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Global Marketing Terms
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Globalization
The process of interaction and integration among people, companies, and governments worldwide.
International Marketing
The application of marketing principles in more than one country, by companies overseas or across national borders.
Standardization
An international marketing strategy that assumes the way the product is used and the needs it satisfies are the same across national boundaries.
Adaptation
Modifying a product or its presentation to cater to local tastes, customs, or market conditions when entering a foreign market.
International Market Segmentation
The process of dividing a market of potential customers into groups, or segments, based on different characteristics and countries.
Global Brand
A brand that is marketed under the same name in multiple countries with similar and centrally coordinated marketing strategies.
Foreign Direct Investment (FDI)
An investment made by a firm or individual in one country into business interests located in another country.
Cultural Dimensions
Frameworks for understanding the differences in culture across countries, often used in international business to adapt marketing strategies.
Consumer Ethnocentrism
The tendency for individuals to believe that it is inappropriate or immoral to purchase foreign-made goods and services.
Export Marketing
The practice of marketing goods and services produced in one country to other countries.
Market Entry Strategy
The planned method of delivering goods or services to a new target market and distributing them there.
Global Marketing Mix
The set of controllable tactical marketing tools (product, price, place, and promotion) that a business blends to produce the response it wants in the target market.
Joint Venture
A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task, such as entry into a foreign market.
International Product Life Cycle (IPLC)
A theory explaining how products mature and move through international markets over time.
Tariffs
Taxes imposed by a government on goods and services imported from other countries.
Grey Market
A market where goods are sold legally, but outside of the manufacturer's authorized trading channels.
Country-of-Origin Effect
The influence that the place of manufacturing, assembly, or design of a product has on a consumer’s perception of the product.
Trade Blocs
A type of intergovernmental agreement where barriers to trade, such as tariffs and import quotas, are reduced or eliminated among the participating states.
Licensing
A business arrangement in which one company gives another company permission to manufacture its product for a specified payment.
Franchising
A type of licensing that involves a franchisor offering their business model and brand to a franchisee in exchange for a fee and ongoing royalties.
Cross-Cultural Analysis
The study of similarities and differences among consumers in two or more nations or societies.
Export Tariffs
Taxes or duties that are applied to goods leaving a country.
International Branding
The way a brand is perceived and the presence it has in international markets.
Economies of Scale
The cost advantage that arises with increased output of a product.
Market Withdrawal
The decision to exit a country or region by a company when it does not see potential growth or profits.
Quotas
Government-imposed trade restrictions that limit the number or value of goods that can be imported or exported during a particular time period.
International Pricing
The process of determining the most appropriate price for a product in different international markets.
Non-tariff Barriers
Regulations and policies other than tariffs that countries apply to control the quantity of imports or exports.
Brand Equity
The added value that a brand name gives to a product beyond the functional benefits provided.
International Distribution Strategies
The methods a company uses to get its products to international customers, including channels of distribution, logistics, and retail formats.
Marketing Information Systems (MkIS)
A system that analyzes and assesses marketing information, gathered continuously from sources inside and outside an organization.
Multidomestic Marketing Strategy
A strategy that suggests that companies should market products and services differently in each of the national markets they operate in.
Indirect Exporting
Using intermediaries to handle the export of goods and services to foreign markets.
Direct Exporting
Selling goods directly to a buyer in an international market without the use of intermediaries.
Market Orientation
A business approach or philosophy that focuses on identifying and meeting the stated or hidden needs or wants of customers.
Global Consumer Culture Positioning (GCCP)
A strategy that involves positioning a product as a symbol of a particular global culture or segment.
Differentiation
Creating a distinct market identity for a product or service, making it stand out from competitors.
Trade Shows and Exhibitions
Events where companies in a specific industry gather to showcase their products, service offerings, and conduct business.
Exchange Rates
The value of one currency for the purpose of conversion to another.
Value Chain Analysis
The process by which a company determines the cost of operational activities in order to discover competitive advantages.
Comparative Advantage
The ability of a country or company to produce a particular good more efficiently than other goods, leading to a lower opportunity cost.
Transfer Pricing
Setting prices for transactions between companies that are part of the same corporate entity, especially in different countries.
Sustainable Marketing
Marketing that meets the needs of the present without compromising the ability of future generations to meet their needs.
Psychographic Segmentation
The division of a market into different segments based on social class, lifestyle, or personality characteristics.
Keiretsu
A Japanese term describing a network of businesses that own stakes in one another as a means of mutual security, often including manufacturers and suppliers.
Innovation Adoption
The process by which consumers or businesses start using a new product, service, or idea.
Marketing Myopia
A short-sighted and inward-looking approach to marketing that focuses on the needs of the company instead of defining the company and its products in terms of the customers' needs and wants.
Competitor Analysis
The process of understanding your competitors' strengths and weaknesses in relation to your own and the market conditions.
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