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79 Cards in this Set

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Marketing & Global Marketing
Marketing- creating, distributing, pricing and promoting goods, services or ideas (i.e. products) that satisfy target
customer needs while satisfying
organizational objectives.
Global Marketing- Scope of activities are outside the home-country market
Product/Market growth matrix
Market Penetration: Existing Market, Existing
Product (Coke, Big Mac)
Product Development Strategy: Existing
Market, New Product (Coke Enviga, Southern
Style Chicken McBiscuit)
Market Development Strategy: New Market
Existing Product (Big Macs in Russia).
Diversifications Strategy: New Market, New
Product (Kinley Water, Maharaja Mac (India),
Sokenbicha, Lactia drinks (Japan)
Create Value For Customers
by
improving benefits or reducing price

Improve the product
Find new distribution channels
Create better communications
Cut monetary and non-monetary costs and
prices
Competitive Advantages
Higher value, something that sets your product or service apart from competitors
Focus
Mission, keeping sight of your core competency
GMS
Global market participation
Marketing mix development
4 P’s: adapt or standardize?
Concentration of marketing
activities
Coordination of marketing
activities
Integration of competitive
moves
Global Localization
Global localization (localized)
Mixing standardization and customization in a way
that minimizes costs while maximizing satisfaction
Essence of segmentation
“Think globally, act locally” (pizza, Perrier,
Jagermeister)
Standardization
Developing standardized products marketed
worldwide with a standardized marketing mix
Essence of mass marketing
Why is it so important for companies to look outside of their borders for customers.
A majority of any market lies outside its borders.
Ethnocentric Orientation
Our way and our country is best, the way we want our products is best for everyone.
Polycentric Orientation
Multinational companies recognizing only different areas, re-inventing the wheel every time. adapting a product for every region specifically
Regiocentric orientation
Associated with a regional strategy, NAFTA
Geocentric Orientation
associated with global or transnational companies, Entire world is a potential market
Strives for integrated global strategies
Also known as a global or transnational company
Retains an association with the headquarters
country
Pursues serving world markets from a single
country or sources globally to focus on select
country markets
Leads to a combination of standardized
(extension) and customized orientation to create
an adaptation appoach.
Food differences between Mcdonalds and various cultures
lamb burger, no beef, different adaptation for different cultures
How has it become easier for smaller firms to do business globally
Night-Force Scopes, hot-dog cookers, Communication and technology has taken leaps and bounds making it easier to contact global markets, shipping is easier, lower tariffs on trades.
Budget Deficit
Difference between tax
revenue and spending.
(2011: 3.83 trillion in spending – 2.57
trillion tax revenue= 1.26 deficit)
Trade Deficit
Trade Deficit: Difference between
imports and exports.
($1.5 trillion exports-$1.9 trillion imports=
-$400 billion deficit in goods
National Debt
National Debt: Sum of debt owed by
Federal government. 2/3 is public debt
which is owed to people, businesses
and foreign government who bought
treasury bills, notes and bonds.
Currently 15.3 trillion (Jan. 2012)
High Context
Japan is a high context country where a mans word is very valuable, silence means contemplation and is good
Low Context
U.S. is high context where everything needs to be in paper, time is money and silence is considered confusion
Market Capitalism
Market resource allocation, private ownership, consumer driven, market research, consumer wants and needs supply and demand, U.S., Great Britain....
Centrally planned Capitalism
Command resource allocation in some segments, transportation, health care, private resource ownership, Sweden
Market Socialism
Some market allocation policies permitted within an overall environment of state ownership, closer to socialism, lots of state ownership but can keep some profits
Centrally planned socialism
Government owns and controls resources and controls production - associated with communist countries.
Paul McCartney video
How music helped the move of rebellion and show people what was being kept from them.
BRIC Countries
Brazil, Russia, India, China, developing and emerging super economies, large populations, some affluent groups in the population
High income countries
U.S., Japan, western europe, Post industrialized, developed, advanced, high income
Upper-middle Income Countries
NIE's, Bric economies,
Lower-Middle Income countries
Developing, countries, china, indonesia, Thailand
Low income countries
LDC's, Rwanda, india, low development countries
LDC's
40% of the population is in the low-income countries.
3% of the gross national income.
Lower middle income countries
GNI per capita: $936 to $3,705
2.9 billion pop. (37%), 10% (GNI)
Upper-middle income countries
GNI per capita: $3,706 to $11,455
.6 billion pop. (9%), 7% GDI
High income countries
GNI per capita: $11,456 or more
1 billion pop. (14%), 80% GNI
Mistaken assumptions about LDC's
they are unwilling to buy, will not waste money, no one has money
Group of 7 and the Organization for Economic Cooperation and Development.
Assembled to help guide global economyUnited States
Japan, Germany, France,
Britain, Canada, Italy
Russia (1998)Promotes economic growth and social
well-being
Focuses on world trade, global issues,
labor market deregulation
What is the Triad
Hub of global trade, United States, Western Europe, and
Japan
Represents 75-80% of world income
Expanded triad includes all of North
America and the Pacific Rim and most
of Eastern Europe
Global companies should attempt to
have a strong presence in each part of
2-28
the Triad.
Why is vietnam considered an attractive market
Large population, majority young population, reduced tariffs, pretty smart people.
What id GATT and WTO
GATT a treaty among nations, WTO was born from the eighth round of GATT
Paul Mcartney in russia
Shift from centrally planned socialism to
more market driven economies
Economic, political and social reform
Beatles had a significant cultural impact
in not only in terms of music, fashion,
hairstyles but also in terms of ideals, attitudes, beliefs. (i.e. ambassadors of
Western Culture).
GATT
Global Agreement on Trade and Tariffs
WTO
Forum for trade-
related
negotiations
among 153
members

Based in Geneva,
Serves as dispute
mediator through
DSB
Has enforcement
power and can
impose sanctions
WTO settles disputes through the DSB
60 days to negotiate
3 trade experts hear dispute
9 months to rule
Comply or appeal to 7 person appellate
body
Uphold, modify or reverse
Comply or face sanctions
Free trade vs. fair trade
free trade is mostly completely free trade between countries, sometimes criticized taking jobs, killing supply and demand
Preferential trade agreements
Many countries seek to further lower
barriers to trade within their regions
PTAs give partners special treatment
and may discriminate against others
More specific than GATT (eliminate vs.
reduce)
4 Levels of trade integration
4-levels of economic integration
Free trade area - level 1
Customs Union - level 2
Common Market - level 3
Economic Union - level 4
Free trade area- level 1
Two or more countries agree to abolish tariffs
and other barriers to trade among themselves
Countries continue independent trade policies
with countries outside agreement
Rules of origin requirements restrict
transshipment of goods from the country with
the lowest tariff to another, NAFTA
Custom Union - level 2
Evolution of free trade area
Includes the elimination of internal barriers to
trade (as in FTA)
AND establishes common external barriers to
trade
Ex: The EU and Turkey, the Andean
Community, Mercosur, CARICOM, Central
American Integration System (SICA)
Common Market - level 3
Includes the elimination of internal
barriers to trade (as in free trade area)
AND establishes common external
barriers to trade (as in customs union)
AND allows for the free movement of
factors of production, such as labor,
capital, and information
Economic Union - level 4
Includes the elimination of internal barriers to
trade (as in free trade area)
AND establishes common external barriers to
trade (as in customs union)
AND allows for the free movement of factors
of production, such as labor, capital, and
information (as in common market)
AND coordinates and harmonizes economic
and social policy within the union
Rules of Origin
Rules of origin means that you can't go around country tariffs by entering a cheaper country that borders it.
NAFTA
North American Free Trade Agreement, between U.S., Mexico and Canada.
Total GNI - 18 trillion
Pop - 455 million
Average income - 39000 per capita.
Why is NAFTA controversial
NAFTA is criticized at times because it is free trade. takes jobs away, de-values products, subsidized
Discretion Protectionism
Tariff or regulation that can exist on a specific product between free trade countries, Avocados from Mexico to U.S., and chicken wings from U.S. to mexico
MERCOSUR
Brazil, Argentina...... trade agreement among south american countries, Brazil is largest among MERCOSUR, Chile, Colombia, Ecuador, Peru, Bolivia associate countries.
what level is MERCOSUR at and what level are they moving to.
currently at level 2 moving to level 3
Why does Japan present challenges for U.S. marketers
Cultural and political frame-works. lots of distribution policies and other rgulations
EU
European Union, level 4, use the Euro, 27 countries involved
EU GNI
GNI of over 17 trillion, population of 500 million plus.
Maastricht Treaty
1991 Maastricht Treaty set stage for
transition to an economic union with a central
bank and single currency (the euro) 17 countries use the Euro.
what is culture
Culture—ways of living, built up by a group of
human beings, that are transmitted from one
generation to another
Culture has both conscious and unconscious
values, ideas, attitudes, and symbols
Culture is acted out in social institutions
Culture is both physical (clothing and tools)
and nonphysical (religion, attitudes, beliefs,
and values)
4-3
Religion
The world’s major religions include
Buddhism, Hinduism, Islam, Judaism,
and Christianity and are an important
source of beliefs, attitudes, and values.
Religious tenets, practices, holidays,
and history impact global marketing
activities.
Aesthetics
The sense of what is
beautiful and what
is not beautiful
What represents
good taste as
opposed to
tastelessness or
even obscenity

Visual—embodied in
the color or shape of
a product, label, or
package
Styles—various
degrees of
complexity, for
example, are
perceived differently
around the world
Dietary Preferance
Many cultures have very different eating habits and varieties of different foods they will eat.
Language
Verbal and non-verbal language, body language, personal space.
Semantics
The actual meanings of words
Phonology
the actual sound of words and how they can sound like other words
Time and space
Time:
-Linear
-Procedural
-Cyclical
Space:
-Personal space
-Distances
Political, legal, regulatory
There can be many different legal and political obstacles to overcome when entering into a new cultural market
Geert Hofstede's cultural typology 5 dimensions
Power distance
Individualism/collectivism
Masculinity
Uncertainty avoidance
Long-term orientation
Power Distance
Respect for authority,
Individualism vs. collectivism
Personal recognition, freedom vs. common good, don't stand out
Masculinity vs. femininity
male domination, gender roles, sex stereotypes
uncertainty avoidance
The extent to which the members of a society are accepting of ambiguous situations or comfortable with unfamiliar situations.
long term vs. short term orientation
the extent to which a society encourages and rewards future-oriented behaviors such as planning, investing...
adoption process
The mental stages through which an individual
passes from the time of his/her first knowledge of an
innovation to the time of product adoption or
purchase

Awareness
Interest
Evaluation
Trial
Adoption
Characteristics of innovation
the rate at which a product is adopted into a culture or group
Relative advantage
compatibility
complexity
divisibility
communicability
how complicated a product is, if it fits in, are samples possible, all these play a big role in adoption.
5 adopter categories
Innovators
Early adopters
early majority
late majority
laggerds
what is environmental sensitivity
the degree to which a product is culturally sensitive, a camera is low sensitivity, food is high sensitivity