Glossary Chapter 13 break-even analysis identifies the point where total revenue and total costs are equal and beyond which profit will occur. channel length describes the number of intermediaries between a manufacturer and the final consumer. communication strategy the type of strategy that chooses suitable communication objectives; identifies brand awareness and brands attitude strategies that are in harmony with marketplace consumer behaviours. compound tariff a combination of both a specific and an ad valorem tax being levied. concentrated when a few retailers supply most of the market. convergence marketing the process where customers collaborate with their suppliers to tailor a product or service that better meets the needs of the customer. cross-cultural marketing the process of marketing among consumers whose culture differs from that of the marketer’s own in at least one fundamental cultural aspect. distribution channels essential links, either direct or indirect, that connect the firm with its customers. elastic occurs when a small change in price produces a large change in demand. fragmented where there are many retailers and no particular market leader. Guoqin refers to the special situation or character of China. inelastic when a large change in price produces only a small change in demand. marginal analysis the analysis that is central to the concept of maximizing profit in an international environment where the revenue received from the sale of an additional product (marginal revenue} is greater than the additional cost of production, and in selling that product (marginal cost), the firm should continue to expend its resources to expand output. multipoint pricing arises when the firm’s pricing strategy in one shared market may have an impact on a competitor’s pricing strategy in another shared market. narrow distribution channel width indicates there are few options available to move product from the manufacturer to the consumer or that it is difficult for outsiders to access the channel. predatory pricing the use of price as a competitive weapon to force weaker competitors, generally in the host country, out of the market. price elasticity of demand a measurement of how the marketplace will respond to changes in price. pull strategy requires the customer to demand that the product be available in the marketplace. push strategy centres on personal selling rather than mass media advertising. segmentation involves subdividing markets/channels/customers into groups with different needs, and delivering tailored products or services that meet those needs as precisely as possible. wide distribution channel occurs when there are many options to move the goods from the manufacturer to the ultimate consumer and barriers to entering the channel are few. world price strategy involves selling the firm’s products at the same price everywhere in the world.