Question

5. Discuss the factors that lead to pressure for local responsiveness.

6. Discuss how a firm's marketing strategies may have to address differences in distribution channels in other countries.

7. Consider a transnational strategy. Why would a firm choose this strategic alternative? What are the disadvantages of this strategy?

8. Discuss the evolution of strategy. How does cost become important in the long term?

Answer 1

5) The factors that lead to pressure for local responsiveness are:

• Sometimes firms assign manufacturing and production facilities to foreign subsidiaries due to differences in the infrastructure and practices among countries.
• Firms have to customize their products and marketing messages according to the consumer tastes and preferences of the local market this varies between countries
• Marketing strategies of firms have to be responsive according to the differences in a country's distribution channels
• Local responsiveness is also required according to the political and economic demands of a country.

6) Firms have to use different marketing strategies to address differences in distribution channels in other countries:

• Brands use different distribution channels based on pricing
• Distributional channels affect marketing decisions according to price, product development, etc.
• Types of distributional channels models are direct sales, brokers, and distributors and wholesalers/ retailers.
• E-commerce also onfluences distribution channels in a major way