Topic 10: Global Marketing and R&D Flashcards

This set of vocabulary flashcards covers key concepts from Topic 10, including globalization of markets, marketing mix strategies, distribution channels, communication barriers, pricing strategies, and R&D integration.

Market Segmentation

Identifying distinct groups of consumers whose purchasing behavior differs from others in important ways based on geography, demography, sociocultural, psychological, or behavioral factors.

Marketing Mix

The choices a firm offers to its targeted market, comprised of product attributes, distribution strategy, communication strategy, and pricing strategy.

Theodore Levitt's Argument

The idea that world markets were becoming increasingly similar, making it unnecessary to localize the marketing mix.

Concentrated Retail System

A distribution system where a few retailers supply most of the market, which is common in developed countries.

Fragmented Retail System

A distribution system with many retailers, none of which has a major share of the market, commonly found in developing countries.

Channel Length

The number of intermediaries between the producer and the consumer, where short channels are common in concentrated systems and long channels occur in fragmented systems.

Channel Exclusivity

The degree of difficulty for outsiders to access a distribution system; Japan is noted for having a very exclusive system.

Channel Quality

The expertise, competencies, and skills of established retailers and their ability to sell and support the products of international businesses.

Source Effects

When the receiver of a marketing message evaluates that message based on the status or image of the sender.

Country of Origin Effects

The extent to which the place of manufacturing influences consumer evaluations of a product.

Noise Levels

The amount of other messages competing for a potential consumer’s attention, which is typically high in developed countries.

Push Strategy

A communication strategy that emphasizes personal selling; it is often used for industrial products or when distribution channels are short.

Pull Strategy

A communication strategy that emphasizes mass media advertising; it is better for consumer goods and long distribution channels.

Hybrid Approach (Advertising)

A strategy where a firm standardizes parts of a campaign to capture global benefits but customizes others to respond to local cultural and legal environments.

Price Discrimination

Charging consumers in different countries different prices for the same product, requiring separate national markets and different price elasticities.

Price Elasticity of Demand

A measure of the responsiveness of demand for a product to changes in price; it is typically greater in countries with lower income levels.

Elastic Demand

A condition where a small change in price produces a large change in demand.

Inelastic Demand

A condition where a large change in price produces only a small change in demand.

Predatory Pricing

Using profit gained in one market to support aggressive pricing in another market to drive competitors out, followed by raising prices to earn higher profits.

Multipoint Pricing

A pricing strategy where a firm's pricing in one market may impact a rival's pricing strategy in another market.

Experience Curve Pricing

Pricing low worldwide to build global sales volume rapidly, taking initial losses to gain a long-term cost advantage through the experience curve.

Dumping

Selling a product for a price that is less than the cost of producing it.

Competition Policy

Regulations in industrialized nations designed to promote competition and restrict monopoly practices, which can limit a firm's pricing ability.

Cross-functional Product Development Teams

Teams led by heavyweight project managers that include members from R&D, marketing, and production to reduce failure rates in new product development.