International Marketing, Trade Policies, and Business Strategy Concepts

World Trade

the flow of goods and services among different countries

non-convertible currency

Government restriction on certain money; Example: North Korean Won or USD in North Korea

Countertrade

if insufficient credit is available, firms trade products with each other

First stage of the international marketing process

Ask "Is there room to grow domestically?"

Second stage of international marketing process

Will your competitive advantage succedd against local firms with a home-court advantage?

Third stage of international marketing process

Will what made the company succesful domestically translate into a new, foreign market

Fourth stage of international marketing process

What Level of Commitment should we pursue?

Protectionism

restricts trade to make foreign goods more expensive or less available, Example: quotas, embargoes, tariffs

Coordination of Trade Policies

create pacts wtih each other for trade policy coordination EX: US-Mexico-Canada Agreement, European Union

Elements of the External environment

Economic, Competitive, Political, technological, socio-cultural

Economic Environment

Indicators of economic health, level of economic development, business cycle

Competitive Environment

Competition in the micro and macro-environment

Political / Legal Environment

National laws of commerce, international regulations, regional agreements, political stability, regulatory issues, human rights issues

Socio-Cultural Environment

demographics, values, social norms, xenocentrism, ethnocentrism

Least-Developed Country

Economic base is often agricultural, includes bottom of the pyramid (BOP) countries

Developing Countries

Products include PCs, skincare, mobile phones; Example BRIC (Brazil, Russia, India, China) countries

Developed Countries

luxury products, includes G7 Countries (US, France, Canada, Germany, Italy, Japan, EU & UK)

Oligopoly

a market structure where a few large firms dominate the market

Monopolistic Competition

a market structre with many firms selling similar but differentiated products

Perfect Competition

a market structure with many firms selling identical products with no barriers to entry

The triple-bottom-line orientation

companies focus on maximizing financial, social, and environmental benefits

Green Washing:

the practice of making misleading or false claims about the environmental benefits of a product service, or company to appear more environmentally responsible than they actually are

Collectivism

a cultural orientation where people prioritize group goals and collective welfare over individual interests, emphasizing interdependance and group harmony

Locavorism

a movement or practice that emphasizes consuming food and products that are locally produced, typically to reduce environemntal impact, support local economies, and ensure fresher products

Business planning

the ongoing process of decision-making that guides an organization in both the short and long term. It involves setting objectives and developing strategies to achieve them

Strategic planning

defining the mission, evaluating the environment, and setting objectives

Functional planning

focuses on specific areas like marketing wehre objectives and strategies are developed

Operational planning

involves day-to day management and the implementatoin of strategies

What makes a good mission statement

clearly defines the organization's purpose and what it aims to achieve, identifies target market and key stakeholders, provides direction for decision-making

Activity Metrics

measures specific marketing activities and efforts EX: number of sales calls, website visits, social media engagement, email open rates

Outcome metrics

measures the results and impact of marketing activities; example: sales revenue, market share, customer lifetime value

Return on Marketing Investment

measures the revenue generated by marketing activities relative to their cost ((Revenue from marketing - marketing cost) / cost)

BCG growth-market share matrix

a portfolio analysis model developed that assesses the potential of successful products to generate cash that a firm can then use to invest in new products