In: Economics
1) Explain three ways that a firm that is considering entering an overseas market can use market orientation to its advantage.
2) Explain two reasons why culture may play a role in a company repositioning its brand when entering a foreign market
3) Explain how and why the two different thinking styles (analytic vs. holistic) can be applied differently to explain country-of-origin effects.
4) Explain three challenges that managers are likely to encounter when implementing value-based pricing and potential ways to address the respective challenges.
5) Explain (a) how and why Distribution Traps occur and (b) for which type of product such traps are most likely to be observed.
1.
The first way is that the firm can customize the products &
services that suites the market orientation and conditions. It
helps the company to offer a product that can fulfil the needs and
wants of the market. The second way is the selection of the pricing
strategy that is according to the target audience in the market. It
is used to attract the audience and build local acceptability. The
third way is the selection of market communication and creation of
the message for the audience that is based upon the target market
orientation.
2.
The first reason is that people give high significance to their
cultural values. In this regard, it is important for the company to
restructure or modify the product that adds value to the people and
their culture upon the consumption. The product can be new, but it
should align with the cultural values. It makes the target audience
to buy and consume it with ease. Cultural dimensions such as degree
of indulgence, uncertainty avoidance index and long term
orientation are the aspects that have to be considered by the
company when entering into s new market. The second reason is that
it helps to create competitive advantage in the new market if
culture is properly analyzed and used as a part of strategy It
helps the company to successfully reposition its product &
services in the market.
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