MkT Exam study guide

World Trade

The exchange of goods and services across international borders.

Protectionism

The practice of shielding a country’s domestic industries from foreign competition through government policies.

Global Trade Organization (WTO)

An international body established in 1995 that regulates global trade.

European Union (EU)

A political and economic union of 27 member countries.

Global Competition

When firms originate, produce, and market their products and services worldwide.

International Firm

Engages in trade and marketing in different countries as an extension of the marketing strategy in its home country.

Multinational Firm

Views the world as consisting of unique parts and markets to each differently.

Transnational Firm

Views the world as one market and standardizes marketing activities while adapting when necessary.

Global Consumers

Consumer groups living in different countries who have similar needs or seek similar features and benefits.

Economic Espionage

The clandestine collection of trade secrets or proprietary information about a company’s competitors.

Customs

The traditions, norms, and practices of a specific country or culture.

Cultural Symbols

Things that represent ideas and concepts within a specific culture.

Environmental Scans

The process of gathering information about external global environmental forces.

Consumer Income

The amount of income households have available to spend.

Purchasing Power

The ability of consumers to buy goods and services.

Exporting

Producing goods in one country and selling them in another.

Licensing

Allowing a foreign company to use intellectual property for a fee.

Joint Venture

Foreign company and local firm invest together to create a local business.

Direct Investment

Firm invests and owns a foreign subsidiary or operation.

Market Segmentation

Dividing a market into distinct groups of buyers with different needs.

Product Differentiation

A marketing strategy that makes a product different from competitors.

Product Mix

The complete set of all products and services offered by a company.

Market Needs

The desires and requirements of consumers in a particular market.

Product Positioning

The place a product occupies in the minds of consumers relative to competing products.

Product Repositioning

Changing the position of a product in consumers’ minds.

Customer Lifetime Value (CLV)

The total worth of a customer over their relationship with a business.

Feature Bloat

Overloading a product with too many features.

Feature Fatigue

Consumer frustration from overly complex products.

Continuous Innovation

Requires no new learning by consumers.

Dynamically Continuous Innovation

Disrupts routine but doesn’t require totally new learning.

Discontinuous Innovation

Requires completely new learning and consumption patterns.

Product Line Extension

Adding a new product to an existing line.

Brand Extension

Using an existing brand name for a new product category.

Jump in Innovation

Significant technology or feature advancement.