marketing
the organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
marketing mix
4-P's : product, place, price, promotion
Value chain
the various activities that a company performs (research, development, manufacturing, marketing, physical distribution, and logistics) in order to create value for customers
value equation
value = Benefits / Price (money, time, effort, etc.)
global industry
industry in which competitive advantage can be achieved by integrating and leveraging operations on a worldwide scale
focus
the concentration of attention on a core business or competence
global market participation
the extent to which a company has operations in major world markets
concentration of marketing activities
the extent to which activities related to the marketing mix (ex: promotional campaigns or pricing decisions) are performed in one or a few country locations
global marketing
engaging in global markets and focusing on resources and competencies on global market opportunities and threats
market development strategy
seeking new customers by introducing existing products or services into new geographic markets
diversification strategy
creating new products or services and introducing them into new geographical markets
competitive advantage
when a company succeeds in creating more value for its customers than its competitors
globalization
the transformation of formerly local or national industries into global ones
global marketing strategy (GMS)
a firm's blueprint for pursuing global market opportunities that addresses four values: whether a standardization approach or localization approach will be used; whether key marketing activities will be concentrated in relatively few countries or widely d
standardization vs. adaptation
the extent to which each marketing mix element can be standardized (executed in the same way) or adapted (executed in different ways) in various country markets
coordination of marketing activities
the extent to which marketing activities related to the marketing mix are planned and executed interdependently around the globe
integration of competitive moves
the extent to which a firm's competitive marketing tactics in different parts of the world are interdependent
local globalization
being as much of an insider as a local company, but still reaping the benefits that result from world-scale operations; a successful global marketer must have the ability to "think globally and act locally
EPRG framework
a developmental framework for analyzing organizations in terms of four successive management orientations: ethnocentric, polycentric, regiocentric, and geocentric
ethnocentric orientation
a person who assumes that his or her home country is superior to the rest of the world; sometimes associated with attitudes of national arrogance or assumptions of national superiority (called domestic companies)
international companies
ethnocentric companies that conduct business outside the home country...they believe the products that succeed in the home country are superior
standardized or extension approach
approach to marketing based on the premise that products can be sold everywhere without adaptation
polycentric orientation
the opposite of ethnocentricism; when management believes or assumes that each country in which a company does business is unique (these companies are called "multinational")
localized / adaptation approach
assumes products must be adapted in response to different market conditions
geocentric orientation
company views the entire world as a potential market and strives to develop integrated global strategies (called global or transnational companies)
what's the diff. between global/transnational companies and international/multinational companies?
mind-set: at global/transnational companies, decisions regarding extension and adaptation are not based on assumptions. Rather, such decisions are made based on ongoing research into market needs and wants.
leverage
some type of advantage that a company enjoys by virtue of the fact that it has experience in more than one country
global strategy
a design to create a winning offering on a global scale
globaphobia
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
nontariff barriers (NTBs)
any restrictions besides taxation that restricts or prevents the flow of goods across boarders, ranging from "buy local" campaigns to bureaucratic obstacles that make it difficult for companies to gain access to some individual country and regional market