Global Marketing Ch 1

Adaptation approach
management’s use of highly localized marketing programs in different country markets.
Competitive advantage
The result of a match between a firm’s distinctive competencies and the factors critical for creating superior customer value in an industry
Domestic Market
A company’s “home turf,” generally the country or countries in which the organization’s headquarters are located
Domestic Company
A company that limits the geographic scope of its resource commitment and marketing activities to opportunities in the home country
EPRG framework
A developmental framework for analyzing organizations in terms of four successive management orientations: ethnocentric, polycentric, regiocentric, and geocentric
Ethnocentric Orientation
The first level in the EPRG framework: the conscious or unconscious believe that one’s home country is superior. In global marketing, an ethnocentric orientation manifests itself in management’s belief that a marketing program that is successful in the domestic (home country) market will be successful everywhere.
Extension approach
Management’s use of domestic country marketing programs and strategies when entering new country markets
Focus
the concentration of resources on a core business or competence
Geocentric orientation
The fourth level of the EPRG framework: the understanding that the company should seek market opportunities throughout the world. Management also recognizes that country markets may be characterized by both similarities and differences. A company in which a geocentric orientation prevails will use both extension and adaptation strategies
Global company
A company in which management exhibits a geocentric orientation. A global company pursues marketing opportunities in all parts of the world using one of two strategies: either serving world markets by exporting goods manufactured in the home country market or by sourcing products from a variety of different countries with the primary goal of serving the home country market. Global operations are integrated and coordinated.
Global industry
An industry in which competitive advantage can be achieved by integrating and leveraging operations on a worldwide scale
Global marketing
the commitment of organizational resources to pursing global marketing opportunities and responding to environmental threats in the global workplace. (28)
Global marketing strategy
A firm’s blueprint for pursing global market opportunities. The GMS addresses four issues: (1) whether a standardization approach or localization approach will be used; (2) whether key marketing activities will be concentrated in relatively few countries or widely dispersed around the globe; (3) the guidelines for coordinating market activities around the globe ; and (4) the scope of global market participation.
International Company
A company that pursues market opportunities outside the home country via an extension strategy; that is, the same product, price, distribution, and/or promotion strategy as used in the domestic market. The use of an extension strategies is generally a reflection of management’s ethnocentric orientation
Leverage
The advantage – for example, experience transfers, know-how, or scale economies – that a company enjoys by accumulating experience in multiple country markets
Localized (adaption) strategy
Management’s use of highly localized marketing programs in different country markets.
Marketing
An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. (28)
Marketing mix
product, price, place, promotion (28)
Regiocentric orientation
The third level in the EPRG framework: the view that specific regions of the world are characterized by similarities. In global marketing, a regiocentric orientation is evident when a company develops an integrated marketing strategy for a particular geographic area such as Latin America or Western Europe
Standardized (extension) strategy
The pursuit of global market opportunity us8ing an extension strategy of minimal marketing mix variation in different countries. Historically, this was the strategy of the ethnocentric/international company
Transnational Company
The most highly evolved organizational form. In a transnational company, management has a geocentric orientation. However, a transnational company differs from a global company in its pursuit of marketing opportunity in all parts of the world by fully integrating and coordinating two strategies: sourcing two products from a variety of different countries and serving multiple country markets across most world regions.
Value
A customer’s perception of a firm’s product or service offering in terms of the ratio of benefits (product, place, promotion) relative to price. This ratio can be represented by the value equation: V = B/P
Value chain
The various activities that a company performs (e.g., research and development, manufacturing, marketing, physical distribution, and logistics) in order to create value for customers
Value equation
V = B/P, where V stands for “perceived value,” B stands for “product, place, price,” and P stands for “price.” (29)