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Flashcards in marketing ch.7 Deck (56):
1

how do imports/exports affect eachother

more exports-->more GDP--> more imports

2

Countertrade

using barter rather than money for global sales. 15-20% of world uses

3

US leader in what measure

GDP

4

Balance of Trade

the difference between monetary value of exports and imports

5

Deficit

imports>exports

6

4 elements of Competitive Advantage

factor conditiosn, demand conditions, related and supporting industries, company strategy structure and rivalry

7

Factor Conditions

the ability to turn natural resources/edu/infurstructure into competitive advantage

8

Demand Conditions

the number and sophistication of domestic customer. Ex. Japan demand high quality

9

Related and Supporting industries

need world class suppliers to accelerate innovation

10

Company Strategy, structure and rivalry

conditions governing business, intensity of competition domestically.

11

Economic Espionage Act (1996)

theft of trade secrets by foreign entities a federal crime in US

12

4 trends influencing global market

Trend 1: Gradual decline of economic protectionism by individual countries.
Trend 2: Formal economic integration and free trade among nations.
Trend 3: Global competition among global companies for global customers.
Trend 4: Emergence of a networked global market space.

13

Protectionism

shielding industries within a country's economy through tariffs/quotas

14

Tariffs

government tax on goods/services entering a country

15

Quotas

restriction on amount of product allowed to enter/leave

16

World Trade Organization

sets rules governing trade between members

17

EU

European Union. Eliminated barriers to free flow of goods. Adopt Euro. Universal standards/regulations across Europe

18

NAFTA

North American Free Trade Agreement. Limit trade barriers between Canada Mexico US

19

Asian Free Trade Agreements

less formal attempt at EU and NAFTA

20

Strategic Alliances

agreements among firms to cooperate for the purpose of achieving common goals

21

Three types of global companies

international multinational transnational

22

International

Engages in trade and marketing in diff countries as extension of marketing strategy at home. Same product, Same marketing

23

Multinational

Markets to each part of the world differently. Different Product variations, brand names and ad programs in different countries. (Multidomestic marketing strategy)

24

Multidomestic marketing strategy

they have different product variations, brand names and ad programs in different countries

25

Transnational

views world as one giant market. Capitalizes on cultural similarities

uses global marketing strategy

markets global brand

26

Global Marketing Strategy

standardizing marketing activities where there are cultural similarities. Adapting where the differ

27

Global Brand

marketed under same name in multiple countries using same/coordinating marketing programs

28

Cross cultural Analyisis

study of similarities and differences among consumers in nations

29

Values

personally or socially preferable modes of conduct or states of existence. (ex. McDonalds dosnt sell beef in india, cow sacred)

30

Customs

what is considered normal and expected about the way people do things in a specific country

31

Semiotics

study of symbols

32

Back translation

translated word/phrase is re translated by a different interpreter.

33

Ethnocentricity

belief that one's culture is superior to another

34

Consumer Ethnocentrism

tendency to believe that it is inappropriate/immoral to purchase foreign made products

35

Developed Economy

Mixed economies. Private enterprises dominate with substantial public sector

36

Developing Economy

in the process of moving from agricultural to industrial.
Two groups:
those who made the move
those who remain locked in preindustrial

37

Bottom of the pyramid

largest, poorest socioeconomic group

38

Economic Infastructure

a country's communications transportation, financial and distribution systems

39

Microfinance

practice of offering small, collateral free loans to individuals who otherwise couldnt buy product

40

Currency exhchange rate

the price of one country's currency in terms of another currency

41

Global Market Entry Strategies (4)

Exporting, Licensing, Joint Venture, Direct Investment

42

Exporting as entry strategy

Producing good in one country, selling to antoher

allows least number of changes

indirect/direct

43

Indirect exporting

firm sells products internationally through intermediary. Least Commitment, least profit

44

Direct Exporting

sells domesically produced good without intermediaries

45

Licensing as entry strategy

company offer right to trademark/patent/trademark in return for a royalty/fee

low risk, capital free...less profit and control

Franchising , Contract Manufacturing and Contract Assembly

46

Contract Manufacturing

US company contracts a foreignfirm to manufacture acocrding to spec

47

Contract Assembly

Firm assembles parts that have been shipped

48

Joint Venture as entry strategy

when a foreign firm and local firm invest together to create business. Share ownership.control/profit

49

Direct Investment as entry strategy

biggest commitment- firm investing in and owning a foreign subsidiary/division

50

Product Extension

Selling same product, new countries

51

Product Adaption

changing product to sell it to new country

52

Product Invention

Companies create new product for new countries

53

Product Adaptation strategy-

adpating promotion messages

54

communication adaptation strategy

modifying both products and promotion

55

Dumping

When a firm sells a product in a foregin country below its domestic price or below cost. Can be illegal

56

Grey Market

when products are sold through unauthorized channels of distribution.