Chapter 15 - Global marketplace Flashcards
What is a global firm?
Operates in more than one country
Gains research and development, production, marketing, and financial advantages that are not available to purely domestic competitors
What are 3 problems faced by international firms?
- Highly unstable governments and currencies
- Restrictive government policies and regulations
- High trade barriers and corruption
What are the 6 steps in international marketing?
- Looking at the global marketing environment
- Deciding whether to go global
- Deciding which markets to enter
- Deciding how to enter the market
- Deciding on the global marketing program
- Deciding on the global marketing organization
What are the two types of global marketing?
Standardized global marketing:
- Using the same marketing strategy and mix in all of the company’s international markets
Adapted global marketing:
- Adjusting the marketing strategy and mix elements to each international target market
– Creates more costs
– Produces a larger market share and return
What are the 5 global product and promotion strategies?
- Straight extension
- Product adaptation
- Communication adaptation
- Dual adaptation
- Product invention
What are some problems with pricing in global marketing?
Problems in setting prices include:
- Charge a uniform price all around the world Too high in poor countries and too low in rich countries.
- Charge what consumers in each country could pay ignores differences in the actual costs.
- Use a standard markup of its costs everywhere not effective in countries where costs are high.
International prices tend to be higher than domestic prices because of price escalation.
- Cost of transportation, tariffs & importer, wholesaler, and retailer margins
The Internet forces companies toward more standardized international pricing
What are the 4 steps in choosing distribution in global marketing?
- International seller
- Channels between nations
- Channels within nations
- Final user or buyer
Whole-channel view
Channels between nations
Channels within nations
What are some social criticisms of marketing on consumers?
High Prices:
- High costs of distribution
- High advertising and promotion costs
- Excessive markups
Deceptive Practices:
- Pricing
- Promotion
- Packaging
High-Pressure Selling
Shoddy or unsafe products
Planned obsolescence
Poor service to disadvantaged consumers
What are some social criticisms of marketing on society?
False wants and too much materialism
Too few social goods
Cultural pollution
What are some social criticisms of marketing on businesses?
Acquisitions of competitors
Marketing practices which create barriers to entry
Unfair competitive marketing practices
What is consumerism?
To be well informed
To be protected against questionable products and marketing practices
To influence products and marketing practices to improve “quality of life”
To consume in a way to preserve the world for future generations of consumers
What is environmentalism?
Protects and improves people’s current and future living environment
Concerned with:
- Damage to the ecosystem
- Loss of recreational areas
- Increase in health problems
What is environmental sustainability?
Generating profits while helping protect the environment
What are 5 sustainable marketing practices and explain them?
- Consumer-oriented marketing:
Viewing and organizing a company’s marketing activities from the consumer’s point of view - Customer value marketing:
Putting most of a company’s resources into customer value-building marketing investments - Innovative marketing:
Seeking real product and marketing improvements - Sense-of-mission marketing:
Defining a company’s mission in broad social terms - Societal marketing:
Making marketing decisions by considering
- Consumers’ wants
- Company’s requirements
- Consumers’ long-run interests
- Society’s long-run interests
What are the 4 societal classification of products?
- Salutary products (LT. high, ST. low)
- Desirable products (LT. high. ST. high)
- Deficient products (LT. low, ST. low)
- Pleasing products (LT. low, ST. high)
