Chapter 15

Global marketing

The full process of marketing products and services within and across multiple countries

Global company

A company that, by operating in more than one country, gains marketing, production, research and development (R&D), and financial advantages that are not available to purely domestic competitors.

Economic community

A group of nations organised to work toward shared global trade and other goals.

Exporting

Entering foreign markets by selling goods produced in the company’s home country, often with little or no modification.

Joint venturing

Entering foreign markets by joining with foreign companies to produce or market a product or service.

Licensing

Entering foreign markets by developing an agreement with an entity in the foreign market to use the company’s brand, trademark, patent, trade secret, manufacturing process, or some other item of value in return for some payment.

Contract marketing

A joint venture in which a company contracts with manufacturers in a foreign market to produce its product or provide its service.

Management contracting

A joint venture in which the domestic company supplies the management know-how to a foreign company that supplies the capital; the domestic company exports management services rather than products.

Joint ownership

A corporative venture in which a company creates a local business with investors in a foreign market who share ownership and control.

Direct investment

Entering a foreign market by developing foreign-based assembly or manufacturing facilities.

Standardised global marketing

A global marketing strategy that basically uses the same marketing strategy and mix in all of the company’s global markets.

Straight product extension

Marketing a product in a foreign market without making any changes to the product or its positioning and communication.

Product adaptation

Adapting a product to meet local conditions or wants in foreign markets but without significantly changing the position and communication associated with it.

Product invention

Creating new products or services for foreign markets.

Communication adaptation

A global communication strategy of fully adapting advertising messages to local markets.

Whole-channel view

Designing global channels that consider the entire global supply chain and marketing channel, forging an effective global value delivery network.

Adapted global marketing

A global marketing approach that adjusts the marketing strategy and mix elements to each global target market, which increases costs but hopefully yields larger market shares and financial returns.