"Global Marketing Management" by: Keegan BA-494-01 Flashcards
- What is the function of marketing? (Ch1) (4)
1)Identify unfulfilled needs and wants 2)Define and measures their magnitude 3)Determine which target market the organization can best serve 4)Decide on the appropriate products, pricing, and promotion
What is the core of marketing? (Ch1)
To surpass the competition in creating perceived value for customers
What is the value equation? (Ch1)
Value=Benefits/Price (money, time, effort, etc)
What is the marketing mix? (Ch1)
Product, Promotion, Price and Place (channels of distribution)
What 3 ways can value to the customer be increased? (Ch1)
- An improved bundle of benefits 2. A lower price 3. Or both
When a company succeeds in creating more value for customers than its competitors it’s called…? (Ch1)
Competitive Advantage
How is Competitive Advantage measured? (Ch1)
Relative to rivals with whom you compete
What is a company that operates in more than one country, and gains marketing, production, R & D, and financial advantages that are not available to competitors? (Ch1)
A Global Firm
What is it called when a competitive advantage can be achieved by integrating and leveraging operations on a worldwide scale? (Ch1)
A Global Industry
Why is the discipline of marketing universal? (Ch1)
Because it satisfies needs and wants
What are 2 tasks of a global marketing manager? (Ch1)
- To find out to what extent marketing plans and programs can extend worldwide 2. To find out to which extent they must be adapted
What are the core issues of a firm’s GMS ( Global marketing strategy)? (2) (Ch1)
- Choosing the target market 2. Developing a marketing mix
Doing trade across national boundaries is called? (Ch1)
International Marketing
What challenges and decisions do companies face in international marketing? (4) (Ch1)
- Which countries to enter 2. How to enter the country 3. How to adapt their products/services 4. How to price their products
What is the largest single market in the world? (Ch1)
The U.S.
What are the four management orientations? (Ch1)
- Ethnocentric 2. Polycentric 3. Regiocentric 4. Geocentric
What do the form and substance of a company’s response to global market opportunities depend on? (Ch1)
Management’s assumptions and beliefs-both conscious and unconscious-about the nature of the world.
A person who assumes that his/her own country is superior to the rest of the world is considered? (Ch1)
Ethnocentric
The opposite view of ethnocentrism that believes that each country in which you do business is unique? (Ch1)
Polycentric
In this orientation, management views regions as unique and seeks to develop an integrated regional strategy (Ch1)
Regiocentric
This orientation views the world as a potential market and strives to develop integrated global strategies (Ch1)
Geocentric
What are the forces affecting global integration and global marketing? (Ch1) (9)
- Multilateral Trade Agreements 2. Converging Market Needs and Wants 3. The Internet revolution 4. Transportation Improvements 5. Communication Improvements 6. Product development costs 7. Quality 8. Leverage 9. World Economic Trends
When a company has an advantage because it has experience in more than one country it’s called? (Ch1)
LEVERAGE
What are the four types of leverage that exists? (Ch1) (4)
- Experience Transfers 2. Scale Economies 3. Resource Utilization 4. Global Strategy
What are some changes that countries are undergoing due to globalization? (Ch2) (6)
- Countries are becoming market driven 2. Removal of Protectionist Policies 3. Privatization 4. Fewer trade barriers 5. Trade liberalization 6. Need for economic development
Global marketing is becoming more and more important over the years with the increasing trend in ________________? (Ch2)
Internationalization
international globalization constitute the integration of national economies into the international economy through? (5) (Ch2)
- Trade 2. Direct Foreign Investment 3. Short-term capital flows 4. International flows of workers 5. Flows of technology
Overall population growth is now concentrated in the _________? (Ch2)
Developing world
Industrial nations are facing what as compared to emerging markets? (Ch2)
Industrial nations- increasingly older populations Emerging markets- remain young
Many counties that once relied on centrally planned economies are becoming __________? (Ch2)
Market Driven
Industries whose governments where previously restricted to foreign companies are now opening up to __________? (Ch2)
Foreign Investments
What are some things we have seen in the economy since WWII? (Ch2) (5)
- Emergence of global markets 2. Integration of world economy 3. Capital movements 4. Production “uncoupled” from employment 5. Individual countries no longer control economic outcomes
What has been the driving force of the economy since WWII? (Ch2)
Capital movements
What are some important trends that we will see in the world economy to come? (Ch2) (9)
- Economic activity will shift from West to East 2. Aging worldwide population 3. Shifts and growth in consumer segments 4.The demand for natural resources will continue to grow 5. Talent pools have become global in nature 6. Scrutiny of global firms’ worldwide practices will increase 7. The economics of information will be transformed 8. Changing industry structures 9. New models of corporate organization
National economic systems vary from…? (Ch2)
-Free market to -Controlled systems
What are the classifications base on dominant method of resource allocation? (Ch2)
- Market allocation 2. Command allocation 3. Mixed system
In this economic system individuals and firms allocate resources, and production resources which are privately owned. Consumers decide what goods they desire, and firms decide how much to produce; and the states role is to promote competition…? (Ch2)
Market capitalism
This economic system gives the state broad powers to serve the public as it sees fit. (Ch2)
Centrally-Planned Socialism
In reality, there is no pure market or command allocation systems among the world’s economies. They are generally considered _______? (Ch2)
Mixed Systems
Countries/Markets are at different stages of development. GNP per capita provides a useful way of grouping countries into 4 categories. What are they? (Ch2)
- High income countries 2. Upper-middle income countries 3. Lower-middle income countries 4. Low-income countries
The income categories are useful for? (2) (Ch2)
- Market Segmentation 2. Target marketing
What is the single most important indicator of market potential? (Ch2)
Income
Comparison of goods and services that can be bought with local currency in different countries…? (Ch2)
Purchasing Power Parities
This is the sums of the money values of all final goods and services produced during a year…? (Ch2)
Gross National Product (GNP)
This is a record of all the economic transactions between residents of a country and the rest of the world…? (Ch2)
Balance of Payment
This is a record of all of the recurring trade between countries…? (Ch2)
Current Account
This is a record of all long-term direct investments, portfolio investment, and other short and long-term capital flows…? (Ch2)
Capital Account
The percentage of potential buyers or households who own a product…? (Ch2)
Product Saturation Levels
In countries with low capita income, product saturation levels are ____? (Ch2)
LOW
The process of raising the level of prosperity and material living in a society through increasing the productivity and efficiency of its economy. (Ch2)
Economic Development
In less industrialized regions, economic development is believed to be achieved by…? (Ch2)
An increase in industrial production and a relative decline in the importance of agricultural production.
Most developing countries seeing a better standard of living are experiencing some degree of __________and_________? (Ch2)
Industrialization and Urbanization
Many developing countries have abandoned _____ _____ in recent years and are adopting a _____ _____ approach towards economic development.(Ch2)
- Protection policies 2. Market driven
Marketing (since it is concerned with the satisfaction of needs and wants and the optimum allocation of resources) ,if used effectively, can ensure that…? (Ch2)
Economic development is promoted
The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives…? (Ch2)
Marketing
Irrespective of its level of development, every economic system is suffused with _____ _____? (Ch2)
Marketing Activities
Marketing activities are carried out by? (3) (Ch3)
- Firms 2. Governments 3. Individuals
Global Marketing Activities are influenced by who? (2) (Ch3)
- Government Institutions 2. Political Parties and Organizations
Environment determines attitude towards? (5) (Ch3)
- Sovereignty 2. Political Risk 3. Taxes 4. Dilution of Equity Control 5. Expropriation
Supreme and Independent political authority…? (Ch3)
Sovereignty
What two things does Sovereignty imply? (Ch3) (2)
- That the nation-state is the decision making authority of last resort in its territory 2. Is independent from other nation-states
Sovereign nation-states are governed by…? (2) (Ch3)
- Economic Development 2. Political and Economic System
What does Global market integration do? (Ch3)
It erodes economic sovereignty
What is a political risk of entering a sovereign nation to do business? (Ch3)
Possible change in environment or government policy
What happens when a countries perceived political risk is high? (Ch3)
They will have a difficult time attracting a foreign direct investment
What happens when a country has lower level of political risk? (Ch3)
They tend to attract higher investments
Level of political risk is inversely proportional to…? (Ch3)
A country’s state of economic development
List four political risks. (Ch3)
- War 2. Social Unrest 3. Orderly political transfer 4. Politically motivated violence
What is a primary cause of political risk in lower and lower-middle income countries? (Ch3)
Tension between aspirations and reality
What is a political risk in high income countries? (Ch3)
Generally due to a Long standing conflict
The less developed a country…? (Ch3)
The greater the risk.
What else increases political risk? (2) (Ch3)
- Increased economic uncertainty 2. Cultural Differences
How do many companies minimize tax liability? (Ch3)
By shifting locations of income
When foreign companies reduce earnings by making loans to U.S. affiliates rather than using direct investment to finance U.S. activities it is called…? (Ch3)
“Earnings Strippings”
When a foreign company utilizes “earnings strippings” what happens? (Ch3)
U.S. subsidiaries deduct the interest paid on loans, thereby reducing its tax burden.
High taxation can lead to…? (Ch3)
Black Markets
Companies attempt to limit tax liability by…? (Ch3)
Shifting the location of income
In lower-income countries there is often political pressure for national control of what? (Ch3)
Foreign-owned companies
What is the goal of national governance? (Ch3)
To protect the right of national sovereignty
In underdeveloped countries, political pressure often causes companies to do what? (Ch3)
Often causes companies to take local partners (strategic alliances, joint-ventures)
The governmental action to dispossess a company or investor is called? (Ch3)
Expropriation
When the ownership of property and assets is transferred to the host government it is called? (Ch3)
Nationalization
Nationalization without compensation is called? (Ch3)
Confiscation
Severe limitations on economic activities. (Limitations on repatriation of profits, content requirements, quotas for hiring locals, price control) is called? (Ch3)
Creeping Expropriation
The rules and principals nation-states consider binding upon themselves is called? (Ch3)
International law
What are the two categories of international law? (Ch3)
- Public Law 2. International commercial law
To reduce uncertainty, what organization attempts to provide guidelines? (Ch3)
The United Nations “International Court Of Justice”
What are four legal systems? (Ch3) (4)
- Code Law 2. Common Law 3. Islamic Law 4. Civil Law
This system of law is based on written norms (codices), supreme red by judicial decisions? (Ch3)
Code Law
This system of law rests on traditional and precedence stemming from past jurisdiction? (Ch3)
Common Law
In this type of country the legal system reflects the structural concepts and principals of the Roman Empire? (Ch3)
Civil Law country
In this type of country dilutes are decided by reliance on the authority of last judicial decisions? (Ch3)
Common law country
In this type of country companies Are legally incorporated by state authority? (Ch3)
Common law country
In this type of country companies are formed by contract between two or more parties who are fully liable for the actions of the company (Ch3)
Civil law country
This specifies which nation’s laws apply, when a transaction crosses boundaries? (Ch3)
Jurisdiction
This ensures that patents and trademarks are registered in each country business is conducted? (Ch3)
Intellectual Property
This is the unauthorized copying and production if a product? (Ch3)
Counterfeiting
This is the unauthorized publication or reproduction of copyrighted work? (Ch3)
Piracy
This is the legal system in many Middle Eastern countries? (Ch3)
Islamic Law
These where designed to combat restrictive business practices and to encourage competition? (Ch3)
Antitrust Laws
This prohibits certain business restrictive practices designed to limit competition? (Ch3)
The Sherman Act of 1890
This group prohibits agreements and practices that prevent, restrict or distort competition? (Ch3)
The European Commision
This act allows a contractual agreement in which a licenser allows a licensee to use patents, trademarks, trade secretes, technology or other intangible assets in return for royalty payments? (Ch3)
Licensing
This is defined as “the misuse if entrusted power for private gain” (Ch3)
Corruption
Corrupt activities take a variety of forms and range from? (Ch3)
-Bribery to -organized corruption
What are two types of corruption and what can they affect? (Ch3)
- Centralized 2. Decentralized (They can affect growth)
This regulation declares that U.s. individuals or enterprises face prosecution if they try to bribe a foreign official? (Ch3)
The US Foreign Corrupt Practices Act
This consists of a variety of agencies that enforce laws or set guidelines for conducting business? (Ch3)
The Regulatory Environment
The precursor GATT (general agreement on tariffs and trades) is based on what three principals? (Ch3)
- Non-discrimination 2. Open markets 3. Fair trade
What is one difference between domestic and global marketing?(Ch1)
The scope of activities
What is one difference between domestic and global marketing? (Ch1)
The scope of activities
What is the sole objective of product-focused marketing? (Ch1)
Profitability
This is the reward for performance achieved by satisfying customers. (Ch1)
Sustainable profitability
What are six parts that global marketing strategy can be based on? (Ch1)
1) Product or system design and innovation 2) Product positioning 3) Packaging 4) Customer service 5) Sourcing considerations 6) Distribution and logistics
What are 5 global marketing strategies (GMS)? (Ch1)
1) Global market participation 2) Standardization vs Adaptation 3) Concentration of marketing activities 4) Coordination of marketing activities 5) Integration of competitive moves
This is the extent to which each marketing mix element can be standardized (used the same way) or must be adapted (used in different ways) in different country markets? (Ch1)
Standardization versus adaptation
This is the extent to which a company has operations in major world markets? (Ch1)
Global market participation
This is the extent to which activities related to the marketing mix (such as pricing decisions) are performed in one or only a few country locations? (Ch1)
Concentration of marketing activities
This is the extent to which marketing activities related to the mix are planned and executed interdependent around the globe? (Ch1)
Coordination of marketing activities
This is the extent to which a firms competitive marketing tactics in different parts of the world are interdependent? (Ch1)
Integration of competitive moves
What happens when parties that do not respond to the challenges and opportunities of globalization? (Ch1)
They will be absorbed by more dynamic companies
What is one mistake that many globalizing firms continue to make? (Ch1)
-executing strategies as they would for more mature markets -instead of recognizing cultural and geographic differences
What type of company is a polycentric company considered? (Ch1)
A multinational company
Companies whose management has a regiocentric or geocentric orientation is considered a? (Ch1)
Global or Transnational company
What are 4 types of leverage that exist? (Ch1)
1) Experience Transfers 2) Scale Economies 3) resource Utilization 4) Global Strategy
When a company leverages it’s experience in any market in the world by drawing on management practices, strategies, products, advertising appeals, or sales or promotional ideas that have been market-tested in one country and applied to another it’s called? (Ch1)
Experience Transfers
When a global company takes advantage of its greater manufacturing volume to obtain traditional scale advantages it’s called? (Ch1)
Scale Economies
A global companies ability to scan the entire world to identify people, money, and raw materials that will enable it to compete most effectively in world markets it is what type of leverage? (Ch1)
Resource Utilization
This is a global companies greatest advantage and is a design to create a winning strategy on a global scale? (Ch1)
- Global Strategy built on an information systems -To identify opportunities, trends, threats, and resources
These are the prices of one currency in terms of another? (Ch2)
Exchange rates
If exchange rates change, so do the prices of? (2) (Ch2)
1) Exports 2) Imports
Today, the majority of countries have legal systems based on______ traditions (Ch3)
civil-code
Patents and trademarks that are protected in one country are protected in another country, (Ch3)
not necessarily
global marketers must ensure that patents and trademarks are_______ in each country where business is conducted (Ch3)
registered
In the United States, patents, trademarks and copyrights are registered with? (Ch3)
the Federal Patent Office
the patent holder retains? (Ch3)
all rights for the life of the patent even if the product is not produced or sold
Legal system in many Middle Eastern countries is based on? (Ch3)
Islamic Law
In lower-income countries, often political pressure for national control of ? (Ch3)
foreign-owned companies
Patents and trademarks that are protected in one country are not necessarily _________ ? (Ch3)
protected in another country,
Islamic Law is based on ? (Ch3)
the Sharia - a comprehensive code governing Muslim conduct in all areas of life
Three types of corruption (Ch3) (3)
1) Bureaucratic corruption 2) Grand Corruption 3) Influence Peddling
Institutions such as the International Chamber of Commerce have established ? (Ch3)
courts of arbitration that can be employed by global companies
Influence Peddling is also known as what?
State Capture
Bribes, and kickbacks, - embezzlement of public funds - granting favors in exchange for personal consideration are what type of corruption?
Bureaucratic corruption
Misappropriation or misuse of large amounts of public resources by state officials is what type of corruption?
Grand Corruption
Collusion between members of the private sector and public officials to gain mutual benefit is what type of corruption?
Influence Peddling
Culture includes all we have learned in relation to? (2x2) (4)
1) values and norms 2) customs and traditions 3) beliefs and religions 4) rituals and artifacts
Is culture learned or innate?
Learned
This occurs when populations segments diverge in culture?
Cultural Fragmemtation
To prevent cultural Fragmentation marketers need to take into account what?
The local culture of the country in which you want to market
This is a mode of behavior existing in all cultures?
Universal
These are opportunities to standardize some or all elements of a marketing program?
Universal Aspects
Things like-Athletic sports, body adornment, religious rituals, and music are considered?
Cultural universals
Increasing in traveling and improving communications are leading to?
Convergence
What are the 8 major elements of culture?
1) material 2) language 3) aesthetics 4) education 5) religion 6) attitudes and values 7) social organizations 8) law and politics
Every society has these elements and they are used to formulate behavior and purchasing patterns?
The major elements of culture
This aspect of culture refers to tools, artifacts and technology?
Material culture
This part of culture reflects the nature and values of society? It is the base of communication.
Language
This refers to the ideas of culture containing beauty and good taste?
Aesthetics
This refers to the transmission of skills, ideas, and attitudes as well as training in particular disciplines?
Education
This is the level of influence of class that needs to be considered?
Social organization
This provides the best insight belief and ritual structure into a society’s behavior?
Religion
_________ often have a religious foundation, and ________ relate to economic activities?
Attitudes and values
What are the two Analytical approaches to cultural factors?
1) Standardized cultural classification 2) Ethnographic and other non-survey approaches
This is using standardized measures to classify countries?
Standard cultural classification
This is using qualitative techniques to classify countries?
Ethnographic and other non-survey approaches
In this model individuals fulfill lower level needs, and then progress to higher level needs?
Maslow’s hierarchy of needs
What are the 5 parts of Maslow’s original hierarchy of needs?
1) psychological needs 2) safety needs 3) social needs 4) esteem 5) self-actualization
What are the 5 Asian equivalents to Maslow’s hierarchy of needs?
1) psychological 2) safety needs 3) affiliation 4) admiration 5) status
These are used when culture constructs may differ across societies or change over time. These also provides rich portraits of people and their society?
Ethnographic and Other non-survey approaches
What are Hofstede’s Cultural Dimensions? (5)
1) Power distance 2) individualism vs. collectivism 3) Masculinity vs. femininity 4) Uncertainty Avoidance 5) Long term vs. Short term Orientation
- Builds on Hofstede -Explains cultural effects in organizational structures and processes -Nine culture-level dimensions partially overlapping Hofstede
Project globe
This is the unconscious reference to one’s own cultural values?
The Self-Reference criterion (SRC)
This is the extent to which products must be adapted to the culture-specific needs of different national markets?
Environmental Sensitivity
These require significant adaptation to the environments of various global markets?
Environmentally sensitive products
These do not require significant adaptation to the environments of various global markets?
Environmentally insensitive products
Society’s endorsement of inequality, and it’s inverse as the expectations of relative equality in organizations and institutions?
Power distance
The tendency of individuals primarily to look after themselves and their immediate families and it’s inverse in the integration of people into cohesive groups?
Individualism
An assertive or competitive orientation, as well as sex role distribution and it’s inverse is a more modest caring attitude towards others is called?
Masculinity
This taps a feeling of discomfort in unstructured or unusual circumstances whilst the inverse show tolerance of new or ambiguous circumstances?
Uncertainty Avoidance
What are the two types of cultural contexts?
1) High context cultures 2) low context cultures
These cultures have these features -less information is contained in the verbal part of the message -more information resides in the context of communication (background, associations, basic values of communicators) -Japan, Saudi Arabia
High-context cultures
This occurs when cultures become more similar?
Cultural convergence
What cultures have these features? -messages are explicit -words carry most of the information in communication -U.S., Switzerland, Germany
Low-context cultures
According to Cross Cultural psychologist Michael Bond Culture is a shared system of? (4)
1) Beliefs 2) Values 3) Expectations 4) Behavioral meaning
Learning about other cultures through continuous direct contact with it is called?
Acculturation
Why is culture developed by a group?
To provide the requirements of communal life
What are Culture Layers ?(4)
1) Collective Reality 2) Socio-Psychological Processes 3) Psychological structures and processes 4) Individual reality
Who I am as an individual who can be compared with others
Personal Identity
What are the two parts of Social Identity?
1) Who we are as a member of emotionally important social group 2) Who I am in relations and responsibilities to others
When positive social identity is threatened, people employ three basic strategies?
1) Social Mobility 2) Social Creativity 3) Social Conflict
What cultures have these features? Lawyers - less important A person’s word - his/ her bond Time - everything in its time Negotiations - lengthy Competitive Bidding - infrequent
High-Context
Global marketers must recognize the influence of what ?
culture
What are the factors of the Collective Reality layer of culture? (3)
1) Ecological factors 2) Economic factors 3) Social political factors
Theses are forces shaping individual sense of identity?
Socio-Psychological Processes
These are personalized core ideas about the self and environment?
Individual reality
These are individual differences directly influencing cognition, and behavior?
Psychological structures and processes
When positive social identity is threatened and people move between groups?
Social mobility
Improve the desirability of group membership when social identity is threatened?
Social Creativity
To overturn existing social order when social identity is threatened, it’s called?
Social Conflict
What cultures have these features? Lawyers - very important A person’s word - get it in writing! Time - time is money! Negotiations - quick Competitive Bidding - frequent
low-context
1) values and norms 2) customs and traditions 3) beliefs and religions 4) rituals and artifacts
Culture includes all we have learned in relation to? (2x2) (4)
This is an economic and political union of 28 member states that are located primary in Europe?
The European Union
What are 4 pricing strategies in the EU?
1) more competitive 2) withdrawal of restrictions on foreign products 3) anti-monopoly measures 4) widening of public procurement market
What are 3 product strategies in the EU?
1) harmonization of product standards 2) harmonization in packaging 3) common patenting and branding
What are 3 promotion strategies in the EU?
1) common guidelines for TV broadcasting 2) Deregulation of national monopolies 3) uniform standard for TV commercials
What are 2 distribution strategies in the EU?
1) simplification of transit documents and procedures 2) Elimination of customs formalities
What is NAFTA ?
.North American Free Trade Association 1) United States 2) Canada 3) Mexico
Who are the 5 economic “tigers” of the Asian-Pacific?
1) China 2) Japan 3) South Korea 4) Taiwan 5) Singapore
What are Russia demographics ? (3)
1) One of the biggest, most promising markets in the world 2) Strong oil revenues 3) Foreign direct investment
What are China’s demographics ? (4)
1) Most populated country 2) Second largest economy 3) Largest global supplier of consumer goods 4) Fourth largest country
This is a theory that seeks to explain how, why, and at what rate new ideas and technology spread through cultures?
Diffusion theory
What are the 5 steps of the adoption process of diffusion theory?
1) Awareness 2) Interest 3) Evaluation 4) Trail 5) Adoption
In diffusion theory, what are the 5 adopter categories?
1) Innovators 2) Early adopters 3) Early majority 4) Late majority 5) Laggards
How big is China ? (2)
1) slightly smaller than the US 2) approximately 6 million square miles
What are the 5 characteristics of innovation?
1) Compatibility 2) Complexity 3) Communicability 4) Divisibility 5) Relative Advantage
Over two-thirds of the world’s income is concentrated in ?
The Triad
The Rest of the World is now growing at ?
a much faster and sustained rate than the Triad
The Triad consists of ? (3)
1) European Union 2) Japan 3) North America - Excluding Mexico
The vanguard of this growth in the world other than the triad is the BRIC-IT group
B) Brazil R) Russia I) India C) China I) Indonesia T )Turkey
What is the common currency of the EU
The Euro
What percentage of the EU has adopted the Euro
60%
What are the demographics of the European Union (4)?
1) Economically bigger than the United States 2) 3rd largest population, after China and India 3) France is the largest country 4) Malta is the smallest
What are some problems with Russia ? (3)
1) Economy largely dependent on oil revenues 2) Continuous and entrenched corruption 3) Increasingly autocratic political leadership
What are the demographics of Japan ? (4)
1) Total territory = 0.28% of the world total 2) Mostly mountainous 3) 3% is residential 4) Industrial is 1.4%
10 of the 27 countries ranked as “emerging markets” by the Economist are located where ?
Asia-Pacific
Can China be considered one large unified market ?
NO
Why is Japan experiencing an acute shortage of workers?
Steadily declining birthrate
The major barriers to entry in Japan are ?
Nontariff barriers
What are India’s demographics ? (2)
1) Ninth largest economy in the world 2) Almost 40% of population live below poverty line
Who are the two emerging economic giants in Asia
1) China 2) India
What are Indonesia Demographics(5)?
1) Most populous Islamic country in the world 2) Language is Bahasa 3) Third most populous democracy in the world after US and India 4) Fourth most populous country in the world 5) Total land area is three times larger than Texas
What is Oceania ?
Comprised of Australia and New Zealand
What are the demographics of Latin America? (2)
1) A fast growing region 2) Population greater than Europe or North America
What does Latin America and the Caribbean consist of ?
1) South America 2) Central America 3) the Caribbean
What are the demographics of Brazil ? (2)
1) Largest country in Latin America 2) “B” in BRIC-IT
What are the demographics of the Middle East and North Africa ? (2)
1) Region encompasses 14 countries 2) The majority of the population is Arab Large percentage Persian Small percentage Israeli
What are key economic elements of Latin America ? (3)
1) Balanced budgets 2) Privatization 3) Democracy-Except Bolivia and Venezuela
What is the political situation in the Middle East ? (2)
1) Political and social instability 2) Long been a battleground of rival religions, tribes, nations, and dynasties
How is business conducted in the Middle East and North Africa ? (5)
1) Driven by the price of oil 2) Connections 3) Bargaining 4) business done with the person, not the company 5) Male dominated society
What are the demographics of Israel ? (4)
1) High Income 2) Technology Advanced 3) Slightly larger than New Jersey 4) Literacy rate is 92%
What are the demographics of Sub-Saharan Africa ? (2)
1) Comprised of 48 countries 2) Nigeria and South Africa Account for over two thirds of the Sub-Saharan GDP
This is A series of protests and demonstrations that began in 2010
The ARAB Spring
What is the business climate of Sub-Saharan Africa? (5)
1) Rising Productivity 2) Expanding Trade 3) Lower Inflation 4) Lower Foreign debts 5) Declining Budget Deficits
What are the three basic principles for developing products for the “Bottom of the Pyramid” ? (3)
1) Affordability 2) Access 3) Availability
Who is at “Bottom of the Pyramid” ?
low-income consumers
What does innovation that must be at least 10X better than the established product give you?
Relative Advantage
What is the degree to which benefits of an innovation can be communicated to a potential market?
Communicability
This specifies that new products have to be as simple as pushing a button
Complexity
This asks can a product be tried on a limited basis without great expense?
Divisibility
Consistent with existing values and past experiences of adopters?
Compatibility
Describe Early Adopters (4)
1) Most influential people 2) Younger 3) High social status 4) More favorable financial position
What is the Interaction Effect ?
Individuals who have adopted an innovation influence others
What country is China’s largest trading partner?
US
What differences within China make it so it cannot be considered one large unified market? (4)
1) Culture 2) Language 3) Tastes 4) Economic Development
What are two results of Japan’s shortage of workers? (2)
1) Young women entering the business 2) Creating changes in the marketplace
What are 4 non-tarrif barriers for entry to Japan?
1) Expense 2) Custom & Tradition 3) Practice 4) Preference
What are the major exports of Oceana?
Low value added agricultural and mineral products
What is the major reason for the normal distribution of adapter categories
The Interaction Effect
This is a means for gathering, analyzing and reporting relevant data to provide managers and other decision makers with a continuous flow of information about markets, customers, competitors, and company operations.
Global Marketing Information System (pg 168)
What are the three basic information source types ?
1) Human Sources 2) Documentary Sources 3) Direct Perception
In FORMAL MARKETING RESEARCH, what are the 5 steps of the research process?
1) identifying the research problem 2) developing a research plan 3) collecting data 4) analyzing research data 5) presenting the findings (Pg 177)
This means seeing, hearing, smelling or tasting for oneself?
Direct Perception (pg 176)
What are 4 possible problems with secondary data?
1) Accuracy 2) Availability 3) Timeliness 4) Comparability of data
When secondary data is not available, this provides accurate data which exact answers to a given research problem?
Primary Data (pg 182)
What are 3 possible problems with Primary data?
1) difficulties in gaining the data 2) cost 3) more time is necessary to gather the data
These are raw facts?
Data
This is data that had been processed?
Information
This research consists of of primary data, quantitative data, and sample data. It describes markets and peoples behaviors?
Descriptive research
What are the three types of research?
1) Exploratory 2) Descriptive 3) Causal
This research tries to find out the problem, researching the problem about that particular item or person place or thing. It is Qualitative.
Exploratory
This is informal information gathering, and accounts for 75% of corporate information. Also known as viewing.
Scanning modes
This research examines cause and affect relationships. It consists if both quantitative and qualitative research? (Example: the variable that fluctuates is cost which is affecting sales)
Causal research
What are 4 advantages of online research?
1) No interviewer bias 2) Lower costs 3) Faster 4) Accurate
What are 2 disadvantages of online research?
1) researcher cannot explain questions 2) researcher cannot ask follow-up questions
What are 5 current issues in global marketing research? (pg189)
1) Must analyze many markets to recognize unique characteristics 2) Must devise techniques to study small markets 3) In developing countries, data may be questionable 4) Comparability 5) Consumer may be hard to reach
For the integrated approach to information collection-When does a company need organized intelligence? What questions would you ask to find out?(4) (pg 192)
1) Are top executives well informed? 2) Has management been surpassed by developments in the marketplace? 3) Do presentations by middle managers show intimate knowledge? 4) Do decision makers suffer from information overload?
What are 5 examples of Analyzing research data?
1) Demand pattern analysis 2) Income elasticity measurements 3) Comparative analysis 4) Cluster analysis 5) Market estimation by analogy (pg 185)
What is a list of subjects about which information is desired ?
A Subject Agenda
What is the technical term for the process of information acquisition ?
Scanning
What are Subject Agenda Categories for a Global Marketing Information System ? (6)
1) Markets 2) Competition 3) Foreign Exchange 4) Prescriptive Information 5) Resource Information 6) General Conditions
What is Prescriptive Information ?
1) Laws 2) Earnings 3) Regulations 4) Dividends 5) Rulings concerning taxes
What is the Scanning mode where special attention is paid to specific story or subject ?
Monitoring
As much as 2/3rd of corporate information come from what source ?
Human Sources
Published public information and unpublished private information are two major types of what?
Documentary Sources
What combines the three basic information sources ?
The Internet
What is characterized by the deliberate seeking out of specific information?
Search
What is a limited and informal type of Search?
Investigation
What is a formally organized type of Search to acquire specific information for a specific purpose ?
Research
What facilitates virtual conversations and has the potential to reach consumers and influence purchasing behavior and brand awareness?
Social media
What is the term used to describe the growing size of data banks so large that they require more sophisticated analytical tools than traditional smaller data banks ?
“Big Data”
What is the term used to describe the use of advanced data gathering and data analysis to gain new insights into consumer behavior?
“Convergence Analytics”
What is the background information or context one gets from observing a situation that can help fill in the “big picture”
Direct Perception
What is an undiscovered segment in which demand would materialize if an appropriate product were made available ?
A Latent market
What is demand that will emerge if a particular economic, technological, political or sociocultural trend continues ?
Incipient Demand
A problem well defined is ?
A problem half solved
Two questions a marketer should ask are:
1) What information do I need 2) Why do I need this information
What type of data are surveys,interviews,and focus groups
Primary Data
What type of data are personal files, company or public libraries, online data bases, government census records, trade associations
Secondary Data
What type of analysis uses Industrial growth patterns to provide insight into market demand ?
Demand Pattern Analysis
The relationship between demand for a good and changes in income?
Income elasticity measurements
Is demand for appliances elastic or inelastic ?
Elastic
Is demand for food elastic or inelastic ?
Inelastic
What type of analysis uses comparisons of market potential and market performance in different countries ?
Comparative analysis
What type of analysis group variables into clusters that maximize within group similarities and between group difference ?
Cluster analysis
In what type of company is responsibility for research delegated to the operating subsidiary ?
Multinational, Polycentric Company
What type of company delegates research to the operating subsidiary but retains overall responsibility and control of research at the headquarters function ?
Global, Geocentric Company
What is the role of organized competitive intelligence?
To help shape strategy
1-3 reversed
To surpass the competition in creating perceived value for customers is…?
The core of marketing
1-3 reversed
Value=Benefits/Price (money, time, effort, etc)
This is the value equation.
1-3 reversed
- An improved bundle of benefits 2. A lower price 3. Or both
These are 3 ways can value to the customer be increased
1-3 reversed
What is Competitive Advantage?
When a company succeeds in creating more value for customers than its competitors.
1-3 reversed
What is a Global Firm?
A company that operates in more than one country, and gains marketing, production, R & D, and financial advantages that are not available to competitors.
1-3 reversed
What is a Global Industry?
when a competitive advantage can be achieved by integrating and leveraging operations on a worldwide scale.
1-3 reversed
What is International Marketing?
Doing trade across national boundaries.
1-3 reversed
Ethnocentric
A person who assumes that his/her own country is superior to the rest of the world.
1-3 reversed
Polycentric
The opposite view of ethnocentrism that believes that each country in which you do business is unique.
1-3 reversed
Regiocentric
In this orientation, management views regions as unique and seeks to develop an integrated regional strategy.
1-3 reversed
Geocentric
This orientation views the world as a potential market and strives to develop integrated global strategies.
1-3 reversed
Leverage
When a company has an advantage because it has experience in more than one country.
1-3 reversed
Current Account
This is a record of all of the recurring trade between countries.
1-3 reversed
Capital Account
This is a record of all long-term direct investments, portfolio investment, and other short and long-term capital flows.
1-3 reversed
Product Saturation Levels
The percentage of potential buyers or households who own a product.
1-3 reversed
Grand Corruption
Misappropriation or misuse of large amounts of public resources by state officials.
1-3 reversed
Economic Development
The process of raising the level of prosperity and material living in a society through increasing the productivity and efficiency of its economy.
1-3 reversed
Influence Peddling
Collusion between members of the private sector and public officials to gain mutual benefit.
1-3 reversed
Marketing
The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.
1-3 reversed
Sovereignty
Supreme and Independent political authority.
1-3 reversed
What erodes economic sovereignty?
Global market integration
1-3 reversed
A country’s state of economic development is inversely porportional to?
It’s level of political risk.
1-3 reversed
The greater the risk…?
The less developed a country.
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By shifting locations of income…?
Many companies minimize tax liability.
1-3 reversed
Black Markets can be caused by…?
High taxation.
1-3 reversed
What’s goal is to protect the right of national sovereignty?
National governance.
1-3 reversed
This often causes companies to take local partners (strategic alliances, joint-ventures)?
Political pressure in underdeveloped countries.
1-3 reversed
What is Expropriation?
The governmental action to dispossess a company or investor.
1-3 reversed
What is Nationalization?
When the ownership of property and assets is transferred to the host government.
1-3 reversed
What is Confiscation?
Nationalization without compensation.
1-3 reversed
What is Creeping Expropriation?
Severe limitations on economic activities. (Limitations on repatriation of profits, content requirements, quotas for hiring locals, price control)
1-3 reversed
What is International law?
The rules and principals nation-states consider binding upon themselves.
1-3 reversed
What is Code Law?
A system of law is based on written norms (codices), supreme red by judicial decisions.
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What is Common Law?
A system of law rests on traditional and precedence stemming from past jurisdiction.
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What is unique about a Civil Law country?
The legal system reflects the structural concepts and principals of the Roman Empire.
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What is unique about a Common law country?
Rulings are decided by reliance on the authority of last judicial decisions.
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What is Jurisdiction?
It specifies which nation’s laws apply, when a transaction crosses boundaries.
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What does Intellectual Property do?
Ensures that patents and trademarks are registered in each country business is conducted.
1-3 reversed
What is Counterfeiting?
The unauthorized copying and production if a product.
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What is Piracy?
The unauthorized publication or reproduction of copyrighted work.
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What is Islamic Law?
The legal system in many Middle Eastern countries.
1-3 reversed
What are Antitrust Laws?
These where designed to combat restrictive business practices and to encourage competition.
1-3 reversed
What is The Sherman Act of 1890?
This prohibits certain business restrictive practices designed to limit competition.
1-3 reversed
What does The European Commision do?
This group prohibits agreements and practices that prevent, restrict or distort competition.
1-3 reversed
What is Licensing?
A contractual agreement in which a licenser allows a licensee to use patents, trademarks, trade secretes, technology or other intangible assets in return for royalty payments.
1-3 reversed
What is Corruption?
Defined as “the misuse if entrusted power for private gain” (Ch3)
1-3 reversed
What is The US Foreign Corrupt Practices Act?
This regulation declares that U.S. individuals or enterprises face prosecution if they try to bribe a foreign official.
1-3 reversed
What is The Regulatory Environment?
This consists of a variety of agencies that enforce laws or set guidelines for conducting business.
1-3 reversed
The scope of activities is the difference between
Domestic and Global marketing.
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What is Sustainable profitability?
The reward for performance achieved by satisfying customers.
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What is Standardization versus adaptation?
This is the extent to which each marketing mix element can be standardized (used the same way) or must be adapted (used in different ways) in different country markets.
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What is Global market participation?
The extent to which a company has operations in major world markets.
1-3 reversed
What is Concentration of marketing activities?
The extent to which activities related to the marketing mix (such as pricing decisions) are performed in one or only a few country locations.
1-3 reversed
What is Coordination of marketing activities?
The extent to which marketing activities related to the mix are planned and executed interdependent around the globe.
1-3 reversed
What is Integration of competitive moves?
The extent to which a firms competitive marketing tactics in different parts of the world are interdependent.
1-3 reversed
Who will be absorbed by more dynamic companies?
parties that do not respond to the challenges and opportunities of globalization.
1-3 reversed
What are Experience Transfers?
When a company leverages it’s experience in any market in the world by drawing on management practices, strategies, products, advertising appeals, or sales or promotional ideas that have been market-tested in one country and applied to another.
1-3 reversed
What are Scale Economies?
When a global company takes advantage of its greater manufacturing volume to obtain traditional scale advantages.
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What is Resource Utilization?
A global companies ability to scan the entire world to identify people, money, and raw materials that will enable it to compete most effectively in world markets.
1-3 reversed
What is Global Strategy?
This is a global companies greatest advantage and is a design to create a winning strategy on a global scale? (Ch1)
1-3 reversed
What are Exchange rates?
These are the prices of one currency in terms of another.
1-3 reversed
What is the Federal Patent Office?
In the United States, it is where patents, trademarks and copyrights are registered.
1-3 reversed
What is Islamic Law?
It is what the legal system in many Middle Eastern countries is based on.
1-3 reversed
What is Market capitalism?
In this economic system individuals and firms allocate resources, and production resources which are privately owned. Consumers decide what goods they desire, and firms decide how much to produce; and the states role is to promote competition.
1-3 reversed
What is Centrally-Planned Socialism?
This economic system gives the state broad powers to serve the public as it sees fit. (Ch2)
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courts of arbitration that can be employed by global companies where established by?
Institutions such as the International Chamber of Commerce.
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What are Purchasing Power Parities?
Comparison of goods and services that can be bought with local currency in different countries.
1-3 reversed
What is Gross National Product (GNP)?
The sums of the money values of all final goods and services produced during a year.
1-3 reversed
What is State Capture?
Influence Peddling.
1-3 reversed
What is Balance of Payment?
A record of all the economic transactions between residents of a country and the rest of the world.
What is Cultural Fragmemtation?
This occurs when populations segments diverge in culture.
What is a universal?
This is a mode of behavior existing in all cultures.
What are Universal Aspects?
These are opportunities to standardize some or all elements of a marketing program.
Name 4 Cultural universals…?
1) Athletic sports
2) Body adornment
3) Religious rituals
4) Music
What is causing Convergence?
Increasing in traveling and improving communications.
What does Material culture refer to? (3)
1) Tools
2) Artifacts
3) Technology
What does Language reflect?
This part of culture reflects the nature and values of society.
What are Aesthetics?
This refers to the ideas of culture containing beauty and good taste.
What is Education?
This refers to the transmission of skills, ideas, and attitudes as well as training in particular disciplines.
What is Social organization?
This is the level of influence of class that needs to be considered.
What does Religion do?
This provides the best insight belief and ritual structure into a society’s behavior.
What is Standard cultural classification?
This is using standardized measures to classify countries.
What are Ethnographic and other non-survey approaches?
These are using qualitative techniques to classify countries.
What happens in Maslow’s hierarchy of needs?
In this model individuals fulfill lower level needs, and then progress to higher level needs.
What are Ethnographic and Other non-survey approaches used for?
These are used when culture constructs may differ across societies or change over time. These also provides rich portraits of people and their society.
What is Project globe? (3)
1) Builds on Hofstede
2) Explains cultural effects in organizational structures and processes -
3) Nine culture-level dimensions partially overlapping Hofstede
What is The Self-Reference criterion (SRC)?
The unconscious reference to one’s own cultural values.
What is Environmental Sensitivity?
The extent to which products must be adapted to the culture-specific needs of different national markets.
What are Environmentally sensitive products?
These require significant adaptation to the environments of various global markets.
What are Environmentally insensitive products?
These do not require significant adaptation to the environments of various global markets.
What is Power distance?
Society’s endorsement of inequality.
What is Individualism
The tendency of individuals primarily to look after themselves and their immediate families and it’s inverse in the integration of people into cohesive groups.
What is Masculinity?
An assertive or competitive orientation, as well as sex role distribution.
What is Uncertainty Avoidance?
This taps a feeling of discomfort in unstructured or unusual circumstances whilst the inverse show tolerance of new or ambiguous circumstances.
What is Cultural convergence?
This occurs when cultures become more similar.
What happens provide the requirements of communal life?
Culture developed by a group?
What is Acculturation?
Learning about other cultures through continuous direct contact with it.
What is Personal Identity?
Who I am as an individual who can be compared with others
What is Individual reality?
This is personalized core ideas about the self and environment.
What are Psychological structures and processes?
These are individual differences directly influencing cognition, and behavior.
What is Social mobility?
When positive social identity is threatened and people move between groups.
What does Social Creativity do?
Improve the desirability of group membership when social identity is threatened.
What is Social Conflict?
To overturn existing social order when social identity is threatened.
Who is The European Union?
This is an economic and political union of 28 member states that are located primary in Europe.
What is Diffusion theory?
A theory that seeks to explain how, why, and at what rate new ideas and technology spread through cultures.
How much of the worlds income is concentrated in The Triad?
Over two-thirds.
What is The Euro?
It is the common currency of the EU.
how many “emerging markets” are in Asia-Pacific?
10 of the 27 countries
What is The ARAB Spring?
This is A series of protests and demonstrations that began in 2010.
low-income consumers are considered to be where economically?
At the “Bottom of the Pyramid”
What is Relative Advantage consist of?
Innovation that must be at least 10X better than the established product.
What is Communicability?
The degree to which benefits of an innovation can be communicated to a potential market.
What is Complexity?
This specifies that new products have to be as simple as pushing a button
What is Divisibility?
This asks “can a product be tried on a limited basis without great expense?”
What is Compatibility mean?
Consistent with existing values and past experiences of adopters.
This is when Individuals who have adopted an innovation influence others?
The Interaction Effect
Who is the US’s largest trading partner?
China
Low value added agricultural and mineral products
These are the major exports of Oceana.
The Interaction Effect is the major reason for…?
The normal distribution of adapter categories
What is a Global Marketing Information System?
This is a means for gathering, analyzing and reporting relevant data to provide managers and other decision makers with a continuous flow of information about markets, customers, competitors, and company operations.
What is Direct Perception?
This means seeing, hearing, smelling or tasting for oneself.
What is Secondary Data?
Data from sources that already exists
What is Primary Data?
When secondary data is not available, this provides accurate data which exact answers to a given research problem.
What is Data?
raw facts
What is Information?
Data that had been processed.
What is Descriptive research?
This research consists of of primary data, quantitative data, and sample data. It describes markets and peoples behaviors?
What is Exploratory research?
This research tries to find out the problem, researching the problem about that particular item or person place or thing. It is Qualitative.
What are Scanning mode?
An informal information gathering, also known as viewing.
What is Causal research?
This research examines cause and affect relationships. It consists if both quantitative and qualitative research? (Example: the variable that fluctuates is cost which is affecting sales)
What is A Subject Agenda?
A list of subjects about which information is desired.
What is Scanning?
The technical term for the process of information acquisition.
What is Monitoring?
It is the Scanning mode where special attention is paid to specific story or subject
What do Human Sources (expatriate sources) account for?
As much as 2/3rd of corporate information
What are Documentary Sources? (2)
1) Published public information
2) Unpublished private information
What is Search?
This is characterized by the deliberate seeking out of specific information?
What is an Investigation?
A limited and informal type of Search?
What is Research?
A formally organized type of Search to acquire specific information for a specific purpose.
What is “Big Data”?
A term used to describe the growing size of data banks so large that they require more sophisticated analytical tools than traditional smaller data banks
What is “Convergence Analytics”?
A term used to describe the use of advanced data gathering and data analysis to gain new insights into consumer behavior
What is A Latent market?
It is an undiscovered segment in which demand would materialize if an appropriate product were made available
What is Incipient Demand?
It is demand that will emerge if a particular economic, technological, political or sociocultural trend continues
What is Primary Data? (3)
1) Surveys
2) Interviews
3) Focus groups
What are examples of Secondary Data? (5)
1) Personal files
2) Company or public libraries
3) Online data bases
4) Government census records
5) Trade associations
What is Demand Pattern Analysis?
A type of analysis uses Industrial growth patterns to provide insight into market demand
What is Income elasticity measurements?
The relationship between demand for a good and changes in income
What is a Comparative analysis?
A type of analysis uses comparisons of market potential and market performance in different countries ?
What is a Cluster analysis?
A type of analysis group variables into clusters that maximize within group similarities and between group difference
To help shape strategy is the role of what
Organized competitive intelligence
