Card Set Information

2012-09-20 21:27:48

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  1. What is global marketing?
    Individuals and organizations having a global vision to effectively market goods/services across national boundaries. 
  2. Importance of global marketing
    • 1. many countries depend on interantional commerce
    • 2. exports represent 13% of U.S. GDP
    • 3. one third of profits comes from int. trade
    • 4. exports create jobs for over 10 mill. Americans
  3. Downside of globalization
    job outsourcing

    loss of skill, technology & manufacturing facilities
  4. Benefits of globalization
    • expands economic freedom
    • raises poductivity and living standard of countries that open themselves to global trade
    • offers access to foreign investments and advanced technologies
    • breaks the monopoly of inefficient and protected domestic producers
    • promotes higher labor standards
    • faster growth, reduces poverty
    • encourages democratization
  5. Components of external environment facing global marketers
    • culture
    • economin & technological development
    • political & legal considerations
    • demographic makeup
    • natural resources
  6. Culture is...
    • ...common set of values shared by its citizens that determine what is socially acceptable.
    • It is present in family, education system, religion & the social class system.
    • It affects people's preferences
    • language and knowing the culture essential for business
  7. Economic factors for globalization are?
    • level of economic development
    • GNI per capita is a measure of citizens' ability to buy various goods/services.
    • also important the cost of doing business in a specific country.
  8. Political factors
    • political structure
    • government regulations
    • resurgin nationalism (some foreign-owned capital becomes taken by the government)
  9. Legal factors in globalization?
    • tariff (tax levied on goods that enter the country)
    • quota (limit on amount of goods imported)
    • trade agreement (an agree. to stimulate the trade)
    • market grouping (common trade alliance)
    • boycott (exclusion of certain products)
  10. Demographic makeup and globalization
    • population density
    • urban or rural
    • young vs. old
    • purchasing power, education
  11. Natural resources
    • Crucial factor due to shortage in natural recources.
    • differences create international dependencies
  12. Methods of entry (5) are?
    • EXPORT - sell domestically to other countries
    • LICENSING - legal process allowing use of product, patent & knowledge
    • CONTRACT MANUFACTURING - private label manufacturing by a foreign Co.
    • JOINT VENTURE - domestic Co buys or joins a foreign Co to create a new entity
    • DIRECT INVESTMENT - active ownership of a foregin Co or a manufact. facility
  13. Global marketing standardization vs. adaptation
    • Standardization - production of uniform products that can be sold the same way all over the world
    • Adaptation - implement some changes

                             same product          change product

    • same                   one                           product
    • message           product                     adaptation
    • message

    • change              product                      product
    • message         adaptation                   innovation