International Marketing - Module 1 Review

This set of vocabulary flashcards covers the fundamental concepts, phases of involvement, and orientations of international marketing as described in Module 1 of the Edinburgh Business School course text by Pervez Ghauri and Philip Cateora.

International Marketing

The performance of business activities that direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit.

Controllable Elements

The area under the control of the marketing manager, including product, price, promotion, and channels of distribution, used to capitalize on anticipated demand.

Uncontrollable Elements

Factors in the business environment that the marketer cannot influence but must instead adjust or adapt to, such as competition, politics, and laws.

Domestic Uncontrollables

Home-country elements outside the manager's control that directly affect the success of a foreign venture, including political forces, legal structure, and economic climate.

Foreign Uncontrollables

Factors in the international environment that create uncertainty, such as political/legal forces, economic forces, competitive forces, level of technology, structure of distribution, geography, and cultural forces.

Self-Reference Criterion (SRC)

An unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions, acting as a primary obstacle to successful international marketing.

Ethnocentrism

The tendency to evaluate every situation through the perspective of one's own culture and experience, often leading to the belief that a domestically designed marketing mix is appropriate for a foreign market.

Marketing Relativism

The principle that marketing strategies and judgements are based on experience, and that experience is interpreted by each marketer in terms of his or her own culture.

No Direct Foreign Marketing

A phase of international involvement where a firm does not actively cultivate customers outside national boundaries, though its products may reach foreign markets via third parties.

Infrequent Foreign Marketing

A phase where temporary surpluses result in sales to foreign markets, with little or no intention of maintaining continuous market representation.

Regular Foreign Marketing

A phase where a firm has permanent productive capacity devoted to producing goods to be marketed on a continuing basis in foreign markets.

Global Marketing (Phase)

The level of involvement where companies treat the world, including the home market, as a single market and seek efficiencies through global standardization of business activities.

Domestic Market Extension Orientation

An international marketing orientation where the firm views its international operations as secondary to and an extension of its domestic operations, primarily for disposing of excess production.

Multidomestic Market Orientation

An international marketing orientation where a company treats country markets as unique and develops separate, independent marketing programs for each country.

Global Marketing Orientation

An orientation where a company views the entire set of country markets as a unit, identifies groups of buyers with similar needs, and develops a marketing plan that strives for standardization.

EPRG Schema

A framework that classifies firms as having an Ethnocentric, Polycentric, Regiocentric, or Geocentric orientation based on their international commitment.

Alien Status

A double dimension of international business where the company is controlled by foreigners and the culture of the host country is alien to the foreign company, often increasing political risk.

Global Awareness

A frame of reference encompassing objectivity, tolerance toward cultural differences, and knowledge of cultures, history, world market potential, and global trends.

WTO

The World Trade Organization, the successor to GATT, which helps create a global economic environment with decreasing restrictions on trade.

CIS

The Commonwealth of Independent States, formed by 11 of the 15 independent republics that emerged following the division of the Soviet Union.