Chapter 18

Question 1

Global marketing strategy

Answer 1

A plan of action for foreign markets that guides the firm in deciding how to position itself and its offerings, which customer segments to target, and the degree to which it should standardize or adapt its marketing program elements

Question 2

Global market segment

Answer 2

A group of customers who share common characteristics across many national markets

Question 3

Adaptation

Answer 3

The firm’s efforts to modify one or more elements of its international marketing program to accommodate specific customer requirements in a particular market

Question 4

Standardization

Answer 4

The firm’s efforts to make its marketing program elements uniform, with a view to targeting entire regions, or even the global marketplace, with the same product or service

Question 5

Global brand

Answer 5

A brand whose positioning, advertising strategy, look, and personality are standardized worldwide

Question 6

Gray market activity

Answer 6

Legal importation of genuine products into a country by intermediaries other than authorized distributors (also known as parallel imports)

Question 7

International price escalation

Answer 7

The problem of end-user prices reaching exorbitant levels in the export market, caused by multilayered distribution channels, intermediary margins, tariffs, and other international customer costs

Question 8

Transfer pricing

Answer 8

The practice of pricing intermediate or finished products exchanged among the subsidiaries and affiliates of the same corporate family located in different countries

Question 9

Global account management (GAM)

Answer 9

Serving a key global customer in a consistent and standardized manner, regardless of where in the world it operates