Study Guide

Chapter 1

1. What is global marketing? Why do companies globalize? The importance of going global
2. Product/market growth matrix to explain the various ways a company can expand globally (be able to

categorize examples into different groups)

Market penetration, product development, market development, diversification

3. Principles of Marketing:

• Economies of scale/economies of scope
• Describe and Understand the concept of a Value Chain
• Describe and Understand the concept of Competitive Advantage, Globalization and Global industries
• Global Marketing, what is it and what is it not

4. Standardization versus Adaptation
5. Concept of GDP and GNI/GNP
6. Management Orientation Development of the global marketing concept:
   • EPRG concept (ethnocentric, polycentric, regiocentric, geocentric)
   • Which marketing approach should be used for each of the 4 orientations?
7. Identify forces affecting global integration and global marketing, drivers of global integration (e.g.,

leverage: removal of trade barriers) and restraining forces (e.g. cultural differences, national control)

8. Identify and discuss different ways of internationalizing the value chain

Centralizing upstream functions, decentralizing downstream functions