MKT: Chapter 2: Marketing foundations: Global, ethical, sustainable

sustainability

"people, planet, profit" of "triple bottom line"

North American Free Trade Agreement

- US, Canada, Mexico - the single largest economic alliance and has eliminated tariffs between the member countries for more than 19 years

Which of the following are among the five fastest-growing economies in the world? Select all that apply.

1. India 2. Myanmar 3. Yemen 4. Libya

Which two of the following are considered vulnerable markets?

1. children 2. the elderly

Six C's of Channel Strategy

1. cost 2. capital 3. control 4. coverage 5. character 6. continuity

Which of the following are four product issues facing international consumer marketers? Select all that apply.

1. country of origin 2. fitting the product to the culture 3. brand strategy 4. quality

4 focuses of regional market zones

1. economic 2. geographic proximity 3. political 4. cultural similarities

5 basic steps of essential information for global market research

1. economic 2. culture, societal trends 3. business environment 4. political and legal 5. specific market conditions

Key provisions of NAFTA

1. eliminate barriers to trade id, and facilitate the cross border movement of goods and services between the territories of the parties 2. promote conditions of fair competition in the free trade area 3. increase substantially investment opportunities in the territories of the parties 4. provide adequate and effective protection and enforcement of intellectual property rights in each party's territory 5. create effective procedures for the implementation and application of this agreement, for its joint administration and for the resolution of disputes 6. establish a framework for further trilateral, regional, and multilateral cooperation to expand and enhance the benefits of this agreement

What are the four basic strategies for entering new global markets?

1. exporting 2. ownership 3. contractual agreements 4. strategic alliances

According to the American Marketing Association, which five of the following are primary ethical values

1. fairness 2. citizenship 3. responsibility 4. honesty 5. respect

6 primary ethical values

1. honesty 2. responsibility 3. fairness 4. respect 5. transparency 6. citizenship

Which of the following are three benefits that companies receive from behaving ethically?

1. increased financial performance 2. greater employee loyalty 3. strong customer relationships

4 phases of the global experience curve

1. no foreign marketing 2. foreign marketing 3. international marketing 4. global marketing

The global experience learning curve moves a company through which of the following four distinct stages? Select all that apply.

1. no foreign marketing 2. foreign marketing 3. international marketing 4. global marketing

key company characteristics in a global market

1. philosophy 2. objectives 3. resources 4. management style 5. organization 6. financial limitations 7. management/marketing skills 5. products 6. philosophy

Which elements of the marketing mix are affected by a company's ethics? Select all that apply.

1. price 2. product 3. promotion 4. distirbution

Which of the following are three basic product options in global market expansion? Select all that apply.

1. product adaptation 2. product invention 3. direct product extension

Which of the following are kew company characteristics to consider in global market expansion? Select all that apply.

1. products 2. financial limitations 3. organization 4. management/marketing skills

The regional market zone that was founded more than 50 years ago by six countries and now includes 28 countries spanning all of European is called the:

EU

Match the term to its description

Economic: many countries believe growth in their own country will be enhanced by forming alliances with other countries Geographic proximity: transportation and communication networks are more likely to connect countries close to one another Political: a prerequisite for effective alliances among countries is general agreement on government policies Cultural similarities: having a shared language and shared experiences encourages greater cooperation and minimizes possible conflicts

The most significant market zones in the Americans is the alliance of the US, Canada, and Mexico and is called

NAFTA

_________ ___________ ______ consist of a group of countries that creaet formal relationships for mutual economic benefit through lower tariffs and reduced trade barriers.

Regional Market Zones

A partnership of two or more participating companies is called:

a joint venture

triple bottom line

a metric for evaluating not only the financial results of the company but the broader social equity, economic, and environmental considerations as well.

the global experience curve

a process that is an understanding of marketing beyond home markets develops over time as a company gets more international business experience.

global marketing

a single market with different segments

Marketing ethics

a societal and professional standard of right and fair practices that are expected of marketing managers in their oversight of strategy formulation, implementation, and control

foreign marketing

a stage of the global experience learning curve that involves developing local distribution and service representation in a foreign market

contractual agreements

allow a company to expand participation in a market by creating enduring, non equity relationships with another company, often a local company in that market

The primary organizational structure patterns employed by organizations around the world are _____, ______, and _____.

centralized, decentralized, regionalized

Which of the following is considered ethical in other parts of the world but not in the United States?

child labor

licensing

companies choose licensing when local partnerships are required by law, legal restitution prohibit direct importing of the product, or the company's limited financial resources limit more active foreign participation

regional market zones

consists of a group of countries that create formal relationships for mutual economic benefit through lower tariffs and reduced trade barriers.

___________ agreements allow a company to expand participation in a market by creating enduring, non equity relationships with another company, often a local company in that market.

contractual

Critical to the success of an internet market entry strategy is easy payment and _____ terms offered by companies such as Visa and American Express.

credit

In taking a company global, the next step after selecting a country is:

developing a comprehensive marketing strategy

The market entry strategy with the greatest long-term implications is ______ _______ ______.

direct foreign investment

The face of the company in a country, servicing customers, selling products, and receiving payments, is a(n):

disributor

Many companies have to rethink their _____ strategy when they enter global markets and find inadequate transportation networks, poorly organized distribution systems, and fundamentally different channel structures.

distribution

Match the term to its example

economic: gdp growth, inflation, strength of the currency, and business cycle trends culture, societal trends: values, symbols, and rituals that affect people's perception of products business environment: ethical standards, management styles, degrees of formality, and gender of other biases political and legal: limiting the flow of money out of a country. making it harder for a foreign company to transfer money back home specific market conditions: in depth knowledge about market trends, competitors, and unique market characteristics

_____ are international market specialists that help companies by acting as the export marketing department.

exporters

_________ is the most common method for entering foreign markets and accounts for 10 percent of all global economic activity.

exporting

Ethical decisions in marketing can have legal and ______ consequences.

financial

______ marketing is the stage of the global experience learning curve that involves developing local distribution and service representation in a foreign market.

foreign

The _______, usually a company seeking to enter a foreign market, agrees to supply a bundle of products, systems, services, and management expertise to the ______ in return for local market knowledge, financial consideration, and local management experience.

franchisor, franchisee

Which organizational structure divides international markets by geography, building autonomous regional organizations that perform business functions int heir geographic area?

geographic regions

A _____ marketing company realizes that all world markets (including the company's own domestic market) are, in reality, a single market with many different segments.

global

When deciding to enter a foreign market, decision makers are particularly interested in knowing the size of the investment and:

how long it will take to be profitable in the new market

exporters

international market specialists that help companies by acting as the export marketing department - provide a valuable service with their knowledge of policies and procedures for shipping to foreign markets

When a firm makes the commitment to manufacture products outside its domestic market, it is engaging in:

international marketing

Companies choose ________ when local partnerships are required by law, legal restrictions prohibit direct importing of the product, or the company's limited financial resources limit more active foreign participation.

licensing

In _____ ______ _____ pricing, the company assigns a price based on local market conditions with minimal consideration for the actual cost of putting the product into the market.

local market conditions

As companies grow larger, lines of decision-making authority become ______ and more complicated.

longer

When a company does business with international customers through intermediaries, however, with no formal international channel relationship, or limited direct contact, then the company has:

no direct foreign marketing

Pricing in which of the company assigns one price for its products in every global market is called:

one-world pricing

joint ventures

partnerships of two or more participating companies and differ from other strategic alliances in that (1) management duties are shared and a management structure is defined (2) other corporations or legal entities, not individuals, formed the venture and (3) every partner holds and equity position.

_____ pricing refers to selling below cost to push a competitor out of the market.

predatory

The global ______ ________ organizational structure is based on the global functionality and appeal of the products and enables companies to target similar products to customers around the world.

product lines

Which area in marketing presents the greatest ethical challenges?

promotion

distributors

represent the company and often many others in foreign markets

As a market entry strategy, ______ _______ have grown in importance over the past 20 years in an effort to spread risk to other partners.

strategic alliances

The concept of __________ includes all business practices that seek to balance business success and societal success over the long term.

sustainability

exporting

the most common method for entering foreign markets and accounts for 10% of all global economic activity

European Union

the most successful regional market zone and also the oldest - includes 28 countries - 5 countries seeking membership are Iceland, Macedonia, Montenegro, Serbia, and Turkey.

The _______ is a metric for evaluating not only a company's financial results but also broader social equity, economic, and environmental considerations.

triple bottom line

True or false: Well-coordinated transportation and logistics systems lower distribution costs and increase customer choose at the point of sale.

true

In marketing, benefits minus cost equals ______

value

Research suggests the relationship of price and quality, or the ________ _____________, remains a key factor in global consumer decision making.

value proposition

international marketing

when a firm makes the commitment to manufacture products outside its domestic market