International Marketing Ch. 5-7

3 Steps to Sidestepping Conflicts

1) establish jurisdiction 2) protect intellectual property 3) avoid bribery

Pareto's Law

80% of profit is from 20% of customers

Sharia

A comprehensive code governing Musilm conduct in all areas of life, including business

Licensing

A contractual agreement in which a licensor allows a liscensee to use patents, trademarks, trade secrets, technology, and other intangible assets in return for royalty payments or other forms of compensation.

Nationalization

A government takes control of some or all of the enterprises in an industry

Research Step 7

Analyzing Data

Research Step 5

Assess the Value of Research

Hadith

Based on life, sayings, and practices of Muhammed

Research Step 3

Choose a unit of analysis (global, regional, country, ect)

Code/Civil Law

Companies are formed by contract between two or more parties and are liable

-poly

Deals with sellers, example: Monopoly

-sony

Deals with sellers,ex: duopsony

Trademark

Distinctive mark, motto, device, or emblem used to distinguish it from competing products

Copyright

Establishes ownership over a written, recorded, performed, or filmed creative work

Research Step 4

Examine data availability

Haram

Forbidden practices

Patent

GIves an inventor exclusive right to make, sell, and use an invention for a specified period of time

World Intellectual Property Organization

Governed by Madrid Agreement and Protocol, allows trademark owners to seek protection in 74 countries

Expropriation

Governmental action to dispossess a foreign company or investor

Research Step 1

Identifying the info requirement, info readily avialable in existing markets, (latent-undiscovered market, incipient-emerging)

Nationalization is acceptable if...

It satisfies public purpose and includes compensation. ex: US and healthcare, bank, auto industry

Confiscation

Like expropriation but no compensation is provided

Political Environment

Made up of governmental institutions, political parties, and organizations that rulers and people use to wield power

Intellectual Property

Must be registered in each country where business is conducted

Research Step 8

Present the findings

Research Step 2

Problem Definition

Jurisdiction

Refers to a court's authority to rule on particular types of issues arising outside of a nation's borders or to exercise power over individuals or entities from different countries

Political Culture

Reflects the relative importance of the government and legal system and provides a context within which individuals and corporations understand their relationship to the political system

Market Segmentation

Represents an effort to identify and categorize groups of customers and countries according to common characteristic

Positioning

Required to differentiate the product or brand in the minds of the target market

Research Step 6

Research Design

Political Risk

Risk of change in political environment of government policy that would adversely effect a company's ability to operate effectively and properly

Cartel

Small group of producers of a good or service who agree to regulate supply in an effort to control or manipulate prices

Soverignety

Supreme and independent political authority

Targeting

The process of evaluating segments and focusing marketing on a country, region, or group of people (look for effectiveness, efficiency, profitability)

Global Marketing Research

The project-specific, systematic gathering of data in the search scanning mode on a global basis

Benefit Segmentation

Value=benefits/price

Data Mart

a subset of data organized to focus by business or function

Omnibus Trade and Competitiveness Act

allows grease payments when getting through customs and getting permits

Information Technology

an organization's processes for creating, storing, exchanging, using, and managing information

Common Law (US)

companies are legally incorporated by state authority

3 Criterion for Assessing Market Potential

current size and anticipated growth, competition, compatibility with companys objectives

Meta Data

data about data

Efficient Consumer Response

electronic point of sale, works with stock replenishment and supply chain

Emic Analysis

ethnographic, studies culture from within, uses culture's own meaning and values

International Convention for the Protection of Industrial Property

facilitates mult-country patent registration, up to 1-year right of priority in other countries (100 members, Paris Convention)

Data Warehouses

fine-tune product assortments for multiple locations, enhance the ability of management to respond to changing business conditions

Behavior Segmentation

focuses on whether people purchase a product, how much and how often they use it

Etic Analysis

from the outside, detached perspective, enhances comparability and minimizes precision

Psychographic Segmentation

grouping people by attitudes, values, lifestyles (ex: early adopters, innovators, explorers)

Demographic segmentation

income, population, age distribution, gender, education, occupation

Foreign Corrupt Practices Act

internal accounting controls, no bribing officials of foreign governments, no payments to third parties that may be channeled to foreign officials

Anti-trust

laws designed to combat restrictive business practices and to encourage competition

Creeping Expropriation

limits economic activities of foreign firms

Creeping expropriation includes...

limits of repatriation of profits, dividends, or royalties. Technical assistance fees. Increased local content laws. Quotas for hiring local nationals. Price controls. Discriminatory tariff and nontariff barriers. Discriminatory laws on patents or trademarks.

Standardized Global Marketing

mass marketing globally, undifferentiated target marketing, standardized marketing mix, minimal product adaptation, intensive distribution

The Patent Cooperation Treaty

members constitute a union that provides certain technical services and cooperates in the filing, searching, and examination, of the patent applications in all member countries

Differentiated Global Marketing

multi-segment targeting, two or more distinct markets, wider market coverage

Concentrated Global Marketing

niche marketing, single segment of global market, look for global depth instead of national breadth

Ethnic Segmentation

obvious.

Self-Reference Criterion

occurs when a persons values and beliefs intrude on the assessment of a foreign culture

Intranet

private network, share info electronically, 24-hours

Associative counterfeiting/imitation

product name differs slightly from a well-known brand

The Sherman Antitrust Act of 1890

prohibits fixing prices, limiting production, allocating markets, or other competition limiting schemes

Data Warehouse

repository to help facilitate reporting and analysis

1958 Recognition and Enforcement of Foreign Arbitral Awards

signed by 107 countries, most important arbitration treaty everrrrr

European Patent Convention (EU and Switzerland)

single patent covering all the convention states, lasts up to 20 years

Electronic Data Interchange

submit orders, issue invoices, conduct business electronically

Data Mining

the process of extracting patterns from data

Counterfeiting

unauthorized copying and production of a product

Piracy

unauthorized publication or reproduction of copyrighted work

Customer Relationship Management

values two-way communication between company and customer