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40 Cards in this Set

  • Front
  • Back
Global Firm
frim that operates in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that re not available to purely domestic competitors
What are the major international marketing decisions? (6)
1)looking at the global marketing environment

2)deciding whether to go international

3)deciding which markets to enter

4)deciding how to enter the market

5)deciding on the global marketing program

6)deciding on the global marketing organization
a tax levied by a govn. against certain imported products
limit on the amount of goods that an importing country will accept in certain product categories
ban on the import of a certain product
exchange controls
govn. limits on the amount of foreign exchange with other countries and on the exchangre rate against other currencies
Nontariff Trade Barriers
non monetary barriers to foreign products, such as biases against a foreign company's bids or product standards that go against a foreign companie's product features
Looking at the Global Marketing environment

What is the International Trade System?
restrictions-- tariffs, quotas, embargos, exchange controls, and non-tariff trade barriers
Looking at the Global marketing environment

What is the World Trade Organization and GATT?
helps trade--reduces tariffs and other international trade barriers
Looking at the global marketing environment

What are Regional Free trade zones?
groups of nations organized to work toward common goals in the regulation of international trade

ex. NAFTA, European Union
Economic environment

what are the types of industrial structure?
subsistence economies
raw material exporting econs.
industrializing econs.
industrial econs.
subsistence econs
majority of their income comes from simple agriculture
raw material exporting econs.
rich in one or more resources but poor in others (south Africa;diamonds)
Industrializing econs
manufacturing accounts for 10-20% of econ
industrial econs.
major exporters (US)
Political-Legal environment

What 4 political-legal facors should be considered when looking at the global marketing environment?
1) Attitudes toward international buying

2)Government bureaucracy

3)Political Stability

4)Monetary regulations
Monetary regulations

what is counter trade?
international trade involving the direct or indirect exchange of goods for other goods instead of cash--include barter, compensation (buy back), and counter purchase
counter purchase?
receive full payment in cash, but agrees to spend some percent in that country, straight purchase
Economic community
group of nations organized to work toward common goals in the regulation of international trade
Cultural environment

What 3 things must a seller examine before deciding to go international with a given country?
1)How customers thing about and use products

2)Cultural traditions, preferences, and behaviors

3)business norms and behavior
Deciding whether to go global

Reasons to consider going global:
1)foreign attacks on domestic markets

2)foreign markets might offer higher profit opport.

3)domestic markets might be shrinking

4)reduce dependency on single market

5)follow customers who are expanding

6)need larger customer base to achieve economies of scale
Deciding which markets to enter

what should co do before going abroad?
Before going abroad to co. should define orgs. marketing objectives and policies
what are some of the orgs. marketing objectives and policies?
What volume of sales is desired?

How many countries to market in?

What types of countries to enter?

-rank based on market size and market growth, cost of doing business, competetive advantage, and risk level
Deciding how to enter the Market

How involved in the market do you want to be (left least, right most)
Exporting>joint venturing>direct investment
Exporting (far left)
entering a foreign market by selling goods produced in the company's home country often with little modification
joint venturing (middle)
entering foreign markets by joining with foreign co's to produce or market a product or service
Forms of joint venturing

entering into a foreign market with an agreement with a licensee in the foreign market, offering the right to use a manufacturing process, trademark, patent, trade secret or other item of value for a fee or royalty
Forms of joint venturing

Contract manufacturing
joint venture where co contract with manufacturers in a foreign marktet to produce the product or provide its service
Forms of joint venturing

Management contracting
joint venture where domestic firm supplies the management know-how to a foreign co. that supplies the capital, the domestic firm exports management services rather than products
Forms of joint venturing

Joint ownership
joint venture where a co. joins investors in a foreign market to create a local bus. in which the co. shares joint ownership and control
Direct investment (far right)
entering a foreign market by developing foreign-based assembly or maufacturing facilities
Deciding on the global marketing program

Standardized marketing mix?
selling largely the same products and using the same marketing approaches worldwide

ex. coca-cola
Deciding on the global marketing program

Adapted marketing mix?
producer adjusts the marketing mix elements to each target market, baring more costs but hoping for a larger share and return

-changes in product advertising, distribution channels, and price

ex. Japanese Barbie
Five global product and promotion strategies

1)straight extension
don't change product or promotion in foreign market
Five global product and promotion strategies

2)product adaptation
don't change promotion, but adapt product to meet local conditions or wants in foreign markets
Five global product and promotion strategies

3)communication adaption
don't change product but fully adapting advertising messages and promotion to local markets
Five global product and promotion strategies

4)Dual adaption
adapt promotion and adapt product at same tim
Five global product and promotion strategies

5)product invention
creating new products or services for foreign markets
Whole-channel concept for international marketing

What necessary links need to be made to sell the product?
design international channels that take into account all of the necessary links in distributing the seller's products to final buyers including the seller's headquarters organization, channels between nations, channels within nations, and th final buyer
Deciding on the global Marketing organization

What do you need to do? (3)
1)organize an export department

2)create international divisons
-geographic orgs
-world product groups
-international subsidiaries
3)become a global organization