Global Marketing

What defines a global firm?

A global firm operates in more than one country and gains advantages not available to purely domestic competitors and they also see the world as one market

What are some basic questions global firms ask?

Market position, global competitors, production sourcing, and strategic alliances.

What are tariffs?

Taxes on certain imported products designed to raise revenue or protect domestic firms.

What are quotas in international trade?

Limits on the amount of foreign imports a country will accept in certain product categories.

What are exchange controls?

They limit the amount of foreign exchange and the exchange rate against other currencies.

What are nontariff trade barriers?

Biases against bids or restrictive product standards that oppose American product features.

What economic factors reflect a country's attractiveness as a market?

Industrial structure and income distribution.

What are the four types of industrial structures?

Subsistence economies, raw material exporting economies, emerging economies, and industrial economies.

What are the three categories of income distribution?

Low-income households, middle-income households, and high-income households.

What aspects are included in the political-legal environment?

The country's attitude toward international buying, government bureaucracy, political stability, and monetary regulations.

What is the cultural environment in global marketing?

It involves adapting marketing strategies to local cultural values and traditions.

What factors should a company consider before going global?

Understanding consumers, offering competitive products, adapting to local culture, dealing with foreign nationals, managerial experience, and considering regulations.

What is an example of a questionable brand name for global use?

Crapsy Fruit is an example of a brand name for a French cereal.

What is the impact of marketing strategy on cultures?

Marketing strategies must adapt to local cultural values rather than impose foreign values.

What is the significance of political stability in global marketing?

It affects a firm's ability to operate and invest in foreign markets.

What challenges might a company face when dealing with foreign nationals?

Language barriers, cultural differences, and varying business practices.

Why is understanding local consumers important for global firms?

It's crucial for creating relevant and appealing products.

What is the role of strategic alliances in global marketing?

They elp firms leverage local knowledge and resources to enhance competitiveness.

What is the purpose of government bureaucracy in the political-legal environment?

It can facilitate or hinder business operations through regulations and processes.

How does income distribution affect market strategies?

Income distribution influences product pricing, marketing approaches, and target demographics.