Mrkt 3001 - Ch 07

Front 1

GDP

Back 1

the monetary value of all goods and services produced in a country during one year

Front 2

balance of trade

Back 2

the difference between a countries monetary value imports and exports

Front 3

1 Decline of Economic Protectionism---

2 Formal Economic integration and free trade among nations---

3 Global competition among global companies for global customers---

4 emergence of a networked global marketplace

Back 3

4 Trends in the past decade that have affected the landscape of global marketing

Front 4

Protectionism

Back 4

the practice of shielding one or more industries within a country's economy from foreing competition through the use of tariffs and quotas

Front 5

Tariffs

Back 5

government tax on goods or services entering country, primarily to raise the price of imports

Front 6

Quota

Back 6

a restriction placed on the amount of a product allowed to enter or leave a country

Front 7

World Trade Org (WTO)

Back 7

152 Countries organized to address trade barriers like no tariffs

Permanent institution that:
*Sets rules governing trade between its members

Uses panels of trade experts who:
#Decide on trade disputes between members and Issue binding decisions.

Front 8

Global Competition

Back 8

exists when firms originate, produce and market their products and services worldwide

Front 9

international firm

Back 9

engages in trade and marketing in different countries as a extension of the marketing strategy in its home country

Front 10

Multinational Firm

(Mr. Clean Example)

Back 10

view the world as consisting of unique parts and market to each part differently

Front 11

Multidomestic marketing strategy

Back 11

many different product variaitions, brand names, and advertising programs as countries in which they do business

Front 12

Transnational Firm

Back 12

views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences

Front 13

Global marketing Strategy

Back 13

the practice of standardizing marketing activities when there are cultural similarities and adapting the when cultures differ

Front 14

Global Brand

Back 14

a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs

Front 15

Global Consumers

Back 15

consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services

Front 16

Cross culture analysis

Back 16

the study of the similaries and differences among consumers in two or more nations or societies

Front 17

values

Back 17

personal or socially preferble modes of conduct or states of existence that tend to persist over time

Front 18

Customs

Back 18

what is considered normal and expected about the way people do things in a specific country

Front 19

Foreign Corrupt Practices Act 1977

Back 19

make it a crime for US corporations to bribe and official of foreign gov

Front 20

Cultural Symbol


(cokes marble column slip up)

Back 20

things that represent ideas and concepts

Front 21

Back Translation


(I hope you win kit-kat in japan)

Back 21

a translated word or phrase is re-translated into the original language by a different interpreter to catch error

Front 22

Economic infrastructure

Back 22

a countries communications, transportation, financial and distribution systems

Front 23

currency exchange rate

Back 23

the price of one country's currency expressed in terms of another country's currency

Front 24

Exporting

Back 24

producing goods in one country and selling it to another country

Front 25

Means of market entry

Back 25

exporting---licensing---joint venture---direct investment

Front 26

Indirect exporting

Back 26

when a firms sells its domestically produced goods in a foreign country through an intermediary

Front 27

Direct Exporting

Back 27

when a firm sells its domestically produced goods in another country without an intermediary

(more risk - more profit)

Front 28

Licensing

Back 28

A company offers the right to a trademark or patent or trade secret in return for a royalty or a fee.

*Little cost
* Low risk
* Less profits
* appeasing to foreign governments

Front 29

Joint Venture

Back 29

when a foreign company and local firm invest together to create a local business

Front 30

Franchising

Back 30

* Contract between franchisor and franchisee
* Allows the franchisee
o To operate a certain type of business
o Under an established name
o According to specific rules.
* Franchising is one of the fastest-growing market-entry strategies.
* Over 350 U.S. franchisors operate more than 32,000 outlets in foreign countries.

Front 31

when a domestic firm invests in and owns a foreign subsidiary or division.

*better cost savings
*higher profits
*higher risks

Ex:Like a nissan truck

Back 31

Direct Investment

Front 32

in the same form as in its home market---

with some adaptations---

totally new product

Back 32

Product can be sold globally in 3 ways

Front 33

Product Extension

Back 33

Selling virtually the same product in other countries

Front 34

Product Adaptation

Back 34

Changing the product insome way to adapt to cultures climate or consumers preferences

Front 35

Product Invention

Back 35

investing in totally new products designed to satisfy common needs across countries

Front 36

Dumping

Back 36

when firm sells a product in a foreign country below its domestic price or below its actual cost

Front 37

gray market
or
parallel importing

Back 37

where products are sold through unauthorized channels of distribution

Front 38

EU and NAFTA

Back 38

Two transnational trade groups

Front 39

* 27 member countries

* Larger GDP than US

* 14 have adopted Euro

Back 39

EU

Front 40

1- uniformity in packaging and product standards

2- fewer regulations on ads, transportation and promotion

3- removal of tariffs

Back 40

3 strategies that have increased effect of EU

Front 41

this agreement is viewed as a step toward a 34- country free trade area

Back 41

CAFTA-DR

Front 42

1. Global Competition

2. Global Companies

3. Global Consumers.

Back 42

Three drivers of world trade

Front 43

1-International Firm

2-Multinational Firm

3- Transnational Firm

Back 43

Types of Global Companies

Front 44

1- Middle- Income class

2 -Youth market

3- Elite segment

Back 44

Three types of global consumers

Front 45

- Internet is changing business
1) Global consumer sites
2) B2B marketplace
3) Multicultural websites

Back 45

Networked global marketplace

Front 46

1) Assessment of Economic Infrastructure

2) Measure of Consumer Income and Purchasing Power.

3) Recognition of a countries exchange rates

Back 46

Economic considerations for global marketing

Front 47

1) Cultural diversity

2) Economic considerations

3) Political regulatory Climate

Back 47

Three types of global environmental scanning

Front 48

1) exporting

2) Licensing

3) joint venture

4) Direct investment

Back 48

Options of entering global marketplace

Front 49

1# One company may not have the necessary financial, physical, or managerial resources to enter a foreign market alone.

2# A government may require or encourage a joint venture.

Back 49

2 reasons for joint venturing

Front 50

1) Product and promotion strategy

2) Distribution strategy

3) Pricing strategy

Back 50

Strategies for crafting a World Wide marketing program

Front 51

Seller---> sellers Int. HQ --> Channels between nations --> Channels within foreign governments --> Final Consumer

Back 51

Distribution Strategy