exam 1 Flashcards
What is global marketing?
A focus on global market opportunities and threats using the marketing mix elements.
What are the four Ps in global marketing?
- Product
- Price
- Place
- Promotion
What does a firm’s value chain include?
Marketing, R&D, manufacturing, and other activities.
What is the significance of a firm’s global marketing strategy (GMS)?
Enhances worldwide performance by addressing marketing program balance, activity concentration, coordination, and market participation.
What are the two approaches a global marketing program can take?
- Standardization (extension)
- Localization (adaptation)
What is the role of global companies in competitive advantage?
Maintain strategic focus while pursuing competitive advantage.
What is the importance of global marketing today?
Most major corporations are active regionally or globally, as evidenced by rankings in major publications.
What are the classifications of company management orientations?
- Ethnocentric
- Polycentric
- Regiocentric
- Geocentric
What characterizes an ethnocentric orientation?
Belief that home country products and management processes are superior.
What is ‘global localization’?
The strategy of thinking globally while acting locally.
Is Coca-Cola considered a global product?
Yes, it is available in over 195 countries but adapts to local needs.
Give an example of a company that uses global branding.
Coca-Cola
How do Harley-Davidson and Toyota’s global marketing strategies differ?
Harley-Davidson emphasizes American heritage, while Toyota focuses on local production for global markets.
What is the balance of payments?
A record of a country’s economic transactions with the rest of the world.
What are the types of economic systems?
- Market capitalism
- Centrally-planned capitalism
- Centrally-planned socialism
- Market socialism
What are the BRIC nations?
- Brazil
- Russia
- India
- China
What is the current stage of economic development for India?
Low-Income category
What does the Index of Economic Freedom indicate about BRIC nations?
All fall within the ‘Mostly Unfree’ category.
What is leverage in global operations?
An increased means of accomplishing corporate goals.
List the types of leverage utilized by companies with global operations.
- Experience transfers
- Scale economies
- Enhanced resource utilization
- Global strategy
What is the role of the World Trade Organization (WTO)?
Mediates trade disputes and sets policy for world trade.
What is a free trade area?
Eliminates tariffs and quotas among member countries.
What is a customs union?
Includes common external tariffs among member countries.
What is a common market?
Eases restrictions on labor and capital movement among member countries.
What is an economic union?
Achieves unification of economic policies and institutions among member countries.
What is the role of the DSB in WTO disputes?
The DSB is empowered to act on the panel’s recommendations.
What can a losing party in a WTO dispute do?
Turn to the seven-member appellate body.
What happens if a country’s trade policies violate WTO rules?
The country is expected to change those policies and negotiate compensation via lower tariffs.
What can the WTO authorize if changes and compensation are not forthcoming?
Trade sanctions against the loser.
What are the four forms of economic integration?
- Free trade area * Customs union * Common market * Economic union
Give an example of a free trade area.
NAFTA.
Give an example of a customs union.
EU.
Give an example of a common market.
Central American Common Market (CACM).
Give an example of an economic union.
EU.
Identify a regional economic organization in Latin America.
Central American Integration System (SICA).
Identify a regional economic organization in Asia/Pacific.
Association of Southeast Asian Nations (ASEAN).
Identify a regional economic organization in Western Europe.
European Union (EU).
Identify a regional economic organization in Central Europe.
Central Cooperation Council (GCC).
Identify a regional economic organization in the Middle East.
Arab Cooperation Council (ACC).
Identify a regional economic organization in Africa.
Economic Community of West African States (ECOWAS).
What is culture defined as?
A society’s ‘programming of the mind.’
What influences human behavior according to the text?
A person’s unique personality and interaction with society and culture.
What factors can vary significantly from country to country?
- Attitudes * Values * Beliefs
What are the two classifications of cultures mentioned?
- High-context * Low-context
What does Hofstede’s typology analyze?
National cultures in terms of power distance, individualism, masculinity, uncertainty avoidance, and time orientation.
What is the self-reference criterion?
A conceptual tool to eliminate ethnocentric bias when perceiving other cultures.
What are the five steps in Rogers’ adoption process?
- Awareness * Interest * Evaluation * Trial * Adoption
What are the five characteristics of innovations according to Rogers?
- Relative advantage * Compatibility * Complexity * Divisibility * Communicability
What is a key difference between low-context and high-context cultures?
In low-context cultures, communication is primarily verbal; in high-context cultures, context carries more weight.
Which country is an example of a high-context culture?
Japan.
Which country is an example of a low-context culture?
United States.
What is the primary focus of Western marketers in understanding Asian culture?
The findings of the Chinese Value Survey.
What does the term ‘sovereignty’ mean?
Supreme and independent political authority.
What are some sources of political risk?
- Currency crisis * Civil disorder * Ethnic unrest
What is a key legal difference between common law and civil law countries?
Common law relies on precedent; civil law relies on codes.
What is a significant issue related to global marketing and legal conflicts?
Counterfeiting and infringement of copyright or trademark ownership.
What is a ‘grease payment’?
A small payment intended to expedite a process.
Why can the approach ‘See you in court’ backfire in global marketing?
Arbitration can be faster, easier, and less expensive than litigation.
