Session:7 Marketing in a Global Environment
Key Terms
Principles of Marketing | Leadership Development – Micro-Learning Session
Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/principles-marketing
- adapted global marketing strategy
- a strategy in which a company utilizes different marketing strategies in different global markets
- business landscape
- everything internal and external to the business, its industry, and its environment
- consumer income
- the amount of money a household or individual earns
- cultural sensitivity
- awareness and appreciation of and the ability to adapt to a cultural, ethnic, racial, or another group other than one’s own
- cultural symbols
- physical representations of a culture’s language, values, and traditions
- cultural values
- unspoken aesthetics, socialization, and religious aspects woven throughout a culture
- customs
- mannerisms or behaviors that are considered characteristics within a social system
- discretionary income
- the money individuals and households are left with after paying taxes and other living expenses, such as food and shelter
- disposable income
- the money individuals and households are left with after paying taxes
- dumping
- the practice in which a company manufactures a very large of number of goods and exports them to a foreign market to see cheaply
- economic infrastructure
- the physical facilities of an economy that benefit product and distribution
- embargoes
- trading bans on a product with a specific country; imposed between countries that have different political ideologies
- ethnocentrism
- an assumption that the business landscape or culture of an international market is the same as the home country or personal culture
- exchange rate
- the rate at which one country’s currency can be exchanged for that of another country
- exporting
- when a firm makes a product or service in one country and sells it in others
- foreign direct investment (FDI)
- the process of establishing operations within a foreign country
- franchising
- a business strategy in which the owner (the franchisor) allows another person or entity (the franchisee) to operate a business using the franchisor’s products, branding, and knowledge in exchange for a fee
- global market opportunities
- conditions that are favorable for a company to expand into the global marketplace
- international firm
- a company that operates on a global level regardless of intensity of involvement
- joint venture
- a business arrangement whereby two or more companies create a single enterprise or project
- licensing
- a contract in which one organization permits another to use its name brand or trademark on its own items
- lifestyle
- the way a person or group lives
- outsourcing
- the process of moving some of a business’s operations to a foreign country for the purpose of saving money and time or to increase volume and quality
- product adaptation
- when companies modify products to align with the local culture
- product invention
- when companies create entirely new products for a global market
- purchasing power
- the goods that can be purchased with one unit of currency
- quotas
- maximum allowable units (usually in currency) to be imported into or exported out of a specific country
- risk
- any situation or condition that leads a company to decreased profits or even failure
- sociocultural factors
- values, behaviors, culture, lifestyle, and language that shape a person’s or group’s way of living
- standardized global marketing strategy
- a strategy in which a company uses the same marketing strategy in all markets
- stereotypes
- oversimplified images, perceptions, or ideas of a person or group
- straight product extension
- a strategy that entails maintaining the same product for both the home and foreign markets
- strategic alliance
- when two companies from different countries agree to invest resources in a mutually beneficial way
- tariffs
- taxes that governments impose on imports into the country
- trade blocs
- intergovernmental agreements that remove barriers to trade within regions of the world
- transnational firm
- a company that allows for a higher degree of localization
- whole channel
- the design of the international channels that incorporates all members, including the manufacturing, retailer, and wholesaler sites as well as transportation