Chapter 7: Global Marketing Notes

Global market opportunities

Conditions that make it favorable for a company to expand outside its home country.

Advantages of international trade

Benefits such as increased revenue, decreased competition, faster growth, diversification of risk, and the ability to sell surplus goods.

Ethnocentrism

The assumption that another country’s business environment or culture is the same as the company’s home country.

Cultural sensitivity

Being aware of, appreciating, and adapting to cultural, ethnic, racial, and social differences.

Internal assessment for global markets

A company should assess if international expansion fits its goals, if it has the necessary knowledge, skills, and resources.

Economic infrastructure

Facilities and systems needed to produce and distribute goods and services, like transportation and communication systems.

Disposable income

The money left after taxes are paid, important for consumer spending.

Purchasing power

The amount of goods and services that can be purchased with one unit of currency.

Tariffs

Taxes placed on imported goods, charged as a percentage or fixed dollar amount.

Quotas

Limits on the number or value of goods that can be imported or exported.

Exporting

When a company produces a product or service in one country and sells it in another.

Franchising

Permitting another person or company to operate using the franchisor's brand and business systems.

Joint venture

When two or more companies create one business or project together, sharing risks and resources.

Foreign direct investment (FDI)

Establishing operations in another country through methods like building factories or opening stores.

Standardized global marketing

Using the same marketing strategy in every country to reduce costs and maintain a consistent brand image.

Adapted global marketing

Changing the marketing strategy for different countries based on local factors like culture and customer preferences.

Outsourcing

Moving operations to another country primarily for lower costs and increased production.

Child labor

Unethical practice involving employment of children, with varying rules about working age in different countries.

Dumping

Selling large amounts of products at extremely low prices in foreign markets to eliminate competition.

Ethical global companies

Companies that prioritize sustainable practices, fair treatment, and inclusivity.

Sociocultural factors

Values, behaviors, and lifestyles that shape consumer purchasing and communication.