Midterm Final Notes

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Marketing Exam-Chapter 7,9,10,11,12,13,14,16,17

Chapter 7-Reaching global markets

Countertrade: the practice of using barter rather than money for making global sales.

Trade feedback effect: a country’s imports affect its exports and exports affect its imports

(GDP) Gross Domestic Product: The monetary value of all goods and services produced in a country during a year

Balance of trade: the difference between the monetary value of a nation’s exports and imports

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

Tariff: a government tax on goods or services entering a country, which primarily serves to raise prices on imports.

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

Global competition: exists when firms originate, produce, and market their products, and services worldwide.

Strategic alliances: agreements among two of more independent firms that cooperate for the purpose of achieving common goals, such as a competitive advantage or customer value creation.

Multidomestic marketing strategy: Use of as many different product variations, brand names, and advertising programs as countries in which they do business.

Global marketing strategy: the practice of standardizing marketing activities when there are cultural similarities and adapting them when culture differs

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

Global consumers: consumer groups living in many countries or regions of the world that have similar needs or seek similar features and benefits from products or services

Cross-cultural analysis: involves the study of similarities and differences among consumer in two or more nations or societies.

Customs: norms and expectations about the way people do things in a specific country. Cultural symbols: things that represent ideas and concepts

Semiotics: The field of study that examines the correspondence between symbols and their role in the assignment or meaning for people

Back translation: retranslating a word or phrase into the original language by a different interpreter to catch errors

Consumer ethnocentrism: the tendency to believe that it is inappropriate, indeed immortal, to purchase a foreign-made product.

Bottom of the pyramid: The largest, but poorest social economic group of people in the world consisting of 4 billion people who reside in developing countries and live on a less than $2 per day

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

Currency exchange rate: the price of one country’s currency expressed in terms of another country’s currency.

Exporting: Producing goods in one country and selling them in another country

Licensing: Offering the right to a trademark, patent, trade secret, or other similarly valued items of intellectual property in return for a royalty or a fee

Joint venture: an arrangement in which foreign company and a local firm invest together to create a local business, sharing ownership, control, and profits of the new company.

Direct investment: a domestic firm actually investing in and owning a foreign subsidiary or division

Dumping: Occurs when a firm sells a product in a foreign country bellow its domestic price or below its actual cost.

Grey Market: a situation where products are sold through unauthorized channels of distribution.

Chapter 9-Market segmentation, targeting, and positioning

Market segmentation: the relatively homogeneous groups of prospective buyers that result from the market segmentation process.

Product differentiation: Strategy that involves a firm using different marketing mix...
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