International Marketing Orientation and Perspectives

These flashcards cover the key differences between international and domestic marketing, various consumer trends, cultural dimensions, and ethical perspectives from the Chapter 1 lecture notes.

Domestic Marketing

A business approach that operates within one familiar environment, making market research and logistics straightforward with no exchange rate risks.

International Marketing

The business process of identifying and meeting foreign consumer needs with relevant value for mutual advantage, requiring an understanding of cultural behaviors and infrastructure.

Borders

Physical, legal, or cultural boundaries separating countries, regions, or demographics.

Changing Borders

Shifts in boundaries that alter trade agreements, tariffs, or cultural landscapes.

Exchange Rate Risk

The risk in international marketing where profits from sales in a foreign country can unexpectedly drop or rise when converted back into the home currency due to fluctuating rates.

Wan

The currency symbol identified in the text for Korea.

Localization

The adaptation of communications, positioning, and research—such as Nike's slogan change in China—to avoid mistranslations and build trust with global audiences.

Trade Barriers & Tariffs

Foreign trade policies and customs regulations that dictate what goods can be imported and how they are taxed.

Psychic Distance

A measure of the overall differences between a home and export market, including infrastructures, customs, regulations, language, and currency.

Psychic Distance Paradox

Occurs when managers assume a foreign market is so similar to their own that they fail to research and adapt to subtle, crucial local differences.

Internationalization

The process of transforming a domestic marketing management system into an international one or adapting a firm's operations to the international environment over time.

Globalization

The process of reducing trade barriers through free trade ideals and the increased integration of the world economy via new transport and communication technologies.

European Union (EU)

The world's largest single market consisting of $27$ independent countries that facilitates the free movement of goods, services, capital, and people.

Conscious Consumerism

A modern consumer trend that demands strict sustainability and ethical supply chains from brands.

Over-consumption

The systemic, marketing-driven promotion and purchase of goods and services far beyond basic needs, often resulting in resource depletion.

Consumer Power

The ability of buyers worldwide to dictate brand narratives, product features, and ethics through social media and e-commerce.

Cosmopolitan Consumers

Open-minded individuals who view themselves as "world citizens" and seek authentic foreign goods and diverse cultural experiences.

Ethics in International Marketing

Moral principles and standards guiding marketing activities across different countries to build trust, respect differences, and prevent exploitation.

Utang na Loob

A Filipino ethical concept of reciprocal obligations or a "debt of gratitude" that can override objective metrics in business contracts.

Protocols

Sets of rules that organizations and countries commit to which may not be legally binding or enforceable.

Embargo

A complete ban on a specific activity.

Sanctions

A ban on specific trading activities.

Unilateral barrier

A one-way trade barrier.

Bilateral barrier

Trade barriers imposed on each other by equal measures.

Multilateral barrier

Trade barriers imposed by agents.

Low-context countries

Cultures, like the United States, where people use clear, direct words and say "no" openly.

High-context countries

Cultures, like Japan, where people rely on body language, tone, and silence to maintain social harmony and avoid blunt refusals.

Contact Cultures

Regions such as Latin America and the Mediterranean where physical closeness, hugging, and cheek-kissing are standard social greetings.

Power Distance

A cultural dimension used as a framework for understanding cultural diversity in consumer and industrial markets.

Uncertainty Avoidance

A cultural dimension relating to how cultures provide a framework for understanding diversity in business and consumer markets.