Chapter 3 Study Guide Marketing

Global Marketing
External Marketing Environment
International Market (Product, Price, Place, Promotion)
Ex: Coca-Cola [45% Revenue Overseas, 55% Profit
Overseas]
o Pepsi [70% Revenue Overseas, 75% Profit
Overseas]

American-Made looked down upon (Not reliable/ not even

American made most times) Saturn
World Trade Flow of goods & services, money & labor
o Established trade agreements ex: NAFTA Canada, US
& Mexico

Protectionism: Import quotas (how much?) sanctions,

tariffs, non-tariff barriers
Sanctions Cuba & North Korea
GM & Ford are held to higher environmental standards in
Europe
Trade: World Trade Organization (Amount of Tariffs)
Deregulation/Regulation
Economic Issues:
o G8 (US, UK, Canada, France, Italy, Germany, Japan,
Russia)
o Developing Countries (BRIC) (Brazil, India, China,
Russia)
o Least Developed Countries (Mostly African
Countries)
o
Business Cycle (Able to Identify: Prosperity, Recession,
Recovery)
o Industries that benefit from recession (Fast Food,
Public Transport, Education)
Competitive Environment
o Level I: Discretionary Income (Hulu & Amazon Prime
to Netflix)
o Level II: Attempt to satisfy similar needs (Going to
movies, video games, concerts)
o Level III: Offering similar products for price (Gasoline
industry)

Structure
o Monopoly: No competition (Energy companies)
o Oligopoly: Few Sellers (Wireless companies)
o Monopolistic: Many Sellers (Cars)
o Perfect Competition: Many small sellers

Brand Name (prices increase after patent ex: drugs)

Sociocultural Environment: McDonalds introducing salads
between 2005-2008
Cultural Environment (All different, cultural differences,
collectivism vs. individualism [I vs. Me])
o Values
o Norms
o Language
o Ethnocentricity
o Cultural Change