Term
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Definition
| Refers to the process of by which goods, services, capitol, people, information, and ideas flow across national borders |
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Term
| Globalization of Production(offshoring) |
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Definition
| The manufacturers procurement of goods and services from around the globe to take advantage of national differences in the cost and quality of various factors of production |
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Term
General Agreement on Tariffs and Trade
(GATT) |
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Definition
| purpose of GATT is to lower trade barriers, such as high tarrifs on imported goods and restrictions on the number and types of imported products that inhibited flow of goods across borders |
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Term
World Trade Organization
(WOT)
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Definition
-established organization in Geneva
-only international organization dealing with global rules of trade among nations
- trade flow is smooth and predictable |
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Term
International Monetary Fund
(IMF) |
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Definition
- conceived in 1944
- Primary objective of IMF is to promote international monetary cooperation and facilitate the expansion and growth of international trade |
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Term
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Definition
| Dedicated to fighting poverty and improving the living standards of people in the developing world |
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Term
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Definition
| - Four sets of criteria necessary to assess a country's market: Economic analysis, Infrastructure and technological analysis, Government actions or inactions, sociocultural analysis |
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Term
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Definition
A country imports more goods than it exports
- This defecit can signal the greater potential for greater competition at home from foreign producers
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Term
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Definition
Higher level of exports than imports
- Signals a greater opportunity to export products to more markets |
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Term
Gross Domestic Product
(GDP) |
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Definition
The market value of goods and services produced by a country in a year
- Most widely used of the metric analysis methods |
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Term
Gross National Income
(GNI)
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Definition
Consists of GDP plus the net income earned from investments abroad
- U.S. firms that invest or maintain operations abroad count thier income from those operations in the GNI but not the GDP |
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Term
Purchasing Power Parity
(PPP) |
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Definition
| A theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in another if expressed in the same currency |
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Term
Human Development Index
(HDI) |
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Definition
A composite metric of three indicators of the quality of life in different countries
- Life expectancy at birth, educational attainment, whether average incomes are sufficient enough to meet the basic needs of life |
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Term
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Definition
| -Firms can make adjustments to an existing product or change the price to meet the unique needs of a particular country market |
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Term
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Definition
| The basic facilities, services, and installations needed for a community or society to function: Transportation and communication systems, water and power lines, and public institutions |
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Term
Tariffs
(also called a duty) |
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Definition
A tax levied on a good imported into a country
-Tariffs are intended to make imported goods more expensive and thus less competitive with domestic products |
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Term
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Definition
-Antidumping laws are utilized to protect domestic companies against foreign competition
- occurs when a foreign producer sells its offering in a foreign market at a price less than its production cost to gain market share |
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Term
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Definition
| Designates the maximum quantity of a product that may be brought into a country during a specific time period |
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Term
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Definition
| Pertains to a group's refusal to deal commercialy with some organization to protest against its policies |
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Term
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Definition
| The regulation of a country's currencey exchange rate |
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Term
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Definition
| The measure of how much one currecny is worth in relation to another |
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Term
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Definition
An intergovernmental agreement designed to manage and promote trade activities for a specific region. Major trade agreements: European Union(EU),North American Free Trade Agreement(NAFTA), CAFTA
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Term
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Definition
| A trading bloc consists of those countries that have signed the particular trade agreement |
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Term
| Cultures Impact on Marketing |
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Definition
| Culture is crucial to the success of any global marketing initiative |
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Term
| Geert Hofstede's 5 Dimensions of cultural differences |
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Definition
1. Power Distance - Willingness to accept social inequality as natural
2. Uncertainty avoidance - extent to which the society relies on orderliness, consistency, structure, and formalized procedures
3. Individualism - percieved obligation to and dependence on groups
4. Masculinity - extent to which dominant values are male oriented
5. Time Orientation - short versus long term orientation values |
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Term
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Definition
| Export, Franchising, Strategic Alliance, Joint Venture, Direct Investment |
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Term
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Definition
| Producing goods in one country and selling them in another |
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Term
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Definition
A contractual agreement between a firm, the franchisor, and another firm or idividual, the franchisee
- Franchising contract allows the franchise to operate a business |
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Term
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Definition
| Collaborative relationships between independent firms, though the partnering firms do not create an equity partnership; they do not invest in one another |
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Term
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Definition
| Forms when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared |
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Term
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Definition
| Requires a firm to maintain 100 percent ownership of its plants, operation facilities, and offices in a foreign country, often throughout the formation of wholly owned subsidiaries |
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Term
STP Analysis
(Segmentation, Targeting, and Positioning Process) |
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Definition
Step 1: Strategy or objectives
Step 2: Segmentation Methods
Step 3: Evaluate segment attractiveness
Step 4: Select target market
Step 5: Identifying and develop positioning strategy |
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Term
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Definition
| Groups consumers according to easily measured, objective characteristics such as age, gender, income, and education |
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Term
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Definition
| Studies how people self select, as it were, based on the characteristic of how they choose to occupy their time and what underlying psychological reasons determine their choices |
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Term
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Definition
| Are goals for life, not just the goals one wants to accomplish in a day |
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Term
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Definition
| The image people ideally have of themselves |
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Term
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Definition
| Third component of people's psychographic makeup, lifestyles are how we live our lives to achieve goals |
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Term
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Definition
| Enables firms to identify target segments and their underlying motivations |
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Term
| Geodemographic Segmentation |
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Definition
| Uses a combination of gepgraphic, demographic, and lifestyle characteristics to classify consumers |
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Term
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Definition
| Groups consumers on the basis of the benefits they derive from products or services |
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Term
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Definition
Divides customers into groups based on how they use the product or service. Some common behavioral measures include occasion and loyalty
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Term
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Definition
| Behavioral segmentation based on when a product or service is purchased or consumed |
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Term
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Definition
| When companies invest in retention and loyalty initatives to retain their most profitable customers |
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Term
| Evaluate Segmentation Attractiveness |
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Definition
| Third step in the segmentation process by identifying if the segment is: Identifiable, substantial, reachable, responsive, and profitable |
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Term
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Definition
| Firms must be able to identify who is within their market to be able to design products or services to meet thier needs |
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Term
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Definition
| Once firm has identified it potential markets, it needs to measure their size. If a market is to small or its buying power insignificant, it wont generate sufficient profits or be able to support the marketing mix opportunities |
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Term
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Definition
| The best product or service cannot have any impact, no matter how identifiable or substantial the target market is, if that market cannot be reached through persuasive communications and product distribution |
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Term
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Definition
| Customers in the segment must react similarly and positively to the firms offering |
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Term
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Definition
| Marketers must also focus their assessments on the potential profitability of each segment, both current and future. |
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Term
| Undifferentiated Target Strategy |
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Definition
| Strategy focuses on the similarities in needs of the customers as opposed to the differences |
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Term
| Differential Target Strategy |
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Definition
| Firms target several market segments with a different offering for each |
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Term
| Concentrated Targeting Strategy |
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Definition
| When an organization selects a single, primary target market and focuses all its energies on providing a product to fit that markets needs |
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Term
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Definition
| When a firm tailors a product or service to suit an individuals customers wants and needs |
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Term
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Definition
| Firms position products and services based on different methods such as the value proposition, salient attributes, symbols, and competition |
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Term
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Definition
| The unique value that a product or service provides to its customers, and how it is better than and different from those of competitors |
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Term
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Definition
| Displays, in two or more dimensions, the position of products or brands in a consumers mind |
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Term
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Definition
| Where a particular market segments ideal product would lie on the map |
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Term
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Definition
| A key prerequisite to successful decision making. Set of techniques and principles for systematically collecting, recording, and analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas |
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Term
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Definition
| Pieces of information that have been collected prior to the start of the focal research project |
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Term
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Definition
| Data collected to address specific research needs |
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Term
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Definition
| Can be quickly accessed at relatively low costs. This data may help you determine the size of your potential market |
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Term
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Definition
| External secondary data which can be available for a fee from commercial research firms |
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Term
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Definition
| Used in quantative research obtained from scanner readings of UPC codes at check out counters |
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Term
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Definition
| Information collected from a group of consumers that is, the panel, over time |
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Term
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Definition
| Generated from day to day operations and one of the most valuable resources a firm has at their disposal is their rich cache of customer information and purchase history |
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Term
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Definition
| Uses a variety of statistical analysis tools to uncover previously unknown patterns in the data or relationships among variables |
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Term
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Definition
| Attempts to begin to understand the phenomenom of interest; it also provides initial information that helps the reseracher more clearly formulate the research objectives |
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Term
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Definition
| Provides information needed to confirm those insights and which managers can use to pursue appropriate courses of action |
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Term
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Definition
| Entails examining purchase and consumption behavior through personal or video camera scrutiny |
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Term
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Definition
| Social Media Sites are a booming source of data for marketers |
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Term
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Definition
| By Providing good customer service, firms add value to their products and services |
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Term
| Economic Importance of Service |
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Definition
- Household maintenance became more specialized
- High value placed on convenience and leisure
- Production was cheaper in other countries |
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Term
Services Marketing Differs from Product Making
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Definition
- Services are intangible
- Parishable (just go away)
- Inseperable
- Variable (will change from day to day) |
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