Marketing The Core 5Th Edition Chapter 6

Front 1

protectionism

Back 1

the practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs and quotas

Front 2

tariff

Back 2

a government tax on goods or services entering a country, primarily serving to raise prices on imports

Front 3

quota

Back 3

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

Front 4

World Trade Organization

Back 4

insitution that sets rules governing trade between its members through a panel of trade experts

Front 5

global competition

Back 5

exists when firms originate, produce, and market their products and services worldwide

Front 6

multidomestic marketing strategy

Back 6

a multination firm's strategy of offering as many different product variations, brand names, and advertising programs as countries in which it does business

Front 7

global marrketing strategy

Back 7

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

Front 8

global brand

Back 8

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

Front 9

global consumers

Back 9

consumer groups living around the world who have similar needs or seek similar benefits from products or services

Front 10

cross-cultural analysis

Back 10

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

Front 11

values

Back 11

a society's personally or socially preferable odes of conduct or states of existence that tend to persist over time

Front 12

customs

Back 12

norms and expectations about the way people do things in a specific country

Front 13

Foreign Corrupt Practices Act (1977)

Back 13

A law that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business

Front 14

cultural symbols

Back 14

things that represent ideas or concepts in a specific culture

Front 15

back translation

Back 15

retranslating a word or phrase back into the original language using a different interpreter to catch errors

Front 16

microfinance

Back 16

the practice of offering small, collateral-free loans to individuals who otherwise would not have access to the capitla necessary to begin small businesses or other income-generating activities

Front 17

currency exchange rates

Back 17

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

Front 18

exporting

Back 18

producing goods in one country and selling them in another country

Front 19

joint venture

Back 19

when a foreign company and a local firm invest together to create a local business, sharing ownership, control, and the profits of the new company

Front 20

4 trends affecting world trade and global marketing

Back 20

1. Decline of economic protectionism by individual countries, 2. Rise of economic integration and free trade among nations, 3. Global competition among global companies for global consumers, 4. Emergence of a networked global marketspace

Front 21

european union

Back 21

consists of member countries that have eliminated most barriers to the free flow of goods, services, capital and labor across their borders

Front 22

north american free trade agreement (NAFTA)

Back 22

lifted many barriers between Canada, Mexico and the US creating a marketplace with more than 450 million consumers

Front 23

3 types of companies in the global marketplace

Back 23

1. international firms, 2. multinational firms, 3. transnational firms

Front 24

international firm

Back 24

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

Front 25

multinational firm

Back 25

views the world as consisting of unique parts and markets to each part differently. Use a multidomestic marketing strategy

Front 26

transnational firm

Back 26

views the world as one market and emphasizes cultural similiarities across countries or universal consumer needs and wants more than their differences

Front 27

licensing

Back 27

under licensing a company offers the right to a trademark, patent, trade secret, or other similarly valued item of intellectual property in return for a royalty or a fee

Front 28

indirect exporting

Back 28

when a firm sells its domestically produced goods in a foreign country through an intermediary. Least amount of commitment and risk, probably return least profit

Front 29

direct exporting

Back 29

when a firm sells its domestically produced goods in a foreign country without intermediaries

Front 30

franchising

Back 30

variation of licensing, fasted growing market-entry strategies

Front 31

direct investment

Back 31

entails a domestic firm actually investing in and owning a foreign subsidiary or division.

Front 32

product & promotion strategies

Back 32

product extension strategy, product adaptation strategy, product invention strategy, communication adaptation strategy, dual adaptation strategy

Front 33

product extension strategy

Back 33

selling virtually the same produt in other countries. Works best when the consumer target market for the product is alike across counties and cultures. (Same Product / Same Promotion)

Front 34

production adaptation strategy

Back 34

changing a product in some way to make it more appropriate for a country's climate or consumer preferences. (Adapt Product / Same Promotion)

Front 35

product invention strategy

Back 35

invent totally new products designed to satisfy common needs across countries

Front 36

communication adaptation strategy

Back 36

same product sold in many countries, but advertised differently

Front 37

dual adaptation strategy

Back 37

modify both product and promotional messages