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79 Cards in this Set
- Front
- Back
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Marketing & Global Marketing
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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 |
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Product/Market growth matrix
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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) |
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Create Value For Customers
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by
improving benefits or reducing price Improve the product Find new distribution channels Create better communications Cut monetary and non-monetary costs and prices |
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Competitive Advantages
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Higher value, something that sets your product or service apart from competitors
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Focus
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Mission, keeping sight of your core competency
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GMS
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Global market participation
Marketing mix development 4 P’s: adapt or standardize? Concentration of marketing activities Coordination of marketing activities Integration of competitive moves |
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Global Localization
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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) |
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Standardization
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Developing standardized products marketed
worldwide with a standardized marketing mix Essence of mass marketing |
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Why is it so important for companies to look outside of their borders for customers.
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A majority of any market lies outside its borders.
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Ethnocentric Orientation
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Our way and our country is best, the way we want our products is best for everyone.
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Polycentric Orientation
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Multinational companies recognizing only different areas, re-inventing the wheel every time. adapting a product for every region specifically
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Regiocentric orientation
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Associated with a regional strategy, NAFTA
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Geocentric Orientation
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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. |
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Food differences between Mcdonalds and various cultures
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lamb burger, no beef, different adaptation for different cultures
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How has it become easier for smaller firms to do business globally
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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.
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Budget Deficit
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Difference between tax
revenue and spending. (2011: 3.83 trillion in spending – 2.57 trillion tax revenue= 1.26 deficit) |
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Trade Deficit
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Trade Deficit: Difference between
imports and exports. ($1.5 trillion exports-$1.9 trillion imports= -$400 billion deficit in goods |
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National Debt
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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) |
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High Context
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Japan is a high context country where a mans word is very valuable, silence means contemplation and is good
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Low Context
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U.S. is high context where everything needs to be in paper, time is money and silence is considered confusion
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Market Capitalism
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Market resource allocation, private ownership, consumer driven, market research, consumer wants and needs supply and demand, U.S., Great Britain....
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Centrally planned Capitalism
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Command resource allocation in some segments, transportation, health care, private resource ownership, Sweden
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Market Socialism
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Some market allocation policies permitted within an overall environment of state ownership, closer to socialism, lots of state ownership but can keep some profits
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Centrally planned socialism
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Government owns and controls resources and controls production - associated with communist countries.
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Paul McCartney video
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How music helped the move of rebellion and show people what was being kept from them.
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BRIC Countries
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Brazil, Russia, India, China, developing and emerging super economies, large populations, some affluent groups in the population
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High income countries
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U.S., Japan, western europe, Post industrialized, developed, advanced, high income
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Upper-middle Income Countries
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NIE's, Bric economies,
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Lower-Middle Income countries
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Developing, countries, china, indonesia, Thailand
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Low income countries
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LDC's, Rwanda, india, low development countries
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LDC's
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40% of the population is in the low-income countries.
3% of the gross national income. |
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Lower middle income countries
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GNI per capita: $936 to $3,705
2.9 billion pop. (37%), 10% (GNI) |
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Upper-middle income countries
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GNI per capita: $3,706 to $11,455
.6 billion pop. (9%), 7% GDI |
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High income countries
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GNI per capita: $11,456 or more
1 billion pop. (14%), 80% GNI |
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Mistaken assumptions about LDC's
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they are unwilling to buy, will not waste money, no one has money
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Group of 7 and the Organization for Economic Cooperation and Development.
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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 |
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What is the Triad
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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. |
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Why is vietnam considered an attractive market
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Large population, majority young population, reduced tariffs, pretty smart people.
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What id GATT and WTO
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GATT a treaty among nations, WTO was born from the eighth round of GATT
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Paul Mcartney in russia
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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). |
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GATT
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Global Agreement on Trade and Tariffs
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WTO
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Forum for trade-
related negotiations among 153 members Based in Geneva, Serves as dispute mediator through DSB Has enforcement power and can impose sanctions |
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WTO settles disputes through the DSB
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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 |
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Free trade vs. fair trade
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free trade is mostly completely free trade between countries, sometimes criticized taking jobs, killing supply and demand
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Preferential trade agreements
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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 |
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4-levels of economic integration
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Free trade area - level 1
Customs Union - level 2 Common Market - level 3 Economic Union - level 4 |
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Free trade area- level 1
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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 |
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Custom Union - level 2
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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) |
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Common Market - level 3
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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 |
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Economic Union - level 4
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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 |
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Rules of Origin
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Rules of origin means that you can't go around country tariffs by entering a cheaper country that borders it.
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NAFTA
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North American Free Trade Agreement, between U.S., Mexico and Canada.
Total GNI - 18 trillion Pop - 455 million Average income - 39000 per capita. |
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Why is NAFTA controversial
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NAFTA is criticized at times because it is free trade. takes jobs away, de-values products, subsidized
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Discretion Protectionism
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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
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MERCOSUR
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Brazil, Argentina...... trade agreement among south american countries, Brazil is largest among MERCOSUR, Chile, Colombia, Ecuador, Peru, Bolivia associate countries.
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what level is MERCOSUR at and what level are they moving to.
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currently at level 2 moving to level 3
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Why does Japan present challenges for U.S. marketers
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Cultural and political frame-works. lots of distribution policies and other rgulations
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EU
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European Union, level 4, use the Euro, 27 countries involved
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EU GNI
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GNI of over 17 trillion, population of 500 million plus.
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Maastricht Treaty
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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. |
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what is culture
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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 |
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Religion
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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. |
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Aesthetics
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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 |
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Dietary Preferance
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Many cultures have very different eating habits and varieties of different foods they will eat.
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Language
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Verbal and non-verbal language, body language, personal space.
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Semantics
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The actual meanings of words
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Phonology
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the actual sound of words and how they can sound like other words
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Time and space
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Time:
-Linear -Procedural -Cyclical Space: -Personal space -Distances |
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Political, legal, regulatory
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There can be many different legal and political obstacles to overcome when entering into a new cultural market
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Geert Hofstede's cultural typology 5 dimensions
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Power distance
Individualism/collectivism Masculinity Uncertainty avoidance Long-term orientation |
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Power Distance
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Respect for authority,
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Individualism vs. collectivism
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Personal recognition, freedom vs. common good, don't stand out
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Masculinity vs. femininity
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male domination, gender roles, sex stereotypes
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uncertainty avoidance
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The extent to which the members of a society are accepting of ambiguous situations or comfortable with unfamiliar situations.
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long term vs. short term orientation
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the extent to which a society encourages and rewards future-oriented behaviors such as planning, investing...
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adoption process
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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 |
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Characteristics of innovation
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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. |
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5 adopter categories
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Innovators
Early adopters early majority late majority laggerds |
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what is environmental sensitivity
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the degree to which a product is culturally sensitive, a camera is low sensitivity, food is high sensitivity
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