Principles of Marketing - Chapter 2 - Global, Ethical, Sustainable Marketing

Protectionism

A policy adopted by a government to give domestic companies an advantage.

Embargo

A quota completely prohibiting specified goods from entering or leaving a country.

Tariffs

Taxes on imported goods.

Import quotas

Limitations set by a government on the amount of a product allowed to enter a country.

World Trade Organization (WTO)

An organization that replaced GATT; the WTO sets trade rules for its member nations and mediates disputes between nations.

General Agreement on Tariffs and Trade (GATT)

International treaty to reduce import tax levels and trade restrictions.

Economic communities

Groups of countries that band together to promote trade among themselves and to make it easier for member nations to compete elsewhere.

Level of economic development

The broader economic picture of a country.

Less developed country (LDC)

A country at the lowest stage of economic development.

Developing countries

Countries in which the economy is shifting its emphasis from agriculture to industry.

Developed country

A country that boasts sophisticated marketing systems, strong private enterprise, and bountiful market potential for many goods and services.

Local content rules

A form of protectionism that stipulates that a certain proportion of a product's production must consist of components and services supplied by providers in the host country or economic community.

Social Norms

Specific rules dictating what is right or wrong, acceptable or unacceptable.

Customs

Widely accepted, traditional ways of behaving or doing something that is specific to a particular society, place, or time.

Mores

The essential or characteristic customs and conventions of a society or community

Conventions

Behaviour that is considered acceptable or polite to most members of a society

Consumer ethnocentrism

Consumers’ feeling that products from their own country are superior or that it is wrong to buy products produced in another country.

Licensing

An agreement in which one firm sells another firm the right to use a brand name for a specific purpose and for a specific period of time.

Franchising

A form of licensing involving the right to adapt an entire system of doing business.

Strategic alliance

Relationship developed between a firm seeking a deeper commitment to a foreign market and a domestic firm in the target country.

Joint venture

A strategic alliance in which a new entity owned by two or more firms allows the partners to pool their resources for common goals.

Born-global firms

Businesses that expand into international markets from their inception, rather than growing

domestically first.

Dumping

A company tries to get a toehold in a foreign market by pricing its products lower than it offers them at home.

Gray market goods

Items manufactured outside a country and then imported without the consent of the trademark holder.

Counter trade

A type of trade in which goods are paid for with other items instead of with cash.

Sachet

Affordable one-use packages of cleaning products, fabric softeners, shampoo, and other items for sale to consumers in least developed and developing countries.

Oligopoly

A market structure in which a relatively small number of sellers, each holding a substantial share of the market, compete in a market with many buyers.

Monopoly

A market situation in which one firm, the only supplier of a particular product, is able to control the price, quality, and supply of that product.

Perfect competition

A market structure in which many small sellers, all of whom offer similar products, are unable to have an impact on the quality, price, or supply of a product.

Monopolistic competition

A market structure in which many firms, each having slightly different products, offer unique consumer benefits.

Collectivist cultures

Cultures in which people subordinate their personal goals to those of a stable community.

Individualist cultures

Cultures in which people tend to attach more importance to personal goals than to those of the larger community.

Fair trade

Movement made up of a diverse network of producers, companies, shoppers, advocates, and organizations that promotes greater equity in international trading partnerships, encourages sustainable development, and secures the rights of marginalized producers and workers in developing countries.

Locavorism

The trend for shoppers to actively look for products that come from farms within 50 to 100 miles of where they live.

Sustainability metrics

Measures of sustainability, using numbers to quantify environmental, social and economic aspects of the world.