QUIZ Chapter 6 Global Marketing

Cross cultural analysis

The examination of values, customs, and cultural aspects in target countries during a global macro environmental scan.

Economic union

The section of a global macro environmental scan that involves examining infrastructure, income distribution, purchasing power, and currency exchange rates.

Technology transfer

The strategy used when a company introduces a product developed for one market to another market, possibly adapting its features or marketing.

Exporting

The strategy of expanding the distribution of a core brand across all countries without changing taste, packaging, or promotional strategies.

Promotional adaptation

The strategy employed when modifying marketing campaigns to appeal to local customs and values, as seen with KFC in Japan.

Dumping

Selling a product in a foreign country at a price well below its domestic price or below actual cost.

Gray market/parallel importing

The practice of importing goods from a lower-priced country to sell in a higher-priced country at discounted prices.

Transnational organization

A type of global firm that views the world as one market to standardize offerings across markets.

Multidomestic marketing strategy

A global firm approach that views world markets as unique and tailors marketing strategies accordingly.

Licensing

A global entry strategy where a company allows another in a foreign market to produce its product under its brand.

Product adaptation

The modification of a product to meet local preferences, as demonstrated by Ferraro's Kinder Egg in the US.

Nutella

A hazelnut spread produced by Ferraro that is popular in Europe.

Hershey's Reeses

The American candy company that competes with Ferraro's hazelnut spread.

Political-regulatory climate

Factors regarding government stability and trade regulations considered in a global environmental scan.

Global marketing strategy

A plan that standardizes or adapts marketing efforts for effective performance in different countries.

Product extension

The strategy of launching existing products in new international markets without significant modifications.