chapter12mark

What is the purpose of international marketing?

The performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in more than one nation for profit.

What are the controllable elements in international marketing?

Product, price, promotion, distribution, and research activities that marketers can adjust.

What is the Self-Reference Criterion (SRC)?

An unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions.

What is ethnocentrism in the context of international marketing?

The belief that one's own culture or company knows best how to do things.

How does globalization affect the competitive landscape for U.S. businesses?

U.S. companies must compete with foreign firms in their markets, as well as expand into international markets.

What are nontariff barriers?

Trade barriers that restrict imports or exports of goods through mechanisms other than the usual tariffs, such as quotas.

What is the significance of the General Agreement on Tariffs and Trade (GATT)?

GATT established a framework for negotiating trade reductions and created an agency for overseeing world trade.

What is the role of the World Trade Organization (WTO)?

To regulate international trade, provide a forum for trade negotiations, and resolve trade disputes among member countries.

What are voluntary export restraints (VERs)?

Agreements between exporting and importing countries that restrict the volume of exports to allow for a certain level.

What factors should businesses consider when entering foreign markets?

They need to assess the controllable and uncontrollable elements within both domestic and foreign environments.

How can a favorable balance of payments be achieved?

By increasing exports and reducing imports, thus generating more receipts from foreign economies.

What is the role of the International Monetary Fund (IMF)?

To stabilize foreign exchange rates and provide financial assistance to countries facing economic difficulties.

What was the goal of the Omnibus Trade and Competitiveness Act of 1988?

To improve U.S. competitiveness in international markets and correct perceived injustices in trade practices.

What impacts can high tariffs have on consumers?

High tariffs can lead to increased prices for imported goods, reducing consumer choices and burdening the economy.

What are antidumping duties and their purpose?

Tariffs imposed on foreign imports that are priced below fair market value to protect domestic industries from unfair competition.

What are the stages of international marketing involvement?

No direct foreign marketing, infrequent foreign marketing, regular foreign marketing, international marketing, and global marketing.

Why is cultural adaptation vital in international marketing?

Cultural adaptation helps marketers successfully navigate differences in consumer behavior, preferences, and business practices across markets.

What does global awareness encompass in international business?

Tolerance of cultural differences and knowledge of global economic, social, and political trends.

What is the impact of technological advancements on international marketing?

They facilitate global communication, influence market dynamics, and allow businesses to reach wider audiences efficiently.

What is international marketing research?

The process of gathering, analyzing, and interpreting information about foreign markets to make informed marketing decisions.

What is the significance of market selection in international marketing?

Choosing the right foreign markets affects a company's ability to achieve its business objectives and market success.

What is market entry strategy?

The method used by a company to begin selling products in a new international market, including exporting, licensing, and joint ventures.

What is a joint venture?

A business arrangement in which two or more parties agree to pool their resources for a specific goal, often used for entering foreign markets.

What is the difference between globalization and internationalization?

Globalization refers to the process of integrating markets worldwide, while internationalization is the strategic move of a company into foreign markets.

What is the PESTEL analysis?

A framework used to analyze the external macro-environmental factors influencing an organization, including Political, Economic, Social, Technological, Environmental, and Legal aspects.

What are cultural dimensions theory?

A framework developed by Geert Hofstede that identifies key dimensions of national culture that affect how business is conducted.

Define market segmentation in international marketing.

The process of dividing a target market into smaller, more defined categories to tailor marketing strategies effectively.

What challenges do firms face in international pricing?

Factors such as currency fluctuations, local competition, and differing cost structures impact pricing strategies in foreign markets.

What is a trade surplus?

A situation where a country's exports exceed its imports, resulting in a positive balance of trade.

What is a trade deficit?

A situation where a country's imports exceed its exports, resulting in a negative balance of trade.

What does product adaptation mean in international marketing?

The modification of a product to meet the specific needs and preferences of consumers in different international markets.

What role does supply chain management play in international marketing?

It oversees the flow of goods and services, ensuring products reach international markets efficiently and cost-effectively.

Explain the concept of direct exporting.

A method where a company sells its products directly to customers in foreign markets without intermediaries.

What are the advantages of licensing in international markets?

It allows for quick market entry with lower risk and investment, granting rights to a foreign company to produce or sell a brand's products.

What is the purpose of trade shows in international marketing?

Trade shows provide opportunities for companies to showcase their products and network with potential buyers and partners from around the world.

What are political risks in international marketing?

The likelihood of political instability or unfavorable government policies affecting business operations and profitability in a foreign market.

What is ethical marketing in an international context?

The practice of conducting business in a moral and socially responsible manner in foreign markets, adhering to local norms and values.

Define corporate social responsibility (CSR) in international marketing.

The ethical obligation of companies to contribute positively to the societies in which they operate, balancing profit-making with social good.

What are the implications of the digital divide in international marketing?

Differences in access to technology and the internet that can impact market strategies and consumer engagement in various regions.

Why is culture important in international marketing?

Culture shapes consumer behavior, preferences, and expectations, influencing how products are perceived and marketed in different regions.

How does culture impact marketing strategies?

Cultural differences affect messaging, branding, product design, and promotional tactics, requiring marketers to tailor their approaches for local markets.

What are some examples of cultural impacts on marketing?

1. McDonald's adapts its menu to local tastes, such as offering rice dishes in Asia. 2. Coca-Cola's advertising incorporates local traditions and languages. 3. Fashion brands modify sizes and styles to align with local body image perceptions.

What role does understanding culture play in product development?

Understanding cultural nuances helps in designing products that resonate with local consumers, ensuring relevance and acceptance.

What are cultural dimensions that affect international marketing?

Hofstede's dimensions, such as individualism vs. collectivism and uncertainty avoidance, influence how businesses approach market strategies in various countries.

How can cultural awareness prevent marketing failures?

Cultural awareness allows companies to avoid missteps, such as offensive advertisements or inappropriate product placements, which can harm brand reputation.

Give an example of a marketing campaign that succeeded through cultural adaptation.

Procter & Gamble's 'Thank You, Mom' campaign during the Olympics, which celebrated motherhood across diverse cultures and resonated with audiences worldwide.

What is cultural sensitivity in international marketing?

Cultural sensitivity involves recognizing and respecting cultural differences to build positive relationships with consumers and stakeholders in foreign markets.