Find study materials for any course. Check these out:
Browse by school
Make your own
To login with Google, please enable popups
To login with Google, please enable popups
Don’t have an account?
To signup with Google, please enable popups
To signup with Google, please enable popups
Sign up withor
-local costs-income levels-competition-local marketing strategy
-Selling propositionRational ApproachEmotional Approach
Art and Copy
Management's use of highly localized marketing programs in different country markets. (p. 18)
The "holy grail" of corporate, business, and marketing strategy: The result of a match between a firm's distinctive competencies and the factors critical for creating superior customer value in an industry. The “high priest” of competitive advantage is Michael Porter of the Harvard Business School. (As Peter Drucker famously said, “If you don’t have an advantage, don’t compete!”) (p. 6)
The first “level” or evolutionary stage in the EPRG framework: the conscious or unconscious belief that one's home country is superior. In global marketing, an ethnocentric orientation manifests itself in management's belief that a marketing program that is successful in the domestic (home country) market will be successful everywhere. This takes the form of an extension strategy used by an international company. Hershey is an example of an American company that, until recently, exhibited an ethnocentric orientation. (p. 17)
The fourth level in 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. A company in which a geocentric orientation is present will use both extension and adaptation strategies. (pp. 18-20)
A company in which management exhibits a geocentric orientation. A global company pursues marketing opportunities in all parts of the world using one of two strategies: either serving world markets by exporting goods manufactured in the home country market or by sourcing products from a variety of different countries with the primary goal of serving the home country market. Global operations are integrated and coordinated. Typically, customers are able to associate a global company or its key brand(s) with the headquarters country, e.g., Harley-Davidson (motorcycles), Absolut (vodka), Gap (fashion). (p. 18)
An industry in which competitive advantage can be achieved by integrating and leveraging operations on a worldwide scale. (p. 7)
A firm's blueprint for pursuing global market opportunities. The GMS addresses four issues. First, the GMS designates whether a standardization approach or localization approach will be used. Second, the GMS specifies whether key marketing activities will be concentrated in relatively few countries or widely dispersed around the globe. Third, the GMS spells out guidelines for coordinating marketing activities around the globe. Finally, the GMS addresses the scope of global market participation. (p. 10)
A company that pursues market opportunities outside the home country via an extension strategy, i.e., the same product, price, distribution, and/or promotion strategy as used in the domestic market. The use of an extension strategy is generally a reflection of management's ethnocentric orientation. (p. 17)
The advantage—for example, experience transfers, know-how, or scale economies—that a company enjoys by accumulating experience in multiple country markets. (pp. 24-25)
A company that pursues market opportunities outside the home country market via an adaptation strategy, i.e., different product, price, place, and/or promotion strategies than used in the domestic market. In a typical multinational, country managers enjoy considerable autonomy; marketing activities are not integrated or coordinated across different country markets. The use of adaptation strategies is generally a reflection of management's polycentric orientation. (p. 18)
The second level in 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. In the 1960s, 70s, and 80s, companies with this orientation were called multinationals. (p. 18)
The third level in the EPRG framework: the view that specific regions of the world are characterized by similarities. In global marketing, a regiocentric orientation is evident when a company develops an integrated strategy for a particular geographic area such as Latin America or Western Europe. (p. 18)
The pursuit of global market opportunity using an extension strategy of minimal marketing mix variation in different countries. Historically, this was the strategy of the ethnocentric/international company (p. 17)
Transnational company - The most highly evolved organizational form. In a transnational company, management has a geocentric orientation. However, a transnational company differs from a global company in its pursuit of marketing opportunity in all parts of the world by fully integrating and coordinating two strategies: sourcing products from a variety of different countries AND serving multiple country markets across most world regions. A true transnational may be "stateless" in the sense that customers do not necessarily associate the company or its key brands with the company's home country, e.g., Toyota, Nestlé, Sony. (p. 19)
An economic system characterized by command resource allocation and state resource ownership, e.g., Communist countries such as the former Soviet Union and modern-day Cuba and North Korea. (p. 40)
Terminology adopted by the United Nations to refer to the fifty countries that rank lowest in per capita GNi. (p. 46)
A free trade area whose members include Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, and Trinidad and Tobago (p. 80).
Legislation adopted by European countries after World War II to aid and protect the interests of farmers (p. 72).
An association of 16 nations that includes Benin, Burkina Faso, Cape Verde, The Gambia, Ghana, Guinea, Guinea- Bissau, Ivory Coast, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone, and Togo (p. 91).
A preferential trading bloc whose members have signed a free trade agreement (also abbreviated FTA) that entails reducing or eliminating tariffs and quotas. Example: Canada, the United States, and Mexico comprise an FTA created by the North American Free Trade Agreement (NAFTA) (p. 69).
An association of oil-producing states that includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (p. 89).
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 (p. 93).
In Roger's diffusion of innovation framework, five factors that affect the rate at which a new product is accepted by buyers: relative advantage, compatibility, complexity, divisibility, and communicability. (p. 119)
In Hofstede's social values typology, the extent to which group cohesiveness and harmony are emphasized in a culture. A shared concern for the well-being of the group. Hong Kong and Taiwan score high on this dimension. Contrasts with individualism. (pp. 113-117)
In Hofstede's social values framework, the extent to which the social roles of men and women overlap in a culture. Contrasts with masculinity. (pp. 113-117)
In distribution, a situation in which a channel intermediary such as a distributor only accepts new lines from manufacturers whose products and brands already enjoy strong demand. The term can be used in other situations; for example, the success of iTunes is linked to consumers’ practice of cherry-picking their favorite individual songs rather than buying full albums. (p. 358)
In physical distribution, the characteristic of transportation modes that pertains to the ability of a given mode to reach a particular destination or address. E.g., Trucks rank high in accessibility, air ranks low. (pp. 372-376)
A management orientation that focuses on identifying and satisfying buyer needs in ways that contribute to the organization’s long-term viability and are consistent with the organization’s mission.
Sign up for free and study better.
Get started today!