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Intl MKT test 1
Terms in this set (147)
Success in ________ _____ is engendered though understanding of how to apply knowledge in a marketplace.
Lack of market place (county/area/region) knowledge tends to lead to ___
Knows US market, industry, and have an understanding of his/her customers
However, it lacks an understanding of Mexican market, industry, and/or consumers.
Knows Mexican market, industry, and have an understanding of his/her customers
However, it lacks an understanding of USA market, industry, and/or consumers
What works for US consumers may not work for _____ consumers, including 4P's - that is, product, pricing, promotion, and placement.
Therefore, International Marketing (or business) teaches how to understand difference across markets and the effects that those differences may have on ____ ____ and/or tactics
_____ of Cultural Differences,
being globally aware is knowledgeable of ___ ___ ___ ___ ___, and their influence on the introduction and/or marketability of a given product/service in that market
culture, history, world market potential, global economic, social and political trends,
being globally aware is being ______ of: of the culture's verbal and non-verbal language and business customs used in negotiating and conducting international business .
is a key concept in international marketing.
A firm/international marketer deals with the environmental uncontrollable elements by either _____ the marketing mix (4P's) and or _______ the marketing mix (4P's
In foreign markets firms usually adapt _______, because of exchange rates and differences in consumer value perceptions, and adapt placement/distribution, because of the differences in infrastructure and/or retailing outlets.
however, firms can adapt/standardize the ___ and/or ___
Market _____ decisions (domestic or international) must be based on market's facts, such as information on industry, economy, culture and/or regulatory information
Marketer must assess the ____ and ____ (cross validation) of data used (primary or secondary). Secondary data is usually cross validated by using more than one secondary data source.
validity and reliabiliy
where the firm is based, for our purpose the US, because this is where we are
The _______-______ continuum states that firms may standardize (do exactly as in domestic market) marketing mix strategy (e.g., price penetration) and tactics (e.g., price) in a foreign market if foreign markets' environmental characteristics (economy, access, culture, etc.) are same (similar to) as domestic markets'.
Access, Buying behavior, consumption characteristics, disposal
Can consumers obtain ($ and transportation/placement) your product/service
How is the decision to buy made by consumers (price vs. quality, etc.
What factors impact consumption patterns (urban vs. rural, social class, etc.)?
What are the implications of product disposal?
Performance of business activities designed to
__ __ __ __ the flow of a company's goods and services to consumers or users in more than one nation for a profit
To have a positive influence on the firm's performance, including sales, margins, image, and profits, through the management of the 4P's.
What is expected of a marketer
International marketing research involves two complications:
Information must be communicated across cultural boundaries
The environments within which the research tools are applied are often different in foreign markets
Marketing ___ is traditionally defined as the systematic gathering, recording, and analyzing of data to provide information useful in marketing decision making
Companies most often begin with modest _____ involvement
A company has four different modes of foreign market entry from which to select:
Direct foreign investments
Control, as we are concerned, relates to the ability of the firm to ________ the marketing mix
From the firm's overall perspective, risk relates to the amount of ______ the firm makes (or is willing to make) to enter a foreign market.
understanding an international market ___ ____ understand the basis for your point of view (i.e. domestic market: US market, US industry, etc.)
Understanding an International market ____ ____: compare international market to domestic (US in our case) market to determine
4 steps to comparing domestic market to international market
A) environmental characteristics and differences
B)adaptations/standardizations of 4P's and strategies due to differences and/or risk
C) market potential
D) market feasibility
income distribution, affordability. (think about pricing of product and market's income)
international trade barriers, distribution system, infrastructure. (think of distribution, market's barriers to trade, ability of local customer to reach stores, availability of transportation, etc.).
Buying behavior affected by perceptions of: country of origin
buying behavior impacted by
brand loyalty/store loyalty
buying behavior impacted by
General attitudes toward marketing / consumerism
buying behavior impacted by
Deeper analysis of consumer psyche, e.g. impact of social norms. psychological orientation, etc.
Resale, recycling, and remanufacturing considerations (how old is your car - when you buy an appliance how long do you plan to keep it, what happens when it the car/appliance gets old?).
Social responsibility and environmental implications of _____ ____l.
Economic Development is economic growth (e.g., GDP growth) that translates into ________ (or greater individual consumption or wealth).
The ____ develop, the more consumption (due to more economic access); the less develop, the ___ consumption (due to less economic access):
The more developed an economy, the more ______ doing business/marketing would be.
The more developed, the more likely it has more ____ (economic and transportation).
The less developed, the more like to be less _____ (politically, etc.), including rule of law.
The less developed, the more likely it has different economic stages in different _____ of economy (top 10% similar to develop countries, 80% much less so) (e.g., China east vs. China west).
increase in production/consumption (increase in GDP).
Productivity growth greater than population growth leads to ______ _____ (greater consumption per capita or greater wealth).
Greater productivity does not mean better ___ ____
how large an economy is may determine whether manufacturing is required (size depends on GDP and population size
income/consumption (GDP/capita) - determines country economic access - can they afford it? Usually expressed in ppp basis:
Purchasing power parity
amount (in value and volume) of good trade with other countries.
Tend to suggest strength or dependency of a country (e.g., Saudi Arabia strength is oil reserves but also it's dependent on it - it's economy varies with price of oil).
_____ economies tend to export/import a variety of goods/services
amount (value and volume) of goods consumed.
Consumption distribution (called income distribution). Measured by
Top/bottom 10% and 80% (considered middle class) GDP/capita.
size (value/volume), growth, competitors, prices, substitutes, penetration (consumption per capita in volume and in value), etc.
based on value assigned to a given currency with other currencies by market and/or country (e.g., $1 to 12 pesos).
nominal exchange rate
based on long-termed equilibrium exchange rates based on relative price levels of two countries. It mimics what one is able to buy in a country if there were no exchange rate market distortions.
Purchasing Power Parity (ppp)
GINI index measures income distribution or gap between
_____ and _____ (scale from 0 to 1, with 0 being no income gap).
Middle 80% GDP/capita capture consumption of ______ class
_____ and ____ 10% GDP/capita captures consumption disparities between rich and poor.
measures all the products (goods & services) produced in a given country's borders (or all the consumption within a given country's borders) in a given year.
Gross Domestic Product (GDP
products produced or consumed in a country in a given year per person - measures average wealth of a person (or consumption) in a given country in a given year
GPD/capita in ppp top/bottom 10%: fomula
GDP in ppp (country)
% GDP control) / (Population (country)
perceptions affect _____ including ___
There is positive relationship between _____ ____ and economic growth
There is a positive relationship between _____ and economic growth
Population growth increases ______ growth.
_____ per capita increases if productivity growth is greater than population growth.
As the productive population ages, ______ productive population must take its place.
________ are invested in productive assets - local or foreign
_____ are purchased if return is comparable to risk; when local assets are not available, foreign assets are purchased.
Empowerment - such as market forces -
Economic growth does not depend on ________ goods but on making goods that consumers may want to purchase - read value.
International operations viewed as secondary
Prime motive is to market excess domestic production
Firm's orientation remains basically domestic
Minimal efforts are made to adapt product or marketing mix to foreign markets
Firms with this approach are classified as ethnocentric
domestic market orentation
Companies have a strong sense that foreign country markets are vastly different
Market success requires an almost independent program for each country
control is decentralized
Multidomestic market orientation
Products are ____ for each market in an multi domestic market orentation
Company guided by global marketing orientation
-Marketing activity is global
-Market coverage is the world
Firm develops a standardized marketing mix applicable across national boundaries
-Markets are still segmented
-Each country or region is considered side by side with a variety of other segmentation variables
-Fits the regiocentric or geocentric classifications
global market orentation
internation marketing is Performance of business activities designed to
direct the flow of a company's goods and services for more than one nation
____ allow nations to obtain resources and/or products that they may not have, produce, or cannot produce efficiently compared to other nations.
is the system of accounts that records a nation's international finance transactions.
balance of payments
A Balance of Payments statement includes three accounts:
account—a record of all merchandise exports, imports, and services plus unilateral transfers of funds;
account—a record of direct investment, portfolio investment, and short-term capital movements to and from countries;
account—a record of exports and imports of gold, increases or decreases in foreign exchange, and increases or decreases in liabilities to foreign central banks;
The reality of world trade is that countries protect their markets from foreign companies by setting up tariffs, quotas, and nontariff barriers.
Barriers to trade can take any of the following forms:
Legal (tariffs and quotas)
who loses in portectionism
Tariff Barriers tend to weaken
-International relations (they can start trade wars)
Tariff Barriers tend to restrict:
-Manufacturer' supply sources
-Choices available to consumers
3 types of monetary barriers
blocked currency, differential exchange rates
The key to successful international marketing is ____ to the ____ _____from one market to another
adaptation, environmental differences
2 main obstacles of international marketings
the unconscious reference to one's own cultural values, norms, experiences, and/or knowledge as a basis for decision making
Self-Reference Criterion (SRC)
_____ means, everyone has a set of glasses through which s/he see the world and makes decisions.
the notion that people in one's own company, culture, or country know best how to do things (or that one's culture or company knows best).
being globally aware means being _____ of cultural differences
unwillingness or refusal to recognize, respect and accept people who are different from you, or views, beliefs, or lifestyles that differ from your own. E.g., racial, cultural, or religious intolerance
You can have your own opinion but not your own ____ - creating your own facts is being intolerant.
Historical events always are viewed from one's own ____ and ____
A crucial element in understanding any nation's business and political culture is the ______ perception of its history (think Iran
is defined as a society's accepted basis for responding to external and internal events
Culture is the sum of the "values, rituals, symbols, beliefs, and thought processes that are learned, shared by a group of people, and transmitted from generation to generation."
It has also been defined as "the software of the mind."
culture (trad. def.)
Humans make adaptations to changing environments through _____
are patterns of behavior and interaction that are learned and repeated vary from country to country, e.g., extended lunch hours in Spain and Greece
To make light of superstitions in other cultures when doing business there can be an expensive mistake.
focuses on self-orientation
Individualism/Collective Index (IDV
focuses on authority orientation
Power Distance Index (PDI),
focuses on risk orientation
Uncertainty Avoidance Index (UAI)
focuses on assertiveness and achievement
Masculinity/Femininity Index (MAS
All dimensions must be taken into account to compare cultures - comparing only one dimension may be ______.
Hofstede came up with __ cultural dimensions
Scores above___ mean that that country displays that dimension
refers to the preference for behavior that promotes one's self-interest
pertains to societies in which people from birth onward are integrated into strong, cohesive groups, which protect them in exchange for unquestioning loyalty
Autonomous in interpersonal relationships
Higher social skill in starting new relationships
May give up unproductive social relationships easily
Interpersonal harmony is the primal concern
Take time in forming new relationships
Relationships tend to be Intimate and long-lasting
Make efforts to maintain relationships
Direct communication style
Focuses on content
Verbal communication is stressed
Indirect communication style
Focuses on context
Non-verbal communication is important
measures power inequality between superiors and subordinates within a social system
power distance index
are associated with a low level of anxiety and stress, a tolerance of deviance and dissent, and a willingness to take risks
low UAI cultures
are highly intolerant of ambiguity, experience anxiety and stress, accord a high level of authority to rules as a means of avoiding risk
high UAI cultures
measures the tolerance of uncertainty and ambiguity among members of a society
Uncertainty Avoidance Index (UAI):
tend to be assertive and competitive; tend to value outer rewards more than quality of life (male values). Males tend to displays these values more than females but both have the same values.
caring and modest; both males and females display this values. This societies care more about the environment and quality of life.
Effort to learn from others' cultural ways in the quest for better solutions to a society's particular problems.
similarities can be an
2 options for marketers with cultural change
The significance of establishing friendship anywhere cannot be _____
Those customs or behavior patterns reserved exclusively for the locals and from which the foreigner is barred.
Relate to areas of behavior or to customs that cultural aliens may wish to conform to or participate in but that are not required
Tend to concentrate on one thing at a time
Divide time into small units and are concerned with promptness
Most low-context cultures operate on M-Time
Dominant in high-context cultures
Characterized by the simultaneous occurrence of many things
Allows for relationships to build and context to be absorbed as parts of high-context cultures.
______ involves a relatively small sum of cash, a gift, or a service given to a low-ranking official in a country where such offerings are not prohibited by law.
involves giving large sums of money, frequently not properly accounted for, designed to entice an official to commit an illegal act on behalf of the one offering the bribe.
If payments are extracted under duress by someone in authority from a person seeking only what he are she is lawfully entitled to that is ____
Voluntary offered payment by someone seeking unlawful advantage is ______
When a businessperson is uncertain of a country's rules and regulations, an _____ may be hired to represent the company in that country.
current account is a ____ account
capital account goes __ with income (money)
capital account goes down with ____
the official reserves accounts assets are listed at ___ price
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