MKTG305: Ch. 7 "Understanding and Reaching Global Consumers and Markets"

McGraw Hill

countertrade

the practice of using barter rather than money for making global sales

gross domestic product (GDP)

the monetary value of all products and services produced in a country during one year

balance of trade

the difference between the monetary value of a nation’s exports and imports

protectionism

the practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs or quotas

tariffs

government taxes on products or services entering a country that primarily serve to raise prices on imports

quota

a restriction placed on the amount of a product allowed to enter or leave a country

global competition

exists when firms originate, produce, and market their products and services worldwide

Strategic alliance

agreements among two or more independent firms to cooperate for the purpose of achieveing common goals such as competitive advantage or customer value creation

multidomestic marketing strategy

involves multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business

global marketing strategy

involves transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ

global brand

a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs

global consumers

consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services

cross-cultural analysis

involves the study of similarities and differences among consumers in two or more nations and societies

values

a society’s personally or socially preferable modes of conduct or states of existence that tend to persist over time

customs

what is considered normal and expected about the way people do things in a specific country

Foreign corrupt practices act (1977)

a law, amended by the International Anti-Dumping and Fair Competition Act (1998), that makes it a crime for US corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country

cultural symbols

things that represent ideas and concepts

back translations

where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors

consumer ethnocentrisim

the tendency to believe that it is inappropriate, indeed immoral, to to purchase foreign-made products

currency exchange rate

the price of one’s country’s currency expresses in terms of another country’s currency

exporting

a global market-entry strategy in which a company produces products in one country and sells them in another country

joint venture

a global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share the ownership, control, and profits of the new company

direct investment

a global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary division

dumping

occurs when a firm sells a product in a foreign country below its domestic price or below its actual cost

gray market

a situation where products are sold through unauthorized channels of distribution. Also called parallel importing