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73 Cards in this Set
- Front
- Back
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the commitment of organizational resources to pursuing global market opportunities and responding to environmental threats in the global marketplace
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global marketing
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the various activities that a company performs – eg: r&d, manufacturing, marketing, physical distribution, and logistics – in order to create value for customers
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value equation
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an industry in which competitive advantage can be achieved by integrating and leveraging operations on a worldwide scale
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global industry
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the concentration of resources on a core business or competence
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focus
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firm’s blueprint for pursuing global market opportunities that addresses four issues: whether a standardization approach or localization approach will be used; whether key marketing activities will be concentrated in relatively few countries or widely dispersed around the globe; guidelines for coordinating marketing activities around the glove; and the scope of global market participation
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global marketing strategy
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the extent in to which a company has operations in major world markets
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global market participation
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the first level in the EPRG (ethnocentric, polycentric, regiocentric, and geocentric) framework: the conscious or unconscious belief that one’s home country is superior
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ethnocentric orientation
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a company that limits that geographic scope of its resource commitment and marketing activities to opportunities in the home country
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domestic company
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a company that pursues market opportunities outside the home country via an extension strategy
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int'l company
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the pursuit of global market opportunity using an extension strategy of minimal marketing mix variation in different countries
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standardized approach
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management’s use of domestic country marketing programs and strategies when entering new country markets
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extension approach
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a company that pursues market opportunities outside the home country market via an adaptation strategy, ie, different product, price, place, and/or promotion strategy than used in the domestic market. In a typical multinational, country managers are granted considerable autonomy; there is little integration or coordination of marketing activities across different country markets
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multinational company
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the pursuit of global market opportunities using an adaptation strategy of significant marketing mix variation in different countries
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localized approach
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management’s use of highly localized marketing programs in different country markets
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adaptation approach
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the 4th level in the EPRG framework; the understanding that the company should seek market opportunities throughout the world. Management also recognizes that country markets may be characterized by both similarities and differences
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geocentric orientation
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a company exhibiting a geocentric orientation that pursues marketing opportunities in all parts of the world using one of two strategies: either serving world markets by exporting goods manufactured in the home country market or by sourcing products from a variety of different countries with the primary goal of serving the home country market. Global operations are integrated and coordinated
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global company
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a company exhibiting a geocentric orientation that pursues marketing opportunities in all parts of the world. However, a transnational company differs from a global company by fully integrating and coordinating two strategies: both sourcing products from a variety of different countries and serving multiple country markets across most world regions
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transnational company
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some type of advantage – for example, experience transfers, leverage, or scale economies – that a company enjoys by accumulating experience in multiple country markets
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leverage
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any restriction besides taxation that restricts or prevents the flow of goods across borders, ranging from “buy local” campaigns to bureaucratic obstacles that make it difficult for companies to gain access to some individual country and regional markets
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non-tariff barriers
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an economic system characterized by command resource allocation and state resource ownership
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centrally planned socialism
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and economic system characterized by command resource allocation and private resource ownership
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centrally planned capitalism
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an economic system characterized by limited market resource allocation within an overall environment of state ownership
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market socialism
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a league table of country rankings based on key economic variables such as trade policy, taxation policy, gov’t consumption, monetary policy, capital flows and foreign investment
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economic freedom index
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terminology adopted by the United Nations to refer to the fifty countries that rank lowest in per capita GNP
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least-developed countries
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countries that can be assigned to the upper ranks of the low-income category, the lower-middle income category, or the upper-middle-income category
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developing countries
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countries that can be assigned to the high-income category
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developed countries
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a term used to refer to upper-middle-income countries with high rates of economic growth
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newly industrializing economies
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a program that allows manufacturing, assembly, or processing plants to import materials, components, and equipment duty-free; in return they use Mexican labor
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maquiladora
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7 nations – the US, Japan, Germany, France, Great Britain, Canada, and Italy – whose representatives meet regularly to deal with global economic issues
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group of seven (g-7)
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a group of 30 nations that work together to aid in the development of economic systems based on market capitalism and pluralistic democracy
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organization for economic cooperation and development
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the three regions of Japan, Western Europe, and the US, which represented the dominant economic centers of the world
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triads
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the percentage of customers or households that own a product in a particular country market; a measure of market opportunity
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product saturation levels
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the record of all economic transactions between the residents of a country and the rest of the world
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bal. of payments
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a record of all recurring trade in merchandise and services, private gifts, and public aid transactions between countries
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current account
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a negative number in the balance of payments showing that the value of a country’s imports exceeds the value of its exports
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trade deficit
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in a country’s balance of payments, the record of all long-term direct investment, portfolio investment, and other short and long-term capital flows
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capital account
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a positive number in the BOP showing that the value of a country’s exports exceeds the value of its imports
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trade surplus
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the decline in value of a currency relative to other currencies
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devaluation
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a concept that permits adjustment of national income measurements in various countries to reflect what a unit of each country’s currency can actually buy
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ppp
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in global finance, the type of risk that is created when a company’s sales or purchases of products or services are denominated in a foreign currency
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transaction exposure
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investment made to protect a company from possible financial losses due fluctuating currency exchange rates
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hedging
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a mechanism for buying and selling currencies at a preset price for future delivery
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forward market
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the right to sell a specified number of foreign currency units at a fixed price, up to the option’s expiration date
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put option
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the right to buy a specified amount of foreign currency at a fixed price, up to the option’s expiration date
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call option
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a figure in a country’s BOP showing that the value of the country’s exports of manufactured goods exceeds the value of its imports of manufactured goods
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merchandise trade surplus
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countries that have experienced rapid economic growth and represent significant marketing opportunities
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big emerging markets
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A preferential trading bloc whose members have signed a free trade agreement that entails reducing or eliminating tariffs and quotas
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free trade area
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an agreement that leads to the creation of a free trade area. A free trade agreement represents a relatively low level of economic integration
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free trade agreement
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a trade agreement between a relatively small number of signatory nations, often on a regional or subregional basis. Such trade agreements can be characterized by different levels of economic integration
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preferential trading agreement
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a system of certification that verifies the country of origin of a shipment of goods
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rules of origin
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a preferential trade bloc whose members agree to seek a greater degree of economic integration than is provided by a free trade agreement. In addition to reducing tariffs and quotas, a customs union is characterized by a common external tariff
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customs union
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a tariff agreed upon by members of a preferential trading bloc. Implementation of a CET marks the transition from a free trade area to a customs union
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common external tariffs
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a preferential trade agreement that builds on the foundation of economic integration provided by a free trade area and a customs union
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common market
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a highly evolved form of cross-border economic integration involving reduced tariffs and quotas; a common external tariff; reduced restrictions on the movement of labor and capital; and the creation of unified economic policies and institutions such as a central bank
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economic union
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a free trade area encompassing Canada, the US, and Mexico
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North American Free Trade Agreement
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the 1991 treaty that set the stage for the transition from the European monetary system to an economic and monetary union
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Maastricht Treaty
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a society’s ways of living are transmitted from one generation to another. Culture’s manifestations include attitudes, beliefs, values, aesthetics, dietary customs, and language
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culture
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in culture, a learned tendency to respond in a consistent way to a given object or entity
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attitude
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in culture, an organized pattern or knowledge that an individual holds to be true about the world
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belief
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a customer’s perception of a firm’s product or service offering in terms of the ratio of benefits (4 p’s) relative to price. This ratio can be represented by the value equation: v=b/p
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value
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a shared sense within a culture of what is beautiful as opposed to ugly and what represents good taste as opposed to tastelessness
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aesthetics
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in Hofstede’s social values typology, the cultural dimension that reflects the extent to which it is acceptable for power to be distributed unequally in a society
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power distance
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a culture in which a great deal of information and meaning resides in the context of communication, including the background, associations, and basic values of the communicators
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high-context culture
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a culture in which messages and knowledge are more explicit and words carry most of the information in communication
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low-context culture
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in Hofstede’s social values typology, the extent to which each member of society is primarily concerned with his or her interest and those of the immediate family
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individualism
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in Hofstede’s social values typology, the extent to which group cohesiveness and harmony are emphasized in a culture. A shared concern for the well-being of all members of society is also evident
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collectivism
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in Hofstede’s social values framework, the extent to which a culture’s male population is expected to be assertive, competitive, and concerned with material success.
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masculinity
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in Hofstede’s social values framework, the extent to which the social roles of men and women overlap in a culture
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femininity
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in Hofstede’s social values framework, the extent to which members of a culture are uncomfortable with unclear, ambiguous, or unstructured situations
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uncertainty avoidance
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the 5th dimension in Hofstede’s social values framework, LTO is a reflection of a society’s concern with immediate gratification versus persistence and thrift over the long term
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long-term orientation
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the unconscious human tendency to interpret the world in terms of one’s own cultural experience and values
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self-reference criterion
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a model first developed by Everett Rogers that describes the “adoption” of purchase decision process. The stages consist of awareness, interest, evaluation, trial, and adoption
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adoption process
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a measure of the extent to which products must be adapted to the culture-specific needs of different country markets. Generally, consumer products show a higher degree of environmental sensitivity than industrial products
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environmental sensivity
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