Test 1: Chapters 1, 2, 3, 4, 5, 6, 7, 8, 14Chapter 1: The Global Marketing Manager I. Global marketing and domestic marketing− Marketing – the collection of activities undertaken by a firm to assess and satisfy customer needs, wants, and desire. o Includes for-profit and not-for-profit organizations. − Marketing management – the planning and coordinating of activities to achieve a successfully integrated marketing program. o To become successful, a firm needs to: identify its customers, develop satisfying products, set reasonable prices, distribute the products, inform the market, guarantee satisfaction, and monitor competitors. − International marketing – the act of marketing across borders including marketing between countries as well as within each country.II. International marketing: a closer look1) Identifying and global consumer needs- Carrying out international marketing research and analyzing market segments- Seeking to understand similarities and differences in customer group across countries.2) Satisfying customer needs- Adapting manufactured goods, services, and elements of the marketing mix to satisfy different customerneeds across countries and regions.- Included in manufacturing and technology decisions are the implications of costs and prices, development of global customer information databases, and distribution channel and logistics info.− Point of sale (POS) – the location at which a transaction occurs between buyer and seller. 3) Being better than the competition- Assessing, monitoring, and responding to global competition by offering better value and developing superior brand image and product positioning- Broader product range, low price, high quality, good performance, superior distribution, advertising, andservice.- Recognizing that competitors may include state-owned enterprises, other multinationals, and domestic firms each having different goals, such as market share instead of profits.4) Coordinating marketing activities- Coordinating and integrating marketing strategies and implementing them across countries, regions, andthe global market, which involves centralization, delegation, standardization, and local responsiveness.5) Recognizing the constraints of the global environment- Includes:o Complex variation due to governmental, protectionist, and industrial policies.o Cultural and economic differenceso Differences in marketing infrastructureo Financial constraints due to exchange-rate variation and differences in inflation rates.− Global environment – a business environment in which business transactions take place between and within different country environment. o Three ways: economic, political/legal, and cultural.o PETE: Political, economic, technological, environmental (being cultural and ecological).III. International marketing management- The complexity of international marketing is due largely to 2 factors:o The global completion and the global environment.− 4P’s of marketing – the key aspects of any marketing program: product, price, place (distribution), and promotion. Also, profitability. These are the controllable elements.o The uncontrollable elements include the legal, cultural, economic, technological, and competitive env.− Foreign marketing – marketing within foreign countries.− Global marketing – coordinating marketing in multiple markets in the face of global competition.IV. The global marketplace Eurodisney Disney Japan Maui Jim sunglasses Marketing/selling in Russia (Ben & Jerry)V. Trends in international marketplace The role of emerging (and emerged) economies as both consumer and competitor has increased. The service sector shows continues growth and strength Franchising offers growth opportunities Ongoing change and increasing risk are the new normal Increasing economic integration and cooperation between countries mean opportunity and risk The global financial crisis of 2008-2009 has undermined any growing support for globalization Small can be big New communication technologies and social media are important influencesProduct life cycles are shortening Import and export regulations are increasingChapter 2: The Global Economic EnvironmentI. Challenging differences in the global economic environment International trade theory Balance of payments Government policy and trade Institutions in the world economy Regional economic integrationII. International trade theory- Nations trade for economic, political, and cultural reasons; the biggest focus is ECONOMIC because of the difference in price. - Autarky – self-sufficiency – in the context, in a country’s production of goods and services. It is like verticalintegration for firms. o Most nations decide against complete self-sufficiency so they can buy cheaper goods from other countries.  Absolute advantage- Absolute advantage – a country’s ability to produce a good at a lower cost, in terms of real resources, than another country. Comparative advantage- Prices differ between countries because countries producing the goods have different costs. Also different goods require a different mix of factors in their production and countries differ in their supply of these factors. - Comparative advantage – a country’s ability to produce a good at a lower cost, relative to other goods, compared to another country, a country tends to product and export those goods in which it has the greatest comparative advantage and import those goods in which is has the least comparative advantage.o Nations maximize their supply of goods by concentrating production where it is most efficient and trading some of those products for imported products where production is least efficient.  Ex: Portugal and England trading wine for manufacture.  Product life cycle of global trade- Product life cycle – when referring to international trade and product patterns, a trade cycle that many markets go through wherein one nation is initially an exporter, then loses its export markets, and finally may become an importer of the product.o this theory is helpful to figure out when a company should consider overseas manufacturing, especially as the product matures, and includes 4 phases:1) The US exports the product after filling home-market needs, it starts to export the new product, seizing its first-mover advantage.2) Foreign production (other country’s domestic) starts Importing countries become