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Global Marketing Terms

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Globalization

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The process of interaction and integration among people, companies, and governments worldwide.

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International Marketing

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The application of marketing principles in more than one country, by companies overseas or across national borders.

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Standardization

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An international marketing strategy that assumes the way the product is used and the needs it satisfies are the same across national boundaries.

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Adaptation

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Modifying a product or its presentation to cater to local tastes, customs, or market conditions when entering a foreign market.

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International Market Segmentation

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The process of dividing a market of potential customers into groups, or segments, based on different characteristics and countries.

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Global Brand

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A brand that is marketed under the same name in multiple countries with similar and centrally coordinated marketing strategies.

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Foreign Direct Investment (FDI)

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An investment made by a firm or individual in one country into business interests located in another country.

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Cultural Dimensions

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Frameworks for understanding the differences in culture across countries, often used in international business to adapt marketing strategies.

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Consumer Ethnocentrism

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The tendency for individuals to believe that it is inappropriate or immoral to purchase foreign-made goods and services.

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Export Marketing

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The practice of marketing goods and services produced in one country to other countries.

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Market Entry Strategy

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The planned method of delivering goods or services to a new target market and distributing them there.

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Global Marketing Mix

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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.

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Joint Venture

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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.

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International Product Life Cycle (IPLC)

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A theory explaining how products mature and move through international markets over time.

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Tariffs

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Taxes imposed by a government on goods and services imported from other countries.

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Grey Market

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A market where goods are sold legally, but outside of the manufacturer's authorized trading channels.

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Country-of-Origin Effect

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The influence that the place of manufacturing, assembly, or design of a product has on a consumer’s perception of the product.

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Trade Blocs

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A type of intergovernmental agreement where barriers to trade, such as tariffs and import quotas, are reduced or eliminated among the participating states.

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Licensing

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A business arrangement in which one company gives another company permission to manufacture its product for a specified payment.

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Franchising

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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.

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Cross-Cultural Analysis

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The study of similarities and differences among consumers in two or more nations or societies.

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Export Tariffs

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Taxes or duties that are applied to goods leaving a country.

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International Branding

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The way a brand is perceived and the presence it has in international markets.

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Economies of Scale

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The cost advantage that arises with increased output of a product.

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Market Withdrawal

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The decision to exit a country or region by a company when it does not see potential growth or profits.

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Quotas

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Government-imposed trade restrictions that limit the number or value of goods that can be imported or exported during a particular time period.

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International Pricing

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The process of determining the most appropriate price for a product in different international markets.

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Non-tariff Barriers

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Regulations and policies other than tariffs that countries apply to control the quantity of imports or exports.

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Brand Equity

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The added value that a brand name gives to a product beyond the functional benefits provided.

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International Distribution Strategies

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The methods a company uses to get its products to international customers, including channels of distribution, logistics, and retail formats.

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Marketing Information Systems (MkIS)

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A system that analyzes and assesses marketing information, gathered continuously from sources inside and outside an organization.

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Multidomestic Marketing Strategy

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A strategy that suggests that companies should market products and services differently in each of the national markets they operate in.

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Indirect Exporting

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Using intermediaries to handle the export of goods and services to foreign markets.

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Direct Exporting

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Selling goods directly to a buyer in an international market without the use of intermediaries.

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Market Orientation

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A business approach or philosophy that focuses on identifying and meeting the stated or hidden needs or wants of customers.

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Global Consumer Culture Positioning (GCCP)

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A strategy that involves positioning a product as a symbol of a particular global culture or segment.

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Differentiation

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Creating a distinct market identity for a product or service, making it stand out from competitors.

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Trade Shows and Exhibitions

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Events where companies in a specific industry gather to showcase their products, service offerings, and conduct business.

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Exchange Rates

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The value of one currency for the purpose of conversion to another.

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Value Chain Analysis

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The process by which a company determines the cost of operational activities in order to discover competitive advantages.

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Comparative Advantage

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The ability of a country or company to produce a particular good more efficiently than other goods, leading to a lower opportunity cost.

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Transfer Pricing

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Setting prices for transactions between companies that are part of the same corporate entity, especially in different countries.

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Sustainable Marketing

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Marketing that meets the needs of the present without compromising the ability of future generations to meet their needs.

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Psychographic Segmentation

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The division of a market into different segments based on social class, lifestyle, or personality characteristics.

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Keiretsu

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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.

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Innovation Adoption

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The process by which consumers or businesses start using a new product, service, or idea.

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Marketing Myopia

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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.

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Competitor Analysis

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The process of understanding your competitors' strengths and weaknesses in relation to your own and the market conditions.

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