MKT 320 Exam 1 with 100% correct answers 2024

Global Market Segmentation - answer-the process of identifying specific segments of potential customers with homogeneous attributes who are likely to exhibit similar buying behavior irrespective of their countries of residence Targeting - answer-The process of evaluating market segments and focusing marketing efforts on a country, region, or group of people. Positioning - answer-The act of differentiating a product or brand in the minds of customers or prospects relative to competing products or brands Demographic segmentation - answer-The process of segmenting markets on the basis of measurable characteristics such as country, income, population, age, or some other measure Global teens - answer-A market segment comprised of persons 12 to 19 years old whose shared interests in fashion, music, and youthful lifestyle issues shape purchase behavior Global Elite - answer-a global market segment comprised of well-traveled, affluent consumers who spend heavily on prestige or luxury products and brands that convey an image of exclusivity Psychographic segmentation - answer-The process of assigning people to market segments on the basis of their attitudes, interests, opinions, and lifestyles Behavior segmentation - answer-The process of performing market segmentation utilizing user status, usage rate, or some other measure of product consumption Usage rate - answer-In behavioral market segmentation, an assessment of the extent to which a person uses a product or service. User status - answer-In behavioral market segmentation, an assessment of whether a person is a present user, potential user, nonuser, former user, etc. 80/20 rule - answer-In behavioral market segmentation, the rule of thumb that 20% of a company's products or customers will account for 80% of revenues or profits Benefit segmentation - answer-The process of segmenting markets on the basis of the benefits sought by buyers Marketing model drivers - answer-Key elements or factors that must be taken into account when evaluating countries as potential target markets Enabling conditions - answer-Structural market characteristics whose presence or absence can determine whether the marketing model can succeed First-mover advantage - answer-Orthodox marketing wisdom suggesting that the first company to enter a country market has the best chance of becoming the market leader Standardized global marketing - answer-A target market strategy that calls for creating the same marketing mix for a broad mass market of potential buyers Niche - answer-A single, narrowly targeted segment of the global market Differentiated global marketing - answer-A strategy that calls for targeting two or more distinct market segments with multiple marketing mix offerings Multisegment targeting - answer-A marketing strategy that entails targeting two or more distinct market segments with multiple marketing mix offerings Global consumer culture positioning (GCCP) - answer-A positioning strategy that seeks to differentiate a product, brand, or company as a symbol of, or association with, a global culture or a global market segment Foreign consumer culture positioning (FCCP) - answer-A positioning strategy that seeks to differentiate a product, brand, or company by associating it with its country or culture of origin Local consumer culture positioning (LCCP) - answer-A positioning strategy that seeks to differentiate a product, brand, or company in terms of its association with local culture, local production, or local consumption. Conventional wisdom - answer--Assumes heterogeneity between countries -Assumes homogeneity within a country -Focuses on macro level of cultural differences -Relies on clustering of national markets -Less emphasis on within-country segments Current practice - answer--Assumes emergence of segments that transcend national boundaries -Recognizes existence of within-country differences -Emphasizes micro-level differences -Segments micro markets within and between countries Types fo segmentation methods - answer-Geographic, demographic, psychographic, behavior, benefit Geographic segmentation - answer-Dividing the world into geographic subgroups Criteria of assessing market potential - answer--Current size of the segment and anticipated growth potential -Potential competition -Compatibility with company's overall objectives and the feasibility of successfully reaching the target audience Global target market strategies - answer-Standardized, concentrated, and differentiated global marketing Concentrated global marketing - answer-Niche marketing Single segment of global market Look for global depth rather than national breadth Ex.: Chanel, Estee Lauder Attribute options - answer-1. Attribute or benefit 2. Quality and price 3. User or user 4. Competition High-tech - answer-When customers don't need human interaction to perform activities such as onboarding, ordering, and account management Information Technology (IT) - answer-An organization's processes for creating, storing, exchanging, using, and managing information Management Information Systems (MIS) - answer-A system that provides managers and other decision makers with a continuous flow about company Big data - answer-Extremely large data sets that can be subjected to computational analysis to reveal patterns and trends Intranet - answer-An electronic system that allows authorized company personnel or outsiders to share information electronically in a secure fashion while reducing the amount of paper generated Electronic Data Interchange (EDI) - answer-An MIS tool that allows a company's business units to submit orders, issue invoices, and conduct business electronically with other company units as well as with outside companies Efficient Consumer Response (ECR) - answer-An MIS tool that enables retailers to work more closely with vendors to facilitate stock replenishment Electronic Point of Sale (EPOS) - answer-Purchase data gathered by checkout scanners that help retailers identify product sales patterns and the extent to which consumer preferences vary with geography. Customer relationship management (CRM) - answer-The process of storing and analyzing data collected from customer "touchpoints" for the purpose of identifying a firm's best customers and serving their needs as efficiently, effectively, and profitably as possible Data Warehouse - answer-A database, part of a company's MIS, that is used to support management decision making Market Research - answer-The project-specific, systematic gathering of data in the search scanning mode Global Market Research - answer-The project-specific gathering and analysis of data on a global basis or in one or more markets outside the home country Market research process - answer-Firm objective-- information requirement-- Problem definition-- choose unit of analysis-- Examine data availability-- Assess value of research-- research design-- data analysis-- interpretation and presentation Market potential - answer-Demand estimates, consumer behavior, review of products, channels, communication media Competitor information - answer-Corporate, business, and functional strategies; resources and intentions; capabilities Foreign exchange - answer-Balance of payments, interest rates, attractiveness of country currency, expectations of analysts Prescriptive information - answer-Laws, regulations, rulings concerning taxes, earnings, dividends in both host and home countries Resource information - answer-Availability of human, financial, physical, and information resources General conditions - answer-overall review of sociocultural, political, and technological environments Secondary data - answer-Existing data in personal files, published sources, and databases Primary data - answer-In market research, data gathered through research pertaining to the particular problem, decision, or issue under study Latent market - answer-An undiscovered market segment in which demand for a product would materialize if an appropriate product were offered Incipient Market - answer-A market in which demand will materialize if particular economic, demographic, political, or sociocultural trends continue. Survey Research - answer-Primary data collection via questionnaire-based studies designed to generate qualitative responses, quantitative responses, or both Consumer panel - answer-Primary data collection using a sample of consumers or households whose behavior is tracked over time; frequently used for television audience measurement Peoplemeter - answer-An electronic device used by companies such as Nielsen to collect national television audience data Observation - answer-A method of primary data collection using trained observers who watch and record the behavior of actual or prospective customers Focus group - answer-Primary data collection method involving a trained moderator who facilitates discussion among the members of a group at a specifically equipped research facility Factor analysis - answer-In market research, a computerized quantitative data analysis technique that is used to perform data reduction. Responses from questionnaires that contain multiple items about a product's benefits serve as input; the computer generates factor loadings that can be used to create a perceptual map Cluster analysis - answer-In market research, a quantitative data analysis technique that groups variables into clusters that maximize within-group similarities and between-group differences. Can be used in psychographic segmentation. Multidimensional Scaling (MDS) - answer-In market research, a quantitative data analysis technique that can be used to create perceptual maps. MDS helps marketers gain insights into consumer perceptions when a large number of products or brands are available. Conjoint analysis - answer-In market research, a quantitative data analysis technique that can be used to gain insights into the combination of product features that will be attractive to potential buyers. Emic Analysis - answer-global market research that analyzes a country in terms of its local system of meanings and values Etic Analysis - answer-Global market research that analyzes a country from an outside perspective. Direct sensory perception - answer-Seeing, feeling, hearing, smelling, or tasting firsthand to find out what is going on in a country Safe harbor agreement - answer-establishes principles for privacy protection for companies that transfer data to the U.S. from Europe Scale development - answer-requires a type of measure, ranking, or interval to a response Scalar equivalence - answer-equal weighting for responses Wong-Baker FACES scale - answer-a pain assessment tool that asks patients (often children) to select one of several faces indicating expressions that convey a range from no pain through the worst pain Political environment - answer-The set of governmental institutions, political parties, and organizations that are the expression of the people in nations of the world Sovereignty - answer-A country's supreme and independent political authority Political risk - answer-The risk of a change in political environment or government policy that would adversely affect a company's ability to operate effectively and profitably Expropriation - answer-Governmental seizure of a company's assets in exchange for compensation that is generally lower than market value Confiscation - answer-Governmental seizure of a company's assets without compensation Nationalization - answer-broad transfer of industry management and ownership in a particular country from the private sector to the government International law - answer-The body of international law that pertains to noncommercial disputes between nations Private international law - answer-the body of law that applies to disputes arising from commercial transactions between companies of different nations Public international law - answer-Disputes between nations, not firms Civil-law (code-law) country - answer-A country in which the legal system reflect the structural concepts and principles of the Roman empire in the sixth century. The basis for continental European law Common-law (US law) country - answer-A country in which the legal system relies on past judicial decisions (cases) to resolve disputes. Rooted in English common law Islamic law - answer-A legal system used in the Middle East that is based on a comprehensive code know a Sharia Jurisdiction - answer-The aspect of a country's legal environment that deals with a court's authority to rule on particular types of controversies arising outside of a nation's borders or exercise power over individuals or entities from different countries Patent - answer-A formal legal document that gives an inventor the exclusive right to make, us, and sell and invention for a specified period of time Trademark - answer-A distinctive mark, motto, device, or emblem that a manufacturer affixes to a particular product or package to distinguish it from goods produced by other manufacturers Copyright - answer-The establishment of ownership of a written, recorded, performed, or filmed creative work Counterfeiting - answer-The unauthorized copying and production of a product Associative Counterfeit/Imitation - answer-uses a product name that differs slightly from a well-known brand but is close enough that consumers will mistake it for the genuine product Madrid protocol - answer-A system of trademark protection that allows intellectual property registration in multiple countries with a single application and fee Cartel - answer-A group of separate companies or countries that collectively set prices, control output, or take other actions to maximize profits Licensing - answer-A contractual agreement in which a licensor allows a licensee to use patents, trademarks, trade secrets, technology, or other intangible assets in return for royalty payments or other forms of compensation Bribery - answer-The corrupt business practice of demanding or offering some type of consideration-typically a cash payment- when negotiating a cross-border deal Foreign Corrupt Practices Act (FCPA) - answer-A law that makes it illegal for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business. Arbitration - answer-A negotiation process between two or more parties to settle a dispute outside of the court system Regulatory environment - answer-Governmental and nongovernmental agencies and organizations that enforce laws or establish guidelines for conducting business Political culture - answer-Reflects the importance of the government and legal system and provides a context within which individuals and corporations understand their relationship to the political system Creeping expropriation - answer-limits economic activities of foreign firms International court of justice - answer-Judicial arm of the United Nations founded in 1947 Settles disputes between nations Piracy - answer-Unauthorized publication or reproduction of copyrighted work World Intellectual Property Organization (WIPO) - answer-a specialized agency of the United Nations that administers numerous treaties concerning protection of intellectual property rights International convention for the protection of industrial property (The Paris Convention) - answer-Honored by almost 100 countries, facilitates multi-country patent registration, ensures that once a company files it has a "right of priority" in other countries for one year from that date Patent Cooperation Treaty (PCT) - answer-a cooperative union for the filing of patents among member countries, over 100 countries European Patent Convention (EPC) - answer-established a regional patent system allowing any nationality to file a single international application for a European patent, EU and Switzerland Antitrust - answer-Laws designed to combat restrictive business practices and to encourage competition The Sherman Act of 1890 - answer-prohibits certain restrictive business practices including fixing prices, limiting production, allocating markets, or any other scheme designed to limit or avoid competition Omnibus Trade and Competitiveness Act - answer-Allows for "grease" payments to cut red tape; i.e., getting shipments through customs, getting permits Conflict resolution - answer-Litigation, formal arbitration The Regulatory Environment - answer-Agencies, both governmental and non-governmental, that enforce laws or set guidelines for conducting business Culture - answer-A society's ways of living transmitted from one generation to another. Culture's manifestations include attitudes, beliefs, values, aesthetics, dietary customs, and language Physical component of culture - answer-Physical objects and artifacts created by humans such as tools or clothing Nonmaterial/subjective/abstract culture - answer-Intangibles such as religion, perceptions, attitudes, beliefs, and values Global consumer culture positioning (GCCP) - answer-a positioning strategy that seeks to differentiate a product, brand, or company as a symbol of, or association with, a global culture or a global market segment Attitude - answer-In culture, a learned tendency to respond in a consistent way to a given object or entity Belief - answer-In culture, an organized pattern of knowledge that an individual holds to be true about the world Values - answer-In culture, enduring beliefs or feelings that a specific mode of conduct is personally or socially preferable to another mode of conduct Subculture - answer-Within a culture, a small group of people with their own shared subset of attitudes, beliefs, and values Aesthetics - answer-A shared sense within a culture of what is beautiful as opposed to not beautiful and what represents good taste as opposed to tastelessness Low-context culture - answer-A culture in which messages and knowledge are more explicit and words carry most of the information in communication High-context culture - answer-A culture in which a great deal of information and meaning reside in the context of communication, including the background, associations, and basic values of the communicators Hofstede's Five Cultural Dimensions - answer-Power distance, individualism/collectivism, masculinity/femininity, uncertainty avoidance, and long-term vs. short-term orientation Individualistic cultures - answer-In Geert Hofstede's social values typology, a society in which each member is primarily concerned with his or her interests and those of the immediate family Collectivist culture - answer-In Geert Hofstede's social values typology, a culture in which group cohesiveness and harmony are emphasized. A shared concern for well-being of all members of society is also evident Power distance - answer-In Geert Hofstede's social values typology, the cultural dimension that reflects the extent to which it is acceptable for power to be distributed unequally in a society Uncertainty avoidance - answer-In Geert Hofstede's social values framework, the extent to which members of a culture are uncomfortable with unclear, ambiguous, or unstructured situations Achievement - answer-The fourth dimension in Hofstede's social values framework that describe a society in which men are expected to be assertive, competitive, and concerned with material success and women fulfill the role of nurturer and are concerned with issues such as the welfare of the children Nurturing - answer-Describes a society in which the social roles of men and women overlap, with neither gender exhibiting overly ambitious or competitive behavior Long-term orientation (LTO) - answer-The fifth dimension in Geert Hofstede's social values framework, LTO is a reflection of society's concern with immediate gratification versus persistence and thrift over the long term Short-term orientation - answer-One of the dimensions in Geert Hofstede's social values typology. Contrasts with long-term orientation Self-reference criterion (SRC) - answer-The unconscious human tendency to interpret the world in terms of one's own cultural experience and values Diffusion of innovations - answer-A framework developed by Everett Rogers to explain the way that new products are adopted by a culture over time. The framework includes the five-stage innovation adoption process, characteristics of innovations, and innovation adopter categories. Adoption process - answer-A model developed by Everett Rogers that describes the "adoption" or purchase decision process. The stages consist of awareness, interest, evaluation, trial, and adoption. Characteristics of innovation definition - answer-One element of Everett Rogers' diffusion of innovations framework. The other elements in the framework are the five-stage innovation adoption process and innovation adopter categories. Characteristics of innovation - answer-relative advantage, compatibility, complexity, divisibility, communicability Relative advantage - answer-the degree to which a consumer perceives that a new product provides superior benefits. How it compares to existing products Compatibility - answer-the extent to which a new product is consistent with existing cultural values, customs, and practices and past experiences of adopters Complexity - answer-the degree to which an innovation or new product is difficult to understand and use Divisibility - answer-The ability of a product to be tried and used on a limited basis without great expense Communicability - answer-the degree to which benefits of an innovation or the value of a product may be communicated to a potential market Adopter categories - answer-In the adoption process developed by Everett Rogers, a typology of buyers at different stages of the "adoption" or product life cycle. The categories are innovators, early adopters, early majority, late majority, and laggards. Innovators - answer-The first 2.5% who adopt the product. Many are obsessive about trying new ideas and products. Early adopters - answer-13.5% Leaders in social setting, slightly above average education Early majority - answer-34% Deliberate, many informal social contacts Late majority - answer-34% skeptical, below average social status Laggards - answer-16% consumers who like to avoid change and rely on traditional products until they are no longer available Environmental sensitivity - answer-A measure of the extent to which products must be adapted to the culture-specific needs of different country markets. Generally, consumer products show a higher degree of environmental sensitivity than industrial products Iceberg Concept of Culture - answer-Like an iceberg, the majority of culture is below the surface. Visual - answer-embodied in the color or shape of a product, label, or package Styles - answer-various degrees of complexity, for example, are perceived differently around the world Red - answer-Associated with blood, wine-making, activity, heat, and vibrancy in many countries but is poorly received in some African countries Blue - answer-Since the pigment was rare, ancient Egyptians, Chinese, and Mayans associated it with royalty and divinity. Half of interviewees state blue as their favorite color White - answer-Identified with purity and cleanliness in the West, with death in parts of Asia Gray - answer-Means inexpensive in Japan and China, but highly quality and expensive in the US Music - answer-Found in all cultures, rhythm is universal Nonverbal language - answer-Personal physical space and personal touching, non-verbal gestures and signaling, time flexibility and sensibility monochronic orientation to time - answer-a rigid orientation in which people are focused on schedules, punctuality, and time as a resource. Work to live Polycentric orientation to time - answer-Views monocentric orientation as too linear. Live to work, not work to live. Emphasis on quality of life General Agreement on Tariffs and Trade (GATT) - answer-The organization established at the end of WW2 to promote free trade; also, the treaty signed by member nations World Trade Organization (WTO) - answer-The successor to GATT, established Jan 1 1995 Preferential Trade Agreement (PTA) - answer-A trade agreement between a relatively small number of signatory nations, often on a regional or subregional basis. Different levels of economic integration can characterize such trade agreements Free Trade Area (FTA) - answer-A preferential trade bloc whose members have signed a free trade agreement that entails reducing or eliminating tariffs and quotas Free Trade Agreement (FTA) - answer-An agreement that leads to the creation of a free trade area. A FTA represents a relatively low level of economic integration Rules of Origin - answer-A system of certification that verifies the country of origin of a shipment of goods Customs union - answer-A preferential trade bloc whose members agree to seek a greater degree of economic integration than is provided by a free trade agreement. In addition to reducing tariffs and quotas, a customs union is characterized by a common external tariff (CET) Common External Tariff (CET) - answer-A tariff agreed upon by members of a preferential trading bloc. Implementation of a CET marks the transition from a fee trade area to a customs union Common Market - answer-a preferential trade agreement that builds on the foundation of economic integration provided by a free trade area and a customs union Economic Union - answer-A highly evolved form of cross-border economic integration involving reduced tariffs and quotas, a common external tariff, reduced restrictions on the movement of labor and capital, and the creation of unified economic policies and institutions such as a central bank. North American Free Trade Agreement (NAFTA) - answer-A free trade agreement between Canada, Mexico, and the United States. In 2018, replaced with the US-Mexico-Canada Agreement Central American Integration System - answer-A customs union comprised of El Salvador, Honduras, Guatemala, Nicaragua, Costa Rica, and Panama. Andean Community - answer-A customs union comprised of Bolivia, Colombia, Ecuador, and Peru Common Market of the South (Mercosur) - answer-A customs union comprised of Argentina, Brazil, Paraguay, and Uruguay Association of Southeast Asian Nations (ASEAN) - answer-A trade bloc comprised of Brunei, Cambodia, Indonesia, Malaysia, Laos, Myanmar, the Philippines, Singapore, Thailand, Vietnam Euro Zone - answer-Nineteen countries that use the Euro: Austria, Belgium, Cyprus, Estonia, Finland, Ireland, the Netherlands, France, Germany, Greece, Italy, Latvia, Lithuania, Luxembourg, Malta, Portugal, Slovakia, Slovenia, and Spain. Harmonization - answer-The coming together of varying standards and regulations that affect the marketing mix Transparency - answer-Openness in business dealings, financial disclosures, pricing, or other situations where the goal is to remove layers of secrecy or other obstacles to clear the way for understanding and decision making Gulf Cooperation Council (GCC) - answer-An association of oil producing states that includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Economic Community of West African States (ECOWAS) - answer-An association of 16 nations that includes Benin, Burkina Faso, Cape Verde, Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone, and Togo. Southern African Development Community (SADC) - answer-An association whose member states are Angola, Botswana, Democratic Republic of Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia, and Zimbabwe. Free Trade Agreement Pros - answer-increased economic growth, lower government spending, technology transfer Free Trade Agreement Cons - answer-Increased job outsourcing Poor working conditions Degradation of natural resources Gross Domestic Product (GDP) - answer-A measure of a nation's economic activity is calculated by adding consumer spending (C), investment spending (I), government purchases (G), and net exports (NX) Market capitalism - answer-An economic system characterized by market allocation of resources and private resource ownership Anglo-Saxon Model - answer-Private ownership, free enterprise economy, capitalism, minimal social safety net, highly flexible employment policies Social market economy model - answer-Private ownership; "social partners" orientation that includes employer groups, unions, and banks; unions and corporations are involved in government, and vice versa; inflexible employment policies Nordic model - answer-Mix of state ownership and private ownership; high taxes; some market regulation, generous social safety net Centrally planned socialism - answer-An economic system characterized by command resource allocation and state resource ownership Centrally planned capitalism - answer-An economic system characterized by command resource allocation and private resource ownership Market socialism - answer-An economic system characterized by limited market resource allocation within an overall environment of state ownership Gross national income (GNI) - answer-A measure of a nation's economic activity that includes gross domestic product (GDP) plus income generated by nonresident sources Low income country - answer-A country with per capita gross national income of less than or equal to $1005 Least developed countries (LDCs) - answer-Terminology adopted by the United Nations to refer to the 50 countries that rank lowest in per capita gross national product Developing countries - answer-Countries that can be assigned to the upper ranks of the low-income category, the lower-middle-income category, or the upper-middle-income category Developed countries - answer-Countries that can be assigned to the high-income category Lower-middle-income countries - answer-A country with a GNI per capita between $1006 and $3955 Upper-middle-income country - answer-A country with a GNI per capita between $3,956 and $12,235 Newly industrialized economies - answer-Upper-middle-income countries with high rates of economic growth High-income country - answer-A country in which per capita GNI is $12236 or greater Group of eight (G8) - answer-Eight nations- the US, Japan, Germany, France, Great Britain, Canada, Italy, and Russia- whose representatives met regularly to deal with global economic issues. Russia was dropped in 2014 Group of seven (G7) - answer-G8 minus Russia Group of Twenty (G20) - answer-Twenty nations whose representatives meet regularly to discuss global economic and financial issues. Objectives include restoring global economic growth and strengthening the global financial system Organization for Economic Cooperation and Development (OECD) - answer-A group of 35 nations that work together to aid in the development of economic systems based on market capitalism and pluralistic democracy Product saturation level - answer-the percentage of customers or households that own a product in a particular country market; a measure of market opportunity Balance of payments - answer-The record of all economic transactions between the residents of a country and the rest of the world Current account - answer-A record of all recurring trade in merchandise and services, private gifts, and public aid transaction between countries Merchandise trade - answer-In balance of payments statistics, entries that pertain to manufactured goods Services trade - answer-The buying and selling of intangible, experience-based economic output Trade deficit - answer-A negative number in the balance of payments showing that the value of a countries imports exceed the value of its exports Trade surplus - answer-A positive number in the balance of payments showing that the value of a country's exports exceeds the value of its imports Capital account - answer-In a country's balance of payments, the record of all long-term direct investment, portfolio investment, and other short- and long-term capital flows Devaluation - answer-The decline in value of a currency relative to other currencies Revaluation - answer-The strengthening of a country's currency Economic exposure - answer-Reflects the impact of currency fluctuations on a company's financial performance Hedging - answer-An investment made to protect a company from possible financial losses due to fluctuating currency exchange rates Forward market - answer-A mechanism for buying and selling currencies at present price for future delivery Option - answer-In foreign currency trading, a contract confirming the right to buy or sell a specific amount of currency at a fixed price Put option - answer-The right to sell a specified number of foreign currency units at a fixed price, up to the option's expiration date Call option - answer-The right to buy a specified amount of foreign currency at a fixed price, up to the option's expiration date Marketing - answer-The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large Marketing Mix - answer-The four factors- product, price, place, and promotion- that represent strategic variables controlled by the marketer Global Marketing - answer-The commitment of organizational resources to pursuing global market opportunities and responding to environmental threats in the global marketplace Value chain - answer-The various activities a company performs in order to create value for customers Value equation - answer-Perceived value= benefits/price Market - answer-People or organizations that are both willing and able to buy Competitive advantage - answer-The result of a match between a firm's distinctive competencies and the factors critical for creating superior customer value in an industry Globalization - answer-Economic globalization constitutes integration of national economies into the international economy through trade, direct foreign investment, short-term capital flows, international flows of workers and humanity in general, and flows of technology Global industry - answer-An industry in which competitive advantage can be achieved by integrating and leveraging operations on a worldwide scale Focus - answer-The concentration of resources on a core business or competence Global Marketing Strategy (GMS) - answer-A firm's blueprint for pursuing global market opportunities that address four issues: whether a standardization approach or a localization approach will be used; whether key marketing activities will be concentrated in relatively few countries or widely dispersed around the globe; the guidelines for coordinating marketing activities around the globe; and the scope of global market participation Global market participation - answer-The extent to which a company has operations in major world markets Standardization vs Adaptation - answer-The extent to which each marketing mix element is standardized or adapted in various country markets Concentration of marketing activities - answer-The extent to which activities related to the marketing mix are performed in one or a few country locations Coordination of marketing activities - answer-The extent to which marketing activities related to the marketing mix are planned and executed interdependently around the globe Integration of competitive moves - answer-The extent to which a firm's competitive marketing tactics in different parts of the world are interdependent BRICS - answer-Brazil, Russia, India, China, South Africa MINT - answer-Mexico, Indonesia, Nigeria, Turkey Global localization - answer-The ability to "think globally and act locally" Ethnocentric orientation - answer-The first level in the EPRG framework: the conscious or unconscious belief that one's home country is superior Domestic companies - answer-Companies that ignore opportunities outside the home country International companies - answer-Ethnocentric companies that conduct business outside the home country Standardized (extension) approach - answer-The pursuit of global market opportunity using an extension strategy of minimal marketing mix variation in different countries Polycentric orientation - answer-The second level of the EPRG framework: the view that each country in which a company does business is unique. In global marketing, this orientation results in high levels of marketing mix adaptation, often implemented by autonomous local managers in each country market Localized (adaptation approach) - answer-The pursuit of global market opportunities using an adaptation strategy of significant marketing mix variations in different countries Regiocentric orientation - answer-The third level of the EPRG framework: The view that similarities as well as differences characterize specific regions of the world. In global marketing, a regiocentric orientation is evident when a company develops and integrated strategy for particular geographic regions Geocentric orientation - answer-The fourth level of the EPRG framework: the understanding that the company should seek market opportunities throughout the world. Management also recognizes that country markets may be characterized by both similarities and differences Leverage - answer-Some type of advantage- ex. experience transfer, know-how, or scale economies- that a company enjoys by accumulating experience in multiple country markets Driving forces - answer-Regional economic agreements, converging market needs and wants, tech advances, pressure to cut costs, pressure to improve quality, improvements in communication and transportation tech, global economic growth, opportunities for leverage, innovation and entrepreneurship Restraining forces - answer-Management myopia, organizational culture, national controls, opposition to globalization Nontariff barriers (NTBs) - answer-Any restriction besides taxation that restricts or prevents the flow of goods across borders, ranging from "buy local" campaigns to bureaucratic obstacles that make it difficult for companies to gain access to some individual country and regional markets Globaphobia - answer-an attitude of hostility toward trade agreements, global brands, or company policies that appear to result in hardship for some individuals or countries while benefiting others