Global Marketing

Question 1

The process of using the 4Ps to meet the needs of individuals and businesses in markets across countries and cultures

Answer 1

Global Marketing

Question 2

What is global marketing sensitive to? (4)

Answer 2

Cultural, economic, legal, and linguistic differences

Question 3

Steps to make international marketing decisions (6)

Answer 3

X

Question 4

What do trade barriers do?

Answer 4

Restrict business between countries

Question 5

Tariffs

Answer 5

Taxes levied on certain imported product

Question 6

Revenue tariffs

Answer 6

Raises funds for the government

Question 7

Protective tariffs

Answer 7

Raises the price of a product to match or even exceed that of a domestic product

Question 8

Quotas

Answer 8

Limit the amount of foreign products that a country will accept in certain product categories

Question 9

Tariffs and quotas are both…

Answer 9

Economic trade barriers

Question 10

What is the purpose of a quota?

Answer 10

Protect local industry and employment

Question 11

Embargo

Answer 11

A total block on trade between countries; all transactions are prohibited without specialized authorization

Question 12

Why are embargoes usually launched?

Answer 12

Political reasons

Question 13

Non-tariff trade barriers

Answer 13

Trade is restricted through other means:
Biases against bids, restrictive product standards, excessive regulations etc.

Question 14

3 strategies for entering new global markets:

Answer 14

Exporting
Joint venture
Direct investment

Question 15

Exporting

Answer 15

Entering foreign markets by selling goods produced in the company’s home country
Little modification

Question 16

Direct exporting

Answer 16

The company handles its own exports

Question 17

Indirect exporting

Answer 17

Working through independent international marketing intermediaries

Question 18

Joint venturing

Answer 18

Entering foreign markets by joining with foreign companies to produce/market and product or service

Question 19

4 types of joint venturing

Answer 19

Licensing
Contract manufacturing
Management contracting
Joint ownership

Question 20

Licensing

Answer 20

Entering foreign markets through developing an agreement with a license in the foreign market, for a fee/payment the licensee buys the right to use the company’s manufacturing/trademark/trade secret/ other items of vale

Question 21

Contract manufacturing

Answer 21

A joint venture in which a company contracts with manufacturers in a foreign market to produce its product or provide a service

Question 22

Management contracting

Answer 22

Joint venture in which the domestic firms supplies the management know-how to a foreign company that supplies that capital; exports management services rather than goods

Question 23

Joint ownership

Answer 23

Cooperative venture in which a company creates a local business with investors in a foreign market who share ownership and control

Question 24

why is joint ownership necessary at times?

Answer 24

Needed for economic or political reasons

Question 25

Direct investment

Answer 25

Entering foreign markets by developing foreign-based assembly or manufacturing facilities

Question 26

Standardized global marketing

Answer 26

Using the same marketing strategy and mix world wide

Question 27

Adapted global marketing

Answer 27

Customize the marketing strategy and mix elements to each target market

Question 28

Where do most firms land on the global-local marketing program spectrum?

Answer 28

Most firms fall somewhere in the middle

Question 29

Straight extension

Answer 29

Marketing a product in a foreign market without making any changes to the product

Question 30

product adaption

Answer 30

Changing only the product to meet local requirements, conditions, and wants

Question 31

Product invention

Answer 31

Creating an entirely new product or service to meet the needs of consumers in a given country

Question 32

Communication adaptation

Answer 32

A global communication strategy of fully adapting advertising messages to local markets, changing method of communication not product

Question 33

Dual adaptation

Answer 33

The firm markets a new customized product to their new market using a different communication approach

Question 34

How do we structure our organization to make this development happen? (3 steps)

Answer 34

Organize an export department Create an international division Become a global organization

Question 35

What does an export department typically include

Answer 35

Employees and dedicated to pursuing exporting opportunities

Question 36

Types of international divisions (3)

Answer 36

Geographical organizations, world groups, international subsidiaries

Question 37

Geographical organization

Answer 37

Have country managers that are responsible for sales people, sales branches, distributors, and licencees in their respective countries

Question 38

World groups

Answer 38

Are responsible for worldwide sales of different product groups

Question 39

International subsidiaries

Answer 39

Independent and responsible for their own sales and profits