Chapter 8 Global Marketing

What are the components of a country market assessment?

Economic analysis, technology and infrastructure, governmental actions, socio-cultural analysis.

What does BRICS stand for?

Brazil, Russia, India, China, South Africa.

What are the marketing opportunities presented by globalization?

Increased market access, diverse consumer bases, and the ability to leverage global supply chains.

What is the significance of GDP and GNI in market assessment?

They measure the economic performance and income levels of a country.

What does HDI stand for and what does it indicate?

Human Development Index; it indicates the overall well-being and development level of a country.

What is Purchasing Power Parity (PPP)?

A method of measuring the relative value of currencies based on the cost of goods and services.

What is the 'Big Mac Index'?

An informal measure of purchasing power parity between two currencies based on the price of a Big Mac.

What are the four key elements of a country's infrastructure that marketers analyze?

Transportation, distribution channels, communication, and commerce.

What is a trade agreement?

An intergovernmental agreement designed to manage and promote trade activities for a specific region.

What are tariffs?

Taxes imposed on imported goods that raise their prices and reduce demand.

What is the purpose of exchange control?

To regulate a country's currency exchange rate.

What does Geert Hofstede's cultural dimensions theory include?

Power distance, uncertainty avoidance, individualism, masculinity, time orientation, and indulgence.

What does 'power distance' refer to?

The extent to which less powerful members of a society accept and expect that power is distributed unequally.

What is 'uncertainty avoidance'?

The degree to which a society feels uncomfortable with uncertainty and ambiguity.

What is the difference between a global marketing strategy and a domestic marketing strategy?

Global marketing strategies consider international markets and cultural differences, while domestic strategies focus on local markets.

What are some global entry strategies?

Exporting, franchising, joint ventures, direct investment, and strategic alliances.

What is the 'middle class effect' in market assessment?

The impact of a growing middle class on market size and buying power.

What is 'indulgence' in cultural dimensions?

The extent to which a society allows for the gratification of fun and enjoyment needs.

What is the significance of evaluating real income in market assessment?

To adjust for inflation and purchasing power to understand consumer capabilities.

What are some challenges in global distribution strategies?

Complex supply chains and varying consumer shopping habits.

What is the role of cultural and religious differences in global communication strategies?

They influence how marketing messages are crafted and received in different markets.

What is a joint venture?

A business arrangement where two or more parties agree to pool their resources for a specific goal.

What is differential positioning?

The strategy of positioning a product differently in various markets to meet local needs.

What is the 'fortune at the bottom of the pyramid'?

A concept that focuses on the potential of serving low-income consumers in developing markets.

What are some examples of trading blocs?

EU, NAFTA, CAFTA, ASEAN.

What is the impact of tariffs and quotas on domestic products?

They benefit domestically made products by reducing foreign competition.

What is the importance of understanding socio-cultural factors in global marketing?

To tailor marketing strategies that resonate with local customs, values, and consumer behavior.

Practice Question: What are the key differences between exporting and franchising as global entry strategies?

Exporting involves selling products to foreign markets, while franchising allows foreign entities to use a brand's business model in exchange for fees.

Practice Question: How does the concept of 'time orientation' affect marketing strategies?

It influences how long-term or short-term marketing campaigns are planned based on cultural values.

What is the Big Mac Index

An index that is used to compare currency value based on a specific product