MKTG 300 EXAM2

global vision

recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets.

absolute advantage

when a country can produce and sell a product at a lower cost than any other country or when it is the only country that can provide a product

free trade

allowing people to buy and sell in other countries without restrictions

Stage 2 of Global Business Development

companies set up foreign subsidiaries to hands sales in one country

multidomestic strategy

allows its individual subsidiaries to compete independently in domestic markets with unique or slightly varied products

A company considering culture when marketing a product in a foreign country would want to be sure that promotional messages

convey the intended meaning
are translated correctly
reflect the country's social values

balance of trade

the difference between the value of a country's exports and the value of its imports over a given period.

Companies must consider a country's economic factors because nations with ____ may be poor markets for expensive industrial machinery but good ones for ___

low per-capita incomes, agricultural hand tools

exchange control

regulates international trade among importing organizations by restricting access to foreign currencies

trade agreement

a deal to stimulate trade

World Trade Organization goals

Serve as a forum for trade negotiations
Monitor national trade policies
Mediate trade disputes

FAIR FOR ALL

World Bank

offers low-interest loans, advice, and information to developing nations.

North American Free Trade Agreement (NAFTA)

A trade bloc between Canada, Mexico, and the United States that aimed to eliminate most tariffs and trade barriers between the three countries

exporting

provides the least amount of return, many companies choose this method as a first step in international marketing because it is also low risk.

contract manufacturing

Employees working long hours and enduring sweatshop conditions are a concern in

Direct foreign investment can occur through

acquisition of a foreign company or building an international division

production adaptation

A company that alters a basic product to fit in a local market

straight extension

A company chooses to use the same product in every foreign market that it serves and does not alter any promotional messaging.

exchange rate

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

countertrade

a form of trade in which all or part of the payment for goods or services is in the form of other goods and services

balance of trade

measures the difference between a country's exports and imports, indicating economic health.

• occurs when exports exceed imports, contributing positively to a nation's economy.

BRICS

emerging markets in the following nations:

Brazil, Russia, India, China, South Africa

Econ. Status BRAZIL

Currently experiencing its worst recession in 25 years, impacting consumer spending and investment.

Econ. Status RUSSIA

Economic growth is hindered by international sanctions and a heavy reliance on energy exports, making it vulnerable to global oil price fluctuations.

Econ. Status INDIA

Demonstrates steady economic growth, driven by a young population and increasing consumer demand.

Econ. Status CHINA

Projected to become the world’s largest economy by 2030, fueled by rapid industrialization and technological advancements.

Econ. Status SOUTH AFRICA

Faces economic challenges, including high unemployment and political instability, affecting its market potential.

tariffs

Taxes on imported goods that can protect domestic industries but may lead to trade wars.

quotas

limits on the quantity of specific products that can be imported, affecting supply and pricing.

boycotts

exclusions of products from certain countries can impact market access and brand reputation.

exchange controls

regulations that dictate how foreign currency earnings must be handled, affecting international transactions

United States–Mexico–Canada Agreement (USMCA)

Replaced NAFTA, includes provisions for labor standards and intellectual property protections.

European Union (EU)

a significant free trade zone that facilitates the movement of goods, services, and people among member states

Mercosur

the largest Latin American trade agreement, enhancing trade among member countries

demographic Trends Impacting Markets

wealth distrubution, aging population, emerging markets

NATURE IMPACT: Resource Distribution

Countries rich in natural resources can leverage their assets for economic gain, creating dependencies

NATURE IMPACT: Price Inflation

Limited resources can lead to inflated prices, affecting global trade dynamics.

NATURE IMPACT: Export Opportunities

Nations with abundant resources can capitalize on global demand, influencing their economic stability.

reason for going global marketing

• Companies pursue global markets to increase profits by accessing new customer bases.

• Unique products or technological advantages can provide competitive edges in international markets.

• Economies of scale can be achieved, reducing per-unit production costs as output increases.

Methods of Entering the Global Marketplace

exporting, licensing & franchising, contact manufacturing & joint ventures, direct investment

The Internet on Global Marketing: E-commerce and Global Trade

• The Internet facilitates entry into international markets, particularly for service-based industries.

• Digital technology has revolutionized global trade, enabling companies to reach customers worldwide.

The Internet on Global Marketing: Social Media & Brand Building

• Social media platforms are essential tools for understanding customer preferences and building global brands.

• Effective use of social media can enhance engagement and brand loyalty across different markets.

The Internet on Global Marketing: Group Activities and Discussions

• Collaborative activities encourage practical application of global marketing concepts, such as developing a marketing mix for foreign products.

• Discussions on standardization versus adaptation highlight the complexities of global marketing strategies.

value

a personal assessment of the net worth obtained from a purchase

• Perceived value is the expected value from a purchase, influencing decision-making.

• Utilitarian value helps consumers solve problems

• hedonic value provides pleasure.

evoked set

The collection of alternatives a consumer actually considers when making a decision

It is difficult to separate the information search and evaluation of alternatives steps in the consumer decision-making process because consumers

evaluate some alternatives as the search process progresses

Cognitive dissonance is likely to increase during

• When the purchase decision has a major effect on the buyer

• As the dollar value of a purchase increases

• when the rejected alt. have desirable features that the chosen alternative does not provide

The goal for marketers in the consumer decision journey

eliminate the consumer's research and evaluation stages of the decision-making process

3 largest and fastest-growing subcultures in the United States

African Americans, Asians, Hispanics

culture

broadest determinant of consumer behavior

opinion leader

Someone who influences the opinions of others

individual influences on consumer buying behavior

gender, personality, self-concept

motive

the driving force that causes a consumer to take action and satisfy a specific need

reinforcement, repetition

marketers use this to boost learning for consumers during the decision process

goal of content marketing

attract and retain a clearly defined audience and drive profitable customer action

Marketers measure the effectiveness of marketing campaigns through (3)

awareness, engagement, conversion

commitment & trust

necessary for a strategic alliance

keiretsu

network of interlocking corporate affiliates important in Japan

category of business customers accounts for the largest volume of purchases in the United States?

Governments

The more shared digits companies have

the more homogenous they are

derived demand

there is a linkage between the demand for a company's output and its purchases of resources

joint demand

when the demand for one business product is related to the demand for another business product used in combination with the first item

component parts

are either finished items ready for assembly or products that need very little processing before becoming part of some other product

supplies

consumable items that do not become part of the final product. Paper and pencils are examples of supplies

3 criteria business buyers use to evaluate business products

quality, service, price

marketing segmentation process

1) group potential buyers into segments

2) group products into categories

3) develop market-product grid and estimate market sizes

4) select target markets

5) take marketing actions to reach target markets

market segment

subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs

market must have

people or organizations
needs & wants

the ability & willingness to buy