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marketing chapter 7
| Term | Definition |
|---|---|
| Countertrade | is the practice of using barter rather than money for making global sales |
| Gross domestic product (GDP) | U. S. is among the world’s leaders in exports, but the amount has decreased. |
| protectionism | the practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs or quotas. |
| quota | is a restriction placed on the amount of a product allowed to enter or leave a country. |
| Tariff | government taxes on products or services entering a country that primarily serve to raise prices on imports. (Tariff is a tax) |
| economic espionage | is the clandestine collection of trade secrets or proprietary information about a company’s competitors. |
| Cross-cultural analysis | is the study of similarities and differences among consumers in two or more nations or societies. |
| Consumer Ethnocentrism | is the tendency to believe that it is inappropriate, indeed immortal, to purchase foreign-made products. |
| Values | -Personally or socially preferable modes of conduct that persist over time. -Cultural appear in the personal values of people and affect consumption. |
| Customs | What is considered normal and expected. |
| Language | -100+ official languages in the world. -Experts estimate 3,000 different languages are spoken. There are 24 official languages in the EU, 2 languages in Canada, and 20 major languages in India. |
| Cultural ethnocentricity | Belief that one’s culture is superior to another. |
| currency exchange rate | is the price of one country’s currency expressed in terms of another country’s currency. |
| Dumping | Sell below cost |
| Gray market (parallel importing) | Where products are sold though unauthorized channels |
| International firms | markets in other countries are the same as their home country. “Similar strategy to the home country” (extension of home marketing strategy) |
| Multinational firms | markets differently to each country. (different products, brands and advertising) |
| ͏Transnational firms | Emphasize universal consumer needs. (standardized marketing activities when cultures are similar; different activities for cultural activity) |
| A multidomestic marketing strategy | is used by multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business. |
| global marketing strategy | Used by transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ. |
| Licensing | Right to a trademark, patent, or trade secret. Low risk, capital-free entry. But licensor loses control of product. |
| Joint venture | Foreign and local companies invest together. Share ownership, control, and profits. But may disagree on key points. |
| Direct investment | Own a foreign subsidiary. Requires a very big commitment and acceptance of risk. |
| Product extension ͏ | Same product sold in different countries. Ex: Coca-Cola, Nike, Apple. |
| Product adaptation | Change product for different countries. Ex: Frito-Lay potato chips, Maybelline makeup. ͏ |
| Product invention | New product for different countries. Ex: Black & Decker flexible flashlight, Whirlpool’s Ideale low-cost washers. |
| ͏Economic infrastructure (economic considerations) | A country’s communications, transportation, financial, and distribution systems. |
| Consumer income and purchasing power (economic considerations) ͏ | Consider the average per capita income in a country. |
| Currency exchange rates (economic considerations) | Price of one country’s currency in terms of another country’s currency. |
| globalization | Is the focus on creating economic, cultural, political, and technological interdependence among individual national institutions and economies. |
| balance of trade | difference between the monetary value of a nations exports and imports |
| back translation | translated word or phrase is retranslated into the original language by a different interpreter to catch errors |
| cultural symbols | things that represent ideas and concepts in a specific culture |
| Figure 7-5 | (least) exporting-->Licensing-->joint venture--> Direct investment (most) |
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