International Marketing Chapter 1 Main Points

A company using global orientation has markets that are still segmented but country/region is considered side by side with a variety of other segmentation variable such as (3):

- Consumer characteristics (age, income, language group) -Usage patterns -Legal constraints

What are the 2 main risks of the self reference criterion (SRC) that might influence human behavior when it comes to international marketing?

-Can prevent you from being aware of cultural differences or from recognizing the importance of those difference -Can influence the evaluation of the appropriateness of a domestically designed marketing mix for a foreign market

Know what the terms "environmental adaptation" and "cultural conditioning" mean and what it involves

-environmental adaptation: marketers need to be able to interpret effectively the influence/ impact of each of the uncontrollable environmental elements on the marketing plan for each foreign market in which they hope to do business -cultural conditioning: must adjust marketing efforts to cultures with which they are not attuned

When it comes to firm's venturing into international marketing for the first time, what are the requirements?

1. A thorough and complete commitment to foreign markets 2. And, new ways of operating

Name the steps (in order) that the knowledgeable marketer should take to avoid errors in business decisions

1. Define the business problem or goal in home-country cultural traits, habits, or norms 2. define the business problem or goal in foreign country cultural traits, habits, or norms through consultation with natives of the target country. make no value judgments 3. isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem 4. redefine the problem without the SRC influence and solve for the optimum business goal solution

What are the three distinct approaches to strategic decisions in firms involved in international marketing?

1. Domestic market extension concept 2. Multi-domestic market concept 3. Global marketing concept

What is the difference between domestic and international marketing?

1. International marketing activities take place in more than one country, (instead of only 1 country in domestic marketing) 2. There are 2 levels of uncertainty in international marketing, (instead of 1 in domestic)

What are the stages of international marketing involvement?

1. No direct foreign marketing 2. Infrequent foreign marketing 3. Regular foreign marketing 4. International marketing 5. Global Marketing

Which country has the most direct foreign investment in the United States? What are the top five countries?

1. UK 2. Netherlands 3. Japan 4. Germany 5.Switzerland

What are the Domestic Uncontrollable factors (3)?

1. competition 2. economic climate 3. political/legal forces

What are the Foreign/International Uncontrollable factors (7)?

1. economic forces 2. competitive forces 3. level of technology 4. structure of distribution 5. geography and infrastructure 6. cultural forces 7. political/legal forces

What are the Controllable factors(6)

1. firm characteristics 2. price 3. product 4. channels of distribution 5. research 6. promotion

Know what four events and trends affecting global business today stand out as the most dynamic

1. rapid growth of the WTO/new free trade agreements around the world 2. trend towards the acceptance of the free market system among developing countries in Latin America, Asia, eastern Europe 3. impact of the internet, mobile phones, other global media on dissolution of national borders 4. mandate to manage resources and global environment properly for future generations

Foreign investment in the U.S. is more than _________________

23.4 million

Be able to give examples of U.S. companies that have invested in foreign countries

7-11, Burger King, Volvo, Ben and Jerry's

Adaption is a conscious effort on the part of the international marketer to anticipate the influence of .....

Both the foreign and domestic uncontrollable factors on a marketing mix and then adjust the marketing mix to minimize the effects

What is the difference between uncontrollable and controllable elements of the environment in which businesses operate?

Controllable: the factors a company has control and influence over Uncontrollable: factors a company has no control or influence

What is the term used to describe when: a company must adjust marketing efforts to culture with which they are not attuned

Cultural Conditioning

What is the Domestic Market Extension Concept?

Domestic company seeks sales extensions of its domestic products into foreign markets ( market excess domestic production )

What is the term used to describe when: marketers must be able to effectively interpret the influence and impact of each of the uncontrollable environmental elements on the marketing plan for each market in which they hope to do business.

Environmental Adaptation

What is the stage of international marketing where: - Companies treat the world, including their home market, as one market. -Market segmentation decisions are no longer focused on national borders. -Market segmentation is defined by income levels, usage patterns, or other factors that frequently span countries and regions -More than half of sales revenue come from abroad

Global Marketing

What is the term used for: A means of operating by which a company acts as if all the company's markets in a company's scope of operations (including the domestic market) were approachable as a single global market, with the company standardizing the marketing mix where culturally feasible and cost effective

Global Orientation / The Global Market Orientation

What is the stage of international marketing where: - Temporary surpluses caused by variation in production levels/demand may result in infrequent overseas marketing - Sales to foreign markets are made as goods become available, w/ little or no intention of maintains continuous market representation - Few are classified as this because companies nowadays seek long term relationships

Infrequent Foreign Marketing

The performance of business activities designed to: Plan, Price, Promote, And direct the flow of a company's goods and services to consumer's or users in more than one nation for a profit

International Marketing

What is the stage of international marketing where: - Companies at this stage are fully committed to and involved in international marketing activities - Companies seek markets all over the world and sell products that are a result of planned production for markets in various countries

International Marketing

What is the Multi-domestic Market Concept?

Market on a country by country basis, with separate marketing strategies for each country

What is the stage of international marketing where: - Company doesn't actively (therefore being reactive) look for international customers; however their products may reach foreign markets -Can ignite the interest of the company to seek additional international sales

No Direct Foreign Marketing

What is the stage of international marketing where: - The firm has permanent production capacity devoted to the production of goods and services to be marketed in foreign markets - Primary focus of operations and production is to service domestic market needs - Company becomes dependent on profit from foreign markets to meet its goals

Regular Foreign Marketing

Where is the brand name "Bimbo" associated with bread?

Spain, Mexico, and other Spanish speaking countries

What is the Global Market Concept?

Standardized marketing mix applicable across national boundaries

What is the term that describes when: Marketers must be aware of the frames off reference they are using in making their decisions or evaluating the potential of a market, because judgements are derived from experience that is the result of acculturation in the home country

The "task of cultural adaption"

What is the most challenging and most important aspect of "task of cultural adjustment" when it comes to international marketing?

They must adjust their marketing efforts to culture to which they are not attuned

What are the four companies that are considered to be the U.S. leaders with foreign revenues?

Walmart, Chevron, Ford, and Apple

What is the key to successful international marketing?

adaptation to environmental differences from one market to another

What is the "self-reference criterion" ?

unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions