Term
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Definition
| Products required to change to meet physical/mandatory requirements of new market (Packaging to core product) |
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Term
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Definition
| What the product is expected to do in its performance (airplane should fly and land) most basic expectations of the product. |
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Term
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Definition
| : Those qualities that go above and beyond the expected qualities (Baggage claim, food, drink, customer service) |
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Term
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Definition
| concern with the environmental consequences of a variety of marketing activities (Control of packaging component/solid waste and consumer demand for environmentally friendly products) |
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Term
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Definition
| : Products are bundles of satisfaction influenced by culture; facets of product include form, taste, color, odor texture, reputation, and function |
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Term
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Definition
| Product platform, design features, functional features, and legal info |
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Term
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Definition
| Intangibility, Inseparabilty, Heterogeneity, and Perishability |
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Term
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Definition
| unauthorized use or reproduction of another's work |
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Term
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Definition
| Consumer values and worth of company |
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Term
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Definition
| the worldwide use of a name, term, sign, symbol design, or combination thereof intended to identify goods or services of one seller and to differentiate them from those of competitors |
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Term
| Private Label Brands (Store Brands) |
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Definition
| improved quality, premium private brands, expansion into new products, internationalization of retail chains, economic downturns, Balance of power between retail and manufacturers. |
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Term
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Definition
| (Country of Origin) any influence that the country of manufacture, assembly, or design has on a consumer’s positive or negative perception of a product. Place of manufacturing will affect product/brand image (Domestic products over imported goods) |
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Term
| Goals Consumers vs. Businesses |
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Definition
• Industrial products and services are used in the process of creating other goods and services; consumer goods are in their final form and are consumed by individuals.
• Industrial consumers are seeking profit, whereas the ultimate consumer is seeking satisfaction . |
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Term
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Definition
can be defined as demand dependent on another source
- The demand for Boeing 747s is derived from the worldwide consumer demand for air travel services. |
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Term
| ISO 9000 (International standard of quality) |
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Definition
a series of five international industrial standards originally designed by the International Organization for Standardization to meet the need for product quality assurances in purchasing agreements
, increases product stock and only applies to production process |
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Term
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Definition
| Business to business transactions, between wholesaler and manufactorer or wholesaler and retailer |
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Term
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Definition
| The physical handling and distribution of goods, the passage of ownership (title), and the buying and selling negotiations between producers and middlemen and between middlemen and customers |
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Term
| Information/physical flows |
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Definition
| Information flows + Physical flows = Supply chain. |
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Term
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Definition
Japanese general trading companies (5 big companies) Marubeni, Mitsui, Sumitomo, Itochu, and Mitsubishi
- sell manufactured goods to developing countries/buy raw materials and unprocessed goods, work as importer and exporter |
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Term
| 4 Japanese Distribution features |
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Definition
1. Structure dominated by small middlemen dealing with small retailers
2. Channel control by manufacturers
3. Business philosophy shaped by unique culture
4. Laws protect foundation of the system |
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Term
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Definition
1. Retail Size Patterns
2. Direct Selling
3. Resistance to change
4. Alternative middleman choices |
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Term
| Push vs. Pull international channels |
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Definition
antagonistic elements of the supply chain and shifting power (coercion) in managing logistics for international markets.Captive Supplier controlled by the buyer
Ex: Wal-Mart providing the sole revenue for a supplier. Johnson & Johnson is 3% of Wal-Mart’s sales |
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Term
| E-Commerce in global channels |
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Definition
used to market
- Business to business services
- Consumer services
- Consumer and Industrial products |
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Term
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Definition
| , provide marketing services from a domestic base and find foreign markets for products for local manufacturers |
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Term
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Definition
Cost
Capital requirement
Control
Coverage
Character
Continuity |
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Term
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Definition
1. an effective non-tariff barrier
2. Different from US or Europe |
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Term
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Definition
| Large dominant retailers can be sold to directly, but there is no adequate way to reach small retailers who, in the aggregate, handle a great volume of sale |
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Term
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Definition
| -Selling directly to the consumer through mail, by telephone, or door-to-door is often the approach of choice in markets with insufficient or underdeveloped distribution systems |
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Term
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Definition
| Efforts to improve the efficiency of the distribution system, new types of middlemen, and other attempts to change traditional ways are typically viewed as threatening and are thus resisted |
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Term
| Alternative Middleman choices |
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Definition
| A marketers’ options range from assuming the entire distribution activity (by establishing its own subsidiaries and marketing directly to the end user) to depending on intermediaries for distribution of the product |
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Term
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Definition
| Affects the end user after checking out at the store |
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Term
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Definition
| Manufacturer and the pull is the retailer |
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Term
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Definition
| • Merchant middlemen buy low and sell high. An agent works for commission and the buyer and seller work together. Agent middlemen arrange sales in the foreign country but do not take title to the merchandise. Merchant middlemen actually take title to manufacturers’ gods and assume the trading risks, so they tend to be less controllable. Merchant middlemen are criticized for not representing the best interests of the manufacturer. |
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Term
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Definition
| capital or investment cost of developing the channel and the continuing cost of maintaining it |
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Term
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Definition
| financial ramifications. Use of distributers or dealers may lessen the capital investment, but manufacturers often have to provide initial inventories on consignment, loans, floor plans, or other arrangements |
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Term
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Definition
| -The more involved a company is with the distribution, the more control it exerts. As channels grow longer, the ability to control price, volume, promotion, and type of outlets diminishes |
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Term
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Definition
| Another major goal is full-market coverage to gain the optimum volume of sales obtainable in each market, secure a reasonable market share, and attain satisfactory market penetration |
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Term
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Definition
| The channel must fit the character of the company and markets in which it is doing business. |
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Term
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Definition
| Most middlemen have little loyalty to their vendors. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. Channels of distribution often pose longevity problems |
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Term
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Definition
Leaving: Physical Distribution (Shipping/packing)
Entering: Licenses Tariffs/Taxes Documentation Nontariff Barriers |
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Term
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Definition
| • Products exported from the US require a general or a validated export license, depending on the product, where it is going, the end use, and the final user qq |
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Term
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Definition
• Import regulations may be imposed to protect health, conserve foreign exchange, serve as economic reprisals, protect home industry, or provide revenue in the form of tariff
(Tariff, Taxes, Boycott, quota) |
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Term
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Definition
| Each export shipment requires many documents to satisfy government regulations controlling exporting and meet requirements for international commercial payment (COO, Export docs, bill of lading, commercial invoice, insurance policy, licenses export |
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Term
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Definition
- Letters of credit
- Bills of exchange
- Cash in advance
- Open accounts
- Forfeiting |
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Term
| INCOTERMS (terms of sale) |
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Definition
- CIF: Cost Insurance Freight
- C&F: Cost and freight
- FAS: Free along Side ship
- FOB: Free on board
- EX: Named point of origin |
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Term
| Customs-Privileged Facilities |
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Definition
| areas where goods can be imported for storage and processing with tariffs and quota limits postponed until the products leave the designated areas. Foreign trade zones, free ports, and in-bond arrangements are all types of these facilities |
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Term
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Definition
| extend their services to thousands of firms engaged in a spectrum of international trade-related activities ranging from distribution to assembly and manufacturing |
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Term
| Maquiladoras/In-bond/Twin plant |
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Definition
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Term
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Definition
| refers to to the inflow of raw material, parts, and supplies through the firm. |
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Term
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Definition
the movement
of the firm’s finished
products to its
customers, consisting
of transportation, warehousing, inventory, customer service/order entry, and administration. |
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Term
| Regional Variation in costs |
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Definition
| It is more costly abroad to rent and store merchandise. It is cheaper in transportation and inventory costs |
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Term
| Inter-modal Transportation |
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Definition
| the coordinated transport of freight using multiple methods of transportation (air, inland, water, ocean, pipeline, rail, and road) |
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Term
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Definition
| Third Party Logistics: • A relationship between a shipper and third party which, compared with basic services, has more customized offerings, encompasses a broader number of service functions and is characterized by a longer-term, more mutually beneficial relationship (UPS: Process, Store, ship within two hours) |
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Term
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Definition
| the trend toward third-party logistics is a result of the Internet and the Intranet as well as concentrating on core competencies. Continuous innovations in information technology, the Internet, and software programs can minimize much of the burden associated with global marketing |
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Term
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Definition
| cost, insurance, freight: Seller pays freight, insurance to destination or foreign port |
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Term
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Definition
| Cost and Freight, seller is going to pay cost of moving goods to foreign port and freight costs |
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Term
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Definition
| Free alongside ship: seller brings to side of ship but doesn't lad on ship, buyer is responsible for loading, transportation and insurance |
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Term
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Definition
| Free on Board: Most common term, seller is responsible for POO, to move and dock and put on ship, not responible for shipping, freight, and insurance cost |
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Term
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Definition
| Named point of origin: cost at point of origin, when taking out it becomes the buyer’s responsibility, seller is not responsible for moving, docking, or loading on ship. |
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Term
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Definition
Integrated Marketing Communications
- Advertising
- Sales Promotion
- Personal Selling
- Direct Selling
- Public relations |
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Term
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Definition
| marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation |
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Term
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Definition
| creating good relationships with the popular press and other media to help companies communicate messages to their publics—customers, the general public, and governmental regulators |
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Term
| 7 Steps in International Advertising |
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Definition
1. Perform Marketing Research
2. Specify the goals of communication
3. Develop the most effective message for selected market (Hardest task)
4. Select effective Media
5. Compose and Secure a budget
6. Execute the campaign
7. Evaluate the campaign relative to the goals specified |
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Term
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Definition
1. Proctor and gamble
2. General Motors
3. Unilever
4. Ford
5. Toyota Motor |
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Term
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Definition
Same ad, different pictures, different languages, every market has a different use with the product
- U.K: functional, make the meeting and make dinner
- U.S: stop time, then send it; pictures of children
- China: music, instant messaging
- France: file to file sharing
- Japan: face to face communication
- Germany: home office |
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Term
| International Communications Process (7) |
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Definition
1. Information source
2. Encoding
3. Message Channel
4. Decoding
5. Receiver
6. Feedback
7. Noise |
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Term
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Definition
Advertising campaigns must comply with legal regulations around the world.
- Special taxes, restrictions on pharmaceuticals and amount of time on air |
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Term
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Definition
- Simple carelessness
- Multiple meaning words
- Idioms
Most formidable barrier in global marketing |
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Term
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Definition
| • The controversy stems from a lack of understanding of the true essence of communication. Marketers need to focus on how to determine whether concepts for products---not the products themselves---will cross borders |
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Term
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Definition
| international marketing executive with a product message to communicate. |
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Term
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Definition
| The message from the source converted into effective symbolism for transmission to a receiver. Encoding causes problems even with a proper message. Factors as color, timing, values, beliefs, humor, etc. can cause the international marketer to symbolize the message wrong |
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Term
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Definition
| The sales force and/or advertising media that convey the encoded message to the intended receiver. |
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Term
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Definition
| The interpretation by the receiver of the symbolism transmitted from the information source. |
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Term
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Definition
| Consumer action by those who receive the message and are the target for the thought transmitted. |
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Term
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Definition
| Information about the effectiveness of the message that flows from the receiver (the intended target) back to the information source for evaluation of the effectiveness of the process. |
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Term
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Definition
| Uncontrollable and unpredictable influences such as competitive activities and confusion that detract from the process and affect any or all of the other six steps |
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Term
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Definition
The more control a company has over the final selling price of a product, the better it is able to achieve its marketing goals
Price complexity increases with broader product lines and more countries involved |
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Term
| Parallel Imports/Gray Markets |
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Definition
| the sale of imported goods (brought by small import companies not authorized by the manufacturer) which would otherwise be more expensive in the country they are being imported to (DRUGS) |
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Term
| Pricing as Revenue Generator |
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Definition
| Only marketing mix element that generates revenue, all others entail cost |
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Term
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Definition
| Fixed, Variable, Skimming, Penetration |
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Term
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Definition
| no unit of a similar product is different from any other unit in terms of cost, which must bear its full share of the total fixed and variable cost. (Total cost + profit margin) |
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Term
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Definition
| : firms regard foreign sales as bonus sales and assume that any return over their variable cost makes a contribution to net profit (high fixed cost and unused production capacity) |
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Term
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Definition
| This is used to reach a segment of the market that is relatively price insensitive and thus willing to pay a premium price for a product |
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Term
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Definition
| This is used to stimulate market growth and capture market share by deliberately offering products at low prices |
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Term
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Definition
Reasons price goes up when exporting goods
- Tariffs, taxes, middlean, exchange rates, ect |
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Term
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Definition
| causes consumer prices to escalate and the consumer is faced with rising prices that eventually exclude many consumers from the market |
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Term
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Definition
| Price escalation: values swing vis-à-vis other currencies on a daily basis, which may make it necessary to increase prices |
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Term
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Definition
- Classifies international shipments as dumped if the products are sold below their cost of production
- dumping as selling goods in a foreign market below the price of the same goods in the home market |
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Term
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Definition
a pricing tool that every international marketer must be ready to employ
- Bartering
- Compensation Deal (Cash/Goods)
- Counter-purchase (pay for then buy additional goods from the seller
- Buy back: seller agrees to accept partial payment a certain potion of the output) |
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Term
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Definition
- finances company when unable to BUY
- Ease problems of selling new, less risk involved for users
- helps guarantee better maintenance and service
- lease revenue tends to be more stable of a period of time than direct sales |
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Term
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Definition
| Prices of goods transferred from a company’s sales units in one country to its units elsewhere, which refers to intra-company pricing or transfer pricing, may be adjusted to enhance the ultimate profit of the company as a whole |
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Term
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Definition
- Price of AIDS drugs too high for underdeveloped countries to buy
- Agreed to cut prices in underdeveloped countries, not USA
- elements in fight against AIDS: cutting prices, strict schedule, |
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Term
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Definition
- Regional generalizations very often are not correct
-Nonverbal very important |
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Term
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Definition
Japan: Cooperation
Germany: Competitive
Spain: Commands
France: Threats/Warnings
Brazil: second highest in commands |
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Term
| Importance of Face to Face |
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Definition
-Omnipresent activity in international commerce
- Plans made through face to face
- government officials may also be joint venture partners |
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Term
| 4 Problems in Negotiation |
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Definition
| - Language - Nonverbal Behaviors - Values - Thinking/Decision making process |
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Term
| Cooperation/Competitiveness |
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Definition
| America: Emphasis on competition and individualism Mexico/Korea: More competitive than US Americans make unnecessary concessions before japanese agreements |
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Term
| Implications for negotiation teams |
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Definition
1. Select appropriate negotiation team
2. Prelims in training, preparation, and manipulation of negotiation settings
3. process of negotiations and what happens at the negotiation table
4. Appropriate follow-up procedures and practices
LISTENING is most important, executives = influence |
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Term
| Criteria for successful negociations |
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Definition
1. Maturity
2. Emotional Stability
3. Knowledge
4. Optimism
5. Flexibility |
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Term
| Training for Negotiations |
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Definition
1. Language skills
2. Social/Diplomatic Skills
3. Knowledge specific to professions
4. know history and international relations
5. Law |
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Term
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Definition
1. Location
2. Physical Arrangements
3. # of parties
4. # of participants
5. Audience (media, competitors)
6. Communication Channels
7. Time limits |
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Term
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Definition
Different expectations held by each party
-most people have expectations on the correct way to speak
-Higher risk strategies may be used to conclude talks |
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Term
| 4 Stages of negotiation Process |
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Definition
1. Non-task sounding
2. Task related exchange of information
3. Persuasion
4. Concessions/Agreements |
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Term
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Definition
activities that can be described as establishing rapport/getting to know one another
Not info on business
- sports, family, weather
- sizing up the client |
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Term
| Task Related exchange of info |
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Definition
| information relates to the parties’ needs and preferences. It implies a two way communication process |
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Term
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Definition
| Involves the parties’ attempts to modify one another’s needs and preferences through the use of various persuasive tactics (Most important step in US culture) |
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Term
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Definition
| The summation of a series of concessions or smaller agreements to consummate the agreement |
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