International Business Chapter 1

Marketing

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

Marking Mix

Product, Price, Place, Promotion

Global Marketing

focuses its resources and competencies on global market opportunities and threats

market penetration

a marketing strategy that tries to increase market share among existing customers
ex starbucks loyalty app

market development

company growth by identifying and developing new market segments for current company products
ex. starbucks starts sourcing coffee beans from India and market them and then start to sell in high scale hotels in India

Product Development

developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering

Diversification

company growth through starting up or acquiring businesses outside the company's current products and markets
ex. Starbucks dropping coffee from its logo

New markets

Market Development
Diversification

Existing Markets

Market Penetration
Product Development

Value Chain

the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products

Value Equation

Benefits/Price (Money, Time, Effort, Etc.)

Global Advantage

The competitive advantage available to organizations that enact more than one global strategy (deployment, development, and deepening) simultaneously, applying each to the products and countries where it is most suited and developing organizational capabilities to reconcile the conflicts between them.

Global Industry

an industry in which competition crosses national borders on a worldwide basis

global marketing strategy

the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ

Ethnocentric Orientation

using our own culture as the standard for judging other cultures

Polycentric Orientation

when the culture of the country in which the strategy is to be implemented is allowed to dominate a company's international decision-making process

localized or adaptation approach

assumes that products must be adapted in response to different market conditions

Regiocentric Orientation

a region becomes the relevant geographic unit; management's goal is to develop an integrated regional strategy

Geocentric Orientation

views the entire world as a potential market and strives to develop integrated global strategies

leverage

some type of advantage that a company enjoys by virtue of the fact that it has experience in more than one country

forces affecting global integration and global marketing

multilateral trade agreements
Converging market needs and wants and info revolution
transportation and communication
product development costs
quality
world economic trends
restraining forces