Chapter 2 Flashcards
What are two key factors that influence a firm’s opportunities for globalization?
- International organizations
- Country regulations
These factors can facilitate or limit a firm’s ability to expand globally.
What are some strategies a firm can use to enter global markets?
- Market research
- Joint ventures
- Direct investment
- Exporting
These strategies help firms navigate international markets effectively.
The role of _______ in marketing planning is crucial for sustainable practices.
sustainability
What is the definition of world trade?
The flow of goods and services among different countries.
What does countertrade refer to?
A trading system where goods are exchanged for other goods rather than money.
What are the stages of the business cycle?
- Prosperity
- Recession
- Recovery
- Depression
- Inflation
Understanding these stages helps marketers predict economic trends.
What are the four types of market structures that marketers need to understand?
- Monopoly
- Oligopoly
- Monopolistic competition
- Perfect competition
What is a patent?
A legal document giving inventors exclusive rights to produce or sell a particular invention.
What is the role of the Federal Trade Commission (FTC)?
To monitor unfair practices in marketing.
What is the purpose of the Consumer Credit Protection Act?
To protect consumers by requiring full disclosure of credit and loan terms.
What is protectionism in the context of international trade?
Policies that restrict trade to protect domestic industries.
The _______ Act prohibits harmful practices in the production of food and drugs.
Food and Drug Act
What does the Disclosure Act of 2009 ban?
Unfair rate increases and unfair fee traps
It also requires disclosures to be in plain language and protects students and young people.
What is the primary responsibility of the Consumer Product Safety Commission (CPSC)?
Protecting the public from potentially hazardous products
It helps firms ensure their products won’t harm customers through regulation and testing programs.
What does the Environmental Protection Agency (EPA) do?
Develops and enforces regulations aimed at protecting the environment
These regulations impact materials and processes used by manufacturers.
Which agency regulates telephone, radio, TV, and Internet?
Federal Communications Commission (FCC)
FCC regulations affect marketing activities of companies in the communications industries.
What is the role of the Federal Trade Commission (FTC)?
Enforcing laws against deceptive advertising and product labeling regulations
This is primarily done through fines.
What does the Food and Drug Administration (FDA) enforce?
Laws and regulations on foods, drugs, cosmetics, and veterinary products
FDA approval is required before many products can be marketed.
What does the Interstate Commerce Commission (ICC) regulate?
Interstate bus, truck, rail, and water operations
It affects the ability of firms to efficiently move products to customers.
What are examples of political and regulatory constraints on trade?
- Economic sanctions
- Nationalization
- Expropriation
- Regulatory constraints
These can restrict the marketing of goods.
What does the sociocultural environment include?
- Demographics
- Cultural values
- Social norms
- Language
- Consumer ethnocentrism
These characteristics shape a society and its people’s behavior.
What is the principle behind the Exporting Strategy in market-entry strategies?
Selling products on its own or relying on export merchants
This is considered a low-risk strategy.
What are the advantages of using a licensing agreement?
- Control over product quality
- Avoid difficulties of producing in other countries
- Limit financial investment and risk
Licensing allows a local firm to produce the product.
What is a disadvantage of franchising?
Franchisee may not use the same-quality ingredients or procedures
This can damage the brand image.
What does direct investment involve?
Expanding internationally through ownership
Often includes buying a business in the host country outright.
What are the key considerations for adapting marketing communications?
- Appeal of the product
- Pricing strategies
- Distribution methods
Companies must consider local market preferences.
What are the four product strategies for global marketing?
- Straight extension
- Product adaptation
- Product invention
- Backward invention
These strategies determine how products are marketed globally.
What ethical issues are associated with marketing?
- Exploitation of the poor
- Poor quality products
- Planned obsolescence
- Unsafe products
These issues raise concerns about the ethics of marketing practices.
What are some common ethical philosophies in decision-making?
- Utilitarian approach
- Rights approach
- Fairness or justice approach
- Common good approach
- Virtue approach
Each philosophy provides a different lens for evaluating ethical decisions.
What does the AMA Code of Ethics emphasize?
- Do no harm
- Foster trust in the marketing system
- Embrace ethical values
These norms guide ethical marketing practices.
What is bribery?
Bribery occurs when someone voluntarily offers payment to get an illegal advantage.
Bribery is considered unethical and is illegal in many jurisdictions.
What is extortion?
Extortion occurs when someone in authority extracts payment under duress.
Extortion is often associated with threats or coercion.
What significant ethical issue arises in LDCs and developing countries?
Payment in exchange for ‘favors’ is a way of life.
This practice can conflict with international business ethics.
What does U.S. federal law prohibit regarding foreign officials?
U.S. federal law bans payment to influence decisions by foreign officials to award business contracts.
This is part of the Foreign Corrupt Practices Act.
What is meant by the ‘triple bottom line’ in sustainability?
The triple bottom line refers to focusing on social, environmental, and economic impacts.
This approach encourages businesses to consider their overall impact.
What is a ‘smombie’?
A smombie is a smartphone zombie, referring to people who are distracted by their phones while walking.
This term highlights concerns over safety and awareness.
What are some sustainable marketing strategies?
- Target marketing strategies
- Product strategies
- Price strategies
- Place/Distribution strategies
- Promotion strategies
These strategies aim to align business practices with sustainability principles.
What is locavorism?
Locavorism refers to the practice of consuming locally produced food and goods.
This practice supports local economies and reduces carbon footprints.
