Révision Flashcards
Chap 1
4 different management orientations toward the nature of the global world
Ethnocentric orientation
home country is superior to the rest of the world
Chap 1
4 different management orientations toward the nature of the global world
Polycentric orientation
every country is special, full localization
Chap 1
4 different management orientations toward the nature of the global world
Regiocentric orientation
EU/USA etc
Chap 1
4 different management orientations toward the nature of the global world
Geocentric orientation
mix between ethnocentric and polycentric, company
isn’t connect to a specific country
Chap 1
2 distances of international marketing
physical distance (geographically, time)
mental distance (cultural, economic, political)
Chap 2
Resource ownership and allocation
Market Capitalism
Ownership : Private
Allocation : Market
Chap 2
Resource ownership and allocation
Market Socialism
Ownership : State
Allocation : Market
Chap 2
Resource ownership and allocation
Centrally planned Socialism
Ownership : state
Allocation : command
Chap 2
Resource ownership and allocation
Centrally planned Capitalism
Ownership : private
Allocation : command
Chap 2
Balance of payments
A record of all economic transactions between the residents of a country and the rest of the world.
Chap 2
Economic exposure
Reflects the impact of currency fluctuations on a company’s financial performance.
Chap 2
3 westerns market system
Private ownership, free entreprise economy, capitalism, highly flexible employment policies, minimal social safety net
Anglo-Saxon Model
USA, Canada, Great Britain
Chap 2
3 westerns market system
Private ownership, Social partners, inflexible employment policies, etc
Social market economy model
Germany, France, Italy
Chap 2
3 westerns market system
Mix of state & private ownership, high taxes, market regulation, generous social safety
Nordic model
Sweden, Danemark, Norway
Chap 2
Stage of development
Low-income country
GNI per capita < 1,045$
Chap 2
Stage of development
Low-middle-income country
1,045$ < GNI per capita < 4,125$
Chap 2
Stage of development
Upper-middle-income country
4,125$ < GNI per capita < 12,745$
Chap 2
Stage of development
High-income country
12,745$ < GNI per capita
Chap 2
BRICS
Brazil Russia India China South Africa
Chap 2
G8
Canada France Germany Italy Japan Russia UK USA
Chap 2
OECD
The organization of economic cooperation and development
Appadurai
Global interaction today
Tension between cultural homogenization and heterogenization
Appadurai
The global cultural economy
Global flows occur in and through the growing disjuncture between ethnoscapes, technoscapes, finanscapes, mediascapes, and ideoscapes. = “imagined worlds”
Appadurai
5 scapes
I mean the landscape of persons who constitute the shifting world in which we live: tourists, immigrants, refugees, exiles, guestworkers, and other moving groups and persons constitute an essential feature of the world, and appear to affect the politics of and between nations to a hitherto unprecedented degree.
Ethnoscape
Appadurai
5 scapes
I mean the global configuration, also ever so fluid, of technology, and of the fact that technology, both high and low, both mechanical and informational, now moves at high speeds across various kinds of previously impervious boundaries.
Technoscape
Appadurai
5 scapes
Since the disposition of global capital is now a more mysterious, rapid and difficult landscape to follow than ever before, as currency markets, national stock exchanges, and commodity speculations move mega-monies through national turnstiles at blinding speed, with vast absolute implications for small differences in percentage points and time units.
Finanscape
Appadurai
5 scapes
Refer both to the distribution of the electronic capabilities to produce and disseminate information (newspapers, magazines, television stations, film production studios, etc.), which are now available to a growing number of private and public interests throughout the world; and to the images of the world created by these media.
Mediascape
Appadurai
5 scapes
Concatenations of images, often directly political and frequently have to do with the ideologies of states and counter-ideologies of movements explicitly oriented to capturing state power or a piece of it.
Ideoscape
The global cultural economy
Deteterritorialization
Is one of the central forces of the modern world, since it brings laboring populations into the lower class sectors and spaces of relatively wealthy societies, while sometimes creating exaggerated and intensified senses of criticism or attachment to politics in the home-state.
The global cultural economy
Production fetishism
I mean an illusion created by contemporary transnational production loci, which masks translocal capital, transnational earningflows, global management and often faraway workers (engaged in various kinds of high-tech putting out operations) in the idiom and spectacle of local (sometimes even worker) control, national productivity and territorial sovereignty.
The global cultural economy
Consumer fetishism
I mean to indicate here that the consumer has been transformed, through commodity flows (and the mediascapes, especially of advertising, that accompany them) into a sign, both in Baudrillard’s sense of a simulacrum which only asymptotically approaches the form of a real social agent; and in the sense of a mask for the real seat of agency, which is not the consumer but the producer and the many forces that constitute production.
Glocalization of youth culture
Glocalisation
Members of the youth market interpret and rework global cultural practices and meanings to fit into their local contexts. Consumption practices are inscribed in local, historically constituted cultural discourse of youth cultural consumption, modernity, and globalization.
Structures of Common Difference
Chap 3
was intended to be a multilateral, global, initiative and GATT negotiators did succeed in liberalizing world merchandise trade. Started 70 years ago.
General Agreement on Tariffs and Trade (GATT
Chap 3
1995, Provides a forum for trade related negotiations among its 160 members.
World trade organization (WTO)
Chap 3
Is a mechanism that confers special treatment on select trading partners.
Preferential trade agreement (PTA)
Chap 3
Free trade area (FTA)
is formed when two or more countries agree to eliminate tariffs and other barriers that restrict trade.
Chap 3
Customs Union
in addition to eliminating internal barriers to trade, members of a customs union agree to the establishment of common external tariffs (CETs).
Chap 3
Common market
is the next level of economic integration. Also allows free movement of factors of production, including labor and capital.
Chap 3
Economic Union
Builds upon the elimination of internal tariff barriers, the establishment of common external barriers, and the free flow of factors.
Chap 4
What is culture ?
- Learned behavior
- Culture can be understood as ways of living, built up by a group of human beings, that are transmitted from one generation to another.
- A guide for communication and interaction
Chap 4
High & Low context
Countries exemple
High context : Japan
Low context : USA
Chap 4
High & Low context
Lawyers
High context : Less important
Low context : Very important
Chap 4
High & Low context
A person’s word
High context : is his or her bond
Low context : is not relied upon “get it in writting”
Chap 4
High & Low context
Responsability for organizational error
High context : Taken by highest level
Low context : pushed to lowest level
Chap 4
High & Low context
Space
High context : People breathe on each other
Low context : People maintain a bubble of private space and resent intrusions
Chap 4
High & Low context
Time
High context : Polychronic - everything in life must dealt with in terms of its own time
Low context : Monochronic - Time is money, linear - one thing at time
Chap 4
High & Low context
Negotiation
High context : Are lengthy - importance to know each other
Low context : Quickly
Chap 4
High & Low context
Competitive bidding
High context : Unfrequent
Low context : Common
Chap 4
Hofstede’s 5 cultural dimensions
Power distance
The extent to which the less powerful members of a society
accept—even expect—power to be distributed unequally.
(high: France, low: Sweden)
Chap 4
Hofstede’s 5 cultural dimensions
Uncertainty avoidance
The extent to which the members of a society are uncomfortable with unclear, ambiguous, or unstructured situations.
(high: Italy, low: Canada)
Chap 4
Hofstede’s 5 cultural dimensions
Achievement/Nurturing
A society in which men are expected to be assertive, competitive and concerned with material success and women fulfill the role
of nurturer and are concerned with issues such as the welfare of children.
Achievement : USA, Japan
Nurturing : France, Sweden
Chap 4
Hofstede’s 5 cultural dimensions
Individualistic/Collectivistic
Concerned with their own interests and those of his immediate family.
individualistic: USA, EU
collectivist: Asia
Chap 4
Hofstede’s 5 cultural dimensions
Long-term orientation
Degree of stress placed on virtuous living in this world à methodological flaws and philosophical flaws = much used
Long term : people look to the future
Short term : people value tradition and past
doute !!!
Short term : Germany, USA, Canada
Long term : China, Japan, Taiwan
Chap 4
Adoption process
Awarness - Interest - Evaluation - Trial - Adoption
Chap 4
Innovation Characteristics
Relative advantage / Compatibility / Complexity / Divisibility / Communicability
Chap 4
Adopters categories
Innovators Early adopters Early majority Late Majority Laggards
Chap 4
Environmental Sensitivity
The extent to which products must be adapted to the culture- specific needs of different national markets
Chap 5
Political risk
the possibility of change in a country’s political environment or government
Chap 5
Expropriation
governmental action to dispossess a foreign company or investor.
Chap 5
Nationalization
occurs when the government takes control of some or all of the enterprises in a particular industry
Chap 5
Intelectual property
Patent
is a formal legal document that gives an inventor the exclusive right to make, use and sell an invention for a specific time
Chap 5
Intelectual property
Trademark
distinctive mark, motto, device that a manufacturer affixes to a particular product
Chap 5
Intelectual property
Copyright
establishes ownership of a written, recorder or filmed creative work
Chap 5
Intelectual property
Counterfeiting
unauthorized copying and production of a product.
Chap 6
Latent market
An undiscovered market
Chap 6
Incipient market
market that will emerge if a particular economic, demographic, political or sociocultural trend continuous
Chap 6
8 basics steps of formal research
- Information requirement
- problem definition
- Choose unit of analysis
- Examine data availability
- Asses value of research
- Research design
- Data analysis/interpretation
- Presentation
Chap 6
Big data difficulties
- Directive on data collection on Europe
- Safe harbor agreement for US and EU
- Global perspective
- Ad blockers
Chap 7
Segmentation
An effort to identify and categorize groups of customers and countries according to common characteristics
Chap 7
Targeting
Process of evaluating the segments and focusing marketing efforts on a country, region or group that can respond.
Chap 7
Positioning
differentiate the product or brand in the minds of target customers
Chap 7
How can we segment ?
- Geographical = where you live
- Demographic = income, gender, ethnicity
- Psychographic = lifestyle, personality, attitudes, values
• Behavior segmentation = whether people buy and use a product as how often and how
much they consume
• Benefit segmentation = the benefit a product gives, value equation
• Ethnic segmentation = language, background
Chap 7
a meaningful segment must be
- Profitable
- Quantifiable (measurable) = how many consumers are going to fast food restaurants
- Available = many companies available
- Clear common characteristics for a segment = who eats meet, who are veg.
- Clear differences between segments
Chap 7
Assesing market potential
- Current segment size and growth potential
- Potential competition
- Feasibility and compatibility (law barrier, etc.)
Chap 7
Targeting and target market strategy options
Standardized global marketing
mass marketing in a single country
Chap 7
Targeting and target market strategy options
Concentrated global marketing
devising a marketing mix to reach a niche
Chap 7
Targeting and target market strategy options
Differentiated global marketing
targeting two or more distinct market segments with multiple marketing mix offerings
Chap 7
positioning
differents criteria
- Attribute or benefit = a particular product attribute, benefit or feature (Volvo, safety)
- Quality and price = high-fashion, high price or low quality, low price
- Use or user =how a product is used or associates the brand with a user or class of user
- Competition = niche
Chap 7
positioning
Global consumer culture positioning (GCCP)
As a strategy that identifies a brand as a symbol of a particular global culture or segment
Chap 7
positioning
Foreign consumer culture positioning (FCCP)
the brand’s users, use occasions or production origins with a foreign culture or country.
Chap 7
positioning
Local consumer culture positioning (LCCP)
associates the brand with local cultural meanings, norms
Chap 9
Global market-entry
2 types
Licensing = is a contractual arrangement whereby one company (the licensor) makes a legally protected asset available to another company (the licensee) in exchange for royalties, license fees or some other form of compensation.
Investment = desire to have partial or full ownership of operations outside the home country
Chap 9
Global market-entry
2 licensing forms
- Contract manufacturing = provide technical specifications to a subcontractor or local manufacturer. The subcontractor then oversees production.
- Franchising = is a contract between a patent company/franchiser and a franchisee that allows the franchisee to operate a business developed by the franchiser in return for a fee and adherence to franchise-wide policies and practices.
Chap 9
Global market-entry
3 investments forms
- Foreign direct investment (FDI) = reflect investment flows out of the home country as companies invest in or acquire plants, equipment or other assets.
- Joint ventures = entry strategy for a single target country in which the partners share ownership of a newly created business entity. Sharing risk.
- Investment via equity stake or full ownership = equity is an investment with a minority stake or majority stake and full ownership is 100 percent.
Chap 9
Global market-entry
Involvement ranking
LOW
Exporting Licensing Contract manufacturing Joint venture Equity stake or acquisition
STRONG
Chap 9
def : Market expansion strategies
expand by seeking new markets in existing countries or seeking new country markets for already identified and served market segments.
Chap 9
Market expansion strategies
Country and market concentration
targeting a limited number of customer segments in a few countries
Chap 9
Market expansion strategies
Country concentration and market diversification
a company serves many markets in a few countries
Chap 9
Market expansion strategies
Country diversification and market concentration
classic global strategy whereby a company seeks out the world market for a product
Chap 9
Market expansion strategies
Country and market diversification
corporate strategy of a global, multi-business company such as Matsushita
Chap 9
3 characteristics of strategic alliances
- Ongoing contributions
- Independence of participants
- Shared benefits
Chap 9
Global strategic partnership success factors
Find & explain
- Mission = win-win situation when participants pursue objectives as a basis of mutual need or advantage
- Strategy = Strategy must be thought out to avoid conflicts
- Governance = Discussions and consensus must be the norm, partners must be view as
equal - Culture = Personal chemistry is important with shared values
- Organization = Innovative structures and designs may be needed to offset the
complexity of multicountry management - Management = Authority should be well established and divisive issues must be
identified. Need a common commitment
Zou and Cavusgil
GMS = Global Marketing strategy
3 to find and explain
- Standardization = To attain a low-cost position, the optimum global marketing strategy is to sell standardized products using standardized marketing programs. Economics of scale
- Configuration-coordination = exploit the synergies that exist across different country markets as well as the comparative advantages associated with various host countries. To be effective in global competition, a firm must configure its value-chain activities optimally and coordinate its efforts in different market. (Porter)
- Integration = It is concerned with how a firm’s competitive battles are planned and executed across country markets. According to this view, a key to global marketing success is participation in all major world markets to gain competitive leverage and effective integration of the firm’s competitive campaigns across these markets.
Chap 10
Product definition
Goods, services or idea with both tangible and intangible attributes that collectively create value for a buyer or user
Chap 10
def : Brand image
perceptions about a brand as reflected by brand associations
that consumers hold in their memories
Chap 10
def : Brand equity
The total value that accrues to a product as a result of a
company’s cumulative investments in the marketing of the brand
Chap 10
def : Local product/local brand
creates these products or brand to cater to the needs
and preferences of particular country markets / offered in a single market
Chap 10
def : International products and brands
offered in several markets in a particular region
Chap 10
def : Global products and brands
positioning throughout the world with the same name
Chap 10
def : Brand equity chain
• Brand image =
Brand awareness, Brand associations: What customers think and memorize about a brand - involves feelings, experiences, beliefs attitudes & knowledge.
• Brand strength =
Price premium, Volume premium, Purchase intent, Customer satisfaction, Customer loyalty: How customers behave, or intends to behave, towards
the brand.
• Brand value =
Cashflow Profit Growth
Chap 10
Main characteristics of global brands
Find the name of :
Consumers ascribe global brands with higher quality than local/regional brands and global brands allow marketers to charge premium prices
Quality signal
Chap 10
Main characteristics of global brands
Find the name of :
Global brands are symbols of cultural ideals that could be marketed in all parts
of the world by communicating the brand’s global identity (Global consumer
culture positioning)
Global myth
Chap 10
Main characteristics of global brands
Find the name of :
Consumers evaluate and expect big global brands to deal with social problems and to conduct their business ethically
Social responsibility
Chap 10
2 managerial approach
Find and explain
– Standardizing = Viewing the entire world as one (global) market, and therefore
executing the same brand strategy across the globe (E.g. Gillette)
– Adapting = There is no such thing as a global consumer therefore we need to push down all the branding decisions on a local level catering to local tastes, emotions and demands (E.g. Nestlé)
Chap 10
3 branding strategies
Find and explain
• Tiered branding (e.g. Sony Walkman) =
combining branding to leverage a company’s reputation while developing a distinctive identity for a line of products.
• Co-branding (e.g. Intel and Hewlett Packard) =
two or more companies collaboration ex : Versace and H&M
• Brand extensions (e.g. Apple starting to make TV:s or stereos) =
extend your brand to other markets.
Chap 10
Find the name
a staple of sociology and psychology courses, provides a useful framework for understanding how and why local products and brands can be extended beyond home-country borders.
Maslow’s need hierarchy
Chap 10
Maslow’s need hierarchy
- Physiological
- Safety
- Social
- External and internal esteem
- Self actualization
Chap 10
Name of the effect by which a home country affect brand image
Country-of origin effect = they become part of a brand’s image and contribute to
brand equity.
Chap 10
Product/communication adaptation or adaptation
Communication : different
Product : same
Product extension
Communication adaptation
strategy
Chap 10
Product/communication adaptation or adaptation
Communication : different
Product : different
Dual adaptation strategy
Chap 10
Product/communication adaptation or adaptation
Communication : same
Product : same
dual extension strategy
Chap 10
Product/communication adaptation or adaptation
Communication : same
Product : different
Product adaptation
Communication extension
strategy
Chap 10
Find the name
the process of endowing resources with a new capacity to create value.
Innovation
Chap 10
Find the name
complex bundle of images and experiences in the mind of customer
A brand
Chap 11
3 variables of price
Find and explain
Market-based pricing
• Customer value
• Costumer alternative
situation Cost-based pricing
• Production cost
Chap 11
4 Global pricing strategies
Explain : Compensation
Low price à Cover costs
Chap 11
4 Global pricing strategies
Explain : Differentiation
Adjust price à Pricing competition during maturity phase
Chap 11
4 Global pricing strategies
Explain : Market penetration
setting price levels that are low enough to quickly build market share
Low initial price – Big sales volume to get market shares
Chap 11
4 Global pricing strategies
Explain : Market skimming
attempt to reach a market segment that is willing to pay a premium price for a particular brand or a special product.
High initial price – Image and exclusivity
Chap 11
Currency fluctuation
Market holding strategy
companies who doesn’t want to lose market shares and are using the flexible cost-plus method to reduce prices to unfavorable currency swings
Chap 11
Currency fluctuation
Price transparency
buyers are able to comparison shop easily because goods will be priced in euros as opposed to mars, francs or lira.
Chap 11
Global pricing: 3 policy alternatives
Extension or ethnocentric pricing
per-unit price of product is same in the world
Chap 11
Global pricing: 3 policy alternatives
Adaption or polycentric pricing
permits subsidiary or affiliate managers or
independent distributor to establish whatever price they feel is most appropriate.
Chap 11
Global pricing: 3 policy alternatives
Geocentric pricing
intermediate course for action. The realization that unique local market factors should be recognized when arriving at pricing decisions. Cost, income,
competition
Chap 11
Find the name
the sale of an imported product at a price lower than that normally charged in a domestic market or country of origin.
Dumping
Chap 11
Find the name
Illegal agreement between two or more companies to establish a same priceà anticompetitive act
Price fixing
Chap 11
Find the name
refers to the pricing of goods, services and intangible property bought and sold by operating units or division of a same company/corporate parent.
Transfer pricing
Chap 13
find and explain the 3 types of appeal
Advertising appeal = communications approach that relates to the motives of the target audience
- Rational appeal = logic an speak to the audience’s intellect
- Emotional appeal = effecting the audiences emotions
Chap 13
Find the name
the promise or claim that captures the reason for buying a product or the benefit of being ownership of a product
Selling proposition
Chap 13
Find the name
is a strategic communication process that builds mutually beneficial relationships between organizations and their publics
Public relation
Chap 13
Selecting advertising agency criteria
4 to find and explain
- Company organization = centralized or decentralized ?
- National responsiveness = Is the global agency familiar with local culture or should a
local selection be made ? - Area coverage = Does the candidate agency cover all relevant markets ?
- Buyer perception = what kind of brand awarness does the company want to project ?
