Review of International Marketing Lecture Notes

Flashcards covering key vocabulary from the lecture notes on International Marketing.

Globalization

Gradual integration and growing interdependence of national economies with declining trade barriers and rapid changes in communication, manufacturing, and transportation technologies.

Internationalization

Process of expanding business operations beyond domestic boundaries to international markets using various market entry modes.

Born Globals

Companies that operate internationally from the outset, often utilizing the internet and innovation to build the market before competition.

Sustainability

Alignment with economic, environmental, and social goals, based on the triple bottom line (people, planet, profit).

Sustainable Marketing

Strategy that incorporates environmental, social, and ethical considerations into marketing practices to meet customers' needs while promoting the well-being of the planet and society.

Standardization

Using the same marketing mix across all markets for consistency and cost efficiency.

Adaptation

Tailoring the marketing mix to meet the specific needs, preferences, and cultural values of each market.

Digitalization

Integration of digital technologies into marketing strategies to enhance global reach, efficiency, and customer engagement.

Marketing Automation

Process of utilizing technology to streamline marketing efforts and make them more effective.

Global Integration

Analysis of international markets using market, cost, government, and competitive factors.

Local Responsiveness

Analysis of international markets using trade barriers and local customs.

Arbitrage

Exploiting national or regional differences, focusing on the ratio of labor costs to sales

SLEPTS Analysis

Structured approach to systematically assess the environment of a foreign country or region.

Subjective

Based on personal feelings or opinions.

Objective

Based on facts.

Creating Shared Value

Integrating business strategies that simultaneously generate economic profit and solve social or environmental challenges.

Digitalization

Process of using digital technologies to improve business models, operations, and activities.

Consumer Behavior

Study of how individuals or groups make decisions about purchasing, using, and disposing of goods and services.

Culture

Collective programming of the mind that distinguishes the members of one category of people from those of another.

Masculinity

Exaggeration, persuasion, dreams, great expectations, and comparative advertising

Ethical Consumption

Consumer actions that are executed in agreement with ethical or moral standards, ex., justice, fairness, protection of nature.

Labels

Word or picture marks on product, packaging, promotion that indicate quality, safety or sustainability.

Nudging

Influence consumers in a more sustainable direction.

Digital Divide

Describes different digital behaviors between age groups.

Cognitive Dissonance

Psychological discomfort consumers feel when their beliefs, values, or actions conflict—especially after making a purchase.

Marketing Research

Systematic process of gathering, analyzing, and interpreting data about markets, consumers, competitors, and industry trends.

Primary Data

Firsthand information collected directly by the researcher for a specific purpose.

Secondary Data

Pre-existing information collected by someone else for a different purpose.

Biometrics

Technology that measures human characteristics (e.g., facial expressions, fingerprints, iris patterns, etc.).

Functional Equivalence

Products or services fulfill the same purpose in different countries.

Conceptual Equivalence

Theoretical constructs (quality or trust) have the same meaning.

Categorical Equivalence

Market categorizations are made according to the same characteristics or definitions.

Extreme Response Styles

Tendency of respondents to favor or avoid using the endpoints of a rating scale.

Big Data

Datasets that are beyond the ability of a typical database software to capture, store, manage, and analyze.

Global Market Segmentation

Process of identifying specific country or consumer groups with homogeneous attributes who are likely to exhibit similar responses to a company’s marketing mix.

Targeting

Identifying and focusing on a specific audience/ market segment to deliver customized messages, products, or services.

Personas

Fictional representations of ideal customers based on real data and insights.

Retargeting

Repeated ads to visitors - seeks to increase the conversions.

Differentiation

Making a product stand out from competitors by adding unique features

Positioning

Creating the desired image customers should have about a brand.

Cultural Positioning

How brands align themselves with specific cultural identities to appeal to consumers.

CSC Model for Consciousness for Sustainable Consumption

Framework designed to measure and understand consumers' awareness and commitment to sustainable consumption.

LOHAS - Lifestyles of Health and Sustainability

Market segment that represents individuals who prioritize personal well-being, environmental responsibility, and social impact in their purchasing decisions.

FOM

Foreign Operation Modes. Tightly connected with strategic decisions

Export

Refers to goods sold internationally but grown, produced or manufactured in another country.

Piggybacking

smaller company partners with a larger, established company that already operates in foreign markets. The larger company helps distribute the smaller company’s products

Financial and company strengths

Financial soundness, Ability to finance initial sales and subsequent growth

Product factors

A company’s expertise in making and selling a product, level of excellence and in a company’s products, How well different products within a company’s portfolio work together

Marketing skills

Ability to plan + execute effective marketing strategies, can its products reach the right locations, n° of employees selling + their effectiveness in persuading customers

Commitment

dedication to educating its sales team, to meet/exceed set sales goals, rival brands a distributor or business partner is already working with

Facilitating factors

Having strong relationships with key industry leaders, investors, or decision-makers, Knowing retailers helps in securing distribution channels + relationships with government officials can assist in navigating regulations

Outsourcing

Transfer of production tasks or parts of the service provision to another company.

Countertrade

Exchange of goods or services for other goods or services without monetary payment flows..

Compensation deals

Both goods and cash are used to pay

Counter purchase also back-to back transactions or offset agreements

Two companies agree to buy goods from each other, but in separate deals

Buyback agreement

A company builds a plant or supplies technology or services to/in a foreign country, agrees to take a % of the plant’s output as partial payment

Licensing

A company (the licensor) allows another company (the licensee) to use an intellectual property, such as a patent, trademark, design, know how or copyright in exchange for a fee or royalty

Franchising

An advanced form of licensing in which the firm allows another the right to use an entire business system in exchange for fees, royalties, or other forms of compensation

Joint Ventures (JV)

An operation in which two or more partners share ownership of a newly created business entity; it builds upon each partner’s strengths

Foreign Direct Investment (FDI)

Most advanced, expensive, complex and riskiest market entry strategy

Greenfield Investment

A company builds a new business or facility from scratch in a foreign country.

Brownfield Investment

A company buys or renovates an existing facility in a foreign country instead of building a new one

Merger & Acquisition (M&A)

A company merges with or buys an existing business in a foreign country to expand operations

Expropriation

Deprivation of ownership of a foreign company by the state in exchange for compensation. Compensation = usually less than the value of the expropriated property

Confiscation

No compensation is paid.

Nationalization

government takes control of some or all firms in an industry.

Creeping expropriation

Economic activities are restricted

Mercantilism and Neo- Mercantilism

A set of policies that aim to increase a nation's wealth and power by promoting exports and limiting imports through protectionist measures

The Prebisch-Singer hypothesis

Suggests that primary goods prices (ex. Coffee/ cocoa beans) decline in relation to the prices of manufactured goods (ex. Processed+ packaged coffee or chocolate)

International marketing responsibilities in global stage

The way to solve conflicts between emerging and industrialized countries regarding to Companies going abroad must be aware of these conflicts and consider their contributions to a country´s development, ex. regarding the UNSDGs

Standardization of the Marketing Mix

Brand name as part of the actual product is placed first for standardized elements

Core Product

Need fulfillment—what problem the product solves or what desire it satisfies

Actual Product

How the product is built to deliver the core benefit in a practical, visible form

Extended Product

Products can be used to keep the device running efficiently over time.

HALO effect(H.E)

perceptual tendency where a positive impression of a brand or product influences the overall perception of the company, leading consumers to assume all its offerings share the same quality

The Country-of-origin effect

The associations that buyers hold with certain countries are often transferred to products and brands

Brand name preemptions

Local individual or business registers a famous international trademark in a country before the owner of the brand does

Brand imitation

Utilization of Similarity (package, design, brand name, advertising, etc.)

Counterfeits

Illegal use of a registered trademark

Piracy

refers to the counterfeit production of copyrighted material

Bridgehead approach:

Small-scale foothold in a new market—such as entering with a limited product line or using a local distributor—before expanding further

Circular economy

Regenerative system in which resource input and waste, emission, and energy leakage are minimized by slowing, closing, and narrowing material and energy loops. This can be achieved through long-lasting design, maintenance, repair, reuse, remanufacturing, refurbishing, and recycling

Mental accounting

Humans place decision options or their consequences in single and different accounts

Cognitive dissonance

discomfort people feel when their actions contradict their beliefs or values

Moral licensing

When people justify unethical or indulgent behavior by recalling a prior moral action.

Cost-plus pricing

Selling price of a product by adding a fixed % (markup) to its total cost

Marginal cost pricing

Price of a product equal to the additional cost of producing one more unit

Target costing

costs of a product are derived from competitive market price by calculating backwards

Transfer pricing

Pricing of intermediate or finished goods exchanged among the subsidiaries of the same company in different countries

Foreign exchange rates

Ratio at which one currency is exchanged for another currency

Exchange rate pass-through (ERPT)

Extend to which the final import prices reflect exchange rate changes

Pricing-to-market

Prices are adjusted to prevailing prices in the export market

Terms of payment in international trade

International payment terms regulate the settlement of payment between seller and customer.

The customer journey

The process a customer goes through, across all stages and touch points, that makes up the customer experience

Digital marketing

The use of digital or social channels to promote a brand or reach consumers. It can be executed on the internet, social media, search engines, mobile devices and others. It requires new ways of marketing to consumers and understanding the impact of their behavior

Transaction-oriented selling

A model when short term, price- or product feature oriented

Consultative strategic selling

Known as value-added selling, needs-based selling, customer focused selling, strategic selling, or solution selling

Organization with export division

Enables the allocation and coordination of resources

Geographic organizational structure

Formation based on local proximity or cultural and linguistic similarities

Agile working

Lively exchange in daily meetings