MKTG Chapter 7 Understanding and Researching Global Consumers and Markets

United States, China, Germany

Who are the leaders in the global merchandise trade?

International Firm

 take marketing strategy from HOME country and they duplicate it in other countries

Multinational Firm

 view the world as consisting of unique parts and markets to each part differently

Transnational Firm

view the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants rather than differences

The type of company firm is Multinational Firm

Which type of company firm utilizes a multidomestic marketing strategy?

The type of company firm is Transnational Firm

Which type of company firm utilizes a global marketing strategy?

Multidomestic Marketing Strategy

they have as many different product variations, brand names, and advertising programs as countries in which they do business

Ex: Changing aspects of the product based on the cultural preferences of the country (different 4 P’s in each country)

Global Marketing Strategy

the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ

600 billion dollars a year

How much money does the U.S firms spend on economic espionage?

1. seller

2. seller’s international marketing headquarters

3. channels between nations

4. channels within foreign nation

5. final consumer

What are the channels of distribution in global marketing?

Counter Trade:

 is the practice of using barter rather than money for making global sales

Exporting:

A global market-entry strategy in which a company produces products in one country and sells them in another country.

Gross Domestic Product (GDP):

is the monetary value of all products and services produced in a country during one year

Balance of trade:

the difference between the monetary value of a nation's exports and imports

Globalization:

 is the focused on creating economic, cultural, political, and technological interdependence among individual national institutions and economies

Protectionism:

is the practice of shielding one or more industries within a countries economy from foreign competition through the use of tariffs or quotas

Tariffs:

Government taxes on products or services entering a country that primarily serve to raise prices on imports

Quota:

 is a restriction placed on the amount of a product allowed to enter or leave a country

Multidomestic Marketing Strategy:

involves multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business

Global Marketing Strategy:

 involves transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ

Global Brand:

is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs

Cross Cultural Analysis:

 involved the study of similarities and differences among consumers in two or more nations societies

Values:

 are a society’s personally or socially preferable modes of conduct

Customs:

are what is considered normal and expected about the way people do things different in a specific country

Cultural Symbols:

are things that represent ideas and concepts in a specific culture

Back Translation:

is the practice where a translated word or phrase is restranslated into the original language by a different interpreter to catch errors

Cultural Ethnocentricity:

 the tendency for people to view their own values, customs, symbols, and language and other aspects of one's culture are superior to another

Consumer ethnocentrism:

is the tendency to believe that it is inappropriate, indeed immoral, to purchase foreign made products

Currency Exchange Rate:

 is the price of one country’s currency expressed in terms of another countries currency

Exporting:

 is a global market-entry strategy in which a company produces products in one country and sells them in another country

Joint Venture:

 is a global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company.

Direct Investment:

is a global market entry strategy that entails a domestic firm

Dumping:

occurs when a firm sells a product in a foreign country below its domestic price or below its annual cost

Gray Market:

is a situation where products are sold through unauthorized channels of distribution also called parallel importing

Italy currently has a limit on the number of motorcycles that can be imported from Japan

What is an example of a quota

quota

Is a quota or tariff a straight up number?

tarrif

is a quota or tariff a dollar amount/percentage?

protect and industry: “protectionism”

What are quotas and tariffs designed to do?

Unilever markets its Snuggle fabric softener differently to different parts of the world

What is an example of a multinational firm?

1. exporting

2. licensing

3. joint venture

4. direct investment

What is the order of the 4 types of global marketing strategies

where a domestic firm owns foreign subsidiary

What is an example of direct investment?

Marketing Strategies

International-home

Multinational-multidomestic

Transnational- global

are all what?

product extension

the strategy of selling virtually the same product in other countries

product adaptation

changing your products for other countries

product invention

create new products for the countries

international company

This company markets their product the same in every place in the world that they do business

multinational company

This company markets their product different in ever country

transnational company

This company is a brand that you would recognize around the world

Global market entry strategies

What does this graph show?

Exporting

Which of global marketing strategies goes in the first box?

Licensing

Which of global marketing strategies goes in the second box?

Joint venture

Which of global marketing strategies goes in the third box?

Direct investment

Which of global marketing strategies goes in the fourth box?

increased profit and increased risk

What happens as we move from left to right?