Chapter 5: Global Marketing Flashcards
Global Marketing
Marketing that targets markets throughout the world.
Having a global vision means?
Recognizing and reacting to international marketing opportunities
Using effective global marketing strategies
Being aware of threats from foreign competitors in all markets
7 benefits of globalization?
Expands economic freedom Spurs competition Raises productivity and living standards in
countries that “open up”
Offers access to foreign capital, global
export markets, and advanced technology Can break the monopoly of inefficient and
protected domestic producers
Promotes higher labor and environmental
standards
Acts as a check on government power
Multinational Firm
A corporation engaged in international trade that moves resources, goods, services, & skills across borders without regard to the country in which its headquarters is located
Global Marketing Standardization
Production of uniform products that can be sold the same way all over the world
Multi-Domestic Strategy
Occurs when multinational firms enable individual subsidiaries to compete independently in domestic markets
Culture
The attitudes and behavioral characteristics shared by the citizens of a nation or people in a social group.
Tariff
A tax levied on goods entering a country
Quota
Limit on the amount of a product entering a country
Boycott
Exclusion of products from a country
Exchange Control
Foreign exchange must be sold to a control agency
Marketing Group
Common trade alliance
Trade Agreement
An agreement to stimulate international trade
An agreement to stimulate international trade
CAFTA, NAFTA, EU
Financial and Economic Groups
World Bank, IMF, G20
What are the 5 types of global entry?
Exporting, licensing, contract manufacturing, joint venture, direct investment
What is the least risky and most risky forms of global entry?
Least-Exporting
Most-Direct investment
One Product One Message
Means you have the same message and product in all markets (even global)
Product Adaptation
Same message but a new product for the global market
Promotion Adaptation
Changing the message but keeping the same product in the global market
Product Invention
Change the product and change the message in the global market
3 global pricing considerations
1) Exchange rates
2) Dumping
3) Countertrade
Dumping
The sale of an exported product at a price lower than that charged for the same or a like product in the “home” market of the exporter
Countertrade
A form of trade in which all or part of the payment for goods or services is in the form of other goods or services.
GDP
Gross domestic product, total market value of all final goods/services produced in a period of time
Outsourcing
getting things made outside of the company (can lower costs, provide jobs abroad)
Insourcing
Gettiing things made in US (increase US jobs, costs competitive)
Stages of multinational Development
1) start exporting
2) set up foreign subsidiaries
3) Move some managment overseas
4) virtual operations
Uruguay Round
Reduced tarrifs by 1/3– Set up WHO
