Mktg 445 Definitions Midterm

This set of flashcards covers key concepts related to culture, economic integration, trade, finance, market segmentation, targeting, positioning, and business environments.

Enculturation

Learning your own culture’s values, norms, and customs.

Acculturation

Learning/adapting to a new/foreign culture.

Assimilation

When individuals fully adopt another culture, often losing aspects of their original one.

Self-Reference Criterion (SRC)

The unconscious tendency to view the world using your own culture as a reference.

Ethnocentric orientation

Belief that your culture/ways are superior; home country focus.

Polycentric orientation

a global business strategy where a company recognizes each country as unique and adapts its practices to local norms and markets

Geocentric orientation

World-oriented view; integrated global strategy. viewing the entire world as a single, unified market and a pool of talent, seeking to integrate the best practices, products, and skills from around the globe

Hofstede’s cultural values framework

Model that compares cultures by dimensions such as individualism vs collectivism and power distance.

High-context culture

Relies on indirect communication, relationships, nonverbal cues (e.g. Japan).

Low-context culture

Relies on direct, explicit communication and facts (e.g., U.S.).

Free Trade Area (FTA)

Countries remove tariffs between each other but keep individual policies toward outsiders.

Customs Union

Free trade area plus common external tariffs for outsiders.

Common Market

Customs union plus free movement of labor, capital, and services.

Economic Union

Common market plus harmonized economic policies.

Monetary Union

Economic union plus single currency.

Maastricht Treaty

Treaty that created the EU and paved the way for the euro.

Developed countries

High income, advanced infrastructure, industrialized nations.

Low-income countries

Countries with GNI per capita less than $1,135.

High-income countries

Countries with GNI per capita over $13,845.

Emerging markets

Transitioning economies with rapid growth and industrialization.

Trade deficit

When a country imports more than it exports.

Trade surplus

When a country exports more than it imports.

Exchange rates

The price of one currency in terms of another.

Market segmentation

Dividing a broad market into smaller groups with shared traits.

Demographic segmentation

Dividing the market based on age, gender, income, education.

Geographic segmentation

Dividing the market based on location, climate, region.

Psychographic segmentation

Dividing the market based on lifestyle, personality, values.

Usage segmentation

Dividing the market by light, medium, heavy users.

Benefit segmentation

Grouping by the benefits sought.

Undifferentiated targeting

One strategy for the whole market.

Differentiated targeting

Different strategies for different segments.

Concentrated targeting

Focus on one specific segment.

Positioning

Creating an image/identity for a product in consumers’ minds.

Attribute/Benefit positioning

Positioning based on product features or benefits.

Applications/Use positioning

Focus on how/when the product is used.

Price/Quality positioning

Focus on value, whether premium or low-cost.

Competitor positioning

Direct comparison with competitors.

Measurability

Can the segment be identified/quantified?

Substantiality

Is the segment large/profitable enough?

Accessibility

Can you reach the segment effectively?

Actionability

Can you design a strategy to serve the segment?

Global Elite

Wealthy, luxury-driven consumers across countries.

Global Youth Segment

Young people worldwide with shared tastes.

Standardized approach

Same strategy worldwide for marketing.

Concentrated approach

Focus on one global market segment.

Differentiated approach

Adapt strategy by country/segment.

Drivers in the business environment

Factors like technology, competition, market needs affecting business.

World Trade Organization (WTO)

Global body regulating international trade rules.

Andean Common Market (CAN)

Customs union of Andean countries.

ASEAN Free Trade Area (AFTA)

Trade bloc in Southeast Asia.

Bilateral Agreement

Trade deal between two countries.

European Union (EU)

Economic & political union of European states.

Centrally Planned Socialism

Government owns resources and makes production decisions.

Low uncertainty avoidance

Cultures more comfortable with risk and ambiguity.

High uncertainty avoidance

Cultures needing rules, structure to avoid risk.

Regiocentric Orientation

a management strategy where a company treats a group of countries with similar characteristics as a single market