Chapter 5: Global Marketing

Question 1

Global Marketing

Answer 1

Marketing that targets markets throughout the world.

Question 2

Having a global vision means?

Answer 2

Recognizing and reacting to international marketing opportunities
Using effective global marketing strategies
Being aware of threats from foreign competitors in all markets

Question 3

7 benefits of globalization?

Answer 3

 Expands economic freedom  Spurs competition  Raises productivity and living standards in
countries that “open up”
 Offers access to foreign capital, global
export markets, and advanced technology  Can break the monopoly of inefficient and
protected domestic producers
 Promotes higher labor and environmental
standards
 Acts as a check on government power

Question 4

Multinational Firm

Answer 4

A corporation engaged in international trade that moves resources, goods, services, & skills across borders without regard to the country in which its headquarters is located

Question 5

Global Marketing Standardization

Answer 5

Production of uniform products that can be sold the same way all over the world

Question 6

Multi-Domestic Strategy

Answer 6

Occurs when multinational firms enable individual subsidiaries to compete independently in domestic markets

Question 7

Culture

Answer 7

The attitudes and behavioral characteristics shared by the citizens of a nation or people in a social group.

Question 8

Tariff

Answer 8

A tax levied on goods entering a country

Question 9

Quota

Answer 9

Limit on the amount of a product entering a country

Question 10

Boycott

Answer 10

Exclusion of products from a country

Question 11

Exchange Control

Answer 11

Foreign exchange must be sold to a control agency

Question 12

Marketing Group

Answer 12

Common trade alliance

Question 13

Trade Agreement

Answer 13

An agreement to stimulate international trade

Question 14

An agreement to stimulate international trade

Answer 14

CAFTA, NAFTA, EU

Question 15

Financial and Economic Groups

Answer 15

World Bank, IMF, G20

Question 16

What are the 5 types of global entry?

Answer 16

Exporting, licensing, contract manufacturing, joint venture, direct investment

Question 17

What is the least risky and most risky forms of global entry?

Answer 17

Least-Exporting

Most-Direct investment

Question 18

One Product One Message

Answer 18

Means you have the same message and product in all markets (even global)

Question 19

Product Adaptation

Answer 19

Same message but a new product for the global market

Question 20

Promotion Adaptation

Answer 20

Changing the message but keeping the same product in the global market

Question 21

Product Invention

Answer 21

Change the product and change the message in the global market

Question 22

3 global pricing considerations

Answer 22

1) Exchange rates
2) Dumping
3) Countertrade

Question 23

Dumping

Answer 23

The sale of an exported product at a price lower than that charged for the same or a like product in the “home” market of the exporter

Question 24

Countertrade

Answer 24

A form of trade in which all or part of the payment for goods or services is in the form of other goods or services.

Question 25

GDP

Answer 25

Gross domestic product, total market value of all final goods/services produced in a period of time

Question 26

Outsourcing

Answer 26

getting things made outside of the company (can lower costs, provide jobs abroad)

Question 27

Insourcing

Answer 27

Gettiing things made in US (increase US jobs, costs competitive)

Question 28

Stages of multinational Development

Answer 28

1) start exporting 2) set up foreign subsidiaries 3) Move some managment overseas 4) virtual operations

Question 29

Uruguay Round

Answer 29

Reduced tarrifs by 1/3-- Set up WHO