Global Marketing Troy University Test 1 – Flashcards
Unlock all answers in this set
Unlock answersquestion
Domestic Marketing
answer
marketing activities within a country's national borders
question
International Marketing
answer
Marketing activities in more than one country
question
Global Marketing
answer
the integration and control of marketing activities on a global basis
question
The idea that world markets are converging (becoming similar) due to popular global culture defines what
answer
Global Marketing
question
CAGE Framework
answer
Cultural Differences, Administrative Distance, Geographic Distance, Economic Distance
question
Advantages of participating in global marketing
answer
reach a higher number of customers, promote world peace, find production inputs, find low cost production locations, acquire new technologies and production processes, form strategic alliances, it is a counter attack strategy, improve consumer's quality of life
question
Drivers of globalization
answer
rapid growth of WTO and regional integrations, acceptance of the free market system, impact of the internet, desire to manage global resources, increasingly mobile workforce, growth of global transportation and business logistics systems
question
Why are emerging market multinationals more likely to deliver products for the lowest price?
answer
They have favorable market conditions
question
What leads to innovation?
answer
The identification of local preferences
question
What does globalization reduce?
answer
National Sovereignty
question
What are the 3 main drivers of globalization?
answer
firm's strategic imperatives, environmental changes, political conditions
question
CULTURAL definition of globalization
answer
westernization
question
FINANCIALLY the definition of globalization is
answer
the efficient allocation of global financial resources
question
TECHNOLOGICALLY the definition of globalization is
answer
the facilitation of access to global information
question
EDUCATIONALLY the definition of globalization is
answer
the mobility of labor and intellectual capacity
question
ECONOMICALLY the definition of globalization is
answer
economic growth and poverty reduction
question
Why is India important?
answer
It currently plays a large role in information technology innovation and major US multi-nationalists rely on Indian employees to design software platforms and next generation features
question
MARKETING definition of global marketing
answer
a marketing strategy that consciously addresses global customers, markets, and competition in formulating a business strategy
question
CONSUMER BEHAVIOR definition of global marketing
answer
an approach to international strategy that argues for marketing a product in essentially the same way everywhere in the world
question
GloCal Strategy
answer
Think globally, act locally
question
Asian Tiger Countries
answer
Singapore, South Korea, Hong Kong, Taiwan, and China
question
EPRG Management Orientations
answer
Regiocentric, Ethnocentric, Geocentric, Polycentric
question
What are the key Marketing concepts for developing/emerging countries?
answer
Affordability and Availability/Accessibility
question
4 A's of Marketing
answer
Accessibility/Availability, Affordability, Acceptability, Awareness
question
What is the most important factor of the Macro-Global Environment?
answer
Political Stability
question
Who is the number one exporter in trade volume? #2?
answer
China, US
question
Define Balance of Trade
answer
Difference between export and import of goods and services
question
Define Balance of Payments
answer
Flow of cash between domestic country and all other foreign countries (includes not only import and export of goods and services but also financial capital transfer)
question
What does global marketing require?
answer
Requires the coordination and integration of products, marketing, and other functional activities across countries
question
What does IMF stand for?
answer
International Monetary Fund
question
Michael Porter's 5 Factors that Shape Industrial Competition
answer
consumer power, supplier power, industry rivalry, threat of entry, substitutes
question
What does GNH stand for? What is it's downfall?
answer
Gross National Happiness; it is hard to measure and it is subjective (depends on personality, pessimism, and optimism)
question
Absolute advantage
answer
each country should specialize in the production and export of the product that it produces most efficiently; should procude that and trade for the rest
question
comparative advantage
answer
produce what is relatively more efficient
question
Describe a market economic system
answer
emphasizes growth and prosperity, minimizes social interactions and relationships
question
In a market economy who decides what is produced?
answer
CONSUMERS
question
BRIC Countries
answer
Brazil, Russia, India, China
question
What does the color red imply?
answer
Australian- land, earth Celtic-death, afterlife China- good luck, celebration India- purity South Africa- mourning Russia - Communism North America - Danger, love, passion, excitement Middle East - luck, good fortune
question
What does the color black imply?
answer
Australia - color of the people China - young boys Thailand - bad luck, unhappiness, evil US/Europe: mourning, death Nigeria - ominous
question
Does US has a feminine or masculine culture?
answer
Feminine
question
What are Hofstede's Dimensions?
answer
Power Distance Uncertainty Avoidance Masculine vs. Feminine Time Orientation Individual vs. Collectivism
question
Trompenaar's Dimensions Definition:
answer
each culture has its own way of thinking, its own values and beliefs, and difference preferences based on a variety of different factors
question
What are Trompenaar's Dimensions
answer
Universalism vs. Particularism Individualism vs. Communitarianism Specific vs. Diffuse Neutral vs. Emotional Achievement vs. Ascription Sequential time vs. synchronous time Internal Direction vs. outer direction
question
Cultural Friction Definition
answer
Organizations may choose different forms of market entry modes, where join ventures or mergers are likely to create higher friction that export based forms of entry; however, higher friction may not automatcially be detrimental but could also result in new businesses and strategies
question
What time of time orientation does Japan have?
answer
Dichromic In technology and foreign dealings they are monochronic In personal relations they are polychronic
question
What are some facts about India's population?
answer
It has over one billion people; income is polarized, 60% live on less than two dollars a day
question
Only 30 percent of the world's GDP is generated in countries governed by which type of law system?
answer
Civil and common
question
How long can trademarks be renewed for?
answer
Forever so long as they are being used
question
What is a company's most valuable asset?
answer
Trademark
question
What is included in intellectual property?
answer
Trade Secrets Copyrights Trademarks Patents
question
What is the Madrid Agreement?
answer
Administered by the WIPO; one stop registration for trademarks; makes them valid in all participating countries for 10 years
question
Definition of patent
answer
form of protection that provides a person or legal entity with exclusive rights for making, using, or selling a concept or invention and excludes other from doing the same for its duration; max is years
question
Where is software piracy an endemic?
answer
Emerging economies
question
What are the three ways to handle disputes
answer
litigation arbitration mediation/conciliation
question
What are the downsides of litigation
answer
costly takes time bad public relations collecting award is difficult
question
Mediation/conciliation
answer
not enforceable but good for long term relationship
question
Arbitration
answer
dispute settled by professionals in the industry, less expensive, more efficient, decision is enforceable
question
What power does the World Trade Organzation hold
answer
They have sanctions power; can tell the rest of the world not to trade with you
question
What is the best advice for global manufacturing companies?
answer
Achieve ISO 9000 certification
question
What are the qualifications for ISO 9000 certification
answer
top management commitment to quality employee competence processes (production) management Quality planning (TQM system)
question
What are the three components of terrorism risk?
answer
1 )threat to target 2) target's vulnerability 3) consequences of successful attack
question
How do you manage political risk?
answer
1. buy insurance 2. domestication 3. do good things
question
Domestication
answer
sharing ownership with locals; allows your stuff to not be taken
question
The internet contributes to...
answer
GDP
question
Globalization is driven by (one thing)...
answer
international trade and made possible by technology
question
Gloablization definition
answer
the trend toward a single integrated and independent world
question
Pax Romana
answer
Roman Peace in Italy
question
Pax Americana
answer
After WWII, winning countries promoted world trade
question
What does emporia and emporoi mean?
answer
Greek words for trade and merchants
question
What does globalization mean to political scientists?
answer
reduction in national sovereignty
question
Who coined the term "global village"?
answer
Marshall McLuhan
question
Who said the world was flat?
answer
Thomas Friedman
question
Why is cultural protectionism more difficult?
answer
the creation of the internet
question
What is a negative of financial globalization?
answer
interconnections of world financial markets may also increase exposure to real shocks and eventually large-scale economic disruptions
question
What is the major controversy regarding economic globalization?
answer
the question of whether or not it reduces poverty; the surest way to reduce poverty is to increase economic growth
question
The worldwide integration of marketing activities has resulted in the development of ....
answer
global products and brands and global communications and distribution strategies; but even these strategies need to account for some local experiences
question
What ares some trends in globalization?
answer
Economic growth of pacific rim countries (asian tigers) Capitalism in socialist countries Women becoming leaders Growth in biotechnology Similarities in individual lifestyles
question
What is the most efficient method of production?
answer
Free Market System
question
What percent of fortune companies have women at the top?
answer
5%
question
What are some paradoxes in globalization?
answer
rich versus poor power vs. fragility Media overload vs. fragmentation of media
question
How can small business or people compete globally?
answer
They find niche markets
question
The four Ps of marketing
answer
product place price promotion
question
What strategy is used in a polyentric orientation?
answer
decentralized market approach and design markeing strategy for each market individually
question
What strategy is used in a geocentric orientation?
answer
identify common denominator between markets and standardize as much as possible
question
What strategy is used in a regiocentric orientation?
answer
Benefit from similarities between countries and use the same marketing strategy for several of them
question
What strategies are used in an ethnocentric orientation?
answer
Simply export whatever you are producing and doing at home
question
Who is Adams Smith?
answer
The father of modern economics; wrote "The Wealth of the Nation"; responsible for absolute advantage
question
Transnational Strategy definition
answer
companies integrate aspects of learning, innovation and knowledge development; use a strategy in forign countries that exploits lovation economies, leberages core competencies, and respons to key local conditiions
question
How is value created in a transnational strategy?
answer
created by the relentless renewal, enhancement, and exchange of ideas, products, processes across functions and borders
question
What are the components of the Macro-Global Environment?
answer
PESTEL Political stability Economic factors Social factors Technological factors Environmental factors Legal Factors
question
If imports are greater than exports what does that create?
answer
trade defecit
question
If imports are less than imports what occurs?
answer
trade surplus
question
Who is the largest exporter of services?
answer
US
question
What are the three main categories of balance of payments
answer
current account (inflow and outflow of goods and services) capital account (deals with capital trade) financial account (deals with bonds, real estate, stocks)
question
What does the world bank do?
answer
Helps countries facilitate trade
question
What did David Ricardo develop?
answer
Comparative advantage
question
Who developed new trade theory?
answer
Paul Krugman; won a Nobel peace prize, economies of scale can be so significant they can outweigh the traditional theory of comparative
question
What are the four basic economies?
answer
Traditional Market Command Mixed
question
Many developing economies have what type of economic system?
answer
Mixed
question
What country has a large gap between the rich and the poor?
answer
Philippines
question
Green Economy
answer
environmentally friendly production system; sussstainable production system
question
sustainability
answer
you do not deplete resources or pollute the environment
question
In what category does supply determine demand?
answer
high technology markets
question
Electronics are...
answer
production oriented while most are consumer oriented
question
How do you reduce the risk of market failure for high-tech products
answer
1. determine whether first mover advantage is necessary 2. rethink the value of market research before launching the product 3. target the market carefully; exploit innovators and early adopters
question
The green economy seeks to optimize the synergy among the three sets of values
answer
people (social) planet (environmental) profit (financial)Tr
question
What are the two segments of the green economy?
answer
True Believers Enlightened Environmentalists (more focused on preserving the environment)
question
What are the managerial guidelines and policy implications for improving the profitability of green products
answer
overcome apathy (emphasize positive aspects) provide info (need to be authentically educated) distinguish benefit (position product as more than just green) balance price and equity (green products need to perform at least as good as other products; determine elasticity) public policy (incentive green living )
question
What is a major failture of businesses?
answer
Ignoring cultural differences
question
Two types of culture
answer
deep culture (unseen) surface culture (seen)
question
What is the national character of the US
answer
materialism industry haste informality
question
What are the dimensions of the Schwartz Value Survey
answer
Openness to Change Self transcendence Conservation Self enhancement (this is used to study consumer behavior for segmentation and advertising)
question
GLOBE Model
answer
Includes 61 nations grouped into 10 clusters uncertainty avoidance power distance societal collectivism gender egalitarianism assertiveness future orientation performance orientation humane orientation
question
What measures cultural distance
answer
Kogurt/Singh Index 1. cultural distance 2. cultural diversity 3. cultural friction 4. cultural positions
question
Chinese customers rely heavily on ____ for information
answer
advertisements
question
Values
answer
Moral principles and beliefs important to a society
question
ritual
answer
behaviors that are learned and repeated regularly
question
symbols
answer
objects that represent ideas important to a society
question
what are the three levels of international cultural behaviors
answer
cultural imperative (must) cultural elective (choice) culture exclusive (DON'T)
question
Products are purchased within a....
answer
cultural context
question
Culture
answer
the sum of the values, rituals, symbols, beliefs, and thought processes that are learned, shared by a group of people, and is transmitted from generation to generation
question
Five types of world legal systems
answer
code common civil Islamic socialist tenants
question
What principle is intellectual proptery law based on?
answer
principle of territoriality
question
Are there any worldwide enforceable laws
answer
no
question
what kind of law does most of the world have
answer
code law
question
what cannot you not do in Islamic countries
answer
charge interest
question
What are the Marxist social tennants
answer
any laws are created to improve the government; public government above private rights; tenets are strictly subordinate to prevailing economic conditions
question
What was the problem with GATT?
answer
1. protectionism of markets 2. services not included in agreement 3. no enforceable power
question
What did the WTO do?
answer
World Trade Organization replace GATT; fixed problems, has sactions power
question
What are the types of political risk?
answer
1. confiscation; seizure of compnay assets without payment 2. expropriation: seizure of company assets with payment (nationalization) 3. domestication: government requires the MNC to settle business ownership with local investors
question
Does US has a feminine or masculine culture?
answer
Feminine
