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World Trade

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The flow of goods and services among different countries - the value of all the exports and imports of the world's nations.

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Countertrade

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A type of trade in which goods are paid for with other items instead of with cash.

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General Agreement on Tariffs and Trade (GATT)

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International treaty to reduce import tax levels and trade restrictions.

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World Trade Organization (WTO)

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An organization that replaced GATT; the WTO sets trade rules for its member nations and mediates disputes between nations.

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Protectionism

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A policy adopted by a government to give domestic companies an advantage.

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Import quotas

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Limitations set by a government on the amount of a product allowed to enter or leave a country.

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Embargo

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a quota completely prohibiting specified goods from entering or leaning a country.

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Tariffs

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Taxes on imported goods.

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Economic Communities

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Groups of countries that band together to promote trade among themselves and to make it easier for member nations to compete elsewhere.

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Gross Domestic Product (GDP)

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The total dollar value of goods and service produced by a nation within its borders in a year.

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Foreign Exchange Rate (Forex Rate)

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The price of a nation's currency in terms of another currency.

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Economic Infrastructure

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The quality of a country's distribution, financial, and communications systems.

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Level of Economic Development

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The broader economic picture of a country.

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Standard of Living

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An indicator of the average quality and quantity of goods and services consumed in a country.

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Least Developed Country (LDC)

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A country at the lowest stage of economic development.

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Developing Countries

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Countries in which the ceremony is shifting its emphasis from agriculture to industry.

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Bottom of the Pyramid (BOP)

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The collective name for the group of consumers throughout the world who live on less than $2 a day.

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Sachet

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Affordable one-use packages of cleaning products, fabrics softeners, shampoo, etc., for sale to consumers in least developed and developing countries.

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BRIC Countries

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Refers to Brazil, Russia, India, and China, the largest and fastest growing of the developing countries with over 40% of the world's population.

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Developed Countries

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A country that boasts sophisticated marketing systems, strong private enterprise, and bountiful market potiential for many goods and services.

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Group of 8 (G8)

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An informal forum of the eight most economically developed countries that meets annually to discuss major economic and political issues facing the international community.

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Business Cycle

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The overall patterns of change in the economy - including periods of prosperity, recession, depression, and recovery - that affect consumer and business purchasing power.

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Competitive Intelligence (CI)

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The process of gathering and analyzing publicly available information about rivals.

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Discretionary Income

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The portion of income people have left over after paying for necessities such as housing, utilities, food, and clothing.

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Product Competition

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When firms offering different products compete to satisfy the same consumer needs and wants.

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Brand Competition

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When firms offering similar goods or services compete on the basis of their brand's reputation or perceived benefits.

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Monopoly

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A market situation in which one firm, the only supplier of a particular product, is able to control the price, quality, and supply of that product.

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Oligoploy

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A market structure in which a relatively small number of sellers, each holding a substantial share of the market, compete in a market with many buyers.

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Monopolistic competition

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A market structure in which many firms, each having slightly different products, offer unique consumer benefits.

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Perfect Competition

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A market structure in which many small sellers, all of whom offer similar products, are unable to have an impact on the quality, price, or supply of a product.

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Radio Frequency Identification (RFID)

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RFID chips are electronic tags or labels that can be embedded within packages or items and are used to identify items even when hidden in the back of a stockroom or high on a shelf.

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Patent

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A legal mechanism to prevent competitors from producing or selling an invention, aimed at reducing or eliminating competition in a market for a period of time.

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Nationalization

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When a domestic government reimburses a foreign company (often not for full value) for its assets after taking it over.

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Expropriation

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When a domestic government seizes a foreign company's assets without any reimbursement

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Local Content Rules

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A form of protectionism stipulating that a certain proportion of a product must consist or components supplied by industries in the host country or economic community.

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U.S. Generalized System of Preferences (GSP)

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A program to promote economic growth in developing countries by allowing duty-free entry of goods into the U.S.

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Demographics

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Statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income, education, occupation, and family structure.

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Cultural Values

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A society's deeply held beliefs about right and wrong ways to live.

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Collectivist Cultures

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Cultures in which people subordinate their personal goals to those of a stable community.

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Individualist Cultures

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Cultures in which people tend to attach more importance to personal goals than to those of the larger community.

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Social Norms

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Specific rules dictating what is right or wrong, acceptable or unacceptable.

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Consumer Ethnocentrism

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Consumers' feeling that products from their own country are superior or that it is wrong to buy products produced in another country.

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Utilitarian Approach

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Ethical philosophy that advocates a decision that provides the most good or the least harm.

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Rights Approach

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Ethical philosophy that advocates the decision that does the best job of protecting the moral rights of all.

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Fairness or Justice Approach

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Ethical philosophy that advocates the decision that treats all human beings equally.

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Common Good Approach

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Ethical philosophy that advocates the decision that contributes to the good of all in the community.

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Virtue Approach

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Ethical philosophy that advocates the decision that is in agreement with certain ideal values.

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Ethical Relativism

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Suggests that what is ethical in one culture is not necessarily the same as in another culture.

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Business Ethics

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Basic values that guide a firm's behavior.

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Code of Ethics

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Written standards of behavior to which everyone in the organization must subscribe.

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Bribery

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When someone voluntarily offers payment to get an illegal advantage.

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Extortion

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When someone in authority extracts payment under duress.

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Green customers

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Those consumers who are most likely to actively look for and buy products that are eco-friendly.

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Fair Trade

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Companies that pledge to pay a fair price to producers in developing countries to ensure that the workers who produce the goods receive a fair wage, and to ensure that these manufacturers rely where possible on environmentally sustainable production practices.

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Locavorism

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The situation when many shoppers actively look for products that come from farms within 50 to 100 miles of where they live.

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Sustainability Metrics

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Tools that measure the benefits an organization achieves through the implementation of sustainability.

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Market research ethics

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Taking an ethical and aboveboard approach to conducting market research that does no harm to the participant in the process of conducting the research.

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Database

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An organized collection (often electronic) of data that can be searched and queried to provide information about contacts, products, customers, inventory, and more.

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Marketing information system (MIS)

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A process that first determines what information marketing managers need and then gathers, sorts, analyzes, stores, and distributes relevant and timely marketing information to system users.

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Intranet

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An internal corporate communication network that uses internet technology to link company departments, employees, and database.

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Market intelligence system

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A method by which marketers get information about everyday happenings in the marketing environment.

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Reverse engineering

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The process of physically deconstructing a competitor's product to determine how it's put together.

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Market Research

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The process of collecting, analyzing, and interpreting data about customers, competitors, and the business environment in order to improve marketing effectiveness.

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Syndicated Research

answer

Research by firms that collect data on a regular basis and sell the reports to multiple firms.

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Custom Research

answer

Research conducted for a single firm to provide specific information its managers need.

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Marketing Decision Support System (MDSS)

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The data, analysis software that allow managers to conduct analyses and find the information they need.

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Data

answer

Raw, unorganized facts that need to be processed.

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Information

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Interpreted data.

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Customer Insights

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The collection, deployment, and interpretation of information that allows a business to acquire, develop, and retain their customers.

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Research Design

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A plan that specifies what information marketers will collect and what type of study they will do.

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Secondary Data

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Data that have been collected for some purpose other than the problem at hand.

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Primary Data

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Data from research conducted to help make a specific decision.

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Exploratory Research

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A technique that marketers use to generate insight's for future, more rigorous studies.

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Focus Group

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A product-oriented discussion among a small group of consumers led by a trained moderator.

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Case Study

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A comprehensive examination of a particular firm or organization.

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Ethnography

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An approach to research based on observations of people in their own homes or communities.

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Descriptive Research

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A tool that probes more systematically into the problem and bases its conclusions on large numbers of observations.

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Cross-sectional Design

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A type of descriptive technique that involves the systematic collection of quantitative information.

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Longitudinal Design

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A technique that tracks the responses of the same sample of respondents over time.

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Causal Research

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A technique that attempts to understand cause-and-effect relationships.

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Experiments

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A technique that tests predicted relationships among variables in a controlled environment.

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Neuromarketing

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A type of brain research that uses technologies such as functional magnetic resonance imaging (fMRI) to measure brain activity to better understand why consumers make the decisions they do.

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Telemarketin

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The use of the telephone to sell directly to consumers and business customers.

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Mall intercept

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A study in which researchers recruit shoppers in malls or other public areas.

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Unobtrusive Measures

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Measuring traces of physical evidence that remain after some action has been taken.

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Cookies

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Text files inserted by a website sponsor into a Web surfer's hard drive that allows the site to track the surfer's moves.

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Predictive Technology

answer

Analysis techniques that use shopping patterns of large numbers of people to determine which products are likely to be purchased if others are.

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Bounce Rate

answer

A marketing metric for analyzing website traffic. It represents the percentage of visitors who enter the site (typically at the home page) and "bounce" (leave the site) rather than continue viewing other pages within the same overall site.

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Validity

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The extent to which research actually measures what it was intended to measure.

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Reliability

answer

The extent to which research measurement techniques are free of errors.

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Representativeness

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The extent to which consumers in a study are similar to a larger group in which the organization has an interest.

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Sampling

answer

The process of selecting respondents for a study.

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Probability Sample

answer

A sample in which each member of the population has some known chance of being included.

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Non-probability Sample

answer

A sample in which personal judgment is used to select respondents.

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Convenience sample

answer

A non-probability sample composed of individuals who just happen to be available when and where the data are being collected.

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Back-Translation

answer

The process of translating material to a foreign language and then back to the original language.

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Customer Relationship Management (CRM)

answer

A systematic tracking of consumers' preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual's unique wants and needs.

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One-to-One Marketing

answer

Facilitated by CRM, one-to-one marketing allows for customization of some aspect of the goods or services that are offered to each customer.

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Touchpoint

answer

Any point of direction interface between customers and a company (online, by phone, or in person).

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Share of Customer

answer

The percentage of an individual customer's purchase of a product that is a single brand.

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Customer Equity

answer

The financial value of a customer throughout the lifetime of the relationship.

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Big Data

answer

A popular term to describe the exponential growth of data - both structured and unstructured - in massive amounts that are hard or impossible to process using traditional database techniques.

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Internet of Things

answer

Describes a system in which everyday objects are connected to the Internet and in turn able to communicate information throughout an interconnected system.

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Web Scraping

answer

The process of using computer software to extract large amount of data from websites.

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Sentiment Analysis

answer

The process of identifying a follower's attitude toward a brand assessing the context or emotion of her comments.

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Scanner Data

answer

Data derived from items that are scanned at the cash register when you check out with your loyalty card.

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Information Overload

answer

A state in which the marketer is buried in so much data that it becomes nearly paralyzing to decide which of the data proved useful information and which do not.

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Data Mining

answer

Sophisticated analysis techniques to take advantage of the massive amount of transaction information now available.

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Data Warehouse

answer

A system to store and process the data that result from data mining.

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Reality Mining

answer

The collection and analysis of machine-sensed environmental data pertaining to human social behavior with the goal of identifying predictable patterns of behavior.

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Data Brokers

answer

Companies that collect and sell personal information about consumers.

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Structured Data

answer

Data that (1) are typically numeric or categorical; (2) can be organized and formatted in a way that is easy for computers to read, organize, and understand; and (3) can be inserted into a database in a seamless fashion.

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Unstructured Data

answer

Nonnumeric information that is typically formatted in a way that is meant for human eyes and not easily understood by computers.

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Data Scientist

answer

An individual who searches through multiple, disparate data sources in order to discover hidden insights that will provide a competitive advantage.

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Marketing Analytics

answer

A group of technologies and processes that enable marketers to collect, measure, analyze, and asses the effectiveness of marketing efforts.

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Cost-Per-Click

answer

An online ad purchase in which the cost of the advertisement is charged only each time an individual clicks on the advertisement and is directed to the Web page that the marketer placed within the advertisement.

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Cost-Per-Impression

answer

An online ad purchase in which the cost of the advertisement is charged each time the advertisement shows up on a page that the user views.

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Search Engine Optimization (SEO)

answer

A systematic process of ensuring that your firm comes up at or near the top of lists of typical search phrases related to your business.

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Predictive Analytics

answer

Uses large quantities of data within variables that have identified relationships to more accurately predict specific future outcomes.

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Marketing Metrics

answer

Specific measures that help marketers watch the performance of their marketing campaigns, initiatives, and channels and, when appropriate, serve as a control mechanism.

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Bitcoin

answer

The most popular and fastest-growing digital currency.

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Price

answer

The assignment of value, or the amount the consumer must exchange to receive the offering.

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Market Share

answer

The percentage of a market (defined in terms of either sales units or revenue) accounted for by a specific firm, product lines, or brands.

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Prestige Products

answer

Products that have a high price and that appeal to status-conscious consumers.

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Price Elasticity of Demand

answer

The percentage change in unit sales that results from a percentage change in price.

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Elastic Demand

answer

Demand in which changes in price have large effects on the amount demanded.

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Inelastic Demand

answer

Demand in which changes in price have little or no effect on the amount demanded.

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Cross-Elasticity of Demand

answer

When changes in the price of one product affect the demand for another item.

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Variable Costs

answer

The costs of production (raw and processed materials, parts, and labor) that are tied to and vary, depending on the number of units produced.

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Fixed Costs

answer

Costs of production that do not change with the number of units produced.

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Average Fixed Cost

answer

The fixed cost per unit produced.

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Break-Even Analysis

answer

A method for determining the number of units that a firm must produce and sell at a given price to cover all its costs.

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Break-Even Point

answer

The point at which the total revenue and total costs are equal and beyond which the company makes a profit, below that point, the firm will suffer a loss.

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Contribution per Unit

answer

The difference between the price the firm charges for a product and the variable costs.

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Markup

answer

An amount added to the cost of a product to create the price at which a channel member will see the product.

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Gross Margin

answer

The markup amount added to the cost of a product to cover the fixed costs of the retailer or wholesaler and leave an amount for a profit.

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Retailer Margin

answer

The margin added to the cost of a product by a retailer.

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Wholesaler Margin

answer

The amount added to the cost of a product by a wholesaler.

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List Price or Manufacturer's Suggested Retail Price (MSRP)

answer

The pice that the manufacturer sets as the appropriate price for the end consumer to pay.

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Cost-Plus Pricing

answer

A method of setting prices in which the seller totals all the costs for the product and then adds an amount to arrive at the selling price.

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Demand-Based Pricing

answer

A price-setting method based on estimates of demand at different prices.

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Target Costing

answer

A process in which firms identify the quality and functionality needed to satisfy customers and what price they are willing to pay before the product is designed; the product is manufactured only if the firm can control costs to meet the required price.

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Yield Management Pricing

answer

A practice of charging different prices to different customers in order to manage capacity while maximizing revenues.

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Price Leadership

answer

A pricing strategy in which one firm first sets its price and other firms in the industry follow with the same or very similar prices.

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Value Pricing or Everyday Low Pricing (EDLP)

answer

A pricing strategy in which a firm sets prices that provide ultimate value to customers.

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Skimming Price

answer

A very high, premium price that a firm charges for its new, highly desirable product.

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Penetration Pricing

answer

A pricing strategy in which a firm introduces new product at a very low price to encourage more customers to purchase it.

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Trial Pricing

answer

Pricing a new product low for a limited period of time in order to lower the risk for a customer.

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Price Bundling

answer

Selling two or more goods or services as a single package for one price.

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Captive Pricing

answer

A pricing tactic for two items that must be used together; one item is priced very low, and the firm makes its profit on another, high-margin item essential to the operation of the first item.

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F.O.B. Origin Pricing

answer

A pricing tactic in which the cost of transporting the product from the factory to the customer's location is the responsibility of the customer.

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F.O.B. Delivered Pricing

answer

A pricing tactic in which the cost of loading and transporting the product to the customer is included in the selling price and is paid by the manufacturer.

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Uniform Delivered Pricing

answer

A pricing tactic in which a firm adds a standard shipping charge to the price for all customers regardless of location.

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Freight Absoprtion Pricing

answer

A pricing tactic in which the seller absorbs the total cost of transportation.

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Trade Discounts

answer

Discounts off list price of products to members of the channel of distribution who perform various marketing functions.

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Quantity Discounts

answer

A pricing tactic of charging reduced prices for purchases of larger quantities of a product.

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Cash Discounts

answer

A discount offered to a customer to entice them to pay their bill quickly.

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Seasonal Discounts

answer

Price reductions offered only during certain times of the year.

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Internal Reference Price

answer

A set price or a price range in consumers' minds that they refer to in evaluating a product's price.

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Price Lining

answer

The practice of setting a limited number of different specific prices, called price points, for items in a product line.

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Bait-and-Switch

answer

An illegal marketing practice in which an advertised price special is used as bait to get customers into the store with the intention of switching them to a higher-price item.

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Loss-Leader Pricing

answer

The pricing policy of setting prices very low or even below cost to attract customers into a store.

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Unfair Sales Acts

answer

State laws that prohibit suppliers from selling products below cost to protect small businesses from larger competitors.

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Price Fixing

answer

The collaboration of two or more items in setting prices, usually to keep prices high.

question

Surge Pricing

answer

A pricing strategy in which the price of a product is raised as demand for that product goes up and lowered as demand goes down.

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Predatory Pricing

answer

An illegal pricing strategy in which a company sets a very low price for the purpose of driving competitors out of business.

question

What is the Corporate Responsibility Pyramid?

answer

Bottom of Pyramid: Economic Responsibility Second Layer: Legal Responsibility Third Layer: Ethical Responsibility Top of Pyramid: Philanthropic Responsibility

question

What are the 7 Marketing Problems? (Numbers with the * beside them will be focused on more than the others)

answer

*1. Effectively targeting high value sources of growth *2. The role of Marketing in the firm and the C-suite 3. The digital transformation of the modern corporation 4. Generating and Using Insight to Shape Marketing Practice *5. Dealing with an Omni-Channel World 6. Competing in Dynamic, Global Markets *7. Balancing Incremental and Radical Innovation

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