Domain 2: Global, Ethical, and Sustainable Marketing

Question 1

Typically characteristic of a developed country with a relatively high level of economic growth and security.

Answer 1

Developed economies

Question 2

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.

Answer 2

Emerging markets

Question 3

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.

Answer 3

Regional market zones

Question 4

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 It superseded the Canada–United States Free Trade Agreement between the U.S. and Canada.

Answer 4

NAFTA

Question 5

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.

Answer 5

MERCOSUR

Question 6

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.

Answer 6

ASEAN

Question 7

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.

Answer 7

Exporting

Question 8

One that exports; specifically: a wholesaler who sells to merchants or industrial consumers in foreign countries.

Answer 8

Exporters

Question 9

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.

Answer 9

Distributors

Question 10

A written agreement by which the owner of a property gives another party permission to use that property under specified parameters.

Answer 10

Licensing

Question 11

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.

Answer 11

Franchising

Question 12

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.

Answer 12

Strategic alliance

Question 13

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.

Answer 13

Joint venture

Question 14

An investment made by a firm or individual in one country into business interests located in another country.

Answer 14

Foreign direct investment

Question 15

The make-up of authority to make important and impactful decisions within a company.

Answer 15

Decision making authority

Question 16

The degree to which decision-making authority rests with one or relatively few individuals (centralized) or many (decentralized) in an organization.

Answer 16

Degree of centralization

Question 17

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.

Answer 17

Global product lines

Question 18

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.

Answer 18

Geographic regions

Question 19

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.

Answer 19

Matrix structure

Question 20

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.

Answer 20

Country-of-origin effect

Question 21

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.

Answer 21

Global marketing themes

Question 22

Marketing that delivers a unified brand voice to global audiences, yet at the same time is customized for consumers in different target markets.

Answer 22

Global marketing with local content

Question 23

Media advertising that is more or less uniform across many countries, often, but not necessarily in media vehicles with global reach.

Answer 23

Basket of global advertising themes

Question 24

Local marketing refers to marketing efforts targeting your nearby community—both offline and online.

Answer 24

Local market ad generation

Question 25

Refers to the rules and methods for pricing transactions within and between enterprises under common ownership or control.

Answer 25

Transfer pricing

Question 26

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.

Answer 26

Dumping

Question 27

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.

Answer 27

Gray market

Question 28

An area of applied ethics which deals with the moral principles behind the operation and regulation of marketing.

Answer 28

Marketing ethics

Question 29

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.

Answer 29

Triple bottom line (TBL)