Ch. 12: Global Marketing

Define ‘Cross-cultural analysis.’
Involves the study of similarities and differences among consumers in two or more nations or societies.
Define ‘Values.’
A society’s personally or socially preferable modes of conduct or states of existence that tend to persist over time.
Define ‘Customs.’
Refer to what is considered normal and expected about the way people do things in a specific country.
Define ‘Cultural Symbols.’
Things that represent ideas and concepts.
Define ‘Back translation.’
The practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors.
Define ‘Cultural ethnocentricity.’
The belief that aspects of one’s culture are superior to another’s.
Stages of economic development
Developed, developing, underdeveloped.
Key components of economic infrastructure
– Communication systems
– Transportation systems
– Financial systems
– Distribution systems
Political-regulatory climate
Dictated by a nation’s political stability and its trade regulations.
Define ‘exporting.’
A global market-entry strategy wherein products are produced in one country and sold in another.
Define ‘licensing.’
A global market-entry strategy wherein 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 fee.
Define ‘joint venture.’
A global market-entry strategy wherein a foreign company and domestic firm invest together to create a domestic business in order to share ownership, control, and profits of the new company.
Define ‘direct investment.’
A global market-entry strategy wherein a domestic firm invests in and owns a foreign subsidiary or division.
List the five product-promotion strategies.
– Product Extension
– Product Adaptation
– Product Invention
– Communication Adaptation
– Dual Adaptation
Pricing strategy concepts
Dumping: when a firm sells a product in a foreign country below its domestic price or actual cost…usually done to build a firm’s market share.

Gray market: also known as parallel importing, this is a situation wherein products are sold through unauthorized channels of distribution.