Chapter 9 Reaching Global Markets

Flashcards based on Chapter 9 of Pride/Ferrell's Marketing text, covering key concepts in international marketing, including strategies, agreements, and market forces.

What is international marketing?

International marketing refers to developing and performing marketing activities across national boundaries.

What are the environmental forces that affect international marketing efforts?

They include sociocultural, economic, political, legal, and technological forces that vary greatly from domestic markets.

Name an important international trade agreement.

Examples include the North American Free Trade Agreement (NAFTA) and the European Union (EU).

What are the methods of international market entry?

Methods include exporting, licensing, franchising, contract manufacturing, joint ventures, and direct investment.

What is the purpose of the marketing mix in international marketing?

The marketing mix is used to tailor strategies to international markets considering product, price, place, and promotion.

What is a 'born global' firm?

A 'born global' firm is a company that begins international operations from the very start, often small and technology-based.

What are the BRICS countries?

The BRICS countries are Brazil, Russia, India, China, and South Africa, known for their rapidly expanding economies.

What does the Foreign Corrupt Practices Act (FCPA) prohibit?

It prohibits U.S. firms from making large payments or bribes to foreign government officials to influence policy decisions.

What is balance of trade?

Balance of trade is the difference in value between a nation's exports and imports.

What is the role of the World Trade Organization (WTO)?

The WTO promotes free trade among member nations by eliminating trade barriers and educating about trade rules.

What is the significance of the EU?

The EU promotes trade among its member countries, facilitates free trade, and works towards economic integration.

How do technological advances impact international marketing?

Technological advances make international marketing easier, more affordable, and more convenient.

What are some competitive forces in global marketing?

Competitive forces include unique aspects of each country's market and interconnectedness among global consumers.

Define licensing in the context of international markets.

Licensing is when a licensee pays commissions or royalties on sales or supplies used in manufacturing a product.

What is the purpose of joint ventures?

Joint ventures serve as partnerships between domestic and foreign firms to share investments and risks in new markets.

Describe the concept of globalization in marketing.

Globalization is developing marketing strategies that treat the world as a single market, focusing on commonalities rather than differences.

What are common trade barriers in international marketing?

Common trade barriers include tariffs (taxes on imports/exports), quotas (limits on quantities), embargoes (complete bans), and non-tariff barriers (e.g., complex regulations).

How do cultural differences impact international product marketing?

Cultural differences require product adaptation, which may involve modifying product features, packaging, or branding to suit local tastes, customs, or religious beliefs.

What is the impact of exchange rates on international marketing?

Fluctuating exchange rates can significantly impact product pricing, profitability, and competitiveness in foreign markets, making exports more or less expensive.

Differentiate between global standardization and local adaptation strategies.

Global standardization involves using a consistent marketing strategy across all markets, while local adaptation customizes the marketing mix to suit the specific needs and preferences of individual local markets.

What are the basic types of economic integration that countries can form?

Key types include free trade areas, customs unions, common markets, and economic unions, each with varying levels of integration and trade barrier reduction.