International Marketing Exam 3

Corporate Planning
essentially long term, incorporating generalized goals for the enterprise as a whole
Strategic Planning
conducted at the highest levels of management and deals with products, capital, research, and the long-and-short-term goals of the company
Tactical Planning
market planning, pertains to specific actions and to the allocation of resources used to implement strategic planning goals in specific markets, made at the local level and address marketing and advertising questions
Direct Exporting
company sells to a customer in another country, most common approach employed by companies taking their first international step because the risks of financial loss can be minimized
Indirect Exporting
the company sells to a buyer (importer or distributor) in the home country, which in turn exports the product; customers include large retailers, wholesale supply houses, trading companies, and others that buy to supply customers abroad
Contractual Agreements (Licensing/Franchising)
long-term, nonequity associations between a company and another in a foreign market, involve the transfer of technology, processes, trademarks, and/or human skills
Licensing
a means of establishing a foothold in foreign markets without large capital outlays
Franchising
a rapidly growing form of licensing in which the franchiser provides a standard package of products, systems, and management services, and the franchisee provides market knowledge, capital, and personal involvement in management
Strategic Alliances (SIA)
a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective
Joint venture
different form other types of strategic alliances or collaborative relationships in that a joint venture is a partnership of two or more participating companies that have joined forces to create a separate legal entity
Direct Foreign Investment
investment within a foreign country
Quality (Market-Perceived and Performance)
defined on two dimensions: market-perceived quality and performance quality
Product Homologation
used to describe the changes mandated by local product and service standards
Green Marketing
term used to identify concern with the environmental consequences of a variety of marketing activities
Innovation
from a sociological viewpoint, any idea perceived as new by a group of people
Diffusion
the process by which innovation spreads
Conversion-Ability
the success firms have when they take inventions to the market
Product component model
identifies all the possible ways a product may be adapted to a new market, it helps to separate its many dimensions into three distinct components
Global brands
gives a company uniformly positive worldwide brand associations that enhance efficiency and cost savings when introducing other products with the brand name, but not all companies believe a single global approach is the best
Country-of-Origin Effect
any influence that the country of manufacture, assembly, or design has on a consumer’s positive or negative perception of a product
Price-quality relationship
an important factor in marketing in developing economies, especially those in the first three stages of economic development described earlier
ISO 9000
a series of five international industrial standards (ISO 9000-9004) originally designed by the International Organization for Standardization in Geneva to meet the need for product quality assurances in purchasing agreements, are becoming a quality assurance certification program that has competitive and legal ramifications when doing business in the European Union and elsewhere
American Customer Satisfaction
measures customer satisfaction and perceptions of quality of a representative sample of America’s goods and services
Client Followers
companies often providers of services, that follow companies that first moved into a foreign market; for example, an American insurance company setting up in Mexico to serve a U.S. auto company that had previously opened a factory there
Traditional Distribution Structure
(import-oriented) an importer controls a fixed supply of goods, and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers
Agent Middlemen
work on commission and arrange for sales in the foreign country but do not take title to the merchandise; by using agents, the manufacturer assumes trading risk but maintains the right to establish policy guidelines and prices and to require its agents to provide sales records and customer information
Merchant Middlemen
take title to manufacturers’ goods and assume the trading risks, so they tend to be less controllable than agent middlemen; provide a variety of import and export wholesaling functions involved in purchasing for their own account and selling in other countries; primarily concerned with sales and profit margins on their merchandise
Export Management Company
an important middleman for firms with relatively small international volume or those unwilling to involve their own personnel in the international function
Parallel Importing (Secondary Wholesaling)
international transactions in which importers buy products from distributors in one country and sell them in another to distributors that are not part of the manufacturer’s regular distribution system