MKTG 341 Chapter 6 Notes
MKTG 341 Chapter 6 Notes MKTG 341
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This 3 page Class Notes was uploaded by Angela Potter on Thursday January 28, 2016. The Class Notes belongs to MKTG 341 at Towson University taught by Erin Steffes in Spring 2016. Since its upload, it has received 24 views. For similar materials see Principles of Marketing in Marketing at Towson University.
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Date Created: 01/28/16
Chapter 6 Key Terms Protectionism: The practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs or quotas Tariff: a government tax on goods or services entering a country, primarily serving to raise prices on imports Quota: A restriction placed on the amount of a product allowed to enter or leave a country World Trade Organization: Institution that sets rules governing trade between its members through panel of trade experts Global Competition: Exists when firms originate, produce, and market their products and services worldwide Multidomestic Marketing Strategy: a multinational firms strategy of offering as many different product variations, brand names, and advertising programs as countries in which it does business Global Marketing Strategy: The practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ Global Brand: A brand marketed under the same name in multiple counties with similar and centrally coordinated marketing programs Global Consumers: Consumer groups living around the world who have similar needs or seek similar benefits from products or services Crosscultural Analysis: The study of similarities and differences among consumers in two or more nations or societies Values: A societies personally or socially preferable modes of conduct or states of existence that tend to persist over time Customs: Norms and expectations about the way people do things in a specific country Foreign Corrupt Practices Act (1977): A law that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business Cultural Symbols: Things that represent ideas or concepts in a specific culture Back Translation: Retranslating a word or phrase back into the original language using a different interpreter to catch errors. Microfinance: The practice of offering small, collateralfree loans to individuals who otherwise would not have access to the capital necessary to begin small businesses or other income generating activities Currency Exchange Rate: The price of one country’s currency expressed in terms of another country’s currency. Exporting: producing goods in one county and selling them in another country Joint Venture: when a foreign company and a local firm invest together to create a local business, sharing ownership, control, and the profits of the new company Four trends have significantly affected world trade and global marketing Decline of economic protectionism by individual countries Rise of economic integration and free trade among nations Global competition among global companies for global consumers Emergence of a networked global market space Decline of Economic Protectionism Economic argue for protectionism is that it preserves jobs, protects a nations political security, discourages economic dependency on other countries, and encourages the development of domestic industries Tariffs give price advantages to domestic products Quotas help domestic industries retain a certain percentage of the domestic market North American Free Trade Agreement (NAFTA) lifted many trade barriers between Mexico, Canada and the U.S. Three types of companies populate and compete in the global marketplace: International firms Engages in trade and marketing in different countries as an extension of the marketing strategy in its home county Multinational firms Views the world as consisting of unique parts and markets to each part differently Multidomestic marketing strategy Transnational firms Views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences. Global marketing strategy A Global Environmental Scan Three types of uncontrollable environmental variables Cultural Values Customs Cultural Symbols Language Economic Assessment of the economic infrastructure A country ’s communications, transportation, financial, and distribution systems Measurement of consumer income Per Capital or household income Recognition of a country currency exchange rates Exchange rates fluctuate Politicalregulatory Political Stability Trade Regulations Comparing Global MarketEntry Strategies Four general options exist: Exporting Allows a company to make the least number of changes in terms of its product, organization, corporate goals Indirect exporting: when a firm sells its domestically produced goods in a foreign country through and intermediary Direct exporting: when a firm sells its domestically produced goods in a foreign country without intermediaries. Licensing A company offers the right to a trademark, patent, trade secret, or other similarly valued item of intellectual property in return for a royalty or a fee. Joint Venture Share ownership, control, and profits of the new company Direct Investment a domestic firm actually investing in and owning a foreign subsidiary or division Crafting A Worldwide Marketing Program A product may be sold globally in one of three ways: Product Extension Selling virtually the same product in other countries Product Adaptation Changing a product in some way to make it more appropriate for a country ’s climate or consumer preference Product Invention Invent totally new products designed to satisfy common needs across countries Distribution Strategy the seller headquarters is the starting point and is responsible for the successful distribution to the ultimate consumer Channel between two nations moving the product form one country to another Pricing Strategy Pricing too low or too high can have dire consequences Dumping: when a firm sells a product in a foreign country below its domestic price or its actual cost Gray Market (parallel importing): situation where products are sold through unauthorized channels of distribution
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