and potential.
3. Accessible. They can be reached/access to product.
4. Actionable. The 4Ps of marketing are useful.
5. Capturable
Trade Mission - Answer-A market visit by businesspeople and/or government officials
(state or federal) in search of business opportunities.
trade fair - Answer-A large exhibition, generally held at the same place and same time
periodically, at which companies maintain booths to promote the sale of their products.
companies promote sale of their products
- The CeBIT trade fair is the largest computer expo, held annually in Hanover,
Germany.
Research in the Local Market and as Practiced: Potential Problems - Answer-Cultural
issues: language, dialect, literacy.
Social Desirability Bias (The respondent's desire to please that leads to answers
designed to please the interviewer rather than reflect the respondent's true beliefs or
feelings.)
Technological difficulties (out-of-date maps, computer systems.• Japan has a grid
system, not addresses.)
Research in the Local Market and as Practiced:
Big Data - Answer-Massive sets of data both structured and unstructured that
businesses are collecting, which can be analyzed with advanced data analysis methods
such as predictive analytics or user behavior analytics.
• Plays a role in personalizing shopping experience.
• Not global in scope but using data to gather information to make changes / improve
decision making • Helps companies sell more products.
• Governments use to improve understanding of population patterns and to map public
services.
• Homeless in Birmingham. Why rural move to urban - one reason to be near to
government services.
What Methods Are Available for Entering Foreign Markets?
, >> Nonequity Modes of Entry - no equity investment by foreign entrant: - Answer-Types:
1) contractual agreements, 2) licensing/franchising, 3) turnkey 4) management contract
and 5) contract manufacturing
• Definition - Turnkey project: an export of technology, management expertise, and
possibly capital equipment where a contractor agrees to design and erect a plant,
supply the process technology, provide the production inputs, train the operating
personnel, and, after a trial run, turn the facility over to the purchaser.
What Methods Are Available for Entering Foreign Markets?
>> Nonequity Modes of Entry - no equity investment by foreign entrant: continued... -
Answer-- Licensing: a contractual arrangement in which one firm grants access to its
patents, trade secrets, or technology to another for a fee.
- - Used in technology and fashion. Like brand name, logo, product design or fabric
design......copyrights for use of textile in furniture, luggage, etc.
- - Even Cakeitecture Bakery in Opelika has a license to use Auburn's logo, etc.
- Franchising: a form of licensing in which one firm contracts with another to operate a
business under an established name according to specific rules.
- - Provides more control than licensing.• Examples, McDonald's, KFC
What Methods Are Available for Entering Foreign Markets?
>> Nonequity Modes of Entry - no equity investment by foreign entrant: continued... -
Answer-- Management contract: an arrangement by which one firm provides
management to another firm.
- Contracted manufacturing: an arrangement in which one firm contracts with another to
produce products to its specifications.
What Methods Are Available for Entering Foreign Markets?
>> Equity-Based Modes of Entry - Answer-- Joint venture: a cooperative effort among
two or more organizations that share a common interest in a business undertaking.
- Strategic alliance: collaboration with competitors, customers, and/or suppliers that may
take nonequity or equity form.
what % of products can be successful when going abroad without changing anything? -
Answer-about 10%
___________ & _____________ products are typically the main category of products
that do not have to be adapted or changed when sold abroad - Answer-industrial and
luxury
Differences between Domestic and International Trade - Answer-Basic functions are the
same but international markets differ because of great variations among nations.
Basically, the PESTLE analysis. •Sociocultural.• Resource and environmental.•
Economic and socioeconomic.• Legal.• Financial.
Differences between Domestic and International Trade:: The Marketing Mix - Answer-
Definition - A set of strategy decisions made about the product and its promotion,
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