Title: 7 Key Terms
Course: Principles of Marketing > Section: Chapter 7

Key Terms

adapted global marketing strategy

a strategy in which a company utilizes different marketing strategies in different global markets

business landscape

everything internal and external to the business, its industry, and its environment

consumer income

the amount of money a household or individual earns

cultural sensitivity

awareness and appreciation of and the ability to adapt to a cultural, ethnic, racial, or another group other than one’s own

cultural symbols

physical representations of a culture’s language, values, and traditions

cultural values

unspoken aesthetics, socialization, and religious aspects woven throughout a culture

customs

mannerisms or behaviors that are considered characteristics within a social system

discretionary income

the money individuals and households are left with after paying taxes and other living expenses, such as food and shelter

disposable income

the money individuals and households are left with after paying taxes

dumping

the practice in which a company manufactures a very large of number of goods and exports them to a foreign market to see cheaply

economic infrastructure

the physical facilities of an economy that benefit product and distribution

embargoes

trading bans on a product with a specific country; imposed between countries that have different political ideologies

ethnocentrism

an assumption that the business landscape or culture of an international market is the same as the home country or personal culture

exchange rate

the rate at which one country’s currency can be exchanged for that of another country

exporting

when a firm makes a product or service in one country and sells it in others

foreign direct investment (FDI)

the process of establishing operations within a foreign country

franchising

a business strategy in which the owner (the franchisor) allows another person or entity (the franchisee) to operate a business using the franchisor’s products, branding, and knowledge in exchange for a fee

global market opportunities

conditions that are favorable for a company to expand into the global marketplace

international firm

a company that operates on a global level regardless of intensity of involvement

joint venture

a business arrangement whereby two or more companies create a single enterprise or project

licensing

a contract in which one organization permits another to use its name brand or trademark on its own items

lifestyle

the way a person or group lives

outsourcing

the process of moving some of a business’s operations to a foreign country for the purpose of saving money and time or to increase volume and quality

product adaptation

when companies modify products to align with the local culture

product invention

when companies create entirely new products for a global market

purchasing power

the goods that can be purchased with one unit of currency

quotas

maximum allowable units (usually in currency) to be imported into or exported out of a specific country

risk

any situation or condition that leads a company to decreased profits or even failure

sociocultural factors

values, behaviors, culture, lifestyle, and language that shape a person’s or group’s way of living

standardized global marketing strategy

a strategy in which a company uses the same marketing strategy in all markets

stereotypes

oversimplified images, perceptions, or ideas of a person or group

straight product extension

a strategy that entails maintaining the same product for both the home and foreign markets

strategic alliance

when two companies from different countries agree to invest resources in a mutually beneficial way

tariffs

taxes that governments impose on imports into the country

trade blocs

intergovernmental agreements that remove barriers to trade within regions of the world

transnational firm

a company that allows for a higher degree of localization

whole channel

the design of the international channels that incorporates all members, including the manufacturing, retailer, and wholesaler sites as well as transportation