MGKT Chapter 5 Global something...

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MGKT Chapter 5 Global something...
2011-06-29 12:16:17

terms and important info from slides
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  1. Having a global vision means…
    • Recognizing and reacting to international marketing opportunities
    • Using effective global marketing strategies
    • Being aware of threats from foreign competitors
  2. Benefits of Globalization
    • Expands economic freedom
    • Spurs competition
    • Raises productivity and living standards
    • Offers access to foreign capital, global export markets, and advanced technology
    • Promotes higher labor and environmental standards
    • Acts as a check on government power
  3. Stages of Global Business Development
    • Companies operate in one country and sell into others
    • Set up foreign subsidiaries to handle sales
    • Operate an entire line of business in another country
    • Virtual operation
  4. Global Marketing Standardization
    Production of uniform products that can be sold the same way all over the world.
  5. External Environment Facing Global Marketers
    • Culture
    • Natural Resources
    • Economic and Technological Development
    • Political Structure
    • Demographic Makeup
  6. Culture
    The common set of values shared by its citizens that determine what is socially acceptable.
  7. Economic and Technological Development in a Developed Country
    Complex, sophisticated industries
  8. Economic and Technological Development in a Less Developed Country
    Basic industries
  9. Tariff
    A tax levied on goods entering a country
  10. Quota
    Limit on the amount of a product entering a country
  11. Boycott
    Exclusion of products from a country
  12. Exchange Control
    Foreign exchange must be sold to a control agency
  13. Market Grouping
    Common trade alliance
  14. Trade Agreement
    An agreement to stimulate international trade
  15. Doha Round
    • Began in 2001
    • Highly contentious from the beginning
    • Failed in summer, 2008
    • First multilateral free trade act failure since WWI
    • Cost of Failure: $100 billion annually
  16. Agreements and Organizations
    • CAFTA
    • NAFTA
    • European Union
  17. Marketing Considerations:
    • Population density
    • Urban or rural
    • Personal income
    • Age
  18. Why “Go Global”?
    • Earn additional profits
    • Leverage a unique product or technological advantage
    • Possess exclusive market information
    • Saturated domestic markets
    • Excess capacity
    • Utilize “economies of scale
  19. Export
    Sell domestically produced products to buyers in other countries
  20. Licensing
    Legal process allowing use of manufacturing/patents /knowledge
  21. Contract Manufacturing
    Private-label manufacturing by a foreign country
  22. Joint Venture
    Domestic firm buys/joins a foreign company to create new entity
  23. Direct Investment
    Active ownership of a foreign company/manufacturing facility
  24. Buyer for Export
    Assumes all ownership risks and sells globally for its own account.
  25. Export Broker
    Plays the traditional broker’s role by bringing buyer and seller together.
  26. Export Agent
    Acts like a manufacturer’s agent for the exporter in the foreign market.
  27. Exchange Rates
    The price of one’s currency in terms of another country’s currency.
  28. Dumping
    • Trying to increase an overseas market share
    • Temporarily distributing products to overseas markets to offset slack demand at home
    • Lowering unit costs by exploiting large-scale production
    • Attempting to maintain stable prices during periods of exchange rate fluctuations
  29. Countertrade
    A form of trade in which all or part of the payment for goods or services is in the form of other goods or services.
  30. The Impact of the Internet
    • Opening an e-commerce site puts a company in the international marketplace
    • Internet Economy remains hindered by brick and mortar rules, regulations, and habits