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D174 Module 3
Global Marketing
| Question | Answer |
|---|---|
| Global experience curve | The process of understanding of marketing beyond home markets develops over time as a company gets more international business experience. |
| Foreign marketing | Companies often develop a more formal international strategy by following their existing customers into foreign markets. |
| International marketing | When a firm makes the commitment to manufacture products outside its domestic market |
| Global marketing | all world markets (including the company’s own domestic market) are, in reality, a single market with many different segments. |
| Developed economy | Specific economies that have fueled world economic growth for much of the 20th century, including Western Europe, the United States, and Japan. |
| Emerging markets | Growing economies that have developed over the last 25 years that are projected to contribute toward 75 percent of world economic growth over the next 20 years. |
| Regional marketing zones | A group of countries that create formal relationships for mutual economic benefit through lower tariffs and reduced trade barriers. |
| European union | A successful regional marketing zone founded more than 50 years ago by six European countries (Belgium, France, Italy, Luxembourg, The Netherlands, and West Germany) with the Treaty of Rome and that now includes 28 countries. |
| NAFTA (North American Free Trade Agreement) | Created to eliminate tariffs between Canada, Mexico, and the United States, and which stands as the single largest economic alliance today. |
| MERCOSUR | Inaugurated in 1995, it is the most powerful market zone in South America and includes the major economies of South America: Argentina, Bolivia, Brazil, Chile, Paraguay, and Uruguay. |
| ASEAN | Founded in 1967, it is the most important Asian market zone and includes 10 countries running the entire length of the Pacific Rim (Brunei Darussalam, Indonesia, Malaysia, Philippines, Cambodia, Laos, Myanmar, Singapore, Thailand, and Vietnam). |
| Exporting | The most common method for entering foreign markets, it offers firms the ability to penetrate foreign markets with minimal investment and very little risk. |
| Contractual Agreement | Enduring, nonequity relationships with another company that allow a company to expand its participation in a foreign market. This includes licensing and franchising. |
| Strategic alliances | A market entry strategy designed to spread the risk of foreign investment among its partners. Examples of strategic alliances would be international joint ventures or direct foreign investment. |
| Franchising | A contractual agreement in which a firm provides a contracted company in a foreign market with a bundle of products, systems, services, and management expertise in return for local market knowledge, financial consideration, |
| Licensing | When a firm offers other manufacturers the right to use its brand in exchange for a set fee or percentage of sales. |
| Joint Ventures | A partnership of two or more participating companies that differs from other strategic alliances. |
| How do Joint Ventures differ from other Strategic alliances | (1) management duties are shared and a management structure is defined; (2) other corporations or legal entities, not individuals, formed the venture; and (3) every partner holds an equity position. |
| Direct foreign investment | A strategic alliance with long-term implications in which a company moves manufacturing or operations into a foreign market. |
| Decision making authority | An issue that arises when companies grow internationally and lines of authority become longer and more complicated, resulting in difficulty in defining decision-making protocols. |
| Degree of centralization | The degree to which decisions are made at the firm’s home office. |
| Global product lines | Products that are sold across country borders. |
| Geographic location based organizational structure | An international organizational structure that divides international markets by geography, building autonomous regional organizations that perform business functions in the geographic areas. |
| Matrix structure | An international organizational structure that encourages regional autonomy among organizations while building product competence in key areas around the world. |
| three basic product adaptation options | Direct product extension, Product adaptation, product invention |
| Direct Product extension | Introduce a product produced in the company’s home market into an international market with no product changes. Advantages include no additional R&D or manufacturing costs. Disadvantages are that the product may not fit local needs or tastes. |
| Product adaptation | Alter an existing product to fit local needs and legal requirements. Adaptation can range from regional levels all the way down to city-level differences. |
| Product invention | Create a new product specifically for an international market. Sometimes old products discontinued in one market can be reintroduced in a new market, a process known as backward invention |
| Country-of-origin effect | The influence of the country of manufacture, assembly, or design on a customer’s positive or negative perception of a product. |
| Six C's of channel strategy in Global Markets | Cost, capital, control, coverage, character, and continuity |
| Global marketing themes | Global advertising strategy in which a basic template is used for global ads that allows for slight modifications depending on local markets. |
| Global marketing with local content | Global advertising strategy in which a firm keeps the same global marketing theme as the home market but adapts it with local content. |
| Basket of Global advertising themes | Global advertising strategy in which distinct ads built around several marketing messages are created that local marketers can select from to best fit their specific market situation. |
| local market ad generation | Global marketing strategy in which a firm allows local marketers to create local ads that do not necessarily coordinate with its global marketing messages. |
| Transfer pricing | The cost companies charge internally to move products between subsidiaries or divisions. |
| Dumping | A global pricing issue that refers to the practice of charging less than their actual costs or less than the product’s price in the firm’s home markets. |
| Gray Market | A global pricing issue that references the unauthorized diversion of branded products into global markets. |
| Marketing ethics | A societal and professional standard of right and fair practices that is expected of marketing managers in their oversight of strategy formulation, implementation, and control. |
| Triple Bottom Line (TBL) | A metric for evaluating not only the financial results of a company but the broader social equity, economic, and environmental considerations as well. |
Created by:
mkale
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