exam 3 international marketing

What is globalization?

The integration of markets, economies, and cultures worldwide

What is global marketing

Marketing products/services across multiple countries with coordination.

Why is global marketing important

Expands markets, increases profits, and creates competitive advantage

What is an ethnocentric orientation

Home-country focused strategy

What is a polycentric orientation?

Each country is treated as unique

What is a regiocentric orientation

Strategy organized by regions

What is a geocentric orientation

Global integration with local responsiveness

What does PESTEL stand for

Political, Economic, Social, Technological, Environmental, Legal

Give an example of a political factor

Government stability or trade policy

What is a free trade area

No tariffs between member countries

What is a customs union

Free trade + common external tariffs

What is a common market

Free trade + movement of labor/capital

What is an economic union

Common market + shared currency

What is a political union

Full economic and political integration

What is culture

Shared values, beliefs, norms, and behaviors

What is the self-reference criterion (SRC)

Judging other cultures by your own

What are stereotypes

Oversimplified beliefs about a group

What is individualism vs collectivism

Individual goals vs group goals

What is power distance

Acceptance of unequal power distribution

What is uncertainty avoidance

Comfort with ambiguity

What is a high-context culture

Indirect communication, meaning implied

What is a low-context culture

Direct, explicit communication

What is diffusion of innovation

How new products spread through a population

Name the 5 adopter groups

Innovators, Early adopters, Early majority, Late majority, Laggards

What is purchasing power parity (PPP)

Exchange rates adjust so goods cost the same globally

What does the International Monetary Fund do

Stabilizes global financial system

What does the World Bank do

Provides loans for development

What is exchange rate risk

Risk from currency value changes

How can companies reduce currency risk

Hedging and diversification

What is political risk

Risk from government actions or instability

What is a tariff

Tax on imports

What is a non-tariff barrier

Regulation or quota limiting trade

Difference between mediation and arbitration

Mediation = non-binding; Arbitration = binding decision

What is segmentation

Dividing a market into groups

Name segmentation bases

Demographic, Geographic, Psychographic, Behavioral, Benefits

What is undifferentiated targeting

One strategy for entire market

What is concentrated targeting

Focus on a niche market

What is positioning

How a brand is perceived

Name positioning bases

Competition, Benefit, Use/User, Quality/Price, Product class

What is standardization

Same strategy globally

What is adaptation

Customizing for local markets

What is a perceptual map

Visual of brand positioning based on attributes

Key issue in Levendary Cafe

Standardization vs local adaptation conflict

Challenge faced by Starbucks in China

Competition from Luckin Coffee

Why did Nordstrom struggle in Canada

Poor market fit and execution

Main issue for Chick-fil-A internationally

Difficulty adapting to global markets

Lesson from Ben & Jerry's in Japan

Need for cultural adaptation