Week_13_Global Marketing

Question 1

What variables you need to pay attention when you do global marketing?

Answer 1

Economic
Police
competitor
Legal

Question 2

Sociocultural Forces

Answer 2

Buyers’ perceptions of other countries can influence product adoption and use.

1. Consumer preferences for products depend on country of origin such as wine, perfume, automobiles, design
2. Necessity vs. Luxury (Car)
3. Cultural differences have implications for product development(car cylinder), pricing, advertising, packaging(coke size)

Question 3

Which three things a global marketer must understand?

Answer 3

– International trade systems
– Economic stability of nations
– Trade barriers
Remember: Instability is a constant in the global business environment

Question 4

GDP definition

Answer 4

Gross domestic product (GDP) – the market value of a nation’s total output of goods and services for a given period; an overall measure of economic standing

Question 5

Import tariff

Answer 5

关税，a duty levied by a nation on goods bought outside its borders and brought into the country

Question 6

Embargo

Answer 6

贸易禁令，a government’s suspension of trade in a particular product or with a given country

Question 7

exchange control

Answer 7

外汇管制，government restrictions on the amount of a particular currency that can be bought or sold

Question 8

• Under the Foreign Corrupt Practices Act (1977):
– It is illegal for U.S. firms to attempt to make large payments or bribes to influence policy decisions of foreign governments.
– Publicly held U.S. corporations are subject to rigorous internal controls and record-keeping requirements for overseas operations.
• Omnibus Trade and Competitiveness Act (1988)
– Allows grease payments to low level officials to expedite paper work but not to break any laws.

Answer 8

True

Question 9

Trade deficit

Answer 9

Not a bad thing, fewer job in domestic.

Question 10

Treat similar segment as a big segment and serve them with one standard

Answer 10

Global marketing definition

Question 11

GLOBALIZATION OF MARKETS by Ted Levitt

Answer 11

• Technology is driving the world toward a ‘converging(交汇） commonality’
• Emergence of global markets for standardized consumer products
• Offering Value - Price, quality, reliability, and service

Question 12

EOS

Answer 12

Economic of scale

Question 13

Benefits of Global Marketing

Answer 13

• E.O.S. in production, marketing, R&D
• Unified global image
• Exponential increase in exposure to situations, ideas, competition resulting in greater ability to learn, innovate, and develop.
• Ability to attract the brightest and most ambitious managerial talent.

Question 14

The North American Free Trade Agreement (NAFTA)

Answer 14

Now it calls USMCA
– Eliminated tariffs to create a free trade area
– Makes it easier for U.S. businesses to invest in Mexico and Canada
– Provides protection for intellectual property
– Requires equal treatment of U.S. firms in both countries
– Simplifies country-of-origin rules

Question 15

The Southern Common Market (MERCOSUR)

Answer 15

an alliance that promotes the free circulation of goods, services, and production factors, and has a common external tariff and commercial policy among member nations in South America
• Establishedin1991bytheTreatyofAsunción
• Members include Argentina, Brazil, Paraguay, Uruguay, and Venezuela.
– Bolivia, Chile, Colombia, Ecuador, and Peru are associate members.

Question 16

The Asia-Pacific Economic Cooperation (APEC)

Answer 16

an alliance that promotes open trade and economic and technical cooperation among member nations throughout the world
• Members represent nearly 44% of global trade
• Facilitates business and allows the business/private sector to participate in a range of APEC activities

Question 17

Association of Southeast Asian Nations (ASEAN)

Answer 17

• – an alliance that promotes trade and economic integration among member nations in Southeast Asia
• Established in 1967
• member nations: Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.
• Three pillars are sociocultural, political, and economic.
• No common currency or fully free labor flows between members

Question 18

Dumping – selling products at unfairly low prices is illegal

Answer 18

True

Question 19

General Agreement on Tariffs and Trade (GATT)

Answer 19

an agreement among nations to reduce worldwide tariffs and increase international trade
Established rules to guide international commerce, such as anti- dumping policy

Question 20

Steps for international marketing involvement

Answer 20

1. No Direct Foreign Marketing
2. Infrequent Foreign Marketing
3. Regular Foreign Marketing
4. International Marketing
5. Global Marketing

Question 21

International marketing strategies

Answer 21

Domestic Market extension (Ethnocentric)
Multi-Domestic Market (Polycentric)
Global Marketing(Regio/Geocentric)

Question 22

What is marketing relativism?

Answer 22

you used to marketing things in your country and you assume that will works in other countries but its not.

Question 23

What is self-reference criterion?

Answer 23

The unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions. (develop car for mass marketing in developing country)

Question 24

7 Steps to Ethical Compliance

Answer 24

• Codes of Conduct
• High-Level Compliance Manager
• Care in Delegation of Authority
• Training and Communication
• Monitor and Audit for Misconduct
• Enforce and Discipline
• Revise Program as Needed

Question 25

American Marketing Association’s Code of Ethics

Answer 25

• Do no harm. This means consciously avoiding harmful actions or omissions by embodying high ethical standards and adhering to all applicable laws and regulations in the choices we make.
• Foster trust in the marketing system. This means striving for good faith and fair dealing so as to contribute toward the efficacy of the exchange process as well as avoiding deception in product design, pricing, communication, and delivery of distribution.
• Embrace ethical values. This means building relationships and enhancing consumer confidence in the integrity of marketing by affirming these core values: honesty, responsibility, fairness, respect, transparency and citizenship.