Chapters 1,2,3 Flashcards
Define Marketing?
Satisfy customer wants and needs w/ products and services that offer competitive value
What are the three marketing principles?
Value, competitive advantage, and focus
What is the superior value proposition?
Marketer offers buyer something of value
What is the equation for value?
benefits/price
What is globalization?
A trend toward a greater economic interdependence among national institutions (enter any market in the world)
What does it mean to be highly global?
The degree of globalization= (trade/sales) > 1
How can a country change from a single to a global marketing strategy?
Participate globally, adapt or standardize the 4 p’s, concentrate, coordinate, integrate
What are the 4 management orientations?
Ethnocentric, polycentric, regiocentric, geocentric
What is the orientation that thinks each country is unique and uses only the adaptation approach?
Polycentric
What is the orientation that thinks home country is superior to the rest of the world and are arrogant?
ethnocentric
What is the orientation that thinks the entire world in a potential market and serves world market from single country?
Geocentric
What is the orientation that thinks a region is the relevant geographic unit?
regiocentric
What are driving forces affecting global integration and marketing?
trade agreements, converging markets needs and wants, transportation and communication improvements… etc.
What are restraining forces affecting global integration and marketing?
management myopia, national controls, opposition to globalization
What are the 5 realities of the world economy?
1) capital movement has replaced trade, 2) production and employment un-linked, 3)world economy dominates individual, 4)demise of communism, 5)growth of e-commerce
What are the 4 different economic systems?
Market capitalism, centrally planned capitalism, market socialism, centrally planned socialism
Which market can the consumers decide the products to sell and buy?
Market capitalism
Which market do state planners decide goods and services and control distribution?
centrally planned socialism
Which market is China and which is Sweden?
China is centrally planned capitalism, Sweden is market socialism
What is the economic freedom index?
Fundamental right of every human to control own land and property. how free economies are
What are characteristics of a low income country?
farming is key, high birth rates, low literacy, rely on foreign aid (Sub-Saharan Africa)
What are characteristics of a lower-middle country?
rapid expanding market, competitive in textiles and toys (India, Guatemala)
what are some mistaken assumptions of less developed countries?
poor have no money, don’t waste money on wants, products are too cheap to make profit, cannot use technology, businesses doing business are exploiting poor
What is the goal of the G8?
Goal of economic stability and prosperity
What is the goal of the OECD?
promote policies that will improve economic and social well-being of people around the world (anti-bribery)
What does The Triad consist of?
USA, Western Europe, Japan
What are marketing implications of the Stages of Development?
guide to promote product saturation levels (% of potential buyers or households who own particular product) (20% of Indian has phones)
What is the record of economic transactions between residents of a country and the rest of the world called?
Balance of payments
What are the 2 major components of the Balance of Payments?
Current Account (trade and financial transfers) Capital Account (Investments)
What is the current trend in the trade in merchandise and services?
Trade>production
What is the Purchasing Power Parity?
relative ability of 2 countries’ currencies to buy the same basket of goods for the same amount
What causes inflation?
Lowering the currency exchange value
What are the 2 kinds of external hedging?
Forward contract (same price for future delivery) currency option (buy or sell at a set price for a set time)
What is the mechanism that confers special treatment on select trading partners called?
Preferential trade agreements
List the 4 types of PTAs.
Free Trade Agreement, Customs Union, Common Market, Economic Union
What is the difference between the 4 types of PTAs?
Customs Union adds common external tariffs, common markets adds on the elimination of factor movements, and the Economic unions takes the first 3 and harmonizes and unifies economic and social policies amongst members
What is the WTO and GATT>
General agreement among participating countries on tariffs and trade (GATT turned into WTO because GATT could not enforce violators)
