Marketing Chapter 7: Understanding and Reaching Global Consumers and Markets

Countertrade

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

Gross Domestic Product

the total value of goods produced and services provided in a country during one year.

Balance of Trade

the difference between a country's total exports and total imports

Globalization

the focus on creating economic, cultural, political, and technological interdependence among individual national institutions and economies

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

a government tax on products or services entering a country, primarily serve to raise prices on imports

Quota

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

World Trade Organization

Administers the rules governing trade between its 144 members. Helps producers, importers, and exporters conduct their business and ensure that trade flows smoothly.

Trade War

a situation in which countries try to damage each other's trade, typically by the imposition of tariffs or quota restrictions.

Global Competition

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

Multidomestic Marketing Strategy

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

Global Marketing Strategy

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

Economic Espionage

the clandestine collection of trade secrets or proprietary information about a company's competitors

Cross-Cultural Analysis

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

Customs

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

Foreign Corrupt Practices Act

U.S. law regulating behavior regarding the conduct of international business in the taking of bribes and other unethical actions.

Cultural Symbols

things that represent ideas and concepts in a specific culture

Back Translation

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

Consumer Ethnocentrism

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

Economic Infrastructure

a country's communications, transportation, financial, and distribution systems

Currency Exchange Rate

the price of one country's currency expressed in terms of another country's currency

Exporting

producing goods in one country and selling them in another

Licensing

a company offers the right to a trademark, patent, trade secret, or other similarly valued item of intellectual property in return for a royalty or a fee

Joint Venture

foreign company and a local firm invest together to create a local business

Direct Investment

a domestic firm actually investing in and owning a foreign subsidiary or division

Product Extension

selling virtually the same product in other countries

Product Adaptation

changing a product in some way to make it more appropriate for a country's climate or consumer preferences

Product Invention

companies can invent totally new products designed to satisfy common needs across countries