International Marketing Terms – Sasky

licensing
“a contractual means by which a company grants patent rights, trademark rights and the rights to use technology to another company, often in a foreign market; a favoured strategy of small and medium sized companies seeking a foothold in a foreign market without making large capital outlays.”
cultural imperative
a business cstom (as in a foreign country) that must be reocgnized and accomdoated
cultural electives
a business custom (as in a foreign country) to which adaption is helpful but not necessary
tarrif
a fee or tax that countries impose on imported goods often to protect a country’s markets from intrusion from foreign countries
franchising
“a form of licensing in which a company provides a standard package of products, systems and mangement services to a franchisee which in foreign markets may have local knowledge. Permits flexibility when dealin with local market conditions whichl providing the parent company with a degree of controll.”
strategy of planned change
a marketing strategy in which a company deliberately sets out to change those aspects of a foreign culture resistant to predetermind marketing goals
strategy of unplanned chance
a marketing strategy in which a company introduces a product into a market without plan to influence the way the market’s culture responds to or resists the companys marketing message
strategy of cultural congruence
a marketing strategy in which products are marketed in a way similar to the marketing of products already in the market in a manner as congruent as possible with exisiting cultural norms.
global marketing orientation
“a means of operating by which a company acts as if all the companys markets in a company’s scope of operations are approchable as a single global market, with the company standardising the marketing mix where culturally feasible and cost effectie. “
joint venture
a partnership of two or more participating companies that join forces to create a separate legal entitty
global market concept
“a perspective encompassing the entire set of country markets, whether the home market and one other country or the home market and 100 other countries and viewing them as a unit identifying groups of prospective buyers with similar needs as a global market segment and developing a market plan that strives for standardisation wherever it is effective in cost and cultural terms. “
product component model
“a tool for characterising how a product may be adapted to a new market by seperating the products many dimensions into three components; support services, packaging and core components. “
factual knowledge
“a type of knowledge or understanding of a foreign culture that encompasses different meanings of colour, different tastes and other traits of a culture that a market can study, anticipate and absorb”
strategic planning
“a type of planning conducted at the highest level of management, dealing with products, capital and research and the long- and short-term goals of a company.”
Single european act
agreement designed to finally remove all barriers to trade and make the european community a singl internal market. Established the single market and the european political cooperation. Aim was to achieve an internal market
common market
“agreement elminates all tariffs and other restrictions on internal ade, adopts a set of common external tarrifs and removes all restrictions on the free flow of capital and labour among member nations – common market place for goods / services. “
economic development
“although economic development is closely associated with economic grouowth it may not necessarily be the same. While growth in real GDP is critical, this may not necessary be a sufficient criteria for development. One can identify development as a qualitative measure of progress in an economy. it is a transition from an agricultural base with capital investments in large industries. there is generally an adoption and innovation in technology and higher living standards can be observed. “
interpretive knowledge
an ability to understand and to appreciate fully the nuances of different cultural traits and patterns.
free trade area
“an area with no restrictions, barries to trade such as quotes and tarrifs – encouragges specilisation in member countries, lower costs, together with competition markets tend to increase.”
cultural sensitivity
“an awareness of the nuances of culture so that a culture can be viewed objectively, evaluated and appreciated; a important part of foreign marketing. “
dumping
“an export practice, generally prohibited by laws and subject to penalties and fines, defined by some as the selling of products in a foreign markets below the cost of production and byothers as the selling of products at below the price of the same goods in the home market.”
innovation
“an idea percieved as new by a group of people, when applied to a product, an innovation may be something completely new or something that is percieved as new in a given country or culture”
expert opinion
an open taken from someone who is believed to be skilled or highly trained and informed in a specialist field.
self-reference criterion
“an unconscious reference to one’s own cultural values, experience and knowledge as a basis for a decision.”
asean +3
“ASEAN countries + Japan, China and Korea – forum to enhance integreation between ASEAN and East Asian nations. “
APEC
Asia-Pacific Economic cooperation – an annually meeting forum focused on regional economic development
AFTA
“Asian free trade allience – south east asia – malaysia, singapore, thailand, phillippines, indonesia and so forth – relax trade barriers for direct benefit”
proxy variable
“At times when information on a specific issue is unavailable or cannot be directly measured, a surrogate or proxy variable, which has an anticipated same effect, may be used. Management needs to use creative inferences to arrive at useful knowledge.”
parallel translation
“back translations may not always ensure an accurate translation because of the usuage of idioms in languges. Parrallel translation is used to overcome this problem. More than two translators are used for the back translation : the results are compared, differences discussion and the most appropriate translation selected.”
nationalism
“best described as an intense feeling of national pride and unity, an awakening of a nation’s people to pride in their country. This pride can take an anti-foreign business bias, where minor harassment and controls of foreign investment are supported if not applauded.”
BEMs
BIG EMERGING MARKETS – core group of populous nations that will account for much of the growth in the world trade amon developing and newly industrialised nations – imports to these countries will be 50 % of the industralised worlds. These account for half the worlds population and 25% of its GDP.
BOPMs
“Bottom of the Pyramid – largest, poorest socio economic group – consists of the 4 billion people who survive on less than 2$ a day. Ignored by most nternational markets and the lack of appropriateness of products and services as they’re developed for larger richer groups.”
trading company
business entitites that accumulate transport and distribute goods from many companies
analogy
“can be found by various ways – similarity, correlation, parellelism or comparability”
primary data
“collection of data by the researcher themselves. Some ways include – intervies, diaries, case studies – ETC.”
mercosur
“Common Market of the South – argentina, brazil, paraguay, uruguay, common market and a customs union amongst countries using economic cooperation”
multi-domestic market orientation
“Companies that have a strong sense and appreciation for the differences existing between various country markets, and believe independent marketing programs are required for success in individual markets, follow the multi- domestic market orientation. The company subsidiaries operate independently in establishing marketing objectives and plan of actions. Products are specifically designed for, or adapted to, each market with no coordination with other subsidiaries. Firms with this marketing approach can be characterised as being polycentric.”
international comparative research
“Comparative research, simply put, is the act of comparing two or more things with a view to discovering something about one or all of the things being compared. A major problem in comparative research is that the data sets in different countries may not use the same categories, or define categories differently (for example by using different definitions of poverty).”
treaty of amsterdam
concluded in 1997 – addressed some issues left undone in maaastricht treaty – purpose to revise treaties so that eu can encounter changes taking place in europe .
NICs
“countries that are experiencing rapid economic expansion and industrialisation and do not exactly fit as LDCs or MDCs are more typically referred to as a newly industrialised countries. These countries have shown rapid industrialisation of targeted industries and have per capita incomes that exceed other developing countries. they have moved away from restritive trade practices and instirtuted significant free market reforms; as a result they attract both trade and foreign direct ivnestment. chile, brazil, mexcio, south korea, singapore and taiwan are some of the countries that fit this”
emerging markets
“countries that have progressed on economic reforms to uplift poverty, poor infrastructure and overpopulation.”
infrastructure
“countries where capital is heavily invested in telecommunications, transportation, electricity, water, gas and energy, waste removal and processing facilities. “
derived demand
“demand that is dependent on another source, it can be fundamental to the success of efforts to sell capital equipment and big-ticket industrial services.”
EMU
European Monetary Union – goal to establish a singule european currency called the euro .
domestic uncontrollable
“factors in a company’s home country over which the company has littleor no control or influence. They include political and legal forces, the economic climate, level of technology, competitive forces and economic forces. “
foreign uncontrollables
“factors in a foreign market over which a business operating in its home country has little or no control or influence. They include political or legal forces, economic climate, georgraphy and infrastructure, structure of distributio and level of technology.”
uncontrollable elements
“factors in the business environment over which the international market has no control or influence, may include competition, legal restraints, government controls, weather, consumer preferences and behaviour and political event”
GATT
General agreement on tariffs and trade – an agreement between US and 22 other countries (including Aus) – provides a process to reduce tarrifs and creats an agency to patrol world trade.
middlemen
generic term for people who are intermediaries in the marketing channel
expropriation
“government seizes an investment but some reimbursement for the assets is made. Often the expropriated investment is nationalised , that is, it becomes a government – run entitty”
decentring
hybrid of back translation. Successive process of translation and retranslation of a questionare by a different translator each time.
agent
“in an international transaction, intermediaries who represent the principal (home manufacturer/marketer) rather than themselves; agent middlemen work on commission and arrange for sales in the foreign country but don’t take title to the merchandise”
import jobber
“in international transactions, business entities that purchase goods directly from the manufacturer and sell to wholesalers and retailers and to industrial customers”
home country middlemen
“in international transactions, the intermediaries, located in the producer’s home country, who provide marketing services from a domestic base; also known as domestic middlemen. Home-country middlemen offer advantages for companies with small international sales volume or for those inexperienced in interntional trade. “
merchant middleman
“in international transsactions, the intermediaries, located in the foreign market, take title to the home-country manufacturer’s goods and sell on their account”
gender bias
“In some countries there is a bias against female managers, which has restricted some female employees from reaching top-level executive positions. Additionally, the bias is evident where female employees receive relatively lower remunerations compared to their male counterparts. In these cultures there is also some prejudice against foreign female executives visiting for business negotiations.”
domestic market extension orientation
“In this orientation, the company seeks extension of its domestic products into foreign markets. The international operation is secondary to and is an extension of its No substantial effort is made to adapt the marketing mix to foreign markets; the company seeks markets where demand is similar to the home market. Firms with this marketing approach can be characterised as being ethnocentric. domestic operation. “
multinational integration
integration of countries into economic blocks – increases free trade and investment – helps establish political cooperations
IMF
international monetary fund – global institution created to assist nations in becoming and recmaining economically viable.
secondary data
is data that has been collected and possible processed by other researches
international marketing research
“is similar to domestic marketing research in terms of the process, but only it is conducted internationally. It entails to identify the research proble, determining the sources of information, addressing costs and benefits, gatering data and interpreting results”
sovereignty
is the exclusive right to have control over the governance of a contry. A sovereign is the highest orer or supreme lawmaking authority
marketing research
“is the process of systematically gathering, recording and analysing data an dinformatin about customers, competittors and the market. It is used to make critical marketing information”
M-Time
“monochromatic time – describing a view of time typical of most north american, swiss, german and scandanavians – as something that is linear and can be saved, wasted, spent and lost – m-time cultures tend to concentrate on one thing at a time and value promptness.”
political union
“most fully integrated form of regional cooperation. Complete political and economic integration, voluntary or enforced. “
customs union
next stage in economic cooperation – enjoys the free trade area’s reduced or eliminated internal tarrifs and adds a common external tariff on products imported from countries outside the union.
new industrialised countries
NIC’s – countries that are experiencing rapid economic expansion and insutralisation.
NAFTA
“North American Free Trade Alliance – facilitate trade and investment amongst the three nations (canada, usa and mexica) – main objective was to eliminate terrifs and reduce non tarrif barries – establish comprehensive provisions on the conduct of business the fta area by regulation of investment, services, intellectual property and competition.”
principle of utilitarian ethics
one of three principles of ethics – tests an action by asking if it optimises the common good or benefits of all constituencies
principle of justice or fairness
one of three principles of ethics – tests an action by asking if the action respects the canons of justice or faireness to all involved
aesthetics
“philosophically, the creation and appreciation of beauty; collectively, the arts including folk lore music, drama and dance.”
PSA’s
“political and social activists can also interrupt the normal flow of trade – psa’s can range from those who seek to bring about peaceful change to those who resort to violence and terrorism to effect change when well organised, the actions of psa’s can succeed.”
P-Time
polychromatic time – a view of time – in high context cultures – in which the completion of a human transaction is more important than holding to schedule. P-Time is characterised by the simultaneous occurance of many things
ISO 9000
“Product certification required in te EU LAW for several highly regulated, high risk products such as medical devices, telecommunications terminal equipment, gas appliances and personal protective equipment – otherwise certification is voluntary – but all companies are pressured to become certified.”
qualitative data
Qualitative research aims to gain insight into the issue and to better understand the motivation of the customer.
quantitative data
quantitative research provides for the statistical analysis of the information – provided it is collected using a probability method the results can be generalised to the total population. Data is collected using questionnaires designed and based on the objectives of the research project. Questionnaires should be constructed taking into account the capability of the respondents.
multicultural research
“research that is unertaken on those consumers engaged of a different race, culture or class”
non-tarrif barriers
“restrictions – other tan tarrifs – placed by countries on important products that may include quality standards, sanitary, health standards, quotes, embargoes, boycotts and anti-dumping penalties.”
social institutions
“Social institutions, including family, religion, education, the media, government and corporations, all affect which people are related to one another. “
SIA
strategic international alliance – a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective.
silent language
“term used by edward t hall for the non-spoken and symbolic meanings of time, space, thins, friendships and agreements and how they vary across cultures.”
relationship marketing
“the aspect of marketing products that depends on long-term associations with customers an important factors in business to business contexts and especially important in most international markets, where culture dictates strong ties between people and companis. “
controllable elements
“the aspects of trade over which a company has control and influence; they include marketing decisions covering product, price, promotion, distribution, research and advertising”
price quality relationship
“the balance between a product’s price and how well the product performs. Often the price-quality of a product is ideal if it meets basic expectations and no more , allowing it to be priced competitivley. “
scenario building
the development of scenarios used to assist the experts to express their estimates.
balance of trade
the difference in value over a period of time between a country’s imports and exports
corporate planning
the formulation of long term genalised goals for an enterprise as a whole.
subornation
the giving of large sums of money – frequently not fully accounted for – designed to entice an official to comit an illegal act on behalf of the one offering the money.
culture
“the human-made part of human environment – the sum total knowledge, beliefs, arts, morals, laws, customs and any other capacilities and habits acquired by humans as a member of society”
linguistic distance
the measure of difference between langauges; an important factor in determining the amount of trade between nations.
dealer
the middlemen selling industrial goods or durable goods directly to customers; they are the last step in the distribution channel
confiscation
“the most severe political risk, that is, the seizing of a company’s assets without payment”
international marketing
“the performance of business activities designed to plan, price, promote and direct the flow of a company’s goods and services to consumers or users in more than one nation for profit.”
cultural borrowing
the phenomenon by which societies learn from other cultures’ ways and borrow ideas to solve problems or improve conditions
distribution process
“the physical handling of goods, the passage of ownership (title) and – especially important from a marketing viewpoint – the buying and selling negotiations between the producers and middlemen and between middleman and customers. “
current account
“the portion of a balance of payments state that shows a record of all merchandise exports imports and services, pls unilateral transfers of funds.”
complementary marketing
“the process by which companies with excess marketing capacity in different countries or with a desire for a broader product line take on additional lines for international distribution, commonly called piggybacking”
product diffusion
the process by which innovation spreads. Succesfful product diffusion may depend on the ability to communicate relevant product information and new product attributes
balance of payments
the system of accounts that records a nation’s international financial transactions
cultural values
“the system of beliefs and customs held by a population in a give culture. – according to geert hofstede and his culture’s consequences study – indivdualised / collectivism index, power distance index, uncertainy avoidance index and the masculinity/femininity index helps us gauge these values”
distribution structure
“the system, present in every country’s market, through which goods pass from producers to user; within the structure are a variety of middleman. “
indirect exporting
the type of exporting in which a company sells to a buyer (importer or distributor) in the home country – the buyer in turn exports the product.
direct exporting
the type of exporting in which a company sells to a customer in another country
protectionism
“the use by nations of lgal barriers, exchange barriers and psycholoical barriers to restrain entry of goods from other countries”
global brand
“the worldwide use of a name, term, sign, symbol (visual or auditory) design or a combination thereof to identify goods or services of a seller and to differentiate them from those of competitors. “
Maastricht treaty
treaty on the EU – OECD’s definition is a treaty form 1993 that ratified all EU member states and implements by eans of extensive ammendment to the treaty of rome – change from European Economic Community to EU.
voluntary export restraint
“VERs – agreements similar t oquotes, between an importing country and an exporting country for a restriction on the volume of exports “
underdeveloped
“when compared to different economies, underdeveloped is considered a small country having high birth rates, high infant mortality, largely agricultural and small industrial sector, low per capita gdp, low levels of literacy and low life expectancy”
domesticiation
when host countries take steps to transfer foreign investments to national control and ownership through a series of government decrees
back translation
“when the questionnaire is translated from one language to another, and then a second party translates it bac into the original”
WTO
world trade organisation – formed in 1994 that encompasses the GATT structure and extends to other areas not previously covered.
descriptive research
“Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. However, it does not answer questions about eg: how/when/why the characteristics occurred, which is done under analytic research.”
ethnocentrism
Ethnocentrism is judging another culture solely by the values and standards of one’s own culture.
exploratory research
“Exploratory research is a type of research conducted for a problem that has not been clearly defined. Exploratory research helps determine the best research design, data collection method and selection of subjects. “