Chapter 16 Flashcards
Global Marketing (12 cards)
what is globalization
The increased flow of goods, services, people, technology, capital, information, & ideas around the world; has economic, political, social, cultural, and environmental impacts.
what are the components of a country market/ global market assessments(4)
- if country has a political and legal environment that favours business
- general economic environment
- technology & infrastructure capabilities
- sociocultural analysis (adapt to differences to ensure successful business relationships)
example of political components (6)
tariff
quota
boycott
exchange control
trade agreement
trade sanctions
example of economic components (3)
- General economic environment
- Market size and population growth rate
- Real income
example of technology & infrastructure components (4)
- Transportation
- Distribution channels
- Communication
- Commerce
example of sociocultural components (5)
power distance
uncertainty avoidance
individualism
masculinity
time orientation
what are the global pricing strategies (4)
- tariffs
- quotas
- anti-dumping policies
- currency exchange policies
what are some ethical issues in global marketing
environmental concerns: waste management, many developing countries don’t manage waste well.
what are global labour issues
Concerns about working conditions and wages paid to factory workers in developing countries
Describe the various global market entry strategies
Direct investment: most risky but also has the potential to be the most lucrative.
Joint venture with other firms already operating in the host country: share the risk and obtain knowledge about the market and how to do business there.
Strategic alliance: similar to joint venture, but the relationship is not as formal.
Franchising: less risky method, similar to franchise agreements, the franchisor allows the franchisee to operate a business using its name and strategy in return for a fee.
Exporting: least risky method of entering another country
List the similarities between a domestic marketing strategy and a global marketing strategy
Target Audience: Both strategies focus on understanding and segmenting the target market, identifying consumer needs, and developing tailored messaging.
Branding: Both strategies emphasize brand consistency and ensuring that the brand resonates with the intended audience, whether domestically or internationally.
Communication: Both involve advertising, promotions, public relations, and sales strategies to communicate the product’s value to consumers.
Use of Technology: Both domestic and global strategies leverage digital tools (e.g., social media, websites, analytics) for reaching and engaging their target market.
List the differences between a domestic marketing strategy and a global marketing strategy
Market scope:
Domestic: Focuses on marketing within one country, catering to the local culture, laws, and consumer preferences.
Global: Involves marketing in multiple countries, addressing diverse cultural, economic, and legal environments.
Cultural Adaptation:
Domestic: No need for cultural adaptations, as the marketing messages and products are designed for a local audience.
Global: Requires significant adaptation of marketing messages, branding, and product offerings to fit the cultural, social, and linguistic differences across different countries.
Legal and Regulatory Considerations:
Domestic: Marketers only need to comply with local laws and regulations.
Global: Must comply with a wide variety of international laws, including trade regulations, intellectual property, labor laws, and environmental standards.
Market Research:
Domestic: Market research focuses on local consumer behavior, demographics, and trends within a single country.
Global: Involves more extensive market research to understand consumer preferences, buying behaviors, and competitive landscapes in various countries or regions.
Product Customization:
Domestic: Products are generally standardized for the local market.
Global: Products may need to be adapted or modified to meet local tastes, preferences, or regulatory requirements (e.g., packaging, ingredients, size).
Distribution Channels:
Domestic: Distribution is focused on local channels like retail stores, e-commerce sites, and local wholesalers.
Global: Involves managing international logistics, supply chains, and relationships with global distributors, often requiring more complex infrastructure.
Pricing Strategy:
Domestic: Pricing is influenced by local economic conditions, competition, and consumer purchasing power.
Global: Pricing may vary across countries due to factors such as currency differences, local competition, tariffs, taxes, and local consumer affordability.
Promotion and Communication:
Domestic: Promotional strategies are designed to resonate with the local audience’s language, media preferences, and cultural norms.
Global: Requires multilingual marketing materials and adaptation of messages for cultural sensitivity, often using multiple advertising channels suited to each market.
