Bronis Verhage
ISBN: 9789001818661
http://www.marketingfundamentals.noordhoff.nl
© 2016 Noordhoff Uitgevers bv
GLOSSARY
Chapter15 Global marketing
International marketing Marketing activities directed at customers outside of the
domestic market, while the firm primarily focuses on the domestic market.
Multinational marketing Conducting marketing activities in foreign markets – that
account for more than half of sales and profits – by a multinational company that
views the world as a set of unique countries and markets in each one as a local marketoriented firm would.
Global marketing Strategy by a global company that views the entire world as its
market, focuses on similarities instead of differences between markets, and tries to
market each product in the same way – with minimal modifications – in all foreign
markets. Global marketing may also refer to developing marketing activities around
the globe, or to the coordination of marketing activities in various foreign markets.
Global brand A brand that is marketed in several countries under the same name and
with similar, centrally coordinated marketing strategies.
Gross domestic product The market value of all products that a nation produces
(GDP).
Counterfeiting Copying, imitating or falsifying something in order to defraud or
deceive people (Forging).
World Trade Organization International agency that promotes and regulates trade
between member countries, oversees global trade agreements and resolves conflicts
when they occur (WTO).
Intellectual property rights Legal agreement that gives the holder or creator exclusive
rights and protection of e.g. copyrights or patents, and helps prevent pirated versions
of software, books and music being sold in other countries
Political stability The extent to which a country’s government is expected to remain
strong and unchallenged, ensuring an orderly succession of political power.
Protectionism A policy of legal controls protecting domestic companies from foreign
competition in order to help domestic firms, save jobs, promote national industrial
development and limit economic dependency on other countries .
Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e
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Bronis Verhage
http://www.marketingfundamentals.noordhoff.nl
ISBN: 9789001818661
© 2016 Noordhoff Uitgevers bv
Tariff A tax on specific products entering a country, which raises their price and
stimulates the purchase of – less expensive – domestic products (import tariff, duty).
Quota A limit on the quantity of a particular product that a country will import per
year.
Embargo A government’s suspension of trade in a particular product or with a certain
country for economic, political, or health reasons.
Cross-cultural consumer analysis Analysis to get insight into the social values,
customs, cultural symbols and use of language in different societies.
Customs Traditional activities or practices that determine what people in a society
consider normal and how they are supposed to act.
Back translation The process of – after translating a document into a foreign language
– having it translated back by another bilingual person into the original language,
enabling a comparison of the two versions for errors.
Self-reference criterion Subconscious reference to your own (home country) cultural
values and experiences, when evaluating an issue.
Ethnocentric orientation The belief that the home country’s approach to business is
superior, and – as a subconscious bias – should be replicated abroad.
Geocentric orientation Management perspective that there are similarities and
differences in the world that should be respected in strategy development, and that no
country is superior or inferior to another.
Exporting Manufacturing products in one country and selling them in another.
Indirect exporting A type of exporting in which a company does not deal directly with
foreign buyers, but works with an independent intermediary such as an export agent.
Export agent Intermediary that brings together sellers and buyers from different
countries and gets a commission for arranging sales.
Export merchant Intermediary that buys – and takes title to – products from different
suppliers and then sells them abroad.
Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e
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Bronis Verhage
http://www.marketingfundamentals.noordhoff.nl
ISBN: 9789001818661
© 2016 Noordhoff Uitgevers bv
Export management company Independent firm, offering services that an in-house
export department would, such as providing information, management expertise,
financing, and transportation (EMC).
Trading company Marketing intermediary that takes title to products, exports,
imports or produces them, invests, and countertrades.
Countertrade Arrangement of the sale of a product in combination with an offsetting
transaction, in which a company sells product A to a foreign customer and agrees to
buy a certain amount or quantity of product B from another company in the same
country, often with some money or credit involved in the deal.
Direct exporting Export strategy in which a producer performs all of the export
functions, such as marketing research, contacting local distributors, preparing export
documentation and setting prices.
Licensing Agreement in which the (international) company gives another firm (the
licensee) the right to produce and market its products in return for a fee or royalties.
Expropriation Government take-over of a company’s operations, usually without any
compensation to the owners.
Contract manufacturing Joint venture in which a company contracts with a foreign
firm to manufacture a product that it wants to market under its own brand name
Outsourcing Controversial strategy in which a company contracts manufacturing or
another activity, such as providing customer-service help lines, in nations with less
expensive supplies and labor.
Management contracting Form of licensing management and organizational expertise
in the form of services, such as in the hospitality industry.
Joint venture Alliance in which a company entering a new market pools its resources
with those of a local firm to form a new, separate firm in which they share ownership,
risks, control and profits.
Direct investment Entry strategy in which a company makes a large – and sometimes
risky – investment in a foreign firm, total ownership of a subsidiary or of production
and marketing facilities.
Ma rk eti n g Fu n da m e n tal s, An In t e rn ati o n al P e r sp e ctiv e
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Bronis Verhage
http://www.marketingfundamentals.noordhoff.nl
ISBN: 9789001818661
© 2016 Noordhoff Uitgevers bv
Customization Tailoring the company’s marketing activities to each local market
(Adaptation).
Standardized marketing strategy Strategy in which the company uses a common
marketing plan for all countries in which it operates, and implements it with minimal
modifications in each market (Global marketing).
Differentiated international marketing strategy A multinational approach in which a
company’s marketing mixes are tailored to the local conditions in each country it
enters.
Global localization Finding a balance between standardization and adaptation by
thinking globally (providing global strategic direction by exploiting good strategies on a
wider regional basis) but acting locally (adapting the strategy to local markets) (Glocal
marketing strategy, glocalization).
Straight extension Makes the same product and marketing it with about the same
message in the domestic market and abroad.
Product adaptation Modifying a product or service to meet foreign (language)
requirements, laws, consumer needs and preferences, without changing the promotion
strategy.
Product invention Creating a completely new product (or drastically changing an
existing one) for a foreign market to take advantage of a marketing opportunity.
Promotion adaptation International marketing strategy in which the basic product
remains the same, while the promotion campaign is emphasis is changed.
Dual adaptation International marketing strategy in which a company modifies both
its product and promotion strategies to meet international needs.
Price escalation A substantial increase in prices of products offered in foreign markets
due to a cost-plus approach involving costs such as shipping, tariffs, exporter and
importer margins.
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