Domain 2: Global, Ethical, and Sustainable Marketing Flashcards
Typically characteristic of a developed country with a relatively high level of economic growth and security.
Developed economies
One in which the country is becoming a developed nation and is determined through many socio-economic. The nation’s economy that is progressing toward becoming advanced, as shown by some liquidity in local debt and equity markets and the existence of some form of market exchange and regulatory body.
Emerging markets
Similar countries that can be grouped together in terms of demographics and psychographics. Consists of a group of countries that create formal relationships for mutual economic benefit through lower tariffs and reduced trade barriers.
Regional market zones
An agreement signed by Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. It superseded the Canada–United States Free Trade Agreement between the U.S. and Canada.
NAFTA
A South American trade bloc established by the Treaty of Asunción in 1991 and Protocol of Ouro Preto in 1994. Its full members are Argentina, Brazil, Paraguay and Uruguay. Venezuela is a full member but has been suspended since December 1, 2016. Associate countries are Bolivia, Chile, Colombia, Ecuador, Guyana, Peru and Suriname. Observer countries are New Zealand and Mexico.
MERCOSUR
A regional intergovernmental organization comprising ten Southeast Asian countries that promotes intergovernmental cooperation and facilitates economic, political, security, military, educational, and sociocultural integration amongst its members and other Asian states.
ASEAN
A function of international trade whereby goods produced in one country are shipped to another country for future sale or trade. The sale of such goods adds to the producing nation’s gross output.
Exporting
One that exports; specifically: a wholesaler who sells to merchants or industrial consumers in foreign countries.
Exporters
An entity that buys noncompeting products or product lines, warehouses them, and resells them to retailers or direct to the end users or customers. Most provide strong manpower and cash support to the supplier or manufacturer’s promotional efforts. They usually also provide a range of services (such as product information, estimates, technical support, after-sales services, credit) to their customers.
Distributors
A written agreement by which the owner of a property gives another party permission to use that property under specified parameters.
Licensing
Arrangement where one party (the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name as well as certain business systems and processes, to produce and market a good or service according to certain specifications.
Franchising
An arrangement between two companies that have decided to share resources to undertake a specific, mutually beneficial project. This is less involved and less binding than a joint venture.
Strategic alliance
A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In this arrangement, each of the participants is responsible for profits, losses and costs associated with it. However, the venture is its own entity, separate from the participants’ other business interests.
Joint venture
An investment made by a firm or individual in one country into business interests located in another country.
Foreign direct investment
The make-up of authority to make important and impactful decisions within a company.
Decision making authority
The degree to which decision-making authority rests with one or relatively few individuals (centralized) or many (decentralized) in an organization.
Degree of centralization
A product line is a group of related products under a single brand sold by the same company. Companies sell multiple product lines under their various brands. Companies often expand their offerings by adding to existing product lines, because consumers are more likely to purchase products from brands with which they are already familiar. Global product lines exist globally.
Global product lines
This is where a business divides its market on the basis of geography. You can geographically segment a market by area, such as cities, counties, regions, countries, and international regions. You can also break a market down into rural, suburban and urban areas.
Geographic regions
One of the most complex reporting structures that a company can utilize. Basically, it’s where the reporting structures are set up as a grid instead of in the traditional hierarchy. Each employee has dual reporting relationships to both a product manager and a functional manager.
Matrix structure
Also known as the made-in image and the nationality bias, this is a psychological effect describing how consumers’ attitudes, perceptions and purchasing decisions are influenced by products’ country of origin labeling.
Country-of-origin effect
A central marketing idea or message, or a product benefit or feature, that is known (or is likely) to have maximum appeal to a targeted market segment. It’s focused on the brand.
Global marketing themes
Marketing that delivers a unified brand voice to global audiences, yet at the same time is customized for consumers in different target markets.
Global marketing with local content
Media advertising that is more or less uniform across many countries, often, but not necessarily in media vehicles with global reach.
Basket of global advertising themes
Local marketing refers to marketing efforts targeting your nearby community—both offline and online.
Local market ad generation
Refers to the rules and methods for pricing transactions within and between enterprises under common ownership or control.
Transfer pricing
A term used in the context of international trade. It’s when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter’s domestic market.
Dumping
An unofficial market. The term also refers to the import and sale of goods by unauthorized dealers; in this instance as well, such activity is unofficial but not illegal.
Gray market
An area of applied ethics which deals with the moral principles behind the operation and regulation of marketing.
Marketing ethics
A concept which seeks to broaden the focus on the financial bottom line by businesses to include social and environmental responsibilities. Measures a company’s degree of social responsibility, its economic value, and its environmental impact. People, planet, profits.
Triple bottom line (TBL)
