Global Marketing Flashcards
World trade:
flow of good and services among different countries
Countertrade:
when goods are paid for with items other than cash (bartering) ~25% of world trade
Assessing Country Markets
Economic analysis
Infrastructure and technology
Sociocultural analysis
Government actions
economic analysis
market size and population growth, GDP, economic development, real income
infrastructure and technology
transportation, channels, communication, commerce
deciding whether or not to invest in infrastructure
sociocultural analysis
demographics, values, norms, and customs, ethnocentrism, basic human rights
power distance, uncertainty avoidance, individualism, masculinity, time orientation
government actions
tariff, quota, exchange control, trade agreement
Road blocks at the borders:
Protectionism
Exchange control-currency, rates
Economic communities help to promote trade—North American Free Trade Agreement, NAFTA, MERCOSUR, CAFTA, APEC, EU, etc.
Protectionism
quotas, embargoes, and tariffs
Initiatives in international regulation to help trade
General Agreement on Tariffs and Trade (GATT), World Trade Organization (WTO)
Foreign expansion concerns
Do I go or not go? Which market do I enter? Level of commitment and how to adjust marketing mix accordingly
Increased control and financial risk as you go through:
Exporting Franchising Strategic alliance Joint venture Direct investment
exporting
least amount of risk, but least controlled
selling goods to middleman in that country
franchising
a little more control, like fast food chains abroad, more investment in their success
strategic alliance
forming temporary partnerships to collaborate, but not investing in each other to form a new company
joint venture
lots of control but greater risk
direct investment
setting up shop in the new country, most financially risky
Culture:
set of values shared by citizens that determine what is socially acceptable
language, religion, superstitions, etiquette, customs, traditions, notion of time
Truthfulness in business dealings ____ by country
varies
Bribery:
when someone voluntarily offers payment to get an illegal advantages
Tweaking and adapting the marketing mix for business abroad
Standardization
Localization
Glocalization
Standardization:
when you offer the same products in all markets
Localization:
create a new product and marketing mix for local marketability
Glocalization:
take an existing product and change the way it looks to appeal to local market
Reverse innovation:
when you innovate specifically for a new market and bring it back for domestic use
