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Definition
| In behavioral market segmentation, the rule of thum that 20 percent of a company's products or customers account for 80 percent of revenues or profits. |
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Definition
Status-conscious 'up-and-comers' - many of whom are businesss professionals
*use conspicuous consumption to communicate their success to others |
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Definition
| Duties imposed on products whose prices government officials deem too low |
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Definition
- Focus on whether people purchase a product or not, how much, and how often they use it
- User Status
- Law of Disproportionality/Pareto's Law: 80% of a company's revenues are accounted for by 20% of the customers |
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Term
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Definition
| The process of performing market segmentation utilizing user status, usage rate, or some other measure of product consumption |
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Definition
| a written order from one party directing a second party to pay to the order of a third party |
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Definition
| In South Korea, a type of corporate alliance group composed of dozens of companies and centered around a central bank or holding company and dominated by a founding family |
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Definition
In market research, a quantitiative data analysis technique that groups variables into clusters that maximize within-group similarities and between-group differences.
*Can be used in psychographic segmentation |
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Definition
- 25% to 50% of a country's population
- Conservative
- Most comfortable with the familiar
- Content with the comfort of home, family, friends, and community |
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Term
| Common Agricultural Policy (CAP) |
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Definition
| Legislation adopted by European countries after WWII to aid and protect the interests of farmers |
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Term
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Definition
| The result of a match between a firm's distinctive competencies and the factors critical for creating superior customer value in an industry |
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Definition
| In market research, a quantitative data analysis technique that can be used to gain insights into the combination of product features that will be attractive to potential buyers |
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Term
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Definition
| Primary data collection using a sample of consumers or households whose behavior is tracked over time; frequently used for television audience measurement |
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Definition
| A licensing arrangement in which a global company provides technical specifications to a subcontractor or local manufacturer |
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Definition
| An export organization of a manufacturing company retained by other independent manufacturers to sell their products in some or all foreign markets |
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Term
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Definition
In Porter's generic strategies framework, one of four options for building competitive advantage.
* When a firm that serves a small (niche) market has a lower cost structure than its competitors, it can offer customers the lowest prices in the industry |
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Term
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Definition
| A competitive advantage based on a firm's position as the industry's low-cost producer |
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Term
| Conutervailing Duties (CVDs) |
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Definition
| Additional duties levied to offset subsidies granted in the exporting country |
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Term
| Customer Relationship Management (CRM) |
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Definition
| The process of storing and analyzing data collected from customer "touch-points" for the purpose of identifiying a firm's best customers and serving their needs as efficiently, effectively, and profitably as possible |
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Term
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Definition
| A database, part of a company's MIS, that is used to support management decision making |
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Term
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Definition
| Conditions that determine the rate and nature of improvement and innovations by the firms in the nation |
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Term
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Definition
| The process of segmenting markets on the basis of measurable characteristics such as country income, population, age, or some other measure |
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Term
| Differentiated Global Marketing |
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Definition
| A strategy that calls for targeting two or more distinct market segments with multiple marketing mix offerings |
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Term
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Definition
In Porter's generic strategies framework, one of four options for building competitive advantage.
* Differentation advantage is present when a firm serves a broad market and its products are perceived as unique; this allows the firm to charge premium prices compared with the competition |
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Term
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Definition
- Lack power and affluence
- Harbor little hope for upward mobility
- Tend to be either resnetful or resigned
- Concentrated in high-crime urban inner city
- Attitudes tend to affect the rest of society |
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Term
| Discriminatory Procurement Policies |
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Definition
| Policies that can take the form of government rules and administrative regulations, as well as formal or informal company policies that discriminate against foreign suppliers |
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Term
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Definition
| A payment instrument that transfers all the risk of non-payment onto the exporter-seller |
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Term
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Definition
| Rate schedule; can sometimes be thought of as a tax that punishes individuals for making choices of which their government disapproves |
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Term
| Efficient Consumer Response (ECR) |
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Definition
| An MIS tool that enables retailers to work more closely with vendors to facilitate stock replenishments |
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Term
| Electronic Data Interchange (EDI) |
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Definition
| An MIS tool that allows a company's business units to submit orders, issue invoices, and transact business electronically with other company units as well as outside companies |
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Term
| Electronic Point of Sale (EPOS) |
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Definition
| Purchase data gathered by checkout scanners that help retailers identify product sales patterns and the extent to which consumer preferences vary with geography |
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Term
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Definition
| Global market research that analyzes a country in terms of its local system of meanings and values |
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Term
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Definition
| Structural market characteristics whose presence or absence can determine whether the marketing model can succeed |
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Term
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Definition
| Market entry strategy involving foreign direct investment for the purpose of establishing partial ownership of a business |
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Term
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Definition
| Global market research that analyzes a country from an outside perspective |
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Term
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Definition
| A broker who receives a fee for bringing together the seller and the overseas buyer |
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Term
| Export Commission Representative |
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Definition
| Representative assigned to all or some foreign markets by the manufacturer |
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Term
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Definition
| An individual or organization that has the exclusive right to sell a manufacturer's products in all or some markets outside the country of origin |
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Term
| Export Management Company (EMC) |
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Definition
| Term used to designate an independent export firm that acts as the export department for more than one manufacturer |
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Term
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Definition
| Exporting using the prodcut offered in the home market as a starting point and modifying it as needed to meet the preferences of international target markets |
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Term
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Definition
| Merchants who seek out needs in foreign markets and make purchases in world markets to fill these needs |
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Term
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Definition
| Exporting without tailoring the product, the price, or the promotional material to suit individual country requirements |
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Term
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Definition
In market research, a computerized quantitative data analysis technique that is used to perform data reduction.
- Responses from questionnaires that contain multiple items about a product's benefits serve as input; the computer generates factor loadings that can be used to create a perceptual map |
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Term
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Definition
-A country's endowment with resources
- 'Basic Factors' may be inherited or created without much difficulty
- 'Specialized Factors' are more advanced and provide a more sustainable source for advantage. |
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Term
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Definition
| Orthodox marketing wisdom suggesting that the first company to enter a country market has the best chance of becoming the market leader |
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Term
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Definition
| Model developed by Michael E. Porter that explains competition in an industry: the threat of new entrants, the threat of substitute products or services, the bargaining power of buyers, the bargaining power of suppliers, and teh competitive rivalry among current members of the industry |
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Term
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Definition
| A model of competitive advantage developed by Alan Rugman that describes how networked business systems can create competitive advantage in global industries |
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Term
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Definition
| Primary data collection method involving a trained moderator who facilitates discussion among the members of a group at a specially equipped research facility |
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Term
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Definition
In Porter's generic strategies framework, one of four options for building competitive advantage.
- When a firm serves a small (niche) market and its products are perceived as unique, the firm can charge premium prices |
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Term
| Foreign Consumer Culture Positioning (FCCP) |
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Definition
| A positioning strategy that seeks to differentiate a product, brand, or company by associating it with its country or culture of origin |
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Term
| Foreign Direct Investment (FDI) |
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Definition
| The market entry strategy in which companies invest in or acquire plants, equipment, or other assets outside the home country |
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Term
| Foreign Purchasing Agents |
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Definition
| Purchasing agents who operate on behalf of, and are remunerated by, an overseas customer |
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Term
| Foreign Sales Coproration (FSC) |
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Definition
| Provision in the U.S. tax code that allowed American exporters to exclude 15 percent of international sales from reported earnings |
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Term
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Definition
A contract between a parent company franchisor and franchisee that allows the franchisee to operate a business developed by the franchisor in return for a fee and adherence to franchise-wide policies and practices.
*this is an appropriate entry strategy when barriers to entry are low yet market is culturally distant in terms of consumer behavior or retailing structures |
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Term
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Definition
| A geographical entity that may include a manufacturing facility and a warehouse |
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Definition
| Specialists in traffic operations, customs clearance, and shipping tariffs and schedules |
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Term
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Definition
| Market entry strategy involving foreign direct investment for the purpose of establishing 100 percent control of a business |
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Term
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Definition
| Michael Porter's model describing four different options for achieving competitive advantage: cost leadership, differentiation, cost focuss, focused differentiation |
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Term
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Definition
| A success strategy in which a firm takes a global view of competition and sets about maximizing profits worldwide, rahter than on a country-by-country basis |
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Term
| Global Consumer Culture Positioning (GCCP) |
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Definition
| A positioning strategy that seeks to differentiate a product, brand, or company as a symbol of, or associated with, global culture or a global market segment |
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Term
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Definition
| A global market segment comprised of well-traveled, affluent consumers who spend heavily on prestige or luxury products and brands that convey an image of exclusivity |
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Term
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Definition
| The project-specific gathering and analysis of data on a global basis or in one or more markets outside the home country |
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Term
| Global Market Segmentation |
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Definition
| The process of identifying specific segments of potential customers with homogeneous attributes who are likely to exhibit similar buying behavior irrespective of their country of residence |
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Term
| Global Strategic Partnerships (GSPs) |
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Definition
| A sophisticated market entry strategy via an alliance with one or more busines partners for the purpose of serving the global market |
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Term
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Definition
| A global market segment comprised of persons 12 to 19 years old whose shared interest in fashion, music, and youth lifestyle issues shapes purchase behavior |
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Term
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Definition
A market entry strategy that entails foreign direct investment in a factory, retail outlet, or some other form of new operations in a target country.
*Also known as "Greenfield Operations" |
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Term
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Definition
| A system in which importers and exporters have to determine the correct classification number for a given product or service that will cross borders |
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Term
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Definition
| A strategy framework developed by Richard D'Aveni that views competition and the quest for competitive advantage in terms of the dynamic maneuvering and strategic interactions of firms in an industry |
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Term
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Definition
| A market in which demand will materialize if particular economic, political, or sociocultural trends continue |
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Term
| Information Technology (IT) |
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Definition
| An organization's processes for creating, storing, exchanging, using, and managing information |
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Term
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Definition
| An electronic system that allows authorized company personnel or outsiders to share information electronically in a secure fashion while reducing the amount of paper generated |
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Term
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Definition
| A market entry strategy in which two companies share ownership of a newly created business entity |
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Term
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Definition
| In Japan, an enterprise alliance consisting of businesses that are joined together in mutually reinforcing ways |
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Term
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Definition
| An undiscovered market segment in which demand for a product would materialize if an appropriate product were offered |
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Term
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Definition
| A payment method in export/import in which a bank substitutes its creditworthinesss for that of the buyer |
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Term
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Definition
| A contractual market entry strategy whereby one company makes an asset available to another company in exchange for royalties or some other form of compensation |
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Term
| Local Consumer Culture Positioning (LCCP) |
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Definition
| A positioning strategy that seeks to differentiate a product, brand, or company in terms of its association with local culture, local production, or local consumption |
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Term
| Management Information System (MIS) |
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Definition
| A system that provides managers and other decision makers with a continuous flow of information about company operations |
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Term
| Manufacturer's Export Agent (MEA) |
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Definition
| one who can act as an export distributor or as an export commission representative |
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Term
| Market Expansion Strategy |
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Definition
| The particular combination of product-market and geographic alternatives that management chooses when expanding company operations outside the home country |
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Term
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Definition
| The projct-specific, systematic gathering of data in the search scanning mode |
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Term
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Definition
| Key elements or factors that must be taken into account when evaluating countries as potential target markets |
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Term
| Multidimensional Scaling (MDS) |
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Definition
In market research, a quantitative data analysis technique that can be used to create perceptual maps.
- MDS helps maarketers gain insights into consumer perceptions when a large number of products or brands are available |
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Term
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Definition
| A marketing strategy that entails targeting two or more distinct market segments with multiple marketing mix offerings |
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Term
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Definition
The fourth determinant of a national "diamond"
- Local conditions affect firms strategies
- Low rivalry makes an industry attractive, however, local rivalry is better because it puts more pressure on firms to innovate and improve
- Local rivalry forces firms to move beyond basic advantages that the home country may enjoy, such as low factor costs
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Term
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Definition
| A single segment of the global market |
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Term
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Definition
| Any restriction besides taxation that restricts or prevents the flow of goods across borders, ranging from "buy local" campaigns to bureaucratic obstacles that make it difficult for companies to gain access to some individual country and regional markets |
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Term
| Normal Trade Relations (NTR) |
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Definition
| A trading stratus under WTO rules that entitles a country to low tariff rates |
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Term
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Definition
| A method of primary data collection using trained observers who watch and record the behavior of actual or prospective customers |
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Term
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Definition
Shifiting jobs or work assignments to another company to cut costs.
- When the work moves abroad to a low-wage country, such as India or China, the term "Offshoring" is sometimes used |
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Term
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Definition
| Primary data collection via interactive communication (e.g., face-to-face, telephone, etc) that allows interviewers to ask "why"-type questions |
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Term
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Definition
| The act of differentiating a product or brand in the minds of customers or prospects relative to competing products or brands |
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Term
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Definition
A document that sets an export/import transaction into motion.
- The document specifies the amount and the means by which an exporter wants to be paid; it also specifies the items to be purchased |
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Term
| Psychographic Segmentation |
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Definition
| The process of assigning people to market segments on the basis of their attitudes, interests, opinions, and lifestyles |
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Term
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Definition
| Government-imposed limit or restriction on the number of units or the total value of a particular product or product category that can be imported |
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Term
| Related and Supporting Industries |
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Definition
| - Based on contact and coordination in the home country with the suppliers which in turn gives advantage over other global companies trying to compete in there markets. |
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Term
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Definition
- "The degree to which firms respond to competitive moves of the other firms in the industry"
- Two principles are particularly important:
1. a powerful competitive strategy used by one company intensifies competitive pressures on the other companies
2. the manner in which rivals employ various competitive weapons to try to outmanoeuvre on another shapes "the rules of competition" in the industry and determines the requirements for competitve success |
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Term
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Definition
| Existing data in personal files, published sources, and databases |
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Term
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Definition
| A schedule of duties in which the rate applies to imports from all countries on the same basis; the simplest type of tariff |
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Term
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Definition
| A strategic decision that determines whether a company makes a product itself or buys products from other manufacturers as well as where it makes or buys |
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Term
| Special Economic Zones (SEZ) |
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Definition
| A geographic entity that offers manufacturers simplified customs procedures, operational flexibility, and a general environment of relaxed regulations |
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Term
| Standardized Global Marketing |
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Definition
| A target market strategy that calls for creating the same marketing mix for a broad mass market of potential buyers |
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Term
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Definition
| A partnership among two or more firms created to minimize risk while maximizing leverage in the marketplace |
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Term
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Definition
| A competitive advantage framework developed by strategy experts Gary Hamel and C.K. Prahalad |
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Term
| Strategic International Alliances |
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Definition
- Also known as 'Strategic Alliances' or 'Global Strategic Partnerships'
- frequently used to refer to linkages between companies from different countries to jointly pursue a common goal |
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Term
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Definition
The differences in management styles, organizational skills, and strategic perspectives that help to create advantages and disadvantages for firms in different types of industries
- Managers who come from technical backgrounds need to maximize the proper structure |
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Term
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Definition
| Direct or indirect financial contributions or incentives that benefit producers |
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Term
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Definition
- Comprises from 5-20% of the populations
- Consists of persons who have achieved professional and material success while maintaining commitment to abstract or socially responsible ideals |
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Term
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Definition
| Primary data collection via questionnaire-based studies designed to generate qualitative responses, quantitative responses, or both |
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Term
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Definition
| The process of evaluating market segments and focusing marketing efforts on a country, region, or group of people |
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Term
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Definition
| The rules, rate schedules (duties), and regulations of individual countries affecting goods that are imported |
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Term
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Definition
| A state- or federally sponsored show outside the home country organized around a product, a group of products, an industry, or an activity at which company personnel can learn about new markets as well as competitors |
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Term
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Definition
| A gathering of company representatives organized around a product, a group of products, or an industry, at which company personnel can meet with prospective customers and gather competitor intelligence |
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Term
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Definition
- A customs tariff schedule with two columns of rates, one for preferred trading partners and one for imports from others
Example: Column 1 includes "general" duties plus "special" duties indicating reduced rates determined by tariff negotiations with other countries |
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Term
'The Nature of Global Strategic Partnerships'
(Strategic Alliances)
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Definition
Three characteristics:
1. The participants remain independent subsequent to the formation of the alliance
2. The participants share the benefits of the alliance as well as control over the performance of assigned tasks
3. The participants make ongoing contributions in technology, products, and other key strategic areas
*The upward trend for GSPs comes in part at the expense of traditional cross-border mergers and acquisitions |
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Term
External Variable for national competitive advantage: "Chance"
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Definition
- Play a role in shaping the competitive environment
- These are occurences that are beyond the control of the firms, industries, and usually governments
- Examples: war and their aftermath, technological breathroughs' sudden dramatic shifts in a factor or input cost (an oil crisis), dramatic swings in exchange rates |
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Term
External Variable for national competitive advantage "Government"
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Definition
- Influence on determinants
- This influences determinants by virtue of its role as a buyer of products and services and by its role as a maker of policies on:
> Labor
> Education
> Capital Formation
> Natural Resources
> Product Standards
- Also influences determinants by its role as a regulator of commerce (telling banks and telephone companies what they can and cannot do)
- Devise legal systems that influence compeitive advantage by means of tariffs and nontariff barriers and laws requiring local content and labor
*It can basically improve or lessen competitve advantage, but it cannot create it* |
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Term
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Definition
| - A group of firms that produce products that are close substitutes for each other |
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