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Chp 7 Marketing
Chapter 7 Marketing Notes
| Question | Answer |
|---|---|
| Four trends have significantly affected world trade: | Gradual decline of economic protectionism by individual countries. Formal economic integration and free trade among nations. Global competition among global companies for global consumers. Development of a networked global marketspace. |
| What is Protectionism | Is the practice of shielding one or more industries within a country’s economy from foreign competition, usually through the use of tariffs or quotas. |
| The economic argument for protectionism is that it: | Limits the outsourcing of jobs, protects a nation’s political security. Discourages economic dependency on other countries. Encourages the development of domestic industries. Tariffs and quotas discourage world trade. |
| What is Tariff | Is a tax on goods or services entering a country. Because tariffs raise the price of imported goods, they give a price advantage to domestic goods competing in the same market. |
| What is quota | Is a restriction placed on the amount of a product allowed to enter or leave a country. Import quotas seek to guarantee domestic industries access to a certain percentage of their domestic market |
| What does the World Trade Orginization do (WTO) | sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions. |
| What is the European Union (EU). | Consists of 27 member countries as of early 2009 that have eliminated most trade barriers across their borders. As a single market, has more than 500 million consumers with a combined GDP larger than the U.S. 14 EU countries have adopted the euro. |
| Pan-European marketing strategies are possible due to: | Uniformity in product & packaging standards. Few reg restrictions on transportation, advertising, & promotion imposed by individual countries. Removal of most tariffs affect pricing practices. Fewer locations distribution b/c open borders. |
| North American Free Trade Agreement (NAFTA). | NAFTA lifted many trade barriers between Canada, Mexico, and the U.S. to create a marketplace with more than 450 million consumers. Stimulates trade among member nations as well as cross-border retailing, manufacturing, & investment. |
| What does global competition do | Broadens the competitive landscape for marketers. |
| What is global companies | Consists of three types of companies that employ people in different countries and many have administrative, marketing, and manufacturing operations (often called divisions or subsidiaries) globally: Internationa, Multinational, and Transitional Firms |
| What is International Firms | Marketing their existing products and services in other countries the same way they do in their home country. |
| What is Multinational Firms | View the world as consisting of unique parts and markets to each part differently. Use a multidomestic marketing strategy |
| What is multidomestic marketing strategy | offer as many different product variations, brand names, and advertising programs as countries in which they do business. |
| What is Transitional Firms | View the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences. Employ a global marketing strategy, and market a global brand. |
| What is global marketing strategy | The practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ. Popular among many business-to-business marketers. |
| What is as a global brand | A brand marketed under the same name in multiple countries with similar marketing programs. Have the same product formulation or service concept, deliver the same benefits to consumers, & use consistent advertising across multiple countries and cultures. |
| What is global consumers | Consist of consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services. |
| Which three of the environmental forces affect global marketing practices differently than those in domestic markets. | Cultural, Economic and Regulatory |
| The North American Free Trade Agreement was designed to promote free trade among which countries? | United States, Canada, and Mexico |
| What is the difference between a multidomestic marketing strategy and a global marketing strategy? | A multidomestic marketing strategy means that firms offer as many different product variations, brand names, and advertising programs as countries in which they do business. A global marketing strategy standardizes marketing activities when there are cul |
| What is cross-cultural analysis | involves the study of similarities and differences among consumers in two or more nations or societies. |
| What is Values | represent personally or socially preferable modes of conduct or states of existence that tend to persist over time. |
| What is Customs | are what is considered normal and expected about the way people do things in a specific country. |
| What is Culture Symbols | Represent ideas & concepts. Play a role in cross-cultural analysis bc different cultures attach different meanings to things. Global marketers can tie positive symbolism to their products, services, & brands to enhance their attractiveness to consumers |
| What is back translation | the practice whereby a translated word or phrase is retranslated into the original language by a different interpreter to catch errors. |
| Global marketing is also affected by economic considerations. Therefore, a scan of the global marketplace should include assessments of: | Economic Infrastructure, Consumer Income and Purchasing Power, Current Exchange Rates, Pollitical Regulatory Climate |
| Economic Infrastructure. | Consists of a country’s economic communications, transportation, financial, & distribution systems. Communication infrastructure in many developing countries is limited. Lack of formal financial % legal systems cause prob. |
| Consumer Income and Purchasing Power. | Income is distributed to determine a nation’s purchasing power. Country’s income distribution gives a more reliable picture of a country’s purchasing power. Greater the number of middle-class households, the greater a nation’s purchasing power. |
| Currency Exchange Rates | Is the price of one country’s currency expressed in terms of another country’s currency. Exchange rate fluctuations have a direct impact on global companies. Short-term fluctuations in exchange rateshave a effect on the profits of global companies. |
| Political-Regulatory Climate | Marketers need to not only identify a country’s current political and regulatory climate but also how long a favorable or unfavorable climate may last. • This assessment includes an analysis of a country’s political stability and trade regulations. |
| Political Stability. | Is affected by a government’s orientation toward foreign companies and trade with other countries that creates a favorable or unfavorable political climate for marketing and financial investment in the country or region. |
| Trade Opportunities | Countries have rules that govern business practices within their borders, which often serve as trade barriers. |
| Cross-cultural analysis involves a study of . | similarities and differences among consumers in two or more nations or societies |
| When foreign currencies can buy more U.S. dollars, are U.S. products more or less expensive for a foreign consumer? | less expensive |
Created by:
kkolsch