MKT 435 Oliphant UKY Exam 1

Why doesn't Mirmar have Coppertone?

They're too poor

If payments are extracted under duress by someone in authority from a person seeking only what he are she is lawfully entitled to

Extortion

Paved the way for the first effective worldwide tariff agreement.

GATT

Companies that treat the world, including their home market, as one market

Global Marketing

a relatively small sum of cash, a gift, or a service given to a low-ranking official in a country where such offerings are not prohibited by law

Lubrication

Aspects that are interpreted differently within each culture:

-The positions of men and women in society -The family -Social classes -Group behavior -Age groups -How societies define decency and civility

What does the balance of payments include?

-Transactions recorded yearly -Must always be in balance -A record of condition, not determinant of condition -Includes three accounts: -Current account -Capital account -Reserves account

______ describes a society in which tightly-integrated relationships tie extended families and others into in-groups. These in-groups are laced with undoubted loyalty and support each other when a conflict arises with another in-group.

Collectivism

What was Facebook's original target market?

College Students

Voluntary offered payment by someone seeking unlawful advantage

Bribery

an official ban on trade or other commercial activity with a particular country

Embargo

the notion that people in one's own company, culture, or country know best how to do something

Ethnocentrism

What are the types of trade barriers?

-Tariffs -Quotas -Voluntary Export Restraints -Boycotts and Embargoes -Monetary Barriers -Blocked currency -Differential exchange -Government approval -Standards -Antidumping Penalties

What is the name of the town in Italy that will pay you to reside there if you are of child bearing age?

Locana

A company that does not actively cultivate customers outside the country

No Direct Foreign Marketing

giving large sums of money, frequently not properly accounted for, designed to entice an official to commit an illegal act on behalf of the one offering the bribe

Subornation

Created to assist nations in becoming and remaining economically viable

The International Monetary Fund

Designed to deal with trade deficits, protectionism, and the overall fairness of our trading partners. The bill covers three areas considered critical in improving U.S. trade: -Market access -Export expansion -Import relief

The Omnibus Trade and Competitiveness Act

Institution that has as its goal the reduction of poverty and the improvement of living standards by promoting sustainable growth and investment in people.

The World Bank Group

-No further European colonization in the New World -Abstention of the U.S. from European political affairs -Nonintervention of European governments in the governments of the Western Hemisphere

Three basic dicta of the Monroe Doctrine

What are the types of social institutions?

family, religion, school, the media, government, and corporations

Being culturally sensitive will:

reduce conflict and improve communications and thereby increase success in collaborative relationships.

What is the one thing that keeps countries from developing?

Water

Tariff

tax on imports

International marketers must:

-Adjust marketing efforts to cultures which they are not attuned -Be aware of frames of reference they are using in making decisions or evaluating the potential of the market

As a guide to adaptation, all who wish to deal with individuals, firms, or authorities in foreign countries should be able to meet 10 basic criteria:

1) open tolerance 2) flexibility 3) humility 4) justice/fairness 5) ability to adjust to varying tempos 6) curiosity/interest 7) knowledge of the country 8) liking for others 9) ability to command respect 10) ability to integrate oneself into the environment

What is the current demographic of Facebook?

45-65 year olds

Quota

A limit placed on the quantities of a product that can be imported

Boycott

A refusal to buy or use goods and services.

the system of accounts that records a nations international finance transactions

Balance of Payments

What are the major issues confronting international marketers?

Barriers to trade (both tariff and non-tariff)

-Trade shall be conducted on a nondiscriminatory basis -Protection shall be afforded domestic industries through customs tariffs, not through such commercial measures as import quotas -Consultation shall be the primary method used to solve global trade problems.

Basic Elements of the GATT

Customers can switch identities and perception frames.

Biculturalism

Customers process advertisements differently if heard in their native versus second language

Bilingualism

a currency that can't freely be converted to other currencies on the foreign exchange (FX) market as a result of exchange controls

Blocked Currency

What are the massive emerging markets now?

Brazil, Russia, India, China, South Africa (BRICS)

What are the uncontrollable elements of a marketplace?

Competition, Politics, Laws, Consumer Behavior, Level of Technology

a responsible effort to learn from others' cultural ways in the quest for better solutions to a society's particular problems.

Cultural Borrowing

Relate to areas of behavior or to customs that cultural aliens may wish to conform to or participate in but that are not required.

Cultural Electives

Those customs or behavior patterns reserved exclusively for the locals and from which the foreigner is barred.

Cultural Exclusives

The business customs and expectations that must be met and conformed to or avoided if relationships are to be successful

Cultural Imperatives

Being attuned to the nuances of culture so that a new culture can be viewed objectively, evaluated, and appreciated is indicative of:

Cultural Sensitivity

The sum of the values, rituals, symbols, beliefs, and thought processes that are learned and shared by a group of people, then transmitted from generation to generation

Culture

Where did China have to teach kids about Disney and who Mickey Mouse was?

Disney World Hong Kong and Shanghai Disney

What is the currency in Vietnam?

Dong

a free trade agreement between 23 countries that eliminated tariffs and increased international trade.

GATT (General Agreement on Tariffs and Trade)

What do these characteristics describe? -Market segments are defined by income levels, usage patterns, or other factors that frequently span countries and regions -More than half of sales revenues come from abroad

Global Marketing Characteristics

______ societies have loose ties that often only relates an individual to his/her immediate family. They emphasize the "I" versus the "we."

Individualism

Hofstede, who studied over 90,000 people in 66 countries, found that the cultures differed along four primary dimensions; which are?

Individualism/Collectivism Power Distance Uncertainty Avoidance Masculinity/Femininity

A company with temporary surpluses caused by variations in production levels or demand may send their products for marketing overseas

Infrequent Foreign Marketing

These characteristics describe? -Sales to foreign markets are made as goods become available -As domestic demand increases and absorbs surpluses, foreign sales are withdrawn

Infrequent Foreign Marketing Characteristics

The performance of business activities designed to plan, price, promote and direct the flow of a company's good and services to consumers or users in more than one nation for profit.

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 a profit.

International Marketing

What do these characteristics describe? -Seeks markets all over the world and sells products that are a result of planned production for markets in various countries -Planning generally entails not only the marketing but also the production of goods outside the home market

International Marketing Characteristics

Growing the biggest city in the world in the middle of nowhere

Lagos, Nigeria

determines differences in values across countries and the amount of trade between countries and demonstrates a direct influence of language on cultural values, expectations, and even conceptions of time.

Linguistic distance

________ was used to justify U.S. annexation of Texas, Oregon, New Mexico, and California and later, U.S. involvement in Cuba, Alaska, Hawaii, and the Philippines.

Manifest Destiny

an American initiative passed in 1948 to aid Western Europe, in which the United States gave over $12 billion (nearly $100 billion in 2016 US dollars) in economic assistance to help rebuild Western European economies after the end of World War II.

Marshall Plan

-Tend to concentrate on one thing at a time -Divide time into small units and are concerned with promptness -Most low-context cultures operate on this time

Monochronic time

These characteristics describe? -Products may reach foreign market via domestic wholesalers/distributors who sell abroad without the knowledge of the producer -Sales done by trading companies/foreign customers who directly contact the firm -Products gain popularity to foreign buyers through websites

No Direct Foreign Marketing Characteristics

-Dominant in high-context cultures -Characterized by the simultaneous occurrence of many things -Allows for relationships to build and context to be absorbed as parts of high-context cultures.

Polychronic time

the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally. A higher degree of the Index indicates that hierarchy is clearly established and executed in society, without doubt or reason. A lower degree of the Index signifies that people question authority and attempt to distribute power

Power Distance

What are the controllable elements of a marketplace?

Product, Price, Promotion, Distribution, and Research

A firm with permanent productive capacity devoted to the production of goods and services to be marketed in foreign markets

Regular Foreign Marketing

What do these characteristics describe? -Employs foreign or domestic overseas intermediaries, or may have its own sales force or sales subsidiaries in important foreign markets -Primary focus of operations and production is to service domestic market needs -As overseas demand grows, production is allocated for foreign markets -Products may be adapted to meet the needs of individual foreign markets -Company becomes dependent on profit from foreign markets to meet its goals

Regular Foreign Marketing Characteristics

The availability of minerals and the ability to generate energy are the foundations of modern technology.

Resources

Patterns of behavior and interaction that are learned and repeated

Rituals

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

Self-Reference Criterion (SRC)

a society's tolerance for ambiguity, in which people embrace or avert an event of something unexpected, unknown, or away from the status quo. Societies that score a high degree in this index opt for stiff codes of behavior, guidelines, laws, and generally rely on absolute truth, or the belief that one lone truth dictates everything and people know what it is. A lower degree in this index shows more acceptance of differing thoughts or ideas. Society tends to impose fewer regulations, ambiguity is more accustomed to, and the environment is more free-flowing.

Uncertainty Avoidance

What are the 5 elements of culture?

Values Rituals Symbols Beliefs Thought processes

a global membership group that promotes and manages free trade.

World Trade Organization

To fully understand a society's actions and its points of view, you must;

have an appreciation for the influence of historical events and the geographical uniqueness to which a culture has had to adapt

To interpret a culture's behavior and attitudes, a marketer must:

have some idea of a country's history and geography.